Sprott Inc. Q1 FY2026 earnings call

• First quarter was volatile for precious metals with gold and silver having significant price swings. - Sprott delivered strong quarter due to growth of critical materials strategies. - Assets under management increased, net sales were strong with critical materials driving most. - Launched Sprott Rare Earth X China ETF which exceeded $30 million in assets. - Managed equities had solid relative performance despite market turbulence. - Private strategies are in transition with exit/winding down of some funds and evaluation of new strategies. - Geopolitical conflicts reinforce case for precious metals and critical material investments. - ETF product suite has strong asset growth and broad range of metal segments.

Assets under management increased by $5.5 billion to $65.1 billion. Net sales were $1.7 billion, with 96% coming to the critical materials segment. Managed equities business had solid relative performance. AUM in physical trusts was up $3.5 billion or 7.4% in the quarter. ETF AUM jumped 30% and 42% year to date to May 1st. ETF flows reached a record $1.1 billion in the quarter. Managed equities AUM grew 12% to $3.6 billion. Private strategies AUM was $2 billion at the end of March 2026.

• Expect continued growth in ETF product suite and critical materials franchise. - Anticipate investor demand for these strategies to continue increasing. - Hopeful that enhancements to copper trust will accelerate its growth. - Plan to launch new private strategies with co - invest and evaluate acquisitions on strategy. - Expect fundraising for next lending fund to be 12 - 18 months.

• Forward - looking statements involve risks and uncertainties. - Actual results may differ materially from forward - looking statements due to various factors. - Volatility in precious metals prices can impact performance. - Redemption risk for trusts if not managed properly. - Geopolitical conflicts can cause market disruptions and impact investments.

Q: To circle back on the meaningful increase in flows across your ETF lineup, What has worked well for Sprott from a distribution standpoint? And a refresher on your ETF strategy for new launches would be appreciated.

A: It's John. Need to have right products at right time when investor interest is there. Strategy is to have thoughtful products, passively managed with Sprott DNA in index methodologies. Partnership with NASDAQ to evaluate mining companies for metal exposures. Unique approach in marketplace. ETFs provide unique distribution strategy with cross - border interest. Rare earth ex - China ETF is good example of timing.

Q: How meaningful could the copper trust listing on the NYSE be in terms of raising new capital and in terms of risk? How do you think about redemption risk for this trust relative to gold or silver, for example?

A: John says NYSE listing opens door for access. Enhanced physical redemption feature from twice per year with cap to monthly with no cap to incentivize arbitrage. Redemption for copper trust has constraints like high minimum dollar amount and storage arrangement.

Q: Could you update us on capital allocation? And could this result, if the performance continues, could this result in sort of capital returns to shareholders in some form or another?

A: Kevin says history of paying nice dividends, dividend growth is priority. Share buyback in place, executed when stock fell. Launching new private strategies requires co - invest. Open to acquisitions on strategy.

Q: Could you just give us some color on the $52 million of carried interest in the quarter? Was that related to the $178 million of private securities that was distributed back or? Was it related to more than that? And then maybe any color on unrealized carry that's currently sitting behind your $2 billion in private strategies.

A: Hey, Graham, $52 million on private side unrelated to capital distribution, related to legacy fund. Can't provide color on unrealized carry due to accounting rules.

Q: Are you seeing any meaningful pickup in retail or other channels, particularly given the macro backdrop around gold and physical minerals? And is that changing how you think about distribution?

A: John says seeing broadening interest. Broader interest institutionally in recent years, now generalist funds are pivoting. Retail interest in uranium faded a bit but signs of coming back. Copper more institutionally driven, some copper mining funds have retail appeal. Advisor channel important with products getting into larger platforms.

Q: You kind of, John, you just kind of just answered it, but I want to be a bit more specific. I found it interesting in Q1 to see large net inflows to the critical materials ETFs despite copper and uranium prices that net - net were basically flat quarter over quarter. Do you have a good sense of just where those specific inflows came from in Q1 geographically and then retail versus institutional?

A: Mike, greatest skew to institutional ownership in uranium one, copper two. Uranium is global in nature with interest in North America, parts of Asia, Australia. Copper is very investable, more institutionally driven. Retail interest in uranium faded a bit, some signs of coming back. Copper more institutionally driven, some copper mining funds have retail audience. Advisor channel important with products on larger platforms.