Sprott Inc. · TSX:SII
Sprott — Investor Presentation (March 2024)
71 slides from Sprott's investor presentation, Mar 31, 2024
Slide 1: Sprott Energy Transition ETFs Investor Presentation
Sprott Energy Transition ETFs Invest in Critical Minerals Driving the Energy Transition Investor Presentation March 31, 2024 V5_5.22.2024
Slide 2: A Global Leader in Precious Metals and Critical Materials Investments
A Global Leader in Precious Metals and Critical Materials Investments US$29.4B in AUM1 Sprott (SII) is publicly listed on the NYSE and TSX Exchange Listed Products Managed Equities Private Strategies $23.8 Billion AUM $2.9 Billion AUM $2.6 Billion AUM • Physical Bullion Trusts • Flagship U.S. Gold E
Slide 3: Presentation Outline
Presentation Outline Content Slides The Energy Transition: Global Move to Cleaner Energy 5-13 The Case for Critical Minerals 14-24 Sprott Energy Transition ETFs: Critical Minerals in Focus 25-33 Sprott Energy Transition ETFs: Overview of Funds 34-37 Sprott Energy Transition Materials ETF (SETM) 38-4
Slide 4: 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 likely positioned to benefit from quickly increasing demand, limited supplies a
Slide 5: The Energy Transition: Global Move to Cleaner Energy
The Energy Transition: Global Move to Cleaner Energy Sprott Energy Transition ETFs | 5
Slide 6: 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 7: 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 Yearly CO2 Emissions Continue t
Slide 8: Most Nations Have Committed to Net-Zero Emissions Targets
Most Nations Have Committed to Net-Zero Emissions Targets 97 parties, representing 101 countries and 80.7% of global greenhouse gas emissions (GHGs), have communicated a net- zero target. Source: Climatewatchdata.org at https://www.climatewatchdata.org/net-zero-tracker as of 4/25/2024. Included for
Slide 9: 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 10: Global Investment in Energy Transition
Global Investment in Energy Transition 2023 energy transition investment, $1.8 trillion, now far exceeds global investment in fossil fuels, according to clean energy research group BloombergNEF. $ billion 2,000 1,769 1,800 1,600 1,511 Clean shipping 1,400 Clean industry 1,190 1,200 Electrified heat
Slide 11: Energy Transition Incentives Are Growing
Energy Transition Incentives Are Growing © 2024 Sprott Asset Management. All rights reserved. Telephone: 888.622.1813 Sprott Energy Transition ETFs | 11
Slide 12: Inflation Reduction Act (IRA)
Inflation Reduction Act (IRA) August 2022 © 2024 Sprott Asset Management. All rights reserved. Telephone: 888.622.1813 Sprott Energy Transition ETFs | 12
Slide 13: Critical Minerals & Energy Transition: National Priorities
Critical Minerals & Energy Transition: National Priorities U.S. - Building Resilient Supply Chains, Revitalizing American Manufacturing, and Fostering Broad-Based Growth – June 2021 • Includes Batteries, Critical Minerals and Materials Minerals Security Partnership – June 2022 • Australia, Canada, F
Slide 14: The Case for Critical Minerals
The Case for Critical Minerals Sprott Energy Transition ETFs | 14
Slide 15: 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 Minerals Focus Sour
Slide 16: Electricity Demand Estimated to Increase by 165% by 2050
Electricity Demand Estimated to Increase by 165% by 2050 90,000 80,000 76,838 World Electricity Demand (Terawatt-hour – TWh) 70,000 60,000 165% Rising middle classes in 50,000 the East and developing technologies in the West 40,000 are driving demand for 29,033 electricity. 30,000 20,000 10,000 0 20
Slide 17: The Climbing Demand for Critical Minerals
The Climbing Demand for Critical Minerals 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 Energy Transition Demand in 2040, Relative to 2022 1600% 1400% 1200% 1000% 800% 600% 400%
Slide 18: Almost All of New U.S. Electricity Capacity Will Be Carbon Free in 2024
Almost All of New U.S. Electricity Capacity Will Be Carbon Free in 2024 14 2% 0% 12 4% 13% 10 8 58% 23% 6 4 Solar 36.5 GW Battery Storage 14.3 GW Wind 8.2 GW 2 Natural Gas 2.8 GW Nuclear 1.1 GW - Jan Feb Mar Apr May Jun Jul Aug Sept Oct Nov Dec Source: U.S. Energy Information Administration, Prelimi
