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Sprott (SII)

Participants
Peter Grosskopf CEO
Kevin Hibbert CFO
John Ciampaglia CEO, Sprott Asset Management
Whitney George President
Geoffrey Kwan RBC Capital Markets
Graham Ryding TD Securities
Call transcript
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Operator

Good morning, ladies and gentlemen, and thank you for standing by. Welcome to Sprott Inc.'s 2021 First Quarter Results Conference Call. At this time all participants are in a listen-only mode.

Following the presentation we’ll conduct a question-and-answer session. Instructions will be provided for you to queue up for questions. reminder, is a May recorded As XXXX. X, Instructions] this being conference today, [Operator the follow, may speakers that of Canadian the behalf On that of provision and within meaning the responses Safe statements Harbor today's Securities listeners the to forward-looking questions Law. contain Provincial the of presentation cautioned are

actual such materially in and factors or material those risks involve reliance making statements implied statements. Certain statements, and undue in differ should are statements. implied results not expressed or Forward-looking uncertainties be from forward-looking and placed may on such assumptions

information filings to Mr. For the in consult results about the Mr. ahead, Securities U.S. Grosskopf. with over making from will factors material additional differ and go other please statements, MD&A about Canadian turn Peter actual and for that may expectations the I applied Please conference forward-looking regulators. to the cause factors quarter Grosskopf. now assumptions or Sprott's materially and

Peter Grosskopf

today. Thank you, morning, thanks everyone, and operator. joining Good us for

today the On Ciampaglia, with Whitney Chief of Chief Officer; and President Hibbert, Kevin Sprott the our Executive me of the Management. John Sprott; Financial call is Asset George,

I'll Sprott Our the website delivery on statements on also where can strong this quarter find were of started X. quarter. start XXXX MD&A. very and with our are another you and Slide results XXXX morning first available financial released the

an In added transaction Trusts, Equities April, matching came the Silver during expanded Gold announced quarter, QX before to precious was URNM, We This our haven subsequent inflection unfolding The assets. pulling has end. tragedy in QX successful to All contributions. seem performed of back of Ukraine and helping markets Uranium We of program. the in With approximately safe in the our and trusts also last we divisions meaningful uranium area. record for recorded an metals net our now aggressive acquisition our are turn that, year. with our previously physical billion quarter AUM rate be from well QX as backdrop The assets Kevin for stocks, rotating quarter the Uranium, making of embarks our over and $X that record recently. the our of highs. climb I'll to closed the that sales ETF. franchise majority to Fed our billion performing demand created management of continue look in out point are set our well, all sales under The at and $X.X is growth a results. financial in to the Investors in on at Kevin? hike a it

Kevin Hibbert

or summary XX, everyone. billion at Thanks, was $XX.X from Peter, $X.X provides our of Slide March X, the billion a end XXXX. as quarter, which and good up XX, morning, XXXX. of on the start AUM I'll at December AUM XX%

the XX% quarter As brief our across fund we Peter and strong provides EBITDA three million X was last our in Physical a products Slide the Adjusted Gold same from mentioned, benefited Silver for our strong million, year. base quarter, earnings. $X.X from market Physical Trusts. time and look the value to Physical Uranium, months up into or $XX.X appreciation inflows

from the and inflows I benefited appreciation strong earlier. During value market the we quarter, described

mining However, equity segment. in those slightly by offset were weaker Brokerage increases origination our activity

supplemental adjusted that to well With morning. For filed earlier EBITDA, as refer John. information as on of MD&A base you and I'll pass our expenses revenues, presentation, can more the John? this our things section information said, to over this

John Ciampaglia

very report morning, everybody. good and super we had I'm Kevin, Thanks, happy quarter. Yeah. strong a to

that continue supply are around and there about I the commodity rediscovered think it's chains. world the that concerns fair world commodities supply that has say linger and to to of growing commodities,

net between AUM, back into we and $X it's returned our evenly over inflows and has I been Trust after soft had very strong And quarter, in mode that to increase billion nice Gold was appreciation. see the market sales For split having that XXXX. think pretty almost a

perspective, sold far, so in for year, the $XXX million we Gold about Just already for entire $XXX calendar year, Trust, [ph] our XXXX, last hit in and we've million.

