Sprott Inc. · TSX:SII
Sprott — Investor Presentation (February 2023)
53 slides from Sprott's investor presentation, Feb 1, 2023
Slide 1: Sprott Energy Transition ETFs: Invest in Critical Minerals Driving the Energy Transition
Sprott Energy Transition ETFs Invest in Critical Minerals Driving the Energy Transition Investor Presentation February 1, 2023 V33_2.1.2023
Slide 2: Presentation Outline
Presentation Outline Content Slides The Energy Transition: Global Move to Cleaner Energy 4-8 The Case for Critical Minerals 9-17 Sprott Energy Transition ETFs: Critical Minerals in Focus 18-29 Sprott Energy Transition ETFs: Overview of Funds 30-46 Sprott Energy Transition Materials ETF (SETM) 32-34
Slide 3: Sprott Energy Transition ETFs
Sprott Energy Transition ETFs Our ETFs give investors pure-play1 investment exposure to the minerals critical to the world’s transition to clean energy — through access to mining companies and physical materials that are positioned to benefit from quickly increasing demand, limited supplies and the
Slide 4: The Energy Transition: Global Move to Cleaner Energy
The Energy Transition: Global Move to Cleaner Energy Sprott Energy Transition ETFs | 4
Slide 5: The Transition to Cleaner Energy: Definitions
The Transition to Cleaner Energy: Definitions Energy Transition: A significant global structural change intended to decrease our dependence on fossil fuels in favor of low-carbon and renewable energy sources. Clean Energy: Energy that has zero carbon emissions and comes from renewable and nuclear en
Slide 6: Global CO2 Emissions Have Risen Exponentially
Global CO2 Emissions Have Risen Exponentially Carbon dioxide emissions warm the planet and impact climate change. In less than 200 years, human activities have raised the atmosphere’s carbon dioxide content by 50%1 and global temperatures have jumped by 1.1° Celsius.2 Greenhouse Gas Emissions (GHGs)
Slide 7: Most Nations Have Committed to Net-Zero Emissions Targets
Most Nations Have Committed to Net-Zero Emissions Targets parties, representing 93 countries and 78.7% of global greenhouse 89 gas emissions (GHGs), have communicated a 2050 net-zero target in order to combat climate change. Source: Climatewatchdata.org at https://www.climatewatchdata.org/net-zero-t
Slide 8: Net-Zero Targets Require Development of Clean Energy Solutions
Net-Zero Targets Require Development of Clean Energy Solutions CO2 emissions need to fall by about 45% from 2010 levels by 2030 to reach net zero by 2050.1 Worldwide Transition Away Increased Need for from Fossil Fuels Battery Storage Renewed Interest in Transition to Electric Nuclear Power Vehicles
Slide 9: The Case for Critical Minerals
The Case for Critical Minerals Sprott Energy Transition ETFs | 9
Slide 10: The Critical Minerals for the Clean Energy Transition
The Critical Minerals for the Clean Energy Transition Critical Minerals Natural materials that are essential to the generation, transmission and storage of clean energy. © 2023 Sprott Asset Management. All rights reserved. Telephone: 888.622.1813 Sprott Energy Transition ETFs | 10
Slide 11: Clean Energy Requires Critical Minerals
Clean Energy Requires Critical Minerals Critical minerals are essential for the global energy transition as we move to offset CO2 intensive energy sources with cleaner sources, including nuclear, electric vehicles (EVs), solar, wind, hydro and geothermal energy. Sprott’s Critical Mineral Focus Sourc
Slide 12: Electricity Demand Estimated to Increase by 75% by 2050
Electricity Demand Estimated to Increase by 75% by 2050 50,000 46,703 45,000 +75% 40,000 World Electricity Demand (TWh - Terawatt Hour) 35,000 30,000 26,762 Rising middle classes in the East and developing 25,000 technologies in the West are driving demand for 20,000 electricity. 15,000 10,000 5,000
Slide 13: The Demand for Critical Minerals Is Growing
The Demand for Critical Minerals Is Growing We expect a significant increase in the demand for critical minerals over the coming decades as the clean energy transition accelerates. Growth Projections for Mineral Demand in 2040, Relative to 2020 4500% 4000% 3500% 3000% Index (2020=1) 2500% 2000% 1500
Slide 14: EVs Are a Driver of Critical Mineral Demand
