Sprott Inc. Q2 FY2025 earnings call

AUM Growth

• AUM finished the quarter at $40 billion, up 14% from March 31, 2025, and 27% from December 31, 2024.

Net Income

• Flat net income due to accounting changes from cash-settled stock plan, but adjusted EBITDA was $25.5 million for the quarter, up 14% from the same period last year.

Physical Trusts

• Sprott Physical Uranium Trust completed 2 capital raises, stockpile at 68.4 million pounds; precious metals physical trust saw strong sales.

ETFs

• AUM rebounded to $3 billion post-market lows; new ETFs had strong initial reception, with Sprott Silver Miners and Physical Silver ETF at $170 million and Active Gold and Silver Miners ETF approaching $50 million.

Managed Equity

• Flagship gold equity fund up 15.5% quarter-over-quarter, but had net redemptions of $61 million in the quarter.

Assets Under Management (AUM) increased by $5 billion in the second quarter to $40 billion. Net sales accelerated due to rising interest in multiple metals. Managed Equity strategies performed well with carried interest and performance fees crystallization. Physical trusts saw growth, with Sprott Physical Uranium Trust completing 2 capital raises and accumulating 68.4 million pounds of uranium. ETFs had AUM rebound to $3 billion, with new precious metals ETFs showing strong early results. AUM for ETFs like Sprott Silver Miners and Physical Silver ETF is ~$170 million, and Sprott Active Gold and Silver Miners ETF is approaching $50 million.

Market Volatility

• Expect more market volatility going forward with no short-term predictions.

ETF Growth

• Expect to grow market share with new scalable ETFs.

Uranium Market

• Anticipate utilities to return to market with upcoming nuclear renaissance, with contracts signed and seasonal contracting cycle starting in September.

Market Volatility

• Uncertainty in short-term market movements.

ETF Redemptions

• Uranium mining ETFs faced redemption pressure as investors shifted to downstream nuclear energy.

Copper Trust Discount

• Copper Trust trading at a 20% discount, needing measures like dual listing to narrow it.

Q: How determine market value changes in private strategies?

A: Kevin Hibbert said accounting requires pull-to-par accounting, using amortized cost as a proxy for market, with equity kickers making up a small portion of loan value.

Q: Uranium market outlook?

A: John Ciampaglia mentioned utilities starting to emerge from hibernation, with Korean utility seeking 9 million pounds and seasonal contracting cycle starting.

Q: Copper Trust discount and impact of trade policies?

A: John Ciampaglia said dislocation between CME and LME prices unwound, Copper Trust at 20% discount, and filing for dual listing to address discount.

Q: Carried interest and performance fees contribution?

A: Kevin Hibbert said ~65%-70% from legacy Exploration LP, rest from resource exploration and active equity fund, with timing related to fund wind-ups and year-end calculations.

Q: Dividend policy and ETF in nuclear fuel cycle?

A: Kevin Hibbert said focus on high payout on earnings, committed to buying back shares; John Ciampaglia said open to new ETF ideas but cautious about creating me-too products, focusing on core strengths.