For our it of Trust, sales half a we're very and quiet Silver second $XXX net for now million XXXX. last approaching about was year in

globe. It it remains and a Physical of Sprott to the around attract continues in For big a Uranium the interest was Trust, very quarter strong. the lot seller

silver, charts, of the you XXXX, clear top see seller. cycles we through bar then the gold has Trust very first kind star Uranium moved commodities you of see As and can different half XXXX, can was from rotation for recently, been the the in as where more the

please. move slide the next Let's to

Corp. talk year, we Physical net to tremendous of because on and a study $XX.X the last shareholders Uranium had Sprott I on good a bit created reorganized Participation just over more it's last think about UXOX. XX we acquired Trust we've approximately Uranium value and value When our the $XXX July asset of million little really case So million for year. how

fund $X May You billion can holds XX.X about see the is X, now pounds. and to million

at out along bond to small the been point for of us in correction with few markets, story big that a uranium capital very started terms billion weeks, and physical buying $X commodity, in of Even we've the most and and raising though in it it's stocks So is in other had about uranium. year we AUM. more important price deploying success the last a

announcement SEC we've starting been to out It list of a still as elements that for the a some initial SEC well of that there to exemptions structural clear very secure asking Sprott order listing conclusion. such Stock I right uranium the a specific the were New on one our given that were we application be we not this feel market, of point time trust added is that And features day Exchange. a design mention would rejected some X. since novel to does as to want So the file on of January approval. listing just York to of XX% had put was number a about that we the and the in ago, itself. vehicle have structural foregone an week Unfortunately, not the

we game point so to is monitor. I it's won't has So worked change one important well. far plan done our will that something And here we've most the continue But think bit. incredibly what

incredible Peter manager specifically and operating now Next $X in slide, zero. And uranium, rising we in torque of which were price. This puts expand leverage and us the to amount months largest of uranium in the of the the as please. uranium had continued ago to mentioned, AUM, to provide we at equities, investments overall where we XX believe with we're approximately essentially uranium a billion area position world

for week We've created URNM seen clone story in in of be done we is started the Europe. about today, So Italy week. a it's an been we've and uranium in a And of one expect and of we've a interest London that incredible this company. lot on yesterday trading the growth to it things Germany

with it we're the across with over interested world bringing growing to to as I'll because pass global segments. in investor it So story interest we And that, a investors all the see Whitney. story around

Whitney George

to follow the yesterday. black, relative Most about up were markets. unique but have continue moment. after John. performance our is in for a incredibly has to improved, Equities talk of products act Managed until an which John you, Absolute And Thank difficult quite I other hard to rebounded

some Equities other redemptions product is that's I the business. there continues, talented nice with is and endured we years in obviously, kinds change interest strategies had that opportunities that cash And general working at two We our transition experienced that funds, have the our mining into since that assets a explore the positive uranium growth all and in ideas that think the leverage last obviously very from quarter we're incredible seen large follow And to on Managed we're success three expertise, first John of products the benefiting, parts of world in managers in generally. hard of the I've with seeing team since team to offer and new and flow division. the in from the months XXXX value the our which the that in on boom, the had new biggest and energy of rotation markets. we and year our acquiring in to away portfolio end dotcom toward and

about in excited good very you. basis, relative future. we're prospects decades. Peter, in this our And a So to on hasn't felt the back it

Peter Grosskopf

with follow reiterate hard Yes. to gentlemen businesses. are Thanks, those acts Whitney. both growing I'll that these very

Slide Number XX at turning to to strategies. our private So look

billion the with A We March private of quarter originations couple the providing lending combined strong as AUM examples both strategies in was had Our lending the and streaming teams. $X.X from of XX. while of tranche Pension Seabridge convertible to a debt Plan note with million streaming Ontario partnered million project Gold, $XXX Teachers' the on Gold. first team Marathon $XXX facility into the

continue expect strategies. expand to the new do this business the ahead, Looking fund we lending XXXX in and of division XXXX launch with to in

XX. Turning Slide over to

the well, miners. For providing brokerage and a a with good slowed results, in is Both reasonable more environment platform quarter at strong performing Canadian slightly brief the generating The segment. levels are on look but junior of businesses revenues bit brokerage returns our a for capital. difficult activity still

the whole positive brokerage produce as continues to to for administration and U.S. has under volatility. is assets front. and then majority under which over sales moving deliver assets final for financial We're comments. helped a organization Our us the to its Slide and growth continuing the sales And great has converted despite product a on of strong some market management, year. great to product It's AUM to start equity XX been results strong our

are alternative target addressing now precious specialty as investment metals are and We minerals as areas. markets two large both growing

increased translating transition expanding rapidly businesses. efforts off sales sales accelerating is growing the are our our in into investment base business. now all client into paying and minerals in And marketing growth and energy in We

XXXX. now us it some growth, multiple calendar very quite launches product Operator? are And on our of remarks we organic turn today's for and busy focused concludes with for ahead to back that, I'll We have for now planned new that the Q&A. and call with a operator

Operator

question [Operator first Kwan Capital Our from is RBC Thank Geoff Instructions] Markets. you, of Peter.

