Slide 1: Sprott Inc. Q2 2021 Results
Sprott Inc. Q2 2021 Results August 6, 2021
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 Peter Grosskopf, Whitney George, CEO, President, Sprott Inc. Sprott Inc. John Ciampaglia, Kevin Hibbert CEO, CFO, Sprott Asset Sprott Inc. Management Sprott Inc. | 3
Slide 4: Q2 and YTD 2021 Highlights
Q2 and YTD 2021 Highlights • Precious metals pulled back in Q2 before recovering o Funds navigated well through the selloff and subsequent rebound o Conditions are favorable for positive H2 performance • Continuing to deliver strong financial results • Physical Trusts continue to expand client base
Slide 5: AUM Summary
AUM Summary AUM was $18.6 billion as at June 30, 2021, up $1.5 billion (9%) from March 31, 2021 and up $1.2 billion (7%) from December 31, 2020 AUM (in $billions) Sprott Inc. | 5
Slide 6: Segment Results – 3 months ended
Segment Results – 3 months ended Adjusted base EBITDA in the quarter was $15.1 million, up $5.8 million (64%) from the prior period 3 month results (1) Net of corporate costs, consolidation, elimination, and non-reportable segment entries of –$(3.3MM) (Q2 2020: -$(2.3MM)). See Note 11 of the financi
Slide 7: Segment Results – 6 months ended
Segment Results – 6 months ended Adjusted base EBITDA on a YTD basis was $29.7 million, up $12.3 million (71%) from the prior period 6 month results (1) Net of corporate costs, consolidation, elimination, and non-reportable segment entries of –$(7.4MM) (Q2 2020: -$(4.4MM)). See Note 11 of the financ
Slide 8: Physical Bullion Trusts
Physical Bullion Trusts • Strong sales in Q2 $631MM, despite 7% drop in silver price • Physical Silver Trust (PSLV) accounted for majority of inflow: $503MM o Continuing to capture market share from competitive products • Q2 sales have moderated somewhat with the metal markets Total Physical Trust A
Slide 9: Sprott Physical Uranium Trust
Sprott Physical Uranium Trust • Transaction with Uranium Participation Corp. closed on July 16 with support from 99.92% of UPC shareholders • The new Sprott Physical Uranium Trust (“SPUT”) began trading on July 19 • The Trust bought its first 100k lbs of uranium on July 20 • Currently working to put
Slide 10: Managed Equities
Managed Equities • Net sales continue to trend up with redemptions gradually slowing • H1 flows improved in 2021 compared to H1 2020 (+$605MM) • Very strong rebound in Q2 performance before mid-June sell-off • New institutional SMAs and Special Situations strategy are drawing interest and new invest
Slide 11: Private Strategies
Private Strategies • Combined AUM for Lending and Streaming Strategies is ~$1B • Focused on deploying LF2 capital o Progressing towards some significant agreements which could potentially accelerate the pace of AUM growth in late 2021 and early 2022 • Streaming strategy actively securing new commitm
Slide 12: Brokerage
Brokerage • The brokerage businesses in both the US and Canada are performing well • Institutional brokerage (Canada) is benefiting from strong equity originations and syndications • US brokerage continuing to make good progress on transitioning AUA to AUM and generating new fund sales o Net revenue
Slide 13: Summary
Summary • Delivering strong financial performance despite volatility in precious metals o Setting new highs in AUM and record Adjusted Base EBITDA • Driving scale in key strategies o Physical Trusts AUM was ~$13B as of June 30, 2021 • The rapidly-growing clean minerals industry is expected to become
Slide 14: Supplemental Financial Information
Supplemental Financial Information
Slide 15: Revenues
Revenues 3 months ended 6 months ended In millions $ Q2 Q2 Q2 Q2 2021 2020 2021 2020 Total net revenues 31.4 28.1 59.2 42.8 Key revenue highlights: Net fees (1) 23.2 14.8 46.9 28.9 Net commissions (1) 4.3 4.2 11.5 8.2 Finance income 0.9 0.7 2.2 1.6 Gains (losses) on investments 2.5 8.1 (2.2) 3.8 (1)
Slide 16: Expenses
Expenses 3 months ended 6 months ended In millions $ Q2 Q2 Q2 Q2 2021 2020 2021 2020 Total expenses 16.9 16.0 38.8 27.8 Key expense highlights: Net compensation (1) 10.8 8.3 22.6 15.8 Selling, general & administrative 3.5 2.9 6.8 6.3 (1) See the key performance indicators (non-IFRS financial measure
Slide 17: EBITDA Reconciliation
EBITDA Reconciliation 3 months ended 6 months ended In millions $ (except for per share amounts) Q2 Q2 Q2 Q2 2021 2020 2021 2020 Net Income 11.1 10.5 14.3 11.6 Per share 0.44 0.43 0.57 0.47 Adjustments: Interest expense 0.3 0.4 0.6 0.6 Provision for income taxes 3.4 1.6 6.1 3.5 Depreciation and amor