EVs Are a Driver of Critical Mineral Demand EVs generally require more minerals to build than their fossil fuel-based counterparts. A typical electric car requires 6x the mineral inputs of a conventional internal combustion engine (ICE) car. Minerals: Kilograms per Vehicle Conventional Car (ICE) 34
Slide 15: Strong Growth in Battery-Based Electric Vehicles is Underway
Strong Growth in Battery-Based Electric Vehicles is Underway Across the globe, over 16.4 million electric cars were on the road in 2021, tripling in just three years. 18 16.4 16 14 EVs require a much 12 10.2 higher level of critical 10 minerals than internal combustion Millions 7.3 8 engine (ICE) 6
Slide 16: EVs Require a Range of Critical Minerals
EVs Require a Range of Critical Minerals Rechargeable lithium-ion (li-ion) batteries in EVs use far more minerals than lithium. Minerals are also critical for other parts of the vehicle. Battery Cathode: Lithium, Nickel, Cobalt and Manganese Battery Anode: Graphite Motor: Rare Earths Minerals (High
Slide 17: Average EV Battery Contains ~185 kg of Minerals
Average EV Battery Contains ~185 kg of Minerals* 185 kg is equal to 408 lbs *Based on the average lithium-ion battery with a 60-kilowatt-hour (kWh) capacity and the weighted average of battery compositions on the market in 2020. Does not include materials in the electrolyte, binder, separator and ba
Slide 18: Sprott Energy Transition ETFs: Critical Minerals in Focus
Sprott Energy Transition ETFs Critical Minerals in Focus Sprott Energy Transition ETFs | 18
Slide 19: Uranium: Growing Focus on Nuclear Energy as a Clean Energy Solution
Uranium: Growing Focus on Nuclear Energy as a Clean Energy Solution Nuclear energy has the highest capacity factor1 versus both traditional and alternative energy sources and the least CO2 equivalent emissions versus other energy forms. Highest Energy Capacity Lowest Emissions Nuclear 3 92.7% CO2 Eq
Slide 20: Uranium Supply and Demand Imbalance Likely to Grow
Uranium Supply and Demand Imbalance Likely to Grow Demand for uranium will likely outstrip supply as countries worldwide initiate nuclear reactor restarts and new builds and rethink the shutting down of legacy reactors. Uranium Supply and Demand Estimates 250 225 200 Million Pounds of U3O8 175 150 1
Slide 21: Copper: A Central Role in Electricity Transmission and EVs
Copper: A Central Role in Electricity Transmission and EVs Copper Copper Supply and Demand Imbalance Likely to Grow • Demand for copper is likely to 40 Copper Supply Copper Demand outstrip supply as clean energy Millions of Metric Tonnes 35 transition takes hold.1 30 25 • Provides durability, mallea
Slide 22: Lithium: Key to Electric Vehicle Batteries
Lithium: Key to Electric Vehicle Batteries Li-ion Batteries • Are rechargeable batteries which use the reversible reduction of lithium ions to store energy. They are the predominant battery type used in portable consumer electronics and electric vehicles. • Designed to give power over sustained peri
Slide 23: Severe Lithium Supply Deficits Likely as Battery Demand Grows
Severe Lithium Supply Deficits Likely as Battery Demand Grows Lithium demand is expected to rise from 500,000 tonnes of lithium carbonate equivalent (LCE) in 2021 to ~3-4 million metric tonnes in 2030. Lithium Supply and Demand Imbalance Likely to Grow Metric Tonnes Lithium Carbonate Equivalent 3,70
Slide 24: Nickel: Essential for EV Li-ion Battery Cathodes
Nickel: Essential for EV Li-ion Battery Cathodes • Nickel is the most important metal by mass in the lithium-ion battery cathodes used by EV manufacturers for long range vehicles. • Nickel currently makes up one-third of nickel manganese cobalt (NMC) cathodes and 80% of nickel cobalt aluminum (NCA)
Slide 25: Cobalt: Cathode Battery Metal Giving EVs Range and Stability
Cobalt: Cathode Battery Metal Giving EVs Range and Stability • Cobalt is critical to rechargeable battery cathodes for thermal stability. • US$1B annual investment in cobalt mine supply needed to reach 2050 zero emission targets. Cobalt Supply and Demand Imbalance Likely to Grow Thousand Metric Tonn
Slide 26: Graphite: Essential for EV Li-ion Battery Anodes
Graphite: Essential for EV Li-ion Battery Anodes • Graphite is the largest component in EV batteries by weight, with each battery containing 20-30% graphite. An average plug-in EV contains 70 kg (or 154 lbs) of graphite.1 • Graphite is the most important metal in the anode of a lithium-ion battery.
