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Be the first with the news that moves the market- Sprott (TSX:SII) has seen a rise is its managed assets, despite the COVID-19 pandemic impacting the finance industry globally
- In its first quarterly report of 2020, Spott’s managed assets have risen 16 per cent to approximately C$14.91 billion, when compared to the same quarter in 2019
- However, quarterly net revenue was down 1 per cent to approximately $20.90 million
- The company attributed the rise to increased interest in its gold and silver assets but did not comment on the drop in revenue
- Sprott (TSX:SII) is up 0.86 per cent, with shares trading for $3.50 and a market cap of $887.9 million
Sprott (TSX:SII) has seen a rise is its managed assets, despite the COVID-19 pandemic impacting the finance industry globally.
By the end of the company’s first quarter, Spott’s managed assets have risen 16 per cent to approximately C$14.91 billion, when compared to the same quarter in 2019.
However, quarterly net revenue was down to approximately $20.90 million. This is a one per cent decrease on 2019’s corresponding quarter but the company did not comment directly on why the decrease occurred.
The company attributed the rise in managed assets to increased interests in its gold and silver assets.
With the onset of COVID-19 causing widespread volatility in global markets, investors have been turning to traditional safe havens, such as gold.
CEO of Sprott, Peter Grosskopf said the COVID-19 pandemic is the greatest challenge in a generation. He went on to comment on the company’s recent asset gains.
“As governments have responded with unprecedented levels of fiscal and monetary stimulus, investor demand for precious metals has increased, and gold prices have surged to their highest levels since the global credit crisis.
The growth was driven largely by new sales in our physical bullion trusts and the acquisition of the Tocqueville gold strategies. All of our core businesses are performing well and the entire Sprott team is focused on capitalizing on this opportunity,” he said.
Turning to the company’s stock performance, Sprott’s share price has made a significant recovery since the onset of the COVID-19 pandemic.
Between the end of February and mid-March, the company’s share price fell almost 40 per cent as global markets began to feel the impact of the pandemic.
However, since the beginning of April, the company’s market share has rebounded, and is currently sitting higher than its pre-pandemic levels.
Sprott (TSX:SII) is up 0.86 per cent, with shares trading for $3.50 at 3:05pm EDT.