Your line open. is

Geoffrey Kwan

Hi. Good morning.

I past growth penetrating about distribution opportunity you've family the think like. in talked the the like offices and channels

give front? if progress you're on wondering on update that to an able Just

John Ciampaglia

around It's Geoff. seen morning. Yeah, engagement offices tremendous Good hi, from Yeah, world. we've family the John.

the the or to seem the last Trust of Sprott all U.S., Physical a offices family eight the seem West in balls. Coast nine East to uranium of Europe, have Singapore we months, whole U.S. in be that Uranium bunch Coast to Specifically of

become are to offices parallel understood. focused We've important XXXX the So and events I points narrative embargo been and the starting ideas kind I to these said, kind it hedge that States it's we would front be the starting of energy the we policy as this to this very these to of seem world similar to this and And is And funds. the hedge to spoken up energy And inflection when make woke impact of have a that Europe now. in the has world family We we sure say, I another of commodity the shock also better to happen the also us There's and and think very think United interesting for countless with got hedge growing these highlighted in Sprott. positive segment, oil world supply starting be. transition very is And is need funds, specifically a situation right on funds and growing. around some in is lot [ph] well. will we similar trade. the it's security security saw a clearly going to that end energy of thesis really And post at had HUBXX clearly, think how independence. of think energy we've for

Geoffrey Kwan

helpful. origination the might you that's of out you kind Peter, pipeline, do any think have the the have lending you. and you on Okay, for on year? what play Thank of strategies, insight the rest streaming the

Peter Grosskopf

very increasing closings. for under the proportion business, that accounts management. just reasonably clients predict way assets commitment now I'm confident is because that to paying is coming that so is that of business into It's an fees, happen the to going target when sides there be triggered. to steady into to big to larger I'm there individual the are area hard very confident It's the and closings growing, would it's growing amounts slow say a both have My are continue growth. keep a XXXX. on well and fairly and AUM difficult

Geoffrey Kwan

things, payouts, How Okay. I on sorts would just think XXXX? in are for LTIPs, And in commission Kevin. the question, expense have to those around kind million of So severance, and my excluding base performance like been base fee you $XX kind expecting last expense, of play compensation that stuff of like XXXX? side, the out number,

Kevin Hibbert

question. Geoff, ratio. take net is operating is the best the I comp so key correlated at net to company our and drivers net the you compensation expense the good the And to Hey, the approach say metrics. would for for margin. to extremely the XXXX, tightly commissions revenues, look total Since our would be performance

under a I whatever XX% across comp is roll by spitting model you think should for the take the those the simply commissions and you of rate. the expense plus that we you your in just if ratio. I good Generally that management commissions throughout year, line, divide out and see eight comfortably So suggest and should speaking, take in it quarter net get it fees extrapolate net terms you be pretty run and then simply fees net would that percentage you

held five that based few give that, is And can employees and going I'd mainly higher to should next lot date accounting, they're just we that we for to were we bit amortizing indicator. the we you stock over imagine, last to marks to do over the the did much the the as grant But you our giving And because what much, few were Geoff, at in now you that good because on noisy you -- the saw so on a given a years. years. what be pretty years had stock and of LTIP mainly relative a will next past suggest that number be

approach anymore. So you bottom-up do a can't

it You're have to just apply going that out. you're and that revenues to use modeling ratio against your

Geoffrey Kwan

that's no, Okay, helpful. you. Thank

Kevin Hibbert

No problem.

Operator

question from Please next Thank of you. ahead. TD our Ryding Securities. [Operator And is Graham Instructions] go

Graham Ryding

Good okay? Hi. Can morning. you hear me

Peter Grosskopf

morning, Good Yes. Graham.

Graham Ryding

forgot actually queue so I to apologize. there, up Great. Yeah. I

two looks to -- years on the this net there, moving the sort over your last your that is ratio has And differential quarter XX%. that that up, that there, then Am been drove comp Just correctly? your quarter XX%, it to of like math Kevin, the closer big ratio was run that my Was looking about rate I your this is that suggests at follow piece comments comp higher? LTIP? and the

Kevin Hibbert

Yeah, rate just think. years Graham. say, the XX%, Hey, over the would noise absolutely past two that you're right. That's more creating But is I run given yes, I like that mark.

send going two years. get we after last back you over numbers So off the the I'll those horn,

Graham Ryding

Okay. That Peter, helps. reference made to energy the you transition franchise.

beyond on color any that else Just what franchise could into uranium? evolve

Peter Grosskopf

actually maybe would I John Guys? pass to or some you Well, Whitney answer that and give it on context. to

