Sprott Inc. · TSX:SII
Sprott — Investor Presentation (November 2024)
24 slides from Sprott's investor presentation, November 2024
Slide 1: Investor Presentation
Investor Presentation November 2024 NYSE/TSX:SII
Slide 2: Forward-looking Statements
Forward-looking Statements Certain statements in this presentation 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 laws. The use of any of the words
Slide 3: Corporate overview
Corporate overview As at September 30, 2024 History: Founded 1981 Locations: Toronto, New York, Connecticut, Carlsbad, Vancouver With $33.4B in AUM, Employees: 132 Sprott is a global leader in precious metals and AUM: $33.4B critical materials investments Exchange Listings: NYSE/TSX:SII Shares Outst
Slide 4: Purpose and values
Purpose and values We aspire to be the leading global asset manager focused on precious metals and critical materials As contrarian investors with a long-term investment horizon, we remain both patient and persistent. We will continue to innovate to bring our clients the best possible investment pro
Slide 5: Who we are
Who we are We are specialists. Our in-depth knowledge, experience and relationships separate us from the generalists and create compelling value for our shareholders and clients • Simple, highly scalable business model with industry leading margins (58%1) • Resilient revenue generation from our flag
Slide 6: Track record of growth
Track record of growth Sprott has grown its AUM profitably through a combination of acquisitions, organic growth and market value appreciation In billions $ AUM and margin history (1) (2) (3) (1) Excludes our non-core diversified assets sold in 2017 6 Sprott Inc. | (2) Organic growth includes net in
Slide 7: Investment strategies
Investment strategies Sprott
Slide 8: Exchange listed products
Exchange listed products Sprott manages approximately $27.8 billion in our exchange listed products strategies Physical Trusts AUM (1) Sprott Physical Gold Trust $8.6B Sprott Physical Silver Trust $5.6B Sprott Physical Uranium Trust $5.4B Sprott Physical Gold and Silver Trust $5.2B Sprott Physical P
Slide 9: Exchange listed products: physical trusts
Exchange listed products: physical trusts • 6 exchange listed physical trusts • 4 dual listed on NYSE/TSX • 2 TSX listed • $25.1B AUM • Highly-scalable global platform Approximately 250,000 clients Sticky AUM relative to open-ended ETFs Well-positioned to add complementary strategies Valuable revenu
Slide 10: Exchange Listed Products: Physical Trusts
Exchange Listed Products: Physical Trusts • Q3 was strongest quarter of sales in 2 years • $617MM net sales driven primarily by inflows to PHYS/PSLV Physical Trust Sales (in millions) $1,338 $1,187 $1,219 $890 $630 $645 $617 $593 $474 $478 $429 $201 $210 $113 $128 $149 $(2) $(49) $(215) 1Q2020 2Q202
Slide 11: ETF Product Suite: Flows
ETF Product Suite: Flows • $45MM in ETF net sales in Q3 • Strong ETF flows during the year, driven largely by Uranium Miners ETFs (URNJ and URNM UCITS) ETF Flows (in millions) $154 $156 $141 $139 $133 $105 $78 $50 $5 $27 $11 $19 $(2) $(1) $(98) Jul-23 Aug-23 Sep-23 Oct-23 Nov-23 Dec-23 Jan-24 Feb-24
Slide 12: Managed equities
Managed equities Sprott’s gold team is one of the most experienced in the sector • In-house technical team provides additional research and due diligence capabilities • Sprott’s depth and breadth of sector-specific expertise allows us to: o Employ a disciplined, team-based approach to portfolio cons
Slide 13: Private strategies
Private strategies Focused on strategies holding illiquid assets in order to carry out asset optimization and/or develop structured seniority Lending strategy Streaming strategy 87 investments (1) >$1.1B in capital commitments ~$3.6B in originations (1) $920MM capital called to date (1) Since 2010 S
Slide 14: Financial overview
Financial overview Sprott
Slide 15: Strategically diversified yet aligned AUM
Strategically diversified yet aligned AUM Sprott’s total AUM as at September 30, 2024 was $33.4 billion (1) AUM (in billions $) (2) (3) (1) Subsequent to quarter-end, on November 1, 2024, AUM was $34.2 billion, up 2% from $33.4 billion on September 30, 2024 Sprott Inc. | 15 (2) Primarily precious me
Slide 16: Our historical earnings results
Our historical earnings results We have highly profitable and efficient operations In millions $ Net income (IFRS) (1) Adjusted base EBITDA Adjusted base EBITDA margin (Key non-IFRS measure) (Key non-IFRS measure) (1) Net income margin was 14% in 2019 and 28% for the 9 months ended September 30, 202
Slide 17: Our recent earnings results
Our recent earnings results In millions $ Net income (IFRS) Adjusted base EBITDA (Key non-IFRS measure) Sprott Inc. | 17
Slide 18: Treasury and balance sheet management
Treasury and balance sheet management Balance sheet liquidity • We had $43.5 million (December 31, 2023 - $20.7 million) of cash and cash equivalents. In addition, the Company had $89.4 million of co-investments (December 31, 2023 - $93.5 million) of which $40 million (December 31, 2023 - $39.5 mill
Slide 19: Historical annual shareholder return
Historical annual shareholder return +103% +71% +63% Jan 1, Dec 31, Dec 31, Dec 31, Dec 31, Dec 31, 2019 2019 2020 2021 2022 2023 Sprott Inc. 100 120.53 154.62 244.64 198.13 203.48 S&P/TSX composite index 100 122.89 129.78 162.48 153.08 171.18 NYSE composite index (NYA) 100 119.79 126.21 151.07 146.
Slide 20: ESG & sustainability
ESG & sustainability Sprott is committed to high standard ESG protocols • A signatory to the Principles for Responsible Investment, the world’s leading proponent of responsible investment • Committed to being an ESG leader in mining and metals investment management • Investment professionals across
Slide 21: Appendix
Appendix Sprott
Slide 22: Adjusted base EBITDA reconciliation
Adjusted base EBITDA reconciliation 3 months ended 9 months ended In millions $ Q3 Q3 Q3 Q3 2024 2023 (1) 2024 2023 (1) Net income for the period 12.7 6.8 37.6 32.1 (2) 27% 20% 28% 29% Net income margin Adjustments: Interest expense 0.9 0.9 2.5 3.2 Provision for income taxes 5.7 (1.3) 14.9 7.3 Depre
Slide 23: 5-yr adjusted base EBITDA reconciliation
5-yr adjusted base EBITDA reconciliation In millions $ 2023 2022 2021 2020 2019 Net income for the period 41.8 17.6 33.2 27.0 10.2 Net income margin 25% 12% 20% 22% 14% Adjustments: Interest expense 4.1 2.9 1.2 1.2 1.0 Provision for income taxes 8.5 7.4 12.0 7.7 2.7 Depreciation and amortization 2.8
Slide 24: Contact information
Contact information Glen Williams Managing Partner Investor and Institutional Client Relations; T 416 943 4394 [email protected] Sprott Inc. | 24