Mr. Glen Williams reports
SPROTT ANNOUNCES 2019 SECOND QUARTER RESULTS
Sprott Inc. has provided its financial results for the three months ended June 30, 2019.
Financial overview (three-month results)
Assets under management (AUM) were $10.7-billion as at June 30, 2019, up $100-million (1 per cent) from March 31, 2019.
Total net revenues (net of commission expenses, trailer fees and subadviser fees, carried interest, and performance fee payouts) were $19.3-million, reflecting a decrease of $4.2-million (18 per cent) from the quarter ended June 30, 2018.
Total expenses (excluding commission expenses, trailer fees and subadviser fees, carried interest, and performance fee payouts) were $17.7-million, reflecting an increase of $700,000 (4 per cent) from the quarter ended June 30, 2018.
Net income was $2.1-million (one cent per share), reflecting a decrease of $3.8-million (64 per cent) from the quarter ended June 30, 2018.
Adjusted base EBITDA (earnings before interest, taxes, depreciation and amortization) was $9.4-million (four cents per share), a decrease of $1.3-million (12 per cent) from the quarter ended June 30, 2018.
Sprott and Tocqueville Asset Management have entered into a definitive agreement regarding the sale of Tocqueville's gold strategy asset management business to Sprott Asset Management.
The acquisition is expected to close in January, 2020, and will add approximately $2.5-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.
"Precious metal prices finally broke out during the second quarter of 2019 and gained further momentum in July with the U.S. Federal Reserve's decision to cut interest rates for the first time since 2008," said Peter Grosskopf, chief executive officer of Sprott. "We believe the macro-economic factors are in place for a new up-cycle in gold, silver and related equities. With more than 90 per cent of our assets under management (AUM) concentrated in precious metals investments, Sprott is well positioned to benefit from rising metals prices and increased client interest in the sector."
"John Hathaway and his team are among the world's most respected gold equities managers and we have enjoyed an excellent working relationship during the planning and launch of our joint venture over the past year," said Whitney George, president of Sprott. "The acquisition of the Tocqueville gold strategies is a natural extension of that partnership, which will complement our other resource investment and financing businesses, expand our global footprint, and allow us to service clients in all major gold markets."
On Aug. 8, 2019, a dividend of three cents per common share was declared for the quarter ended June 30, 2019.
Conference call and webcast
A conference call and webcast will be held today, Aug. 9, 2019, at 10 a.m. ET to discuss the company's financial results and the proposed acquisition of the Tocqueville gold strategies. To participate in the call, please dial 855-458-4215 10 minutes prior to the scheduled start of the call and provide conference ID9281589. A taped replay of the conference call will be available until Friday, Aug. 16, 2019, by calling 855-859-2056, reference No. 9281589. The conference call will be webcast live at the company's website.
About Sprott Inc.
Sprott is an alternative asset manager and a global leader in precious metal and real asset investments. Through its subsidiaries in Canada, the United States and Asia, the corporation is dedicated to providing investors with best-in-class investment strategies that include exchange-listed products, lending, managed equities and brokerage. Sprott is based in Toronto with offices in New York, Carlsbad and Vancouver, and its common shares are listed on the Toronto Stock Exchange under the symbol.
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