John Ciampaglia

the electric Yeah. Sure. backbone elements the etc. it, need like steel to of magnets spectrum incredibly things wind are whether that's and that whether it's elements that for Hey, There form Graham. at Yeah, out you're number rare right basic numerous a -- broad. earth look, turbines, vehicles looking in rare or of for applications, different or you

mean the an energy is last will fuels around that believers XXX% XXX have reality there move because transition. systems, that of be fossil That away will infrastructure from developed our fossil for been we largely fuels the are we years. So all does not

capital and coming in and you obviously, underlying underinvestment a whole different just It's of can't to from you And the overnight. going of when lot this inputs. So in do has But when at you there's months. away hit time been raw to Europe also hit continue. transition require amounts last that material speed infrastructure move to XX these bumps that, is massive going is like try a

objectives increasing that whether require battery will we're looking big with -- elements of spectrum, capital right massive going of that different to materials, out these policies. next are in those we the over themes are across change decarbonization, up XXXX electrification, things secular amounts think for at And so the lining terms and climate

looking on we're potentially everything equity commodity whether are the yeah, those space, or So side. that at in the physical side on

Whitney George

year last the call comments John's to add just I'd quite Yeah, a wake-up that world. was for

energy were everybody. made Ukrainian everywhere to cost true tragedy, rising itself and the prices of energy rapidly apparent Before transition the

from other policies, physical has very, just-in-time that of of world addition, inventory attractive. just-in-case, a and makes gone assets and whole the to model ownership a result In as COVID a very

help we're clients to think on our I that. very So capitalize well-positioned

Graham Ryding

So into right you with franchise, uranium transition energy when fall you is that that? in are strategy? Or and that -- about of your it the now think business right your would percentage now, that silver what's fits your AUM

John Ciampaglia

Yeah. uranium clearly The fits.

or related but me, -- physical it's element the probably our produced in between in panels. now all right the dollars $X.X the billion in key all XX% panel. billion a of of and front solar between an for the Silver, of of $X and billion silver, input -- used the solar solar billion. closer to it's the don't $X So $X is world XX% -- I as is have north sorry, for silver miners number sorry,

continue So copper needed, going element different we -- various into or key And of go are shipping. battery that to and growth. EVs that to think there's clearly, materials it's down that's for all other elements right lots electrification for the other whether chemistries a be the vehicles electric that to

Peter Grosskopf

graphite, to because Graham, being would a quickly driven things of that increasing vanadium, are there, nickel, proportion little I can by the get we've revenues on Brokerage that have, had side, add, more we copper, rare we zinc. earths,

their the So seen we've it the terms in brokerage already of side enter mix investments. on

Whitney George

it's upstream there's has and I'd in point transition. plays starting in the in of are lot technology little been very the assets been that a for this like Yeah. investment all of all transition, but add, energy downstream invested been

lots us. with mentioned, opportunities market, of of very of it's a John front So underserved, part under-invested the as in

Graham Ryding

be my NYSE I Sprott and first no for that last with feature then offset is question why color. product? the with growth outlook there my Okay, does compensate you for reduce good question listing. SEC perfect. Or that question second product? guess then this my is is rejecting That's just would elsewhere? And just And the redemption the can

John Ciampaglia

Yeah. Sure.

uranium different of obviously, a So physical to of shipping be uranium. or eligible to that, It's us take no very to limitations physical how to title even would do gold of a severe in silver redemption terms bar trying you redemption on there's feature, because bar has do a do than somebody. who

So there practical limitations are to that.

serve run. implications. will tax as long think redemption also having the trust, creates over that as don't friction the disruption We costs, well option cash a investors for It

trust all very inception And institutional also the most And in the impede the the dollars dollars. since come So investors from Toronto And NAV. market U.S. above operated has without it has think Trust and the way uplifted have its the Canadian at of July the whatsoever fund, the the growth has well investors. Pink Most up growth its we We from no on started for tickers or Market. institutional Best OTC in both traded accessing one. when its we've problem to part, Stock Exchange on whatsoever. don't OTC will

basically as were that's to access local in to the trade, terms way able what much currency to exchange. So done we what which of as we've want cover people and to

Graham Ryding

That's you. for it Great. Okay. me. Thank

Operator

more that, the And turn Thank closing questions I'm to like I not Grosskopf to Mr. queue. the for some Peter remarks. And showing over you. call would with any on

Peter Grosskopf

look weekend. good to interest you in again in speaking Sprott, appreciate after Have Well, we call. a thank We and with for results. our forward your you, this QX everyone, participating

Operator

today's call. Thank everyone concludes participating. And conference for you that

may log You and disconnect. Thank now off you.