TORONTO, Feb. 26, 2025 (GLOBE NEWSWIRE) — Sprott Inc. (NYSE/TSX: SII) (“Sprott” or the “Company”) today announced its financial results for the year ended December 31, 2024.
Management commentary
“Sprott’s Assets Under Management (“AUM”) ended the year at $31.5 billion, down 6% from $33.4 billion as at September 30, 2024, but up 10% from $28.7 billion as at December 31, 2023. 2024 was our seventh consecutive year of double-digit AUM growth and, subsequent to year-end, as at February 21, 2025, AUM had further increased to $33.5 billion, up $2 billion, or 6% from December 31, 2024,” said Whitney George, Chief Executive Officer of Sprott. “During the year we benefited from strong precious metals prices as well as $698 million in net sales, primarily in our physical trusts and uranium and critical materials ETFs.”
“The recent turmoil in precious metals markets has highlighted the importance of physical ownership, an area where Sprott offers best-in-class solutions to individual and institutional investors. The realignment of global trade and a focus on energy security will create demand for critical materials produced in “friendly” jurisdictions. We continue to develop new exchange-listed and actively-managed critical materials strategies to capitalize on this powerful long-term trend. We have invested in our sales and marketing capabilities to deliver our clients the highest levels of client service, while building on our position as thought leaders in our core themes. Sprott is well positioned to create value for our clients and shareholders in the months and years ahead,” continued Mr. George.
Key AUM highlights1
- AUM ended the year at $31.5 billion as at December 31, 2024, down 6% from $33.4 billion as at September 30, 2024 but was up 10% from $28.7 billion as at December 31, 2023. Although fourth quarter AUM was negatively impacted by market value depreciation across most of our funds and the termination of certain subadvised fund contracts, 2024 was nevertheless our seventh consecutive year of double-digit AUM growth as we benefited from strong market value appreciation in our precious metals physical trusts and net inflows to our exchange listed products.
Key revenue highlights
- Management fees were $41.4 million for the quarter, up 20% from $34.5 million for the quarter ended December 31, 2023 and $155.3 million on a full-year basis, up 17% from $132.3 million for the year ended December 31, 2023. Carried interest and performance fees were $2.5 million for the quarter, up from $0.5 million for the quarter ended December 31, 2023 and $7.3 million on a full-year basis, up from $0.9 million for the year ended December 31, 2023. Net fees were $38.6 million for the quarter, up 24% from $31 million for the quarter ended December 31, 2023 and $144.6 million on a full-year basis, up 22% from $118.8 million for the year ended December 31, 2023. Our revenue performance in the quarter and on a full-year basis was primarily due to higher average AUM on strong market value appreciation in our precious metals physical trusts and inflows to the majority of our exchange listed products. We also benefited from carried interest and performance fee crystallization in certain funds in our managed equities and private strategies segments.
- Commission revenues were $0.8 million for the quarter, down 38% from $1.3 million for the quarter ended December 31, 2023 and $5.7 million on a full-year basis, down 31% from $8.3 million for the year ended December 31, 2023. Net commissions were $0.4 million for the quarter, down 47% from $0.7 million for the quarter ended December 31, 2023 and $2.7 million on a full-year basis, down 43% from $4.6 million for the year ended December 31, 2023. Commission revenue was lower in the quarter due to modest ATM activity in our critical materials physical trusts. On a full-year basis, the decline in commission revenue was due to the sale of our former Canadian broker-dealer in the second quarter of last year.
- Finance income was $1.4 million for the quarter, up 4% from the quarter ended December 31, 2023 and $8.9 million on a full-year basis, up 37% from $6.5 million for the year ended December 31, 2023. The increase in the quarter was due to higher income generation in co-investment positions we hold in our LPs managed in our private strategies segment. The increase on a full-year basis was due to higher income earned on streaming syndication activity in the second quarter.
Key expense highlights
- Net compensation expense was $17 million for the quarter, up 11% from $15.3 million for the quarter ended December 31, 2023 and $67.3 million on a full-year basis, up 10% from $61.2 million for the year ended December 31, 2023. The increase in the quarter and on a full-year basis was primarily due to increased Annual Incentive Program (“AIP”) accruals on higher net fee generation. Our net compensation ratio was 44% in the quarter (December 31, 2023 – 47%) and 45% on a full-year basis (December 31, 2023 – 49%).
- SG&A expense was $4.9 million for the quarter, up 25% from $4 million for the quarter ended December 31, 2023 and $18.8 million on a full-year basis, up 13% from $16.6 million for the year ended December 31, 2023. The increase in the quarter and on a full-year basis was due to higher professional services, marketing and technology costs.
Earnings summary
- Net income for the quarter was $11.7 million ($0.46 per share), up 21% from $9.7 million ($0.38 per share) for the quarter ended December 31, 2023 and was $49.3 million ($1.94 per share) on a full-year basis, up 18% from $41.8 million ($1.66 per share) for the year ended December 31, 2023. Our earnings in the quarter and on a full-year basis benefited from higher average AUM on strong market value appreciation in our precious metals physical trusts and inflows to the majority of our exchange listed products. We also benefited from carried interest and performance fee crystallization in certain funds in our managed equities and private strategies segments.
- Adjusted base EBITDA was $22.4 million ($0.88 per share) for the quarter, up 19% from $18.8 million ($0.75 per share) for the quarter ended December 31, 2023 and $85.2 million ($3.35 per share) on a full-year basis, up 18% from $71.9 million ($2.85 per share) for the year ended December 31, 2023. Adjusted base EBITDA in the quarter and on a full-year basis benefited from higher average AUM on strong market value appreciation in our precious metals physical trusts and inflows to the majority our exchange listed products
1 See “non-IFRS financial measures” section in this press release and schedule 2 and 3 of “Supplemental financial information”
Subsequent events
- Subsequent to year-end, as at February 21, 2025, AUM was $33.5 billion, up 6% from $31.5 billion at December 31, 2024.
