Slide 1: Sprott Inc. Q3 2020 Results
Sprott Inc. Q3 2020 Results November 13, 2020
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, CEO, Whitney George, Sprott Inc. President, Sprott Inc. Kevin Hibbert John Ciampaglia, CFO, CEO, Sprott Inc. Sprott Asset Management Sprott Inc. | 3
Slide 4: Gold Performing Well During Tumultuous Year
Gold Performing Well During Tumultuous Year • Gold outperformed all major asset classes during the first 9 months of 2020 40.00% 30.00% 23.83% 20.00% 10.00% 6.32% 0.00% 2.77% -2.44% -10.00% -20.00% -30.00% -40.00% Gold S&P 500 TR BB US Agg Bond U.S. Dollar Source: Bloomberg. Period from 12/31/1999-9
Slide 5: YTD Highlights
YTD Highlights1 Successfully Driving Growth and Profitability Across the Platform AUM Net Sales Investment Performance Increased 76% from Generated $2.3B $3.1B in market value December 31, 2019 of Net Sales YTD appreciation YTD Financial Results Shareholder Value Increased Dividend Adjusted Base Lis
Slide 6: AUM Summary
AUM Summary • September 30, 2020 AUM was $16.3 billion, up $2.4 billion (17%) from June 30, 2020 and up $7 billion (76%) from December 31, 2019 AUM (in $billions) Sprott Inc. | 6
Slide 7: Earnings Summary (3 months ended)
Earnings Summary (3 months ended) • Adjusted base EBITDA for the 3 months ended September 30, 2020 was $12 million, up $4.4 million (58%) from September 30, 2019 EBITDA (in $millions) 12 12 9.4 9 7.6 7 5 Q3 2019 4 3.1 3 2.4 1.5 1.4 Q3 2020 2 0.9 -1 1.7 -4 -6 4.6 (1) Exchange Listed Managed Lending B
Slide 8: Earnings Summary (9 months ended)
Earnings Summary (9 months ended) • Adjusted base EBITDA for the 9 months ended September 30, 2020 was $29.4 million, up $7.9 million (36%) from September 30, 2019 EBITDA (in $millions) 29.4 30 25 21.1 21.6 20 15 13.4 10 7.5 8.3 5.5 YTD 2019 4.8 5 2.4 1.6 YTD 2020 -5 5.2 -10 9.8 -15 (1) Exchange Lis
Slide 9: Exchange Listed Products: Physical Bullion Trusts
Exchange Listed Products: Physical Bullion Trusts • Investor demand in Q3 remained robust • AUM as of September 30, 2020: +69% from December 31, 2019 • Year-to-date sales: +$2.6 billion • $500MM+ in ATM sales since gold price peaked in early August AUM (in $billions) Total Physical Trust AUM Sources
Slide 10: Managed Equities
Managed Equities • Assets Rebound o Majority of funds up 25-50% YTD (to October 31) o Redemption rate in flagship mutual fund continues to decline • Well-Positioned to Capture New Flows o Relative performance has improved materially since July 1st with small/mid cap gold stocks outperforming their l
Slide 11: Private Strategies
Private Strategies • Private strategies currently have more than $900MM in total AUM • LF2 is continuing to generate strong returns for LPs o ~$300MM in deployed capital with an additional $400MM in pipeline • Complementary streaming and royalty strategy launched in 2019 o Continuing to build out th
Slide 12: Debt Levels Past the Point of No Return
Debt Levels Past the Point of No Return Federal Debt as a Percentage of GDP 1790 – 2030e Source: CBO, Incrementum AG Sprott Inc. | 12
Slide 13: Summary
Summary Focused on Driving Sustainable Growth Gold is now a mandatory portfolio Fundamentals in place for a sustained allocation as governments turn to bull market in precious metals extraordinary measures to service debt Continuing to explore opportunities to Pursuing international distribution lau
Slide 14: Supplemental Financial Information
Supplemental Financial Information
Slide 15: Revenues
Revenues Q3 YTD In millions $ 2020 2019 2020 2019 Total Net Revenues 31.3 17.2 74.6 47.3 Key revenue highlights: Net fees 19.6 10.5 50.1 30.6 Net Commissions 5.6 3.4 12.7 7.3 Finance income 0.8 2.6 2.3 8.9 Gains (losses) on investments 4.4 0.6 8.2 0.2 Sprott Inc. | 15
Slide 16: Expenses
Expenses Q3 YTD In millions $ 2020 2019 2020 2019 Total Expenses 21.0 11.4 49.2 36.7 Key expense highlights: Compensation (1) 12.3 6.9 28.1 18.7 Selling, general & administrative 2.5 3.2 9.1 9.5 (1) See ‘Compensation’ in the key performance indicators (non-IFRS financial measures) section of the MD&
Slide 17: EBITDA Reconciliation
EBITDA Reconciliation Q3 YTD In millions $ (except for per share amounts) 2020 2019 2020 2019 Net Income 8.7 4.3 20.3 8.8 Per share (1) 0.36 0.18 0.83 0.36 Adjustments: Interest expense 0.3 0.3 0.9 0.8 Provision for income taxes 1.6 1.5 5.1 1.8 Depreciation and amortization 1.0 0.9 3.0 2.5 EBITDA 11