Sprott Inc. (SII) Bundle
A Brief History of Sprott Inc.
Sprott Inc., a prominent player in the asset management sector, has seen significant evolution and growth over the years, particularly as of 2024. The company specializes in managing investments in precious metals and other critical materials, capitalizing on market trends and investor demand.
Financial Performance Overview
As of September 30, 2024, Sprott reported Assets Under Management (AUM) totaling $33.4 billion, an increase of 8% from $31.1 billion at the end of June 2024, and up 16% from $28.7 billion at the end of December 2023. Following the quarter, AUM further rose to $34.2 billion as of November 1, 2024.
| Metric | September 30, 2024 | June 30, 2024 | December 31, 2023 |
|---|---|---|---|
| AUM | $33.4 billion | $31.1 billion | $28.7 billion |
| Net Income | $12.7 million | $6.8 million | $32.1 million (9 months) |
| Adjusted Base EBITDA | $20.7 million | $17.9 million | $62.8 million (9 months) |
| Quarterly Dividend | $0.30 per share | $0.25 per share | $19,398 (total dividends declared) |
Quarterly Highlights
In the third quarter of 2024, Sprott achieved a net income of $12.7 million, or $0.50 per share, marking an 87% increase from $6.8 million in the same quarter of 2023. The first nine months of 2024 yielded a net income of $37.6 million, translating to $1.48 per share, a 17% rise compared to $32.1 million or $1.27 per share in 2023.
Market Dynamics
Gold and silver prices surged significantly in 2024, with gold increasing by 27.7% and silver by 30.9% year-to-date through September 30. As of November 1, 2024, gold was priced above $2,700 per ounce, while silver surpassed $32 per ounce. This price appreciation was fueled by strong demand, particularly from central banks and Western investors, leading to record gold demand exceeding $100 billion for the first time, according to World Gold Council data.
Investment Strategies
Sprott’s flagship Sprott Gold Equity Fund recorded a quarterly increase of 21.41% and a year-to-date increase of 36.34% as of November 1, 2024. Despite strong performance, investor capital allocation remained slow, reflecting a cautious market outlook.
Capital and Liquidity Position
As of September 30, 2024, Sprott maintained a healthy liquidity position with $43.5 million in cash and cash equivalents, up from $20.7 million at the end of December 2023. The company had $89.4 million in co-investments, with $40 million available for quick monetization.
Shareholder Returns
The company’s commitment to returning value to shareholders is evident in its dividend policy. A third-quarter dividend of $0.30 per share was declared, representing a 20% increase from the previous quarter's dividend of $0.25 per share.
| Dividends Declared | Payment Date | Amount |
|---|---|---|
| Q1 2024 | June 5, 2024 | $0.25 |
| Q2 2024 | September 3, 2024 | $0.25 |
| Q3 2024 | December 3, 2024 | $0.30 |
Sprott Inc. continues to adapt and grow in response to market dynamics, positioning itself as a leader in the investment management space, particularly in precious metals and critical materials.
A Who Owns Sprott Inc. (SII)
Major Shareholders
As of 2024, the ownership of Sprott Inc. (SII) is concentrated among a few key stakeholders. The largest shareholders include:
| Shareholder | Ownership Percentage | Type of Ownership |
|---|---|---|
| Sprott Asset Management LP | 21.5% | Institutional |
| Management and Insiders | 15.2% | Insider Ownership |
| Public Float | 63.3% | Retail and Other Investors |
Share Capital Structure
As of September 30, 2024, Sprott Inc. had a total of 25,412,209 common shares issued and outstanding:
| Type of Share | Number of Shares | Value (in thousands $) |
|---|---|---|
| Common Shares | 25,412,209 | 434,927 |
| Unvested Shares in EPSP Trust | 500,000 | — |
Assets Under Management (AUM)
Sprott Inc. reported significant growth in its Assets Under Management (AUM), which as of September 30, 2024, reached:
- AUM: $33.4 billion
- Increase of 8% from $31.1 billion as of June 30, 2024
- Increase of 16% from $28.7 billion as of December 31, 2023
Financial Performance
For the third quarter of 2024, Sprott's financial highlights included:
| Metric | Value |
|---|---|
| Net Income | $12.7 million ($0.50 per share) |
| Adjusted Base EBITDA | $20.7 million ($0.81 per share) |
| Total Revenue | $46.5 million |
| Total Expenses | $28.1 million |
Dividend History
Sprott Inc. has declared the following dividends in 2024:
| Dividend Declaration Date | Dividend Amount per Share | Total Dividend Payment (in thousands $) |
|---|---|---|
| March 4, 2024 | $0.25 | 6,466 |
| May 21, 2024 | $0.25 | 6,466 |
| August 19, 2024 | $0.25 | 6,466 |
| November 5, 2024 (subsequent to quarter end) | $0.30 | — |
Sprott Inc. (SII) Mission Statement
Overview
The mission statement of Sprott Inc. emphasizes its commitment to providing exceptional investment management services focused primarily on precious metals and critical materials. Sprott aims to create long-term value for its clients and shareholders through expert asset management and innovative investment strategies.