Slide 27: Manganese: Stabilizer for Battery Cathodes
Manganese: Stabilizer for Battery Cathodes • Manganese is an important stabilizing ingredient in the EV battery cathodes. • Processing battery-grade manganese is technically challenging and expensive. Manganese Sulfate Supply and Demand Imbalance Likely to Grow Thousand Metric Tonnes 350 Electric Tw
Slide 28: Rare Earths: Magnetic Properties for EV Engines
Rare Earths: Magnetic Properties for EV Engines • Rare earth elements are a collection of 17 metallic elements that are essential in many high-tech products due to their strong magnetic properties, including electric motors, with 90% of EV models using them as part of their drivetrain. • China produ
Slide 29: Silver: Critical to Solar Panels and EVs
Silver: Critical to Solar Panels and EVs Solar Panels o A silver paste is used to capture electrons produced from sunlight striking cells — its high conductivity makes silver highly effective o The average solar panel uses ~20 grams of silver Electric Vehicles o Silver’s high conductivity and ductil
Slide 30: Sprott Energy Transition ETFs: Overview of Funds
Sprott Energy Transition ETFs Overview of Funds Sprott Energy Transition ETFs | 30
Slide 31: Sprott Energy Transition ETFs
Sprott Energy Transition ETFs Sprott Energy Sprott Lithium Sprott Uranium Sprott Junior Sprott Junior Transition Miners ETF Miners ETF Uranium Copper Materials ETF Miners ETF Miners ETF © 2023 Sprott Asset Management. All rights reserved. Telephone: 888.622.1813 Sprott Energy Transition ETFs | 31
Slide 32: Index Methodology
Index Methodology Global Security List: v Start with all global primary equity 90,000+ Companies securities of companies v Screen for potential companies third Screen for Potential party databases, competitive analysis ETM Companies and in house research Calculate Intensity v Research and quantify e
Slide 33: Sprott Energy Transition Materials ETF (SETM)
Sprott Energy Transition Materials ETF (SETM) Sprott Energy Transition Materials ETF (SETM) Sprott Energy Transition Materials ETF (Nasdaq: SETM) is the Investment Objective only1 ETF to provide pure-play2 exposure to a broad range of Sprott Energy Transition Materials ETF (Nasdaq: SETM) seeks to pr
Slide 34: NSETM Index Composition
Sprott Energy Transition Materials ETF (SETM) NSETM™ Index Composition Index Portfolio Characteristics Index Company Domicile Breakdown (As of 2/1/2023) (As of 2/1/2023) • Number of Issuers: 112 • Market Cap (millions): $466,627 • Weighted Avg. Company Market Cap (millions): $12,719 • Market Cap Bre
Slide 35: Performance History
Sprott Energy Transition Materials ETF (SETM) Performance History Performance: Average Annual Total Returns* (%) MONTH END – DATA NOT YET AVAILABLE 1 MO S.I.1 Sprott Energy Transition Materials ETF (Net Asset Value) – – Sprott Energy Transition Materials ETF (Market Price)2 – – Nasdaq Sprott Energy
Slide 36: Sprott Lithium Miners ETF (LITP)
Sprott Lithium Miners ETF (LITP) Sprott Lithium Miners ETF (LITP) Sprott Lithium Miners ETF (Nasdaq: LITP) is the only1 ETF to Investment Objective provide pure-play2 exposure to the lithium miners that provide a Sprott Lithium Miners ETF (Nasdaq: LITP) seeks to provide investment results that, crit
Slide 37: NSLITP Index Composition
Sprott Lithium Miners ETF (LITP) NSLITP™ Index Composition Index Portfolio Characteristics Index Company Domicile Breakdown (As of 2/1/2023) (As of 2/1/2023) • Number of Issuers: 45 • Market Cap (millions): $155,755 • Weighted Avg. Company Market Cap (millions): $10,266 • Market Cap Breakdown o Larg
Slide 38: Performance History
Sprott Lithium Miners ETF (LITP) Performance History Performance: Average Annual Total Returns* (%) MONTH END – DATA NOT YET AVAILABLE 1 MO S.I.1 Sprott Lithium Miners ETF (Net Asset Value) – – Sprott Lithium Miners ETF (Market Price)2 – – Nasdaq Sprott Lithium Miners™ Index (Benchmark)3 – – QUARTER
Slide 39: Sprott Uranium Miners ETF (URNM)
Sprott Uranium Miners ETF (URNM) Sprott Uranium Miners ETF (URNM) Sprott Uranium Miners ETF (NYSE Arca: URNM) is the only1 Investment Objective ETF to provide pure-play2 exposure to uranium miners and Sprott Uranium Miners ETF (NYSE Arca: URNM) seeks to invest at least 80% of its physical uranium es
Slide 40: Sprott Uranium Miners ETF Composition
