• Assets Under Management (AUM): Increased by $2.8 billion during 2024 to $31.5 billion as of December 31, 2024. Year-to-date in 2025, AUM increased by $2 billion to $33.5 billion.
• Net Income: $11.7 million for the fourth quarter, up 21% from $9.7 million in the same period last year. Full-year net income was $49.3 million, up 18% from $41.8 million last year.
• Adjusted Base EBITDA: $22.4 million for the quarter, up 19% from $18.8 million last year. Full-year adjusted base EBITDA was $85.2 million, up 18% from $71.9 million last year.
• Dividend Increase: Quarterly dividend increased by 20% in November.
• Net Flows: $126 million in net flows in Q4 and $957 million for the full year, including proceeds from the Sprott Physical Copper Trust IPO.
• Managed Equity Strategies: Flagship gold equity fund posted a full-year gain of 20.6% despite a 9.3% decline in Q4.
• Private Strategies AUM: $2.3 billion as of December 31, 2024.
• New ETFs Launched: Two new ETFs in 2025, including Sprott Silver Miners and Physical Silver ETF (SLVR) and Sprott Active Gold and Silver Miners ETF (GBUG).

• Warning! GuruFocus has detected 3 Warning Sign with SII.

Release Date: February 26, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• Sprott Inc (NYSE:SII) achieved its seventh consecutive year of double-digit AUM growth, with a 10% increase from the previous year.
• The company reported a significant increase in net income, up 21% for the quarter and 18% for the full year.
• Sprott Inc (NYSE:SII) launched two new ETFs and one physical trust, expanding its critical materials offerings.
• The company became debt-free in the fourth quarter and increased its quarterly dividend by 20%.
• Sprott Inc (NYSE:SII) experienced strong AUM growth driven by rising precious metal prices and net sales in exchange-listed products.

Negative Points

• The fourth quarter saw a pullback in AUM due to market value depreciation and termination of certain sub-advised fund contracts.
• There were $182 million in net redemptions in the fourth quarter and $349 million for the full year in managed equity strategies.
• The uranium market faced a considerable pullback in spot prices, impacting the trust's trading at a discount to NAV.
• The ETFs segment experienced flat AUM growth in 2024, primarily due to weakness in uranium equities.
• The company faces uncertainty in the uranium market due to geopolitical risks and potential changes in tariffs and regulations.

Q & A Highlights

Q: There's been a considerable pullback in uranium spot prices the last quarter. Can you talk about what your expectations are for the uranium market and spot prices in the next couple quarters? A: John Ciampaglia, CEO of Sprott Asset Management, explained that the uranium market is currently facing a lot of uncertainty, particularly due to potential changes in the Inflation Reduction Act and tariffs on uranium. The US is heavily reliant on uranium imports, and geopolitical tensions are causing market participants to be cautious. Until there is more clarity, the market is expected to remain volatile.

Q: Does the mention of "friendly jurisdictions" imply a demand for an ETF focusing on material producers in specific geographies? A: John Ciampaglia noted that tariffs are designed to incentivize domestic production, which could benefit local producers with higher cost structures. However, the unpredictability of tariffs makes it difficult to forecast their impact. The current uncertainty is worse than bad news, and clarity is needed to understand the new market dynamics.

Q: Can you talk about the comp ratio and how it's trending for 2025? A: Kevin Hibbert, CFO, stated that the comp ratio is expected to ebb and flow in the mid- to high-40s range through 2025.

Q: Bloomberg reported significant net inflows into physical gold ETFs recently. Can you gauge where and by what type of investor this demand is coming from? A: John Ciampaglia mentioned that while it's challenging to get precise data on ETF flows, there is renewed interest in gold ETFs, particularly from US institutions. The current geopolitical and economic uncertainties are prompting investors to reconsider gold as a portfolio diversifier.

Q: With the base EBITDA margins increasing, do you expect this level of expansion to continue in 2025 or 2026? A: Kevin Hibbert indicated that while specific forecasts are not provided, there is ample operating leverage in the model to potentially see continued margin expansion for the remainder of the year.

For the complete transcript of the earnings call, please refer to the full earnings call transcript.