Sprott Announces 2019 Third Quarter Results

TORONTO, Nov. 08, 2019 (GLOBE NEWSWIRE) — Sprott Inc. (TSX: SII) (“Sprott” or the “Company”) today announced its financial results for the three months ended September 30, 2019.

Financial Overview (3 months results)

Assets Under Management (“AUM”) were $11.3 billion as at September 30, 2019, up $0.7 billion (6%) from June 30, 2019

Total net revenues (net of commission expenses, trailer fees and sub-advisor fees, carried interest and performance fee payouts) were $23.2 million, reflecting an increase of $7.7 million (50%) from the quarter ended September 30, 2018.

Total expenses (excluding commission expenses, trailer fees and sub-advisor fees, carried interest and performance fee payouts) were $15.5 million, reflecting an increase of $2.1 million (15%) from the quarter ended September 30, 2018.

Net income was $5.7 million ($0.02 per share), reflecting an increase of $3.7 million from the quarter ended September 30, 2018.

Adjusted Base EBITDA was $10.0 million ($0.04 per share), an increase of $0.3 million (4%) from the quarter ended September 30, 2018

Significant Events:

Sprott and Tocqueville Asset Management entered into a definitive agreement regarding the sale of Tocqueville’s gold strategy assets to Sprott Asset Management

The acquisition is expected to close in January 2020 and will add approximately $2.2 billion to Sprott’s AUM

Lead Portfolio Manager John Hathaway and Portfolio Managers Douglas Groh and Ryan McIntyre will join Sprott upon closing of the transaction

“Strong precious metals prices and improved investor sentiment contributed to increases in our AUM and Adjusted Base EBITDA during the third quarter of 2019,” said Peter Grosskopf, CEO of Sprott. “In the current climate of artificially low interest rates and accommodative monetary policy, we believe precious metals have become a mandatory portfolio diversification asset. The acquisition of the Tocqueville gold strategies will add meaningful scale to Sprott’s managed equities segment and provide additional operating leverage to the gold price going forward.”

Assets Under Management (3 months results)