Sprott Inc - CEO, Peter Grosskopf.
CEO, Peter Grosskopf.
Source: Bloomberg.
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  • Sprott (SII) has announced financial results for the three months ended March 31, 2021
  • AUM was US$17.1 billion at quarter’s end, down $0.3 billion (2 per cent) from December 31, 2020
  • Loss on investments was $4.7 million for the quarter, up $0.3 million (7 per cent) from the prior period
  • Net income was $3.2 million for the quarter, up $2.2 million from the prior period
  • Subsequently to the quarter, Sprott announced an agreement with UPC to form the Sprott Physical Uranium Trust, adding half a billion to its AUM
  • Sprott is a global leader in precious metal investments
  • Sprott (SII) is up by 1.34 per cent and is currently trading at $56.16 per share

Sprott (SII) has announced financial results for the three months ended March 31, 2021.

Key AUM Highlights

  • AUM was US$17.1 billion as of March 31, 2021, down $0.3 billion (2 per cent) from December 31, 2020. Subsequent to the quarter’s end, management estimates that consolidated AUM as of May 4, 2021 was $18.2 billion due to a combination of precious metals and mining equity valuation recoveries and continued strong inflows into Sprott’s physical trusts

Key Revenue Highlights

  • Management fees were $22.5 million for the quarter, up $7.3 million (48 per cent) from the prior period. Carried interest and performance fees were $7.9 million, up $7.9 million from the prior period. Net fees were $24.7 million, up $9.8 million from the prior period mainly due to higher average AUM
  • Commission revenues were $12.5 million, up $7.3 million from the prior period. Net commissions were $6.3 million, up $3 million (90 per cent) from the prior period due to very strong equity origination in Sprott’s brokerage segment
  • Finance income was $1.2 million, up $0.3 million (37 per cent) from the prior period due to higher interest income from co-investments in Sprott’s lending segment
  • Loss on investments was $4.7 million, up $0.3 million (7 per cent) from the prior period due to market value depreciation of co-investments and certain equity holdings

Key Expense Highlights

  • Compensation was $22.6 million, up $12.5 million from the prior period. Net compensation was $11.8 million, up $4.2 million (56 per cent) from the prior period. The increase was primarily due to higher annual incentive compensation on improved financial performance in the quarter and higher base salaries on new hires
  • SG&A was $3.4 million, down $0.1 million (3 per cent) from the prior period due to lower marketing and sales costs relating to COVID-19 travel restrictions

Earnings Summary

  • Net income was $3.2 million, up $2.2 million from the prior period. Adjusted EBITDA was $14.6 million ($0.59 per share), up 78 per cent or $6.4 million ($0.26 per share) from the prior period

Subsequent Events

  • On April 28, 2021, Sprott announced an agreement with UPC to form the Sprott Physical Uranium Trust
  • On May 6, 2021, Sprott’s Board of Directors announced a quarterly dividend of $0.25 per share

Peter Grosskopf, CEO of Sprott, commented,

“Adjusted base EBITDA was $14.6 million ($0.59 per share), up 78 per cent or $6.4 million ($0.26 per share) from this time last year. This marks the second consecutive quarter that we have posted results surpassing our previous historic high recorded in the third quarter of 2011.

In April, Sprott announced an agreement to become the manager of Uranium Participation Corporation, the largest physical uranium vehicle in the market, and form the Sprott Physical Uranium Trust.

We believe our global brand, fund marketing experience and client base of more than 200,000 investors will improve trading liquidity and grow UPC’s asset base during what we see as the start of a strong market for physical uranium. The transaction will add approximately $500 million to Sprott’s total assets under management.”

Sprott is a global leader in precious metal investments.

Sprott (SII) is up by 1.34 per cent and is currently trading at $56.16 per share as of 2:16 pm ET.

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