Sprott Inc - CEO, Peter Grosskopf.
CEO, Peter Grosskopf.
Source: Bloomberg.
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  • Sprott (SII) has released financial results for the three and six months ended June 30, 2021
  • AUM was US$18.6 billion as of June 30, 2021, up $1.5 billion (9 per cent) from March 31, 2021
  • Net income was $11.1 million ($0.44 per share) in the quarter, up 6 per cent, or $0.6 million ($0.01 per share) from the prior period
  • The company experienced market value appreciation and strong inflows across the majority of its fund products
  • It also continued to generate strong inflows into its physical trusts
  • Sprott is a global leader in precious metal and real asset investments
  • Sprott (SII) is up by 1.47 per cent and is currently trading at $45.64 per share

Sprott (SII) has released financial results for the three and six months ended June 30, 2021.

Financial highlights

Sprott experienced market value appreciation and strong inflows across the majority of its fund products while continuing to generate strong inflows into its physical trusts.

AUM was US$18.6 billion as of June 30, 2021, up $1.5 billion (9 per cent) from March 31, 2021, and up $1.2 billion (7 per cent) from December 31, 2020.

Gains on investments were $2.5 million this quarter, down $5.6 million (69 per cent) from the prior period, and losses were $2.2 million on a year-to-date basis, compared to gains of $3.8 million in the prior period.

Net fees were $23.2 million in the quarter, up $8.4 million (56 per cent) from the prior period, and $46.9 million on a year-to-date basis, up $18 million (62 per cent) from the prior period.

Net commissions were $4.3 million in the quarter, up $0.1 million (2 per cent) from the prior period, and $11.5 million on a year-to-date basis, up $3.3 million (41 per cent), due to strong equity origination in the brokerage segment.

Net compensation was $10.8 million in the quarter, up $2.5 million (31 per cent) from the prior period, and $22.6 million on a year-to-date basis, up $6.8 million (43 per cent), primarily due to higher annual incentive compensation on improved financial performance and higher base salaries for new hires.

Earnings summary 

The company benefitted from increased fees due to strong net inflows into its exchange-listed products and higher average AUM in its managed equities segment. Sprott also benefitted from increased commission and management fee revenues in its brokerage segment.

Net income was $11.1 million ($0.44 per share) in the quarter, up 6 per cent, or $0.6 million ($0.01 per share) from the prior period, and $14.3 million ($0.57 per share) on a year-to-date basis, up 24 per cent, or $2.7 million ($0.10 per share).

Adjusted base EBITDA was $15.1 million ($0.60 per share) in the quarter, up 64 per cent, or $5.8 million ($0.22 per share) from the prior period, and $29.7 million ($1.19 per share) on a year-to-date basis, up 71 per cent, or $12.3 million ($0.48 per share).

Subsequent events

On July 19, 2021, the company closed its transaction with Uranium Participation Corp. to form the Sprott Physical Uranium Trust, which added $630 million to the company’s AUM.

Peter Grosskopf, CEO of Sprott, commented,

“The earnings growth we have delivered this year has been driven by a combination of strong net sales in our physical trusts, higher average AUM in our managed equities segment and solid contributions from our brokerage business.”

Sprott is a global leader in precious metal and real asset investments.

Sprott (SII) is up by 1.47 per cent and is currently trading at $45.64 per share as of 9:32 am ET.

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