- On February 25, 2025, the Sprott Board of Directors announced a quarterly dividend of $0.30 per share.
Supplemental financial information
Please refer to the December 31, 2024 annual financial statements of the Company and the related management discussion and analysis filed earlier this morning for further details into the Company’s financial position as at December 31, 2024 and the Company’s financial performance for the three and twelve months ended December 31, 2024.
Schedule 1 – AUM continuity
| 3 months results | |||||||
| (In millions $) | AUM
Sep. 30, 2024 |
Net
inflows (1) |
Market
value changes |
Other
net inflows (1) |
AUM
Dec. 31, 2024 |
Net management
fee rate (2) |
|
| Exchange listed products | |||||||
| – Precious metals physical trusts and ETFs | |||||||
| – Physical Gold Trust | 8,617 | 35 | (44) | – | 8,608 | 0.35% | |
| – Physical Silver Trust | 5,566 | 83 | (422) | – | 5,227 | 0.45% | |
| – Physical Gold and Silver Trust | 5,225 | (69) | (143) | – | 5,013 | 0.40% | |
| – Precious Metals ETFs | 404 | (10) | (40) | – | 354 | 0.33% | |
| – Physical Platinum & Palladium Trust | 151 | 33 | (16) | – | 168 | 0.50% | |
| 19,963 | 72 | (665) | – | 19,370 | 0.39% | ||
| – Critical materials physical trusts and ETFs | |||||||
| – Physical Uranium Trust | 5,408 | 45 | (591) | – | 4,862 | 0.31% | |
| – Critical Materials ETFs | 2,307 | 27 | (314) | – | 2,020 | 0.52% | |
| – Physical Copper Trust | 103 | (1) | (12) | – | 90 | 0.32% | |
| 7,818 | 71 | (917) | – | 6,972 | 0.37% | ||
| Total exchange listed products | 27,781 | 143 | (1,582) | – | 26,342 | 0.39% | |
| Managed equities (3)(4) | 3,276 | (55) | (221) | (127) | 2,873 | 0.90% | |
| Private strategies (4) | 2,382 | (35) | (27) | – | 2,320 | 0.83% | |
| Total AUM (5) | 33,439 | 53 | (1,830) | (127) | 31,535 | 0.47% | |
| 12 months results | |||||||
| (In millions $) | AUM
Dec. 31, 2023 |
Net
inflows (1) |
Market
value changes |
Other
net inflows (1) |
AUM
Dec. 31, 2024 |
Net management
fee rate (2) |
|
| Exchange listed products | |||||||
| – Precious metals physical trusts and ETFs | |||||||
| – Physical Gold Trust | 6,532 | 351 | 1,725 | – | 8,608 | 0.35% | |
| – Physical Silver Trust | 4,070 | 339 | 818 | – | 5,227 | 0.45% | |
| – Physical Gold and Silver Trust | 4,230 | (230) | 1,013 | – | 5,013 | 0.40% | |
| – Precious Metals ETFs | 339 | (24) | 39 | – | 354 | 0.33% | |
| – Physical Platinum & Palladium Trust | 116 | 75 | (23) | – | 168 | 0.50% | |
| 15,287 | 511 | 3,572 | – | 19,370 | 0.39% | ||
| – Critical materials physical trusts and ETFs | |||||||
| – Physical Uranium Trust | 5,773 | 311 | (1,222) | – | 4,862 | 0.31% | |
| – Critical materials ETFs | 2,143 | 321 | (444) | – | 2,020 | 0.52% | |
| – Physical Copper Trust | – | 1 | (21) | 110 | 90 | 0.32% | |
| 7,916 | 633 | (1,687) | 110 | 6,972 | 0.37% | ||
| Total exchange listed products | 23,203 | 1,144 | 1,885 | 110 | 26,342 | 0.39% | |
| Managed equities (3)(4) | 2,874 | (222) | 348 | (127) | 2,873 | 0.90% | |
| Private strategies (4) | 2,661 | (207) | (134) | – | 2,320 | 0.83% | |
| Total AUM (5) | 28,738 | 715 | 2,099 | (17) | 31,535 | 0.47% | |
| (1) See “Net inflows” and “Other net inflows” in the key performance indicators and non-IFRS and other financial measures section of the MD&A. | |||||||
| (2) Net management fee rate represents the weighted average fees for all funds in the category, net of fund expenses. | |||||||
| (3) Managed equities is made up of primarily precious metal strategies (53%), high net worth managed accounts (38%) and U.S. value strategies (9%). | |||||||
| (4) Prior period figures have been reclassified to conform with current presentation. | |||||||
| (5) No performance fees are earned on exchange listed products. Certain managed equities products earn either performance fees based on returns above relevant benchmarks or earn carried interest calculated as a predetermined net profit over a preferred return. Private strategies LPs primarily earn carried interest calculated as a predetermined net profit over a preferred return. | |||||||
Schedule 2 – Summary financial information
| (In thousands $) | Q4
2024 |
Q3
2024 |
Q2
2024 |
Q1
2024 |
Q4
2023 |
Q3
2023 |
Q2
2023 |
Q1
2023 |
||||||||
| Summary income statement | ||||||||||||||||
| Management fees (1) | 41,161 | 38,693 | 38,065 |
|
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