Slide 19: Strong Growth In Battery-Based Electric Vehicles Is Underway
Strong Growth In Battery-Based Electric Vehicles Is Underway Across the globe, approximately 13.7 million electric cars were sold in 2023, more than four times the sales three years ago. Sales are estimated to reach 16.7 million in 2024. Million China Europe North America South Korea Japan Rest of W
Slide 20: 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 21: 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 22: 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 23: Building Local Supply Chains Is a Strategic Priority
Building Local Supply Chains Is a Strategic Priority https://www.cnbc.com/2023/01/31/gm-to-invest-650-million-in-lithium-company-to-support-ev-growth.html https://www.euractiv.com/section/economy-jobs/news/eu-unveils-critical-raw-materials-act-aiming-to-lessen-dependence-on-china/ https://executiveg
Slide 24: AI and Data Center Growth Could Drive Power Demand
AI and Data Center Growth Could Drive Power Demand • Earnings calls from electric utilities mentioned increased energy demand 120 times in the recent quarterly earnings cycle, up from 3 times 1.5 years ago.2 • In the next five years, consumers and businesses will generate twice as much data as all t
Slide 25: Sprott Energy Transition ETFs: Critical Minerals in Focus
Sprott Energy Transition ETFs Critical Minerals in Focus Sprott Energy Transition ETFs | 25
Slide 26: Uranium: Growing Focus on Nuclear as a Clean Energy Solution
Uranium: Growing Focus on Nuclear 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 93.1% CO2 Equivalen
Slide 27: Uranium Supply and Demand Imbalance May Likely Grow
Uranium Supply and Demand Imbalance May Likely Grow • We believe the era of inventory destocking is over • Demand for uranium may likely outstrip supply, with a nearly 1-billion-pound deficit to 2040 • Net Zero Nuclear, the pledge to triple global nuclear capacity by 2050, would result in a 2.1-bill
Slide 28: 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 70 Grid Transport Millions of Metric Tonnes outstrip supply as clean energy 60 Wind Batteries Solar Others transition takes hold.1 50 Copper Supply • P
Slide 29: Visualizing Copper Demand Growth
Visualizing Copper Demand Growth The cumulative demand for copper to 2050 is greater than the total produced copper over the course of human history. Source: ENERGYminute. https://energyminute.ca/infographics/the-volume-of-2050-net-zero-copper-demand/ https://www.sciencedirect.com/science/article/pi
Slide 30: 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 31: Severe Lithium Supply Deficits Likely as Battery Demand Grows
Severe Lithium Supply Deficits Likely as Battery Demand Grows Lithium demand is expected to rise substantially with the demand from electric vehicles and grid battery storage Lithium Supply Unlikely to Keep Up with Demand 12 Batteries are expected to 10 account for 95% of lithium demand by 2030.* Mi
Slide 32: 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 33: Silver: Critical to Solar Panels and EVs
Silver: Critical to Solar Panels and EVs Solar Panels • A silver paste is used to capture electrons produced from sunlight striking cells—its high conductivity makes silver highly effective • The average solar panel uses ~20 grams of silver Electric Vehicles • Silver’s high conductivity and ductilit
Slide 34: Sprott Energy Transition ETFs: Overview of Funds
Sprott Energy Transition ETFs Overview of Funds Sprott Energy Transition ETFs | 34
Slide 35: Sprott Energy Transition Funds
Sprott Energy Transition Funds Sprott Energy Sprott Uranium Sprott Junior Sprott Copper Sprott Junior Sprott Lithium Sprott Nickel Transition Miners ETF Uranium Miners ETF Copper Miners ETF Miners ETF Materials ETF Miners ETF Miners ETF All prospectuses are available for download at https://www.spro
Slide 36: 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. © 2024 Sprott Asset Management. All rights reserved. Telephone: 888.622.1813 Sprott Energy Transition ETFs | 36
Slide 37: Index Methodology
Index Methodology Global Security List: Start with all global primary equity 90,000+ Companies securities of companies Screen for potential companies' third Screen for Potential party databases, competitive analysis ETM Companies and in house research Calculate Intensity Research and quantify
