Sprott Inc. (NYSE/TSX: SII) (“Sprott” or the “Company”) today
announced its financial results for the year ended December 31,
2021.
Management commentary "Each of
Sprott’s business units performed well in 2021 and our Assets Under
Management (“AUM”) finished the year at $20.4 billion, up $3.1
billion (18%) from December 31, 2020. This led to Sprott generating
full year net income of $33.2 million ($1.33 per share), up 23%, or
$6.2 million ($0.23 per share) from the year ended December 31,
2020. Additionally, adjusted base EBITDA1 for the year reached a
record high of $64.1 million ($2.58 per share), up 45%, or $19.9
million ($0.78 per share) from the year ended December 31, 2020.
The key driver of our success in 2021 was our Exchange Listed
Products segment, which generated $3.1 billion in net sales on the
year. We also received solid contributions from our Brokerage and
Lending segments," said Peter Grosskopf, CEO of Sprott.
"During the third quarter of 2021, we launched
the Sprott Physical Uranium Trust, which established Sprott as the
global leader in physical uranium investments. This strategic move
into an adjacent mineral asset category was a natural complement to
our core expertise in precious metals. During the fourth quarter,
we further expanded our uranium business through an agreement to
acquire the exclusive licensing rights to the index tracked by the
North Shore Global Uranium Miners ETF ("URNM"), the second largest
global uranium equity ETF. There is growing investor demand for
low-carbon and energy transition investments and we are actively
working on new strategies in this rapidly expanding category.
"We were pleased to have generated our solid
2021 results despite the lackluster performance of gold and silver
throughout the year. However, early in 2022, the picture for
precious metals has already improved considerably. Sprott is well
positioned to thrive in the current environment and we look forward
to continuing to create value for our shareholders and
clients."
Financial highlights1
Key Assets under Management ("AUM")
highlights
- AUM was $20.4
billion as at December 31, 2021, up $1.4 billion (8%) from
September 30, 2021 and up $3.1 billion (18%) from December 31,
2020. On a three and twelve months ended basis, we benefited from
strong inflows to our physical trusts and lending strategies. We
also benefited from the UPC acquisition adding $630 million to our
physical trusts in the third quarter. These increases more than
offset market value depreciation across most of our fund products
during the year.
Key revenue highlights
- Management fees
were $27.8 million in the quarter, up $5.8 million (26%) from the
quarter ended December 31, 2020 and $103.9 million on a full year
basis, up $31 million (43%) from the year ended December 31, 2020.
Carried interest and performance fees were $4.3 million in the
quarter, down $5.8 million (57%) from the quarter ended December
31, 2020 and $12.2 million on a full year basis, up $2.2 million
(21%) from the year ended December 31, 2020. Net fees were $26.5
million in the quarter, up $1.2 million (5%) from the quarter ended
December 31, 2020 and $99.5 million on a full year basis, up $26.4
million (36%) from the year ended December 31, 2020. Our revenue
performance was primarily due to strong net inflows in our exchange
listed products segment (primarily our silver bullion trust) and
higher average AUM resulting from the UPC acquisition and
subsequent inflows into this newly acquired fund. We also benefited
from inflows in our lending and brokerage segments. Additionally,
we experienced carried interest crystallization in our lending
segment.
- Commission
revenues were $14.2 million in the quarter, up $7.4 million from
the quarter ended December 31, 2020 and $45.3 million on a full
year basis, up $17.8 million (65%) from the year ended December 31,
2020. Net commissions were $7 million in the quarter, up $2.4
million (53%) from the quarter ended December 31, 2020 and $24
million on a full year basis, up $5.7 million (31%) from the year
ended December 31, 2020. Net commissions were strong in the quarter
and on a full year basis due to a combination of commissions earned
on strong mining equity origination in our brokerage segment during
the first half of the year and commissions earned on the purchase
of uranium in our exchange listed products segment during the
second half of the year.
- Finance income
was $0.8 million in the quarter, down $0.8 million (52%) from the
quarter ended December 31, 2020 and $3.5 million on a full year
basis, down $0.4 million (11%) from the year ended December 31,
2020. Our quarterly and full year results are primarily driven by
income generation in co-investment positions we hold in LPs managed
in our lending segment.