Sprott Uranium Miners ETF (URNM) Sprott Uranium Miners ETF Composition Portfolio Characteristics1 Company Domicile Breakdown1 (As of 1/31/2023) (As of 1/31/2023) • Number of Issuers: 36 • Market Cap (millions): $34,804 • Weighted Avg. Company Market Cap (millions): $4,025 • Market Cap Breakdown o La
Slide 41: Performance History
Sprott Uranium Miners ETF (URNM) Performance History Performance: Average Annual Total Returns* (%) MONTH END AS OF 1/31/2023 1 MO 3 MO YTD 1 YR 3 YR S.I.1 Sprott Uranium Miners ETF (Net Asset Value) 14.77 8.35 14.77 13.43 50.22 42.28 Sprott Uranium Miners ETF (Market Price)2 15.19 8.89 15.19 13.12
Slide 42: Sprott Junior Uranium Miners ETF (URNJ)
Sprott Junior Uranium Miners ETF (URNJ) Sprott Junior Uranium Miners ETF (URNJ) Sprott Junior Uranium Miners ETF (Nasdaq: URNJ) is the Investment Objective only1 ETF to provide pure-play2 exposure to small,3 exploration- Sprott Junior Uranium Miners ETF (Nasdaq: URNJ) seeks to provide investment and
Slide 43: NSURNJ Index Composition
Sprott Junior Uranium Miners ETF (URNJ) NSURNJ™ Index Composition Index Portfolio Characteristics Index Company Domicile Breakdown (As of 2/1/2023) (As of 2/1/2023) • Number of Issuers: 32 • Market Cap (millions): $14,016 • Weighted Avg. Company Market Cap (millions): $1,037 • Market Cap Breakdown o
Slide 44: Performance History
Sprott Junior Uranium Miners ETF (URNJ) Performance History Performance: Average Annual Total Returns* (%) MONTH END – DATA NOT YET AVAILABLE 1 MO S.I.1 Sprott Junior Uranium Miners ETF (Net Asset Value) – – Sprott Junior Uranium Miners ETF (Market Price)2 – – Nasdaq Sprott Junior Uranium Miners™ In
Slide 45: Sprott Junior Copper Miners ETF (COPJ)
Sprott Junior Copper Miners ETF (COPJ) Sprott Junior Copper Miners ETF (COPJ) Sprott Junior Copper Miners ETF (Nasdaq: COPJ) is the only1 Investment Objective ETF to provide pure-play2 exposure to small,3 exploration- and Sprott Junior Copper Miners ETF (Nasdaq: COPJ) seeks to provide investment res
Slide 46: NSCOPJ Index Composition
Sprott Junior Copper Miners ETF (COPJ) NSCOPJ™ Index Composition Index Portfolio Characteristics Index Company Domicile Breakdown (As of 2/1/2023) (As of 2/1/2023) • Number of Issuers: 40 • Market Cap (millions): $27,671 • Weighted Avg. Company Market Cap (millions): $1,139 • Market Cap Breakdown o
Slide 47: Performance History
Sprott Junior Copper Miners ETF (COPJ) Performance History Performance: Average Annual Total Returns* (%) MONTH END – DATA NOT YET AVAILABLE 1 MO S.I.1 Sprott Junior Copper Miners ETF (Net Asset Value) – – Sprott Junior Copper Miners ETF (Market Price)2 – – Nasdaq Sprott Junior Copper Miners™ Index
Slide 48: Distributor Contact Details
Distributor Contact Details ALPS Distributors, Inc. 1290 Broadway, Suite 1000 Denver, CO 80203 © 2023 Sprott Asset Management. All rights reserved. Telephone: 888.622.1813 Sprott Energy Transition ETFs | 48
Slide 49: Risk Disclosures and Other Important Information
Risk Disclosures and Other Important Information Sprott Energy Transition Materials ETF (Nasdaq: SETM) This material must be preceded or accompanied by a prospectus. An investor should consider the investment objectives, risks, charges, and expenses carefully before investing. To obtain a Sprott Ene
Slide 50: Risk Disclosures and Other Important Information
Risk Disclosures and Other Important Information Sprott Uranium Miners ETF (NYSE Arca: URNM) This material must be preceded or accompanied by a prospectus. An investor should consider the investment objectives, risks, charges, and expenses carefully before investing. To obtain a Sprott Uranium Miner
Slide 51: Risk Disclosures and Other Important Information
Risk Disclosures and Other Important Information Sprott Junior Uranium Miners ETF (Nasdaq: URNJ) This material must be preceded or accompanied by a prospectus. An investor should consider the investment objectives, risks, charges, and expenses carefully before investing. To obtain a Sprott Junior Ur
Slide 52: Appendix A
Appendix A Sprott Energy Transition ETFs | 52
Slide 53: A Global Leader in Precious Metals and Real Assets Investments
A Global Leader in Precious Metals and Real Assets Investments US$21B in AUM1 Sprott (SII) is publicly listed on the NYSE and TSX Exchange Listed Products Managed Equities Private Strategies $16.1B AUM2 $2.4B AUM2 $1.9B AUM2 • Physical Bullion Trusts • Flagship U.S. mutual fund: • Bespoke credit inv