Slide 38: 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 39: Sprott Energy Transition Materials ETF Composition
Sprott Energy Transition Materials ETF (SETM) Sprott Energy Transition Materials ETF Composition Portfolio Characteristics1 Company Domicile Breakdown1 (As of 3/31/2024) (As of 3/31/2024) • Number of Issuers: 104 • Market Cap (millions): $449,855 • Weighted Avg. Company Market Cap (millions): $13,37
Slide 40: Performance History
Sprott Energy Transition Materials ETF (SETM) Performance History Performance: Average Annual Total Returns* (%) QUARTER END AS OF 3/31/2024 1 MO 3 MO YTD 1 YR S.I.1 Sprott Energy Transition Materials ETF (Net Asset Value) 6.09 -2.43 -2.43 1.86 -11.98 Sprott Energy Transition Materials ETF (Market P
Slide 41: 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 42: Sprott Uranium Miners ETF Composition
Sprott Uranium Miners ETF (URNM) Sprott Uranium Miners ETF Composition Portfolio Characteristics1 Company Domicile Breakdown1 (As of 3/31/2024) (As of 3/31/2024) • Number of Issuers: 39 • Market Cap (millions): $52,420 • Weighted Avg. Company Market Cap (millions): $5,363 • Market Cap Breakdown o La
Slide 43: Performance History
Sprott Uranium Miners ETF (URNM) Performance History Performance: Average Annual Total Returns* (%) QUARTER END AS OF 3/31/2024 1 MO 3 MO YTD 1 YR 3 YR S.I.1 Sprott Uranium Miners ETF (Net Asset Value) 1.69 2.52 2.52 63.46 25.38 41.33 Sprott Uranium Miners ETF (Market Price)2 2.92 2.41 2.41 63.48 25
Slide 44: 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 45: Sprott Junior Uranium Miners ETF Composition
Sprott Junior Uranium Miners ETF (URNJ) Sprott Junior Uranium Miners ETF Composition Portfolio Characteristics1 Company Domicile Breakdown1 (As of 3/31/2024) (As of 3/31/2024) • Number of Issuers: 35 • Market Cap (millions): $21,349 • Weighted Avg. Company Market Cap (millions): $1,777 • Market Cap
Slide 46: Performance History
Sprott Junior Uranium Miners ETF (URNJ) Performance History Performance: Average Annual Total Returns* (%) QUARTER END AS OF 3/31/2024 1 MO 3 MO YTD 1 YR S.I.1 Sprott Junior Uranium Miners ETF (Net Asset Value) 2.48 7.83 7.83 69.74 24.94 Sprott Junior Uranium Miners ETF (Market Price)2 4.11 7.82 7.8
Slide 47: Sprott Copper Miners ETF (COPP)
Sprott Copper Miners ETF (COPP) Sprott Copper Miners ETF (COPP) Sprott Copper Miners ETF (Nasdaq: COPP) is the only1 ETF to Investment Objective provide pure-play2 exposure to large-, mid- and small-cap copper Sprott Copper Miners ETF (Nasdaq: COPP) seeks to provide investment results that, miners t
Slide 48: Sprott Copper Miners ETF Composition
Sprott Copper Miners ETF (COPP) Sprott Copper Miners ETF Composition Portfolio Characteristics1 Company Domicile Breakdown1 (As of 3/31/2024) (As of 3/31/2024) • Number of Issuers: 40 • Market Cap (millions): $309,365 • Weighted Avg. Company Market Cap (millions): $30,745 • Market Cap Breakdown o La
Slide 49: Performance History
Sprott Copper Miners ETF (COPP) Performance History Performance: Average Annual Total Returns* (%) QUARTER END AS OF 3/31/2024 1 MO S.I.1 Sprott Copper Miners ETF (Net Asset Value) – 17.52 Sprott Copper Miners ETF (Market Price)2 – 18.23 Nasdaq Sprott Copper Miners Index (Benchmark)3 – 17.32 Fees an
Slide 50: 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 51: Sprott Junior Copper Miners ETF Composition
Sprott Junior Copper Miners ETF (COPJ) Sprott Junior Copper Miners ETF Composition Portfolio Characteristics1 Company Domicile Breakdown1 (As of 3/31/2024) (As of 3/31/2024) • Number of Issuers: 40 • Market Cap (millions): $44,500 • Weighted Avg. Company Market Cap (millions): $1,922 • Market Cap Br
Slide 52: Performance History
Sprott Junior Copper Miners ETF (COPJ) Performance History Performance: Average Annual Total Returns* (%) QUARTER END AS OF 3/31/2024 1 MO 3 MO YTD 1 YR S.I.1 Sprott Junior Copper Miners ETF (Net Asset Value) 18.71 13.36 13.36 10.95 4.49 Sprott Junior Copper Miners ETF (Market Price)2 19.37 14.81 14
Slide 53: 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 supply a Sprott Lithium Miners ETF (Nasdaq: LITP) seeks to provide investment results that, criti