Key expense highlights
- Net fees, net commissions, adjusted
base EBITDA and operating margins are key drivers of the Company’s
net compensation expense and related net compensation expense ratio
(net compensation divided by net fees and net commissions). Net
compensation expense was $12.4 million in the quarter, up $0.6
million (5%) from the quarter ended December 31, 2020. This
compares to net fees and commissions growth of 12% and adjusted
base EBITDA growth of 20% over the same time period. Net
compensation expense was $47.9 million on a full year basis, up
$7.9 million (20%) from the year ended December 31, 2020. This
compares to net fees and commissions growth of 35% and adjusted
base EBITDA growth of 45% over the same time period. Our net
compensation expense ratio on a full year basis was 39% compared to
44% for the year ended December 31, 2020.
-
SG&A was $4.2 million in the quarter, up $1.9 million (80%)
from the quarter ended December 31, 2020 and $14.7 million on a
full year basis, up $3.6 million (32%) from the year ended December
31, 2020. The increase was mainly due to higher marketing,
regulatory and technology costs.
1 See “non-IFRS financial measures” section on
this press release and schedule 2 and 3 of "Supplemental financial
information"
Earnings summary
- Net income was
$10.2 million ($0.41 per share) in the quarter, up 51%, or $3.5
million ($0.14 per share) from the quarter ended December 31, 2020
and $33.2 million ($1.33 per share) on a full year basis, up 23%,
or $6.2 million ($0.23 per share) from the year ended December 31,
2020.Adjusted base EBITDA was $17.7 million ($0.71 per share) in
the quarter, up 20%, or $3 million ($0.11 per share) from the
quarter ended December 31, 2020 and a record $64.1 million ($2.58
per share) on a full year basis, up 45%, or $19.9 million ($0.78
per share) from the year ended December 31, 2020.On a quarterly and
full year basis, we benefited from strong inflows into our physical
trusts (primarily silver bullion), the UPC acquisition, subsequent
additional inflows into this newly acquired fund and our lending
products. Finally, we saw very robust mining equity origination
activity in the first half of the year, coupled with strong ongoing
AUM development in our brokerage segment.
Subsequent events
- On February 24,
2022, the Sprott Board of Directors announced a quarterly dividend
of $0.25 per share.
Supplemental financial
information
Please refer to the December 31, 2021 annual
financial statements of the Company and the related management
discussion and analysis filed earlier this morning for further
details into the company's financial position as at December 31,
2021 and the company's financial performance for the three and
twelve months ended December 31, 2021.
Schedule 1 - AUM continuity
3 months results |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(In millions $) |
