Earning Date, Transcript Summary & Report

AUM Growth Achievement: Sprott achieved its seventh consecutive year of double-digit AUM growth, increasing AUM by $2.8 billion to $31.5 billion as of December 31, 2024.

AUM Growth Momentum: Year-to-date in 2025, AUM has increased by $2 billion to $33.5 billion, indicating strong momentum into the new year.

AUM Growth Drivers: The growth in AUM was driven by rising precious metal prices and nearly $700 million in net sales, primarily in exchange-listed products.

Equity Strategies Performance: Managed equity strategies performed well, with certain funds generating performance fees, contributing to overall financial success.

ETFs and Trust Launch: Sprott launched two new ETFs and one physical trust in 2024, expanding its critical materials offerings.

Debt-Free Financial Stability: The company paid down its line of credit, resulting in a debt-free balance sheet, enhancing financial stability.

Dividend Increase Announcement: In November, Sprott increased its quarterly dividend by 20%, reflecting confidence in its financial health and commitment to returning value to shareholders.

Net Income Growth: Net income for Q4 was $11.7 million, up 21% year-over-year, and full-year net income was $49.3 million, up 18% from the previous year, showcasing strong profitability.

EBITDA Growth Performance: Adjusted base EBITDA for Q4 was $22.4 million, up 19% year-over-year, and $85.2 million for the full year, up 18%, indicating robust operational performance.

Strong Investor Interest: Despite market challenges, Sprott generated $126 million in net flows in Q4 and $957 million for the full year, demonstrating strong investor interest.

Gold Equity Fund Performance: The company reported strong performance in its flagship gold equity fund, achieving a full-year gain of 20.6%, despite a decline in Q4.

New ETF Launches: Sprott's new ETFs, including the Sprott Silver Miners & Physical Silver ETF and the Sprott Active Gold and Silver Miners ETF, are expected to attract investor interest and expand market reach.

AUM Decline in Q4: AUM decreased by 6% in Q4 2024 from the previous quarter, indicating a pullback despite overall annual growth.

AUM Decline Due to Termination: The termination of certain sub-advised fund contracts negatively impacted AUM in Q4 2024.

Q4 Fund Performance Decline: Despite a strong annual performance, the flagship gold equity fund was down 9.3% in Q4 2024, reflecting market volatility.

Investor Withdrawal Trends: There were significant net redemptions of $182 million in Q4 and $349 million for the full year, indicating investor withdrawal from mining equities.

Uranium Price Decline: Weakness in uranium prices was noted, with a 10.7% decline in Q4 and a 19.7% drop for the year, suggesting market instability.

ETFs AUM Growth Stagnation: The overall AUM growth in ETFs was flat in 2024, primarily due to weakness in uranium equities, highlighting volatility in this segment.

Gold Market Instability: Concerns over potential tariffs on precious metals have created market pressures, indicating instability in the physical gold market.

Material Supply Challenges: The company faced challenges in critical materials due to geopolitical tensions and slowing demand from China, affecting overall performance.