Slide 54: Sprott Lithium Miners ETF Composition
Sprott Lithium Miners ETF (LITP) Sprott Lithium Miners ETF Composition Portfolio Characteristics1 Company Domicile Breakdown1 (As of 3/31/2024) (As of 3/31/2024) • Number of Issuers: 45 • Market Cap (millions): $83,986 • Weighted Avg. Company Market Cap (millions): $6,779 • Market Cap Breakdown o La
Slide 55: Performance History
Sprott Lithium Miners ETF (LITP) Performance History Performance: Average Annual Total Returns* (%) QUARTER END AS OF 3/31/2024 1 MO 3 MO YTD 1 YR S.I.1 Sprott Lithium Miners ETF (Net Asset Value) -4.36 -21.87 -21.87 -40.06 -44.84 Sprott Lithium Miners ETF (Market Price)2 -4.87 -21.45 -21.45 -39.74
Slide 56: Sprott Nickel Miners ETF (NIKL)
Sprott Nickel Miners ETF (NIKL) Sprott Nickel Miners ETF (NIKL) Sprott Nickel Miners ETF (Nasdaq: NIKL) is the only1 ETF to Investment Objective provide focused exposure to the nickel miners that supply a Sprott Nickel Miners ETF (Nasdaq: NIKL) seeks to provide investment results that, critical mine
Slide 57: Sprott Nickel Miners ETF Composition
Sprott Nickel Miners ETF (NIKL) Sprott Nickel Miners ETF Composition Portfolio Characteristics1 Company Domicile Breakdown1 (As of 3/31/2024) (As of 3/31/2024) • Number of Issuers: 22 • Market Cap (millions): $19,218 • Weighted Avg. Company Market Cap (millions): $1,702 • Market Cap Breakdown o Larg
Slide 58: Performance History
Sprott Nickel Miners ETF (NIKL) Performance History Performance: Average Annual Total Returns* (%) QUARTER END AS OF 3/31/2024 1 MO 3 MO YTD 1 YR S.I.1 Sprott Nickel Miners ETF (Net Asset Value) 3.17 -9.36 -9.36 -30.05 -25.47 Sprott Nickel Miners ETF (Market Price)2 3.57 -9.76 -9.76 -30.46 -25.07 Na
Slide 59: How Do Energy Transition ETFs Fit into an Investment Portfolio?
How Do Energy Transition ETFs Fit into an Investment Portfolio? Depending on the investor type and the investment portfolio mandate, critical mineral miners can fit into several asset class categories Asset Class Categories: Commodities Small- to Mid-Cap Energy Alternatives ESG Oriented
Slide 60: Sprott Client Services Team
Sprott Client Services Team © 2024 Sprott Asset Management. All rights reserved. Telephone: 888.622.1813 Sprott Energy Transition ETFs | 60
Slide 61: Distributor Contact Details
Distributor Contact Details ALPS Distributors, Inc. 1290 Broadway, Suite 1000 Denver, CO 80203 © 2024 Sprott Asset Management. All rights reserved. Telephone: 888.622.1813 Sprott Energy Transition ETFs | 61
Slide 62: 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 63: 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 64: 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 65: Risk Disclosures and Other Important Information
Risk Disclosures and Other Important Information Sprott Copper Miners ETF (Nasdaq: COPP) 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 Copper Miners ETF
Slide 66: Risk Disclosures and Other Important Information
Risk Disclosures and Other Important Information Sprott Junior Copper Miners ETF (Nasdaq: COPJ) 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 Cop
Slide 67: Risk Disclosures and Other Important Information
Risk Disclosures and Other Important Information Sprott Lithium Miners ETF (Nasdaq: LITP) 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 Lithium Miners E
Slide 68: Risk Disclosures and Other Important Information
Risk Disclosures and Other Important Information Sprott Nickel Miners ETF (Nasdaq: NIKL) 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 Nickel Miners ETF
Slide 69: Appendix
Appendix Sprott Energy Transition ETFs | 69
Slide 70: Automakers Phasing Out Internal Combustion Engine Vehicles
Automakers Phasing Out Internal Combustion Engine Vehicles © 2024 Sprott Asset Management. All rights reserved. Telephone: 888.622.1813 Sprott Energy Transition ETFs | 70
Slide 71: Manufacturing Projects Announced Since Inflation Reduction Act Passage
Manufacturing Projects Announced Since Inflation Reduction Act Passage North America’s battery cell manufacturing landscape Source: S&P Platts, March 2023 © 2024 Sprott Asset Management. All rights reserved. Telephone: 888.622.1813 Sprott Energy Transition ETFs | 71 SPT001140 9/30/2024