Financial Performance
As of September 30, 2024, Sprott reported the following financial highlights:
| Metric | Q3 2024 | Q3 2023 | Year-to-Date 2024 | Year-to-Date 2023 |
|---|---|---|---|---|
| Assets Under Management (AUM) | $33.4 billion | $28.7 billion | $33.4 billion | $28.7 billion |
| Net Income | $12.7 million | $6.8 million | $37.6 million | $32.1 million |
| Earnings per Share (EPS) | $0.50 | $0.27 | $1.48 | $1.27 |
| Adjusted Base EBITDA | $20.7 million | $17.9 million | $62.8 million | $53.1 million |
| Management Fees | $38.7 million | $32.9 million | $113.1 million | $97 million |
| Carried Interest and Performance Fees | $4.1 million | $0 | $4.8 million | $0.4 million |
Strategic Focus
Sprott's mission is to leverage its expertise in the precious metals sector, creating innovative products such as physical trusts and exchange-traded funds (ETFs). The company is committed to sustainable investment practices and aims to provide clients with diversified exposure to precious metals and critical materials.
Market Position
As of Q3 2024, Sprott’s key market metrics include:
| Product Category | AUM | Net Inflows (Q3 2024) | Net Management Fee Rate |
|---|---|---|---|
| Precious Metals Physical Trusts | $19.96 billion | $581 million | 0.39% |
| Critical Materials Physical Trusts | $7.82 billion | $81 million | 0.38% |
| Managed Equities | $3.28 billion | $662 million | 0.90% |
| Private Strategies | $2.38 billion | $110 million | 0.80% |
Conclusion
In alignment with its mission, Sprott Inc. is focused on enhancing shareholder value through strategic asset management in the precious metals and critical materials sectors. The company's robust financial performance and commitment to innovative investment solutions position it well within the competitive investment landscape.
How Sprott Inc. (SII) Works
Business Model
Sprott Inc. operates primarily in the financial services sector, focusing on investment management with a specialization in precious metals and critical materials. The company manages a variety of investment products, including closed-end physical trusts and exchange-traded funds (ETFs). As of September 30, 2024, Sprott's Assets Under Management (AUM) reached $33.4 billion, representing an 8% increase from $31.1 billion as of June 30, 2024, and a 16% rise from $28.7 billion at the end of 2023.
Financial Performance
For the third quarter of 2024, Sprott reported a net income of $12.7 million, or $0.50 per share, which is an 87% increase compared to $6.8 million, or $0.27 per share, in the same quarter of 2023. Year-to-date, net income reached $37.6 million, up 17% from $32.1 million in the prior year.
| Metric | Q3 2024 | Q3 2023 | YTD 2024 | YTD 2023 |
|---|---|---|---|---|
| Net Income | $12.7 million | $6.8 million | $37.6 million | $32.1 million |
| Earnings per Share | $0.50 | $0.27 | $1.48 | $1.27 |
| Adjusted Base EBITDA | $20.7 million | $17.9 million | $62.8 million | $53.1 million |
Revenue Streams
Sprott's revenue is derived from several key sources, including management fees, performance fees, and commissions. In the third quarter of 2024, management fees amounted to $38.7 million, a 18% increase from $32.9 million in the prior year. Performance fees were reported at $4.1 million, up from nil in Q3 2023.
Expenses
For the third quarter of 2024, Sprott's total expenses were reported at $28.1 million, which includes $16.9 million in net compensation and $4.6 million in selling, general and administrative (SG&A) expenses.
| Expense Type | Q3 2024 | Q3 2023 |
|---|---|---|
| Net Compensation | $16.9 million | $15.3 million |
| SG&A Expenses | $4.6 million | $3.8 million |
| Total Expenses | $28.1 million | $29.0 million |
Market Trends and Impact
The performance of Sprott is heavily influenced by the prices of precious metals. As of September 30, 2024, gold prices increased by 27.7% year-to-date, while silver prices rose by 30.9%. This surge in precious metal prices has positively impacted the company's revenue from its physical metal trusts.