AUMSep. 30, 2021 |
Netinflows (1) |
Marketvalue changes |
Other (2) |
AUMDec. 31, 2021 |
|
Blendedmanagement fee rate (3) |
Exchange listed products |
|
|
|
|
|
|
|
- Physical trusts |
|
|
|
|
|
|
|
- Physical Gold Trust |
4,778 |
39 |
191 |
- |
5,008 |
|
0.35% |
- Physical Gold and Silver
Trust |
3,921 |
4 |
169 |
- |
4,094 |
|
0.40% |
- Physical Silver Trust |
3,378 |
59 |
163 |
- |
3,600 |
|
0.45% |
- Physical Uranium Trust |
1,303 |
539 |
(73) |
- |
1,769 |
|
0.30% |
- Physical Platinum &
Palladium Trust |
128 |
5 |
(1) |
- |
132 |
|
0.50% |
- Exchange Traded Funds |
317 |
6 |
33 |
- |
356 |
|
0.35% |
|
13,825 |
652 |
482 |
- |
14,959 |
|
0.38% |
|
|
|
|
|
|
|
|
Managed equities |
|
|
|
|
|
|
|
- Precious metals strategies |
2,017 |
(56) |
180 |
- |
2,141 |
|
0.80% |
- Other (4) |
350 |
- |
12 |
- |
362 |
|
0.93% |
|
2,367 |
(56) |
192 |
- |
2,503 |
|
0.82% |
|
|
|
|
|
|
|
|
Lending |
1,383 |
64 |
3 |
(24) |
1,426 |
|
0.79% |
|
|
|
|
|
|
|
|
Other (5) |
1,441 |
125 |
(11) |
- |
1,555 |
|
0.95% |
|
|
|
|
|
|
|
|
Total (6) |
19,016 |
785 |
666 |
(24) |
20,443 |
|
0.51% |
|
|
|
|
|
|
|
|
12
months results |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(In millions $) |
AUMDec. 31, 2020 |
Netinflows (1) |
Marketvalue changes |
Other (2) |
AUMDec. 31, 2021 |
|
Blendedmanagement fee rate (3) |
Exchange listed products |
|
|
|
|
|
|
|
- Physical trusts |
|
|
|
|
|
|
|
- Physical Gold Trust |
4,893 |
315 |
(200) |
- |
5,008 |
|
0.35% |
- Physical Gold and Silver
Trust |
4,423 |
(17) |
(312) |
- |
4,094 |
|
0.40% |
- Physical Silver Trust |
2,408 |
1,756 |
(564) |
- |
3,600 |
|
0.45% |
- Physical Uranium Trust |
- |
998 |
141 |
630 |
1,769 |
|
0.30% |
- Physical Platinum &
Palladium Trust |
127 |
37 |
(32) |
- |
132 |
|
0.50% |
- Exchange Traded Funds |
382 |
24 |
(50) |
- |
356 |
|
0.35% |
|
12,233 |
3,113 |
(1,017) |
630 |
14,959 |
|
0.38% |
|
|
|
|
|
|
|
|
Managed equities |
|
|
|
|
|
|
|
- Precious metals strategies |
2,479 |
(52) |
(286) |
- |
2,141 |
|
0.80% |
- Other (4) |
352 |
(1) |
11 |
- |
362 |
|
0.93% |
|
2,831 |
(53) |
(275) |
- |
2,503 |
|
0.82% |
|
|
|
|
|
|
|
|
Lending |
999 |
583 |
(12) |
(144) |
1,426 |
|
0.79% |
|
|
|
|
|
|
|
|
Other (5) |
1,327 |
381 |
(153) |
- |
1,555 |
|
0.95% |
|
|
|
|
|
|
|
|
Total (6) |
17,390 |
4,024 |
(1,457) |
486 |
20,443 |
|
0.51% |
|
|
|
|
|
|
|
|
(1) See 'Net inflows' in the key performance indicators and
non-IFRS and other financial measures section of the MD&A. |
(2) Includes new AUM from fund acquisitions and lost AUM from fund
divestitures and capital distributions of our lending LPs. |
(3) Management fee rate represents the weighted average fees for
all funds in the category. |
(4) Includes institutional managed accounts. |
(5) Includes Sprott Korea Corp. and high net worth discretionary
managed accounts in the U.S. |
(6) No performance fees are earned on exchange listed products.
