Sprott (SII) Q3 2024 earnings summary

Executive summary

• Assets under management (AUM) reached a record $33.4 billion in Q3, up $2.3–$2.4 billion, and further increased to $34.2 billion as of November 1, 2024.

• Net income for Q3 2024 was $12.7 million, up 87% year-over-year; year-to-date net income was $37.6 million.

• Strong sales momentum with $589 million in net sales during the quarter, primarily in physical gold and silver funds, and rising precious metals prices.

• Announced a 20% increase in the quarterly dividend to $0.30 per share, with plans to be debt-free by end of November.

• Focus on precious metals and critical materials positions the firm to benefit from favorable macro trends.

Financial highlights

• Adjusted base EBITDA for Q3 2024 was $20.7 million (up 16% year-over-year); year-to-date adjusted base EBITDA was $62.8 million (up 18%).

• Q3 2024 total net revenues were $42.1 million, up from $30.8 million in Q3 2023; YTD net revenues were $120.8 million, up from $97.2 million.

• Net income margin for Q3 was 27%, up from 20% a year ago; adjusted base EBITDA margin was 58%, up from 56%.

• Management fees for Q3 were $38.7 million, up 18% year-over-year; net fees were $38.9 million, up 31%.

• Cash and liquidity profile strengthened, with leverage remaining low.

Outlook and guidance

• Two new precious metals ETFs are in development, expected to launch in Q1 2025.

• Expectation to repay the balance of the line of credit by end of November, resulting in a debt-free balance sheet.

• Management maintains a constructive outlook for precious metals and critical materials, citing strong positioning to navigate volatile markets.

• Anticipate further client base expansion across institutions, family offices, and other channels.