Assets and Liabilities
As of September 30, 2024, Sprott reported total assets of $412.5 million, an increase of 9% from $378.8 million at the end of 2023. Total liabilities stood at $82.2 million, a 12% increase from $73.1 million.
| Balance Sheet Metric | As of September 30, 2024 | As of December 31, 2023 |
|---|---|---|
| Total Assets | $412.5 million | $378.8 million |
| Total Liabilities | $82.2 million | $73.1 million |
| Total Shareholder's Equity | $330.3 million | $305.7 million |
Dividends
Sprott has declared a dividend of $0.30 per share for the third quarter of 2024, reflecting a 20% increase compared to previous dividends.
Investment Strategies
The company's investment strategies focus on precious metals and critical materials. Sprott's flagship funds have shown significant performance, with the Sprott Gold Equity Fund increasing by 21.41% in Q3 2024 and 36.34% year-to-date.
How Sprott Inc. (SII) Makes Money
Revenue Streams
Sprott Inc. primarily generates revenue through the following segments:
- Management Fees
- Carried Interest and Performance Fees
- Commission Revenues
- Finance Income
Management Fees
For the third quarter of 2024, Sprott reported management fees of $38.7 million, which is an increase of 18% from $32.9 million in the same quarter of 2023. Year-to-date management fees reached $113.1 million, up 17% from $97 million for the nine months ended September 30, 2023.
Carried Interest and Performance Fees
Carried interest and performance fees amounted to $4.1 million in Q3 2024, compared to $nil in Q3 2023. Year-to-date, these fees totaled $4.8 million, significantly up from $0.4 million for the nine months ended September 30, 2023.
Commission Revenues
Commission revenues were reported at $0.5 million for Q3 2024, down 8% from Q3 2023. Year-to-date commission revenues stood at $4.9 million, a decline of 30% from $7 million.
Finance Income
Finance income for the third quarter was $1.6 million, a decrease of 12% from $1.8 million in Q3 2023. However, year-to-date finance income increased to $7.5 million, up 46% from $5.1 million.
Assets Under Management (AUM)
As of September 30, 2024, Sprott's AUM was $33.4 billion, reflecting an 8% increase from $31.1 billion at June 30, 2024, and a 16% increase from $28.7 billion at December 31, 2023.
| Metric | Q3 2024 | Q3 2023 | YTD 2024 | YTD 2023 |
|---|---|---|---|---|
| Management Fees | $38.7 million | $32.9 million | $113.1 million | $97 million |
| Carried Interest and Performance Fees | $4.1 million | $nil | $4.8 million | $0.4 million |
| Commission Revenues | $0.5 million | $0.54 million | $4.9 million | $7 million |
| Finance Income | $1.6 million | $1.8 million | $7.5 million | $5.1 million |
| AUM | $33.4 billion | N/A | N/A | N/A |
Recent Financial Performance
Net income for Q3 2024 was $12.7 million (or $0.50 per share), representing an 87% increase from $6.8 million (or $0.27 per share) in Q3 2023. For the nine months ended September 30, 2024, net income was $37.6 million (or $1.48 per share), up 17% from $32.1 million (or $1.27 per share).
Expense Overview
Key expenses for the third quarter included:
- Net compensation expense of $16.9 million, up 11% from $15.3 million in Q3 2023.
- SG&A expense of $4.6 million, a 21% increase from $3.8 million in Q3 2023.
| Expense Category | Q3 2024 | Q3 2023 |
|---|---|---|
| Net Compensation Expense | $16.9 million | $15.3 million |
| SG&A Expense | $4.6 million | $3.8 million |
Dividend Information
In 2024, Sprott declared a total of $19.4 million in dividends. The most recent dividend declared was $0.30 per share.
Market Trends
Gold prices increased by 27.7% year-to-date through September 30, 2024, while silver prices rose by 30.9%. The demand for gold reached a record high, exceeding $100 billion for the first time.
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Resources:
- Sprott Inc. (SII) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of Sprott Inc. (SII)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View Sprott Inc. (SII)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.