Performance fees are earned on all precious metals strategies
(other than bullion funds) based on returns above relevant
benchmarks. Other managed equities strategies primarily earn
performance fees on flow-through products. Lending funds earn
carried interest calculated as a pre-determined net profit over a
preferred return. |
|
Schedule 2 - Summary financial information
(In thousands $) |
Q42021 |
Q32021 |
Q22021 |
Q12021 |
Q42020 |
Q32020 |
Q22020 |
Q12020 |
Summary income statements |
|
|
|
|
|
|
|
|
Management fees |
27,783 |
|
28,612 |
|
25,062 |
|
22,452 |
|
22,032 |
|
19,934 |
|
15,825 |
|
15,125 |
|
Carried
interest and performance fees |
4,298 |
|
- |
|
- |
|
7,937 |
|
10,075 |
|
- |
|
- |
|
- |
|
less: Carried interest and performance fee payouts |
2,516 |
|
- |
|
126 |
|
4,580 |
|
5,529 |
|
- |
|
- |
|
- |
|
less:
Trailer, sub-advisor and other fees (1) |
1,662 |
|
637 |
|
552 |
|
1,194 |
|
583 |
|
527 |
|
516 |
|
414 |
|
less: Direct
payouts (1) |
1,367 |
|
1,892 |
|
1,198 |
|
890 |
|
695 |
|
476 |
|
490 |
|
634 |
|
Net fees |
26,536 |
|
26,083 |
|
23,186 |
|
23,725 |
|
25,300 |
|
18,931 |
|
14,819 |
|
14,077 |
|
Commissions |
14,153 |
|
11,273 |
|
7,377 |
|
12,463 |
|
6,761 |
|
9,386 |
|
6,133 |
|
5,179 |
|
less: Commission expense - internal (1) |
4,128 |
|
3,089 |
|
3,036 |
|
5,289 |
|
2,093 |
|
3,313 |
|
1,887 |
|
1,236 |
|
less: Commission expense - external (1) |
3,016 |
|
2,382 |
|
49 |
|
253 |
|
98 |
|
344 |
|
161 |
|
- |
|
Net Commissions |
7,009 |
|
5,802 |
|
4,292 |
|
6,921 |
|
4,570 |
|
5,729 |
|
4,085 |
|
3,943 |
|
Finance
income |
788 |
|
567 |
|
932 |
|
1,248 |
|
1,629 |
|
757 |
|
656 |
|
914 |
|
Gain (loss)
on investments |
(43 |
) |
310 |
|
2,502 |
|
(4,652 |
) |
(3,089 |
) |
4,408 |
|
8,142 |
|
(4,352 |
) |
Other
income |
313 |
|
529 |
|
438 |
|
303 |
|
949 |
|
914 |
|
285 |
|
113 |
|
Total net revenues |
34,603 |
|
33,291 |
|
31,350 |
|
27,545 |
|
29,359 |
|
30,739 |
|
27,987 |
|
14,695 |
|
|
|
|
|
|
|
|
|
|
Compensation |
20,632 |
|
18,001 |
|
15,452 |
|
22,636 |
|
20,193 |
|
16,280 |
|
10,991 |
|
10,125 |
|
less: Carried interest and performance fee payouts |
2,516 |
|
- |
|
126 |
|
4,580 |
|
5,529 |
|
- |
|
- |
|
- |
|
less: Commission expense and direct payouts |
5,495 |
|
4,981 |
|
4,234 |
|
6,179 |
|
2,788 |
|
3,789 |
|
2,377 |
|
1,870 |
|
less: Severance and new hire accruals |
187 |
|
207 |
|
293 |
|
44 |
|
65 |
|
210 |
|
358 |
|
667 |
|
Net compensation |
12,434 |
|
12,813 |
|
10,799 |
|
11,833 |
|
11,811 |
|
12,281 |
|
8,256 |
|
7,588 |
|
Severance
and new hire accruals |
187 |
|
207 |
|
293 |
|
44 |
|
65 |
|
210 |
|
358 |
|
667 |
|
Selling,
general and administrative (1) |
4,172 |
|
3,682 |
|
3,492 |
|
3,351 |
|
2,320 |
|
2,465 |
|
2,944 |
|
3,370 |
|
Interest
expense |
239 |
|
312 |
|
260 |
|
350 |
|
331 |
|
320 |
|
350 |
|
236 |
|
Depreciation
and amortization |
1,136 |
|
1,134 |
|
1,165 |
|
1,117 |
|
1,023 |
|
992 |
|
1,049 |
|
988 |
|
Other
expenses (credits) |
2,910 |
|
3,875 |
|
876 |
|
4,918 |
|
4,528 |
|
4,154 |
|
2,893 |
|
(1,081 |
) |
Total expenses |
21,078 |
|
22,023 |
|
16,885 |
|
21,613 |
|
20,078 |
|
20,422 |
|
15,850 |
|
11,768 |
|
|
|
|
|
|
|
|
|
|
Net income |
10,171 |
|
8,718 |
|
11,075 |
|
3,221 |
|
6,720 |
|
8,704 |
|
10,492 |
|
1,062 |
|
Net Income per share |
0.41 |
|
0.35 |
|
0.44 |
|
0.13 |
|
0.27 |
|
0.36 |
|
0.43 |
|
0.04 |
|
Adjusted base EBITDA |
17,705 |
|
16,713 |
|
15,050 |
|
14,605 |
|
14,751 |
|
12,024 |
|
9,204 |
|
8,187 |
|
Adjusted base EBITDA per share |
0.71 |
|
0.67 |
|
0.60 |
|
0.59 |
|
0.60 |
|
0.49 |
|
0.38 |
|
0.33 |
|
Operating margin |
55 |
% |
52 |
% |
52 |
% |
51 |
% |
51 |
% |
47 |
% |
