Slide 1: 2023 Third Quarter Results
2023 Third Quarter Results November 1, 2023 NYSE/TSX:SII
Slide 2: Forward-looking Statements
Forward-looking Statements Certain statements in this presentation or the accompanying oral remarks contain forward-looking information and forward-looking statements (collectively referred to herein as the "Forward-Looking Statements") within the meaning of applicable Canadian and U.S. securities l
Slide 3: Speakers
Speakers Whitney George, CEO, Sprott Inc. Kevin Hibbert, CFO, Sprott Inc. John Ciampaglia, CEO, Sprott Asset Management Sprott Inc. | 3
Slide 4: Q3 2023 and YTD Highlights
Q3 2023 and YTD Highlights • Assets Under Management continued to increase to $25.4B • Reported positive net sales despite challenging market conditions • Energy transition assets now account for ~25% of consolidated AUM • Completed divestitures of non-core businesses with exit from Korea o Reduced
Slide 5: Historical AUM summary
Historical AUM summary In billions $ Exchange listed products account for 80% of total AUM and is broken down as follows: - 25% of consolidated AUM Sprott Inc. | 5
Slide 6: Earnings results – 3 and 9 months ended
Earnings results – 3 and 9 months ended (1) EBITDA is a non-IFRS measure. See slide 2 and 19. Includes corporate costs, non-reportable segment profit (loss), consolidation and elimination entries. Please see Note 11 of the financial statements 6
Slide 7: Balance sheet strength
Balance sheet strength Our financial flexibility is strong as represented in the below net investable cash and liquid co-investments analysis (1) (2) NB 1: Access to a $75 million revolving credit facility NB 2: Conservatively leveraged at an 8% debt-to-capital ratio (1) Liquid co-investments repres
Slide 8: Evolution of Exchange Listed Products Suite
Evolution of Exchange Listed Products Suite • Expansion and diversification of our product suite by category and geography is translating into strong AUM growth • 6 funds listed in Canada and the U.S. to 16 in Canada, US, UK and Europe • New energy transition equity categories; lithium, copper, nick
Slide 9: The World Leader in Uranium Investing
The World Leader in Uranium Investing $6.38B $2.65B AUM AUM Growth YTD of 71% Fund January 1, 2023 October 25, 2023 Sprott Physical Uranium Miners Trust (SPUT) $2,875MM $4,631MM Sprott Uranium Miners ETF (URNM) $826MM $1,431MM Sprott Uranium Miners UCITS ETF (URNM) $30MM $155MM Sprott Junior Uranium
Slide 10: Market Share of Physical Uranium Vehicles
Market Share of Physical Uranium Vehicles Sprott Physical Uranium Trust since inception (July 2021) o Market capitalization share of AUM has increased from 54% to 77% o Market share of cumulative dollar flows 86% Market capitalization share of AUM (%) Market share of Flows (%) 14% 23% 77% 86% SPUT O
Slide 11: Market Share of US & European Uranium Miners ETFs
Market Share of US & European Uranium Miners ETFs • Concerted effort to establish Sprott as the leader in uranium investing o April 2022 - Acquired NorthShore Global Uranium Mining ETF (URNM) o May 2022 - Launched Sprott Uranium Miners UCITS ETF (URNM) in UK/Europe o February 2023 - Launched Sprott
Slide 12: Exchange Listed Products: Physical Trusts
Exchange Listed Products: Physical Trusts • Softer precious metals prices impacted sales of gold and silver funds in Q3 • SPUT was quiet in July/August before issuing $72MM via ATM in September Physical Trust Sales (in millions $) 1,338 1,187 1,219 890 630 645 593 474 478 201 201 113 128 149 (1) 61
Slide 13: ETF Product Suite: Flows
ETF Product Suite: Flows • Strong performance in physical uranium attracting investor interest in the miners ETF Flows (in millions $) 154 135 145 125 105 85 65 52 45 24 25 5 (5) (1) 5 (15) Apr-23 May-23 Jun-23 Jul-23 Aug-23 Sep-23 Oct-23 SGDJ SGDM SETM SETM UCITS LITP URNM URNM UCITS URNJ COPJ NIKL
Slide 14: Private Strategies
Private Strategies • Combined Lending and Streaming and Royalty Strategies AUM of $2.6B as of September 30, 2023 • Streaming and Royalty team closed Annex Fund during Q3 o With the close of the Annex Fund, total Sprott Streaming and Royalty AUM stands at $1.1B Sprott Inc. | 14
Slide 15: Summary
Summary • Sprott is continuing to grow in a challenging investment environment o AUM, net income and adjusted base EBITDA were all up in Q3 • Energy transition franchise rapidly building scale o $6.3B of AUM as of September 30, 2023 • Clean up of non-core businesses largely complete with divestiture
Slide 16: Supplemental Financial Information
Supplemental Financial Information
Slide 17: Revenues
Revenues 3 months ended 9 months ended In millions $ Q3 Q3 Q3 Q3 2023 2022 2023 2022 Management fees 33.1 29.2 97.8 87.0 Trailer, sub-advisor and fund expenses (1.6) (1.3) (4.7) (3.4) Direct payouts (1.5) (1.1) (4.0) (3.8) Carried interest and performance fees - - 0.4 2.0 Carried interest and perfor
Slide 18: Expenses
Expenses 3 months ended 9 months ended In millions $ Q3 Q3 Q3 Q3 2023 2022 2023 2022 Compensation 16.8 18.9 57.5 60.1 Direct payouts (1.5) (1.1) (4.0) (3.8) Carried interest and performance fee payouts - internal - - (0.2) (1.0) Commission expense - internal (0.1) (2.4) (2.3) (7.6) Severance, new hi
Slide 19: EBITDA reconciliation
EBITDA reconciliation 3 months ended 9 months ended In millions $ Q3 Q3 Q3 Q3 2023 2022 2023 2022 Net Income 6.8 3.1 32.1 10.3 Adjustments: Interest expense 0.9 0.9 3.2 1.8 Provision for income taxes (1.3) 0.7 7.3 5.1 Depreciation and amortization 0.7 0.7 2.2 2.6 (1) 7.0 5.4 44.9 19.9 EBITDA Other a