Sprott Inc. · TSX:SII

Sprott — Sprott Asset Management — Non-Deal Roadshow (October 2007)

22 slides from Sprott's roadshow presentation, October 2007

  1. Slide 1: Sprott Canadian Equity Fund: Focused on Performance

    SPROTT CANADIAN EQUITY FUND Sprott Asset Management Inc. Focused on Performance Eric Sprott, CA Chairman, CEO & Portfolio Manager October 2007 AGENDA – Introduction – Economic Thesis – Performance Review – Risk – Volatility – Q&A Session – Appendix October 07 Slide 2

  2. Slide 2: Investment Professionals; Highlights of the Past Year

    SPROTT CANADIAN EQUITY FUND INVESTMENT PROFESSIONALS A proven team of performers, representing outstanding investment returns over the long-term and in various market environments – Eric Sprott, CA – Anne Spork, CIM – John Embry – Jean-François Tardif, CFA – Peter Hodson, CFA – Allan Jacobs, CA (S.A

  3. Slide 3: Welcome Allan Jacobs and Peter Imhof

    SPROTT CANADIAN EQUITY FUND WE ARE PLEASED TO WELCOME TO SAM Allan Jacobs and Peter Imhof Representing proven excellence: – Allan Jacobs named 2006 Fund Manager of the Year at the Canadian Investment Awards – Sceptre Equity Growth Fund, co-managed by Allan and Peter, awarded Best Canadian Small Cap

  4. Slide 4: Economic Thesis: Peak Oil

    SPROTT CANADIAN EQUITY FUND ECONOMIC THESIS – Peak Oil – Leveraged Finance – BRIC Influence October 07 Slide 7 PEAK OIL – Cantarell, Mexico – Ghawar, Saudi Arabia – Russia October 07 Slide 8

  5. Slide 5: Leveraged Finance; BRIC Influence

    SPROTT CANADIAN EQUITY FUND LEVERAGED FINANCE – Coventree Inc. – Northern Rock – NetBank October 07 Slide 9 BRIC INFLUENCE China: Exports/Imports – 23% GDP Growth – 11.6% India: Industrial Production - 12% October 07 Slide 10

  6. Slide 6: Investment Products and Performance

    SPROTT CANADIAN EQUITY FUND PERFORMANCE REVIEW INVESTMENT PRODUCTS AND PERFORMANCE Annualized and net of fees as of September 30, 2007 YTD 1 YR 3 YR 5 YR 10 YR INCEPTION CANADIAN MUTUAL FUNDS Sprott Managed Accounts (1981)* 11.80% 32.54% 34.62% 27.58% 32.40% 26.30% Sprott Canadian Equity Fund (1997)

  7. Slide 7: Top Canadian Mutual Funds

    SPROTT CANADIAN EQUITY FUND TOP 10 CANADIAN MUTUAL FUNDS Annualized and net of fee returns Total Fund Assets 1 YR 3 YR 5 YR 10 YR Inception (as at September 30, 2007) ($M) Sprott Canadian Equity Fund Series A 1,925.0 33.65% 26.95% 26.73% 27.29% 27.97% (09/97) Total Fund Assets 1 YR 3 YR 5 YR 10 YR I

  8. Slide 8: Is Our Performance a Fluke?

    SPROTT CANADIAN EQUITY FUND IS OUR PERFORMANCE A FLUKE? As at July 31, 2007 Sprott Managed Accounts - Growth of Initial Investment ($10,000) $5,000,000 $3,998,860 $4,000,000 $3,000,000 $2,000,000 $1,000,000 $0 Apr-83 Apr-88 Apr-93 Apr-98 Apr-03 Jan-82 Jan-87 Jan-92 Jan-97 Jan-02 Oct-85 Oct-90 Oct-95

  9. Slide 9: Risk: How Much Risk Are We Taking?

    SPROTT CANADIAN EQUITY FUND RISK HOW MUCH RISK ARE WE TAKING? As at Sept. 30, 2007 Sprott Canadian Equity Fund Long Side Short Side (max. 20%) 29% of portfolio (Is this risky?) 3% Short Position 10% Gold Bullion 10% Silver Bullion 9% Average Cash Balance 71% of portfolio 26% Mining & Precious Metals

  10. Slide 10: Was It Risky? Gold in 2000

    SPROTT CANADIAN EQUITY FUND WAS IT RISKY? Gold in 2000 HUI INDEX +1114% FROM BOTTOM TO TOP Source: Bigcharts.com October 07 Slide 19 GOLD IN 2000 – WE WERE THERE... Markets At A Glance articles, authored by Eric Sprott and Sasha Solunac – September 2007 “Keep it Simple…Buy Gold!” – December 2006 “Th

  11. Slide 11: Was It Risky? Uranium; Nortel in 2000

    SPROTT CANADIAN EQUITY FUND WAS IT RISKY? Uranium As of 09/28/2007 Our first Markets At A Glance article on uranium was titled: “Today’s Special: Yellowcake and Coke”, Sept. 2004 URANIUM IN 2003? Source: Bloomberg October 07 Slide 21 WAS IT RISKY? Markets At A Glance “Excessive Speculation”, NORTEL