49 |
% |
43 |
% |
|
|
|
|
|
|
|
|
|
Summary balance sheet |
|
|
|
|
|
|
|
|
Total assets |
365,873 |
|
375,819 |
|
361,121 |
|
356,986 |
|
377,348 |
|
358,300 |
|
338,931 |
|
318,318 |
|
Total liabilities |
74,654 |
|
84,231 |
|
64,081 |
|
67,015 |
|
86,365 |
|
81,069 |
|
70,818 |
|
65,945 |
|
|
|
|
|
|
|
|
|
|
Total AUM |
20,443,088 |
|
19,016,313 |
|
18,550,106 |
|
17,073,078 |
|
17,390,389 |
|
16,259,184 |
|
13,893,039 |
|
10,734,831 |
|
Average AUM |
20,229,119 |
|
19,090,702 |
|
18,343,846 |
|
17,188,205 |
|
16,719,815 |
|
16,705,046 |
|
13,216,415 |
|
11,007,781 |
|
|
|
|
|
|
|
|
|
|
(1) Certain
comparative figures have been reclassified to conform with current
year presentation. |
|
|
|
Schedule 3 - EBITDA reconciliation
|
|
|
|
|
3 months ended |
12 months ended |
(in thousands $) |
Dec. 31, 2021 |
Dec. 31, 2020 |
Dec. 31, 2021 |
Dec. 31, 2020 |
|
|
|
|
|
Net income for the periods |
10,171 |
|
6,720 |
|
33,185 |
|
26,978 |
|
Adjustments: |
|
|
|
|
Interest expense |
239 |
|
331 |
|
1,161 |
|
1,237 |
|
Provision for income taxes |
3,354 |
|
2,561 |
|
12,005 |
|
7,684 |
|
Depreciation and amortization |
1,136 |
|
1,023 |
|
4,552 |
|
4,052 |
|
EBITDA |
14,900 |
|
10,635 |
|
50,903 |
|
39,951 |
|
|
|
|
|
|
Other
adjustments: |
|
|
|
|
(Gain) loss on investments (1) |
43 |
|
3,089 |
|
1,883 |
|
(5,109 |
) |
Non-cash stock-based compensation |
450 |
|
1,307 |
|
1,698 |
|
2,835 |
|
Other expenses (credits) (2) |
3,304 |
|
4,266 |
|
13,217 |
|
11,035 |
|
Adjusted EBITDA |
18,697 |
|
19,297 |
|
67,701 |
|
48,712 |
|
|
|
|
|
|
Other
adjustments: |
|
|
|
|
Carried interest and performance fees |
(4,298 |
) |
(10,075 |
) |
(12,235 |
) |
(10,075 |
) |
Carried interest and performance fee payouts |
2,516 |
|
5,529 |
|
7,222 |
|
5,529 |
|
Trailer, sub-advisor and other fees |
790 |
|
- |
|
1,385 |
|
- |
|
Adjusted base EBITDA |
17,705 |
|
14,751 |
|
64,073 |
|
44,166 |
|
Operating margin (3) |
55 |
% |
51 |
% |
53 |
% |
49 |
% |
(1) This adjustment removes the income effects of certain gains or
losses on short-term investments, co-investments, and digital gold
strategies to ensure the reporting objectives of our EBITDA metric
as described below are met.(2) In addition to the items outlined in
Note 5 of the annual financial statements, this reconciliation line
also includes $0.2 million severance and new hire accruals for the
3 months ended December 31, 2021 (3 months ended December 31, 2020
- $0.1 million) and $0.7 million for the 12 months ended (12 months
ended December 31, 2020 - $1.3 million). This reconciliation line
excludes income (expense) attributable to non-controlling interests
of ($0.2 million) for the 3 months ended (3 months ended December
31, 2020 - $0.3 million) and $0.1 million for the 12 months ended
December 31, 2021 (12 months ended December 31, 2020 - $0.8
million).(3) Calculated as adjusted base EBITDA inclusive of
depreciation and amortization. This figure is then divided by
revenues before gains (losses) on investments, net of direct costs
as applicable. |
|
Normal Course Issuer Bid
Sprott is pleased to announce that the Toronto
Stock Exchange (“TSX”) has approved the notice of its intention to
make a normal course issuer bid ("NCIB"). Pursuant to the terms of
the NCIB, Sprott may purchase its own common shares for
cancellation through the facilities of the TSX, alternative
Canadian trading systems and/or the New York Stock Exchange, in
each case in accordance with the applicable requirements, and as
otherwise permitted under applicable securities laws. The maximum
number of common shares which may be purchased by Sprott during the
