Asset manager Sprott's Q2 AUM rises on higher fees

Overview

• Sprott Q2 AUM rises 14% qtr/qtr, driven by precious metals and uranium

• Net Fees for Q2 up 54% yr/yr, reflecting higher management and performance fees

• Adjusted EBITDA for Q2 grows 14% yr/yr, benefiting from market appreciation

Outlook

• Company sees positive market conditions for precious metals and critical materials

• Sprott expects continued growth in investor allocations to precious metals strategies

Result Drivers

• AUM GROWTH - Driven by market value appreciation in precious metals and uranium, and net inflows to physical trusts

• REVENUE INCREASE - Higher management and performance fees due to increased average AUM and inflows

• COMMISSION DECLINE - Decrease attributed to last year's higher activity in physical copper trust and uranium trust

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 3 "strong buy" or "buy", 1 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the investment management & fund operators peer group is "buy"

• Wall Street's median 12-month price target for Sprott Inc is C$89.50, about 5.7% below its August 5 closing price of C$94.62

• The stock recently traded at 29 times the next 12-month earnings vs. a P/E of 26 three months ago

Press Release: ID:nGNX2Hk8Dz