  12. Slide 12: Was It Risky? Income Trusts; SAM's Core Strength

    SPROTT CANADIAN EQUITY FUND WAS IT RISKY? INCOME TRUSTS IN 2006 Source: Globefund October 07 Slide 23 SAM’S CORE STRENGTH A proven ability to pick top-performing stocks in multiple industries, in various market environments. October 07 Slide 24

  13. Slide 13: Top TSX Performing Stocks; Timminco

    SPROTT CANADIAN EQUITY FUND TOP TSX PERFORMING STOCKS Percentage Closing First SAM Ownership YEAR COMPANY Return Price purchase of Shares 2007 03/19/2007 Timminco Ltd. $14.70 4800% 17% (09/30) $0.50 2006 Thompson Creek Metals 03/22/2005 $9.87 1310% 13% (12/31) Company Inc. (Blue Pearl) $0.60 Source:

  14. Slide 14: Breakwater Resources; Quadra Resources

    SPROTT CANADIAN EQUITY FUND BREAKWATER RESOURCES LTD. Sprott Funds currently own 3.9% of the company First purchased January 12, 2005 at $0.57 Source: www.bigcharts.com October 07 Slide 27 QUADRA RESOURCES CORP. Sprott Funds currently own 17.5% of the company First purchased January 26, 2006 at $5.5

  15. Slide 15: Volatility: What About Volatility?

    SPROTT CANADIAN EQUITY FUND VOLATILITY WHAT ABOUT VOLATILITY? Annual Returns Series A 2007 12.08% (09/28) 2006 39.57% 2005 13.19% 2004 37.85% 2003 30.04% 2002 39.30% 2001 43.71% 2000 44.04% 1999 53.40% 1998 -16.57% 1997* 0.72% *since inception 09/27 We ride it out: – Be ahead of the curve – Stay the

  16. Slide 16: Appendix: Fund Terms

    SPROTT CANADIAN EQUITY FUND APPENDIX SPROTT CANADIAN EQUITY FUND Investment Manager: Eric Sprott, CA Type of Fund: Canadian Equity Growth and Value Securities Offered: Mutual Fund Trust Units Launch Date: September 26, 1997 Launch NAV: $5 per unit Fund Codes: SPR 001 (Series A), SPR 100 (Series F) R

  17. Slide 17: Fund Portfolio Positioning

    SPROTT CANADIAN EQUITY FUND SPROTT CANADIAN EQUITY FUND As at September 30, 2007 Portfolio Positioning Total AUM (CDN) $1.9 Billion Top 10 Long Positions (%) Gross Exposure (%) Long Positions 94% Total Exposure 29% Short Positions 3% Top 10 Short Positions (%) Net Exposure 91% Net Long Total Exposur

  18. Slide 18: Energy Fund Positioning; Sprott Hedge Fund L.P.

    SPROTT CANADIAN EQUITY FUND PORTFOLIO POSITIONING As at September 30, 2007 Sprott Energy Fund Total AUM (CDN) $203 Million Top 10 Long Positions (%) Total Exposure 53% Gross Exposure (%) Long Positions 97% Short Positions 0% Top 10 Short Positions (%) Net Exposure 97% Net Long Total Exposure n/a Tot

  19. Slide 19: Hedge Fund L.P. Portfolio Positioning

    SPROTT CANADIAN EQUITY FUND SPROTT HEDGE FUND L.P. As at September 30, 2007 Portfolio Positioning Total AUM (CDN) $533 Million Top 10 Long Positions (%) Total Exposure 28% Gross Exposure (%) Long Positions 94% Short Positions -63% Top 10 Short Positions (%) Net Exposure 31% Net Long Total Exposure -

  20. Slide 20: Hedge Fund L.P. II Portfolio Positioning

    SPROTT CANADIAN EQUITY FUND SPROTT HEDGE FUND L.P. II As at September 30, 2007 Portfolio Positioning Total AUM (CDN) $257 Million Top 10 Long Positions (%) Total Exposure 31% Gross Exposure (%) Long Positions 91% Short Positions -63% Top 10 Short Positions (%) Net Exposure 28% Net Long Total Exposur

  21. Slide 21: Bull/Bear RSP Fund Portfolio Positioning

    SPROTT CANADIAN EQUITY FUND SPROTT BULL/BEAR RSP FUND As at September 30, 2007 Portfolio Positioning Total AUM (CDN) $85 Million Top 10 Long Positions (%) Total Exposure 28% Gross Exposure (%) Long Positions 92% Short Positions -63% Top 10 Short Positions (%) Net Exposure 29% Net Long Total Exposure

  22. Slide 22: Disclaimer

    SPROTT CANADIAN EQUITY FUND DISCLAIMER The opinions, estimates and projections ("information") contained within this report are solely those of Sprott Asset Management Inc. (SAM) and are subject to change without notice. SAM makes every effort to ensure that the information has been derived from sou

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