NCIB will not exceed 646,743 common shares being approximately 2.5%
of 25,869,734 (representing the number of issued and outstanding
common shares as of February 17, 2022). The average daily trading
volume (the “ADTV”) of the common shares on the TSX for the
six-month period ended January 31, 2022 was 50,800. Under the rules
of the TSX, Sprott is entitled to repurchase during the same
trading day on the TSX up to 25% of the ADTV of the common shares,
being 12,700 common shares, except where such purchases are made in
accordance with the "block purchase" exemption under applicable TSX
policy. Sprott will effect purchases at varying times commencing on
March 3, 2022 and ending on March 2, 2023.
In addition to providing shareholders liquidity,
Sprott believes that the common shares have been trading in a price
range which does not adequately reflect the value of such shares in
relation to Sprott’s business and its future prospects.
Under its prior NCIB that commenced on March 3,
2021 and will terminate March 2, 2022, Sprott previously sought and
received approval from the TSX to repurchase up to 642,576 common
shares. Sprott did not purchase any common shares pursuant to its
previously authorized NCIB.
Conference Call and Webcast
A conference call and webcast will be held
today, February 25, 2022 at 10:00 am ET to discuss the Company's
financial results. To participate in the call, please dial (855)
458-4215 ten minutes prior to the scheduled start of the call and
provide conference ID 6792729. A taped replay of the conference
call will be available until Friday, March 4, 2022 by calling (855)
859-2056, reference number 6792729 . The conference call will be
webcast live at www.sprott.com and
https://edge.media-server.com/mmc/p/afmh2cwu.
Non-IFRS Financial Measures
This press release includes financial terms
(including AUM, net revenues, net commissions, net fees, expenses,
adjusted base EBITDA, net compensation) that the Company utilizes
to assess the financial performance of its business that are not
measures recognized under International Financial Reporting
Standards (“IFRS”). These non-IFRS measures should not be
considered alternatives to performance measures determined in
accordance with IFRS and may not be comparable to similar measures
presented by other issuers. Non-IFRS financial measures do not have
a standardized meaning prescribed by IFRS and are therefore
unlikely to be comparable to similar measures presented by other
issuers. Our key performance indicators and non-IFRS and other
financial measures are discussed below. For quantitative
reconciliations of non-IFRS financial measures to their most
directly comparable IFRS financial measures please see schedule 2
and schedule 3 of the "Supplemental financial information" section
of this press release.
Net fees
Management fees (net of trailer, sub-advisor,
other fees and direct payouts) and carried interest and performance
fees (net of carried interest and performance fee payouts) are key
revenue indicators as they represent the net revenue contribution
after directly associated costs that we generate from our AUM.
Net commissions
Commissions, net of commission expenses
(internal and external), arise primarily from transaction-based
service offerings of our brokerage segment and purchases and sales
of uranium in our exchange listed products segment.
Net compensation
Net compensation excludes commission expenses
paid to employees, other direct payouts to employees, carried
interest and performance fee payouts to employees, which are all
presented net of their related revenues in this MD&A, and
severance and new hire accruals which are non-recurring.
EBITDA, adjusted EBITDA, adjusted base
EBITDA
EBITDA in its most basic form is defined as
earnings before interest expense, income taxes, depreciation and
amortization. EBITDA is a measure commonly used in the investment
industry by management, investors and investment analysts in
understanding and comparing results by factoring out the impact of
different financing methods, capital structures, amortization
techniques and income tax rates between companies in the same
industry. While other companies, investors or investment analysts
may not utilize the same method of calculating EBITDA (or
adjustments thereto), the Company believes its adjusted base EBITDA
metric, in particular, results in a better comparison of the
Company's underlying operations against its peers and a better
indicator of recurring results from operations as compared to other
non-IFRS financial measures.
Fund Reorganization
Information
Subject to the approval of a reorganization by
the shareholders of URNM, a series of the Exchange Traded Concepts
Trust, URNM will be reorganized into a newly created series of the
Sprott Funds Trust, the Sprott Uranium Miners ETF, which series
will be advised by Sprott Asset Management and sub-advised by ALPS
Advisors, Inc. A Registration Statement for the Sprott Uranium
Miners ETF has been filed with the SEC but is not yet effective.
Information contained therein is subject to completion or
amendment. Fund securities may not be sold nor may offers to buy be
accepted prior to the time the Registration Statement becomes
effective. Shareholders of URNM are urged to carefully read the
proxy statement/prospectus filed with the SEC in connection with
the reorganization in its entirety because it contains important
information about the fund reorganization. Shareholders may obtain
a free copy of the proxy statement/prospectus at the SEC’s web site
at www.sec.gov.
Forward Looking Statements
Certain statements in this press release contain
forward-looking information and forward-looking statements
(collectively referred to herein as the "Forward-Looking
Statements") within the meaning of applicable Canadian and U.S.
securities laws. The use of any of the words "expect",
"anticipate", "continue", "estimate", "may", "will", "project",
"should", "believe", "plans", "intends" and similar expressions are
intended to identify Forward-Looking Statements. In particular, but
without limiting the forgoing, this press release contains
Forward-Looking Statements pertaining to: (i) the potential
purchase by Sprott Asset Management LP of the exclusive licensing
rights to the index tracked by the North Shore Global Uranium
Mining ETF (URNM) (ii) statements about the value of Sprott’s
common shares and its business and future prospects; and (iii) the
declaration, payment and designation of dividends and confidence
that our business will support the dividend level without impacting
our ability to fund future growth initiatives.
Although the Company believes that the
Forward-Looking Statements are reasonable, they are not guarantees
of future results, performance or achievements. A number of factors
or assumptions have been used to develop the Forward-Looking
Statements, including, without limitation: (i) the impact of
increasing competition in each business in which the Company
operates will not be material; (ii) quality management will be
available; (iii) the effects of regulation and tax laws of
governmental agencies will be consistent with the current
environment; and (iv) the impact of COVID-19; and (v) those
assumptions disclosed under the heading "Critical Accounting
Estimates, Judgments and Changes in Accounting Policies" in the
Company’s MD&A for the period ended December 31, 2021. Actual
results, performance or achievements could vary materially from
those expressed or implied by the Forward-Looking Statements should
assumptions underlying the Forward-Looking Statements prove
incorrect or should one or more risks or other factors materialize,
including: (i) difficult market conditions; (ii) poor investment
performance; (iii) failure to continue to retain and attract
quality staff; (iv) employee errors or misconduct resulting in
regulatory sanctions or reputational harm; (v) performance fee
fluctuations; (vi) a business segment or another counterparty
failing to pay its financial obligation; (vii) failure of the
Company to meet its demand for cash or fund obligations as they
come due; (viii) changes in the investment management industry;
(ix) failure to implement effective information security policies,
procedures and capabilities; (x) lack of investment opportunities;
(xi) risks related to regulatory compliance; (xii) failure to
manage risks appropriately; (xiii) failure to deal appropriately
with conflicts of interest; (xiv) competitive pressures; (xv)
corporate growth which may be difficult to sustain and may place
significant demands on existing administrative, operational and
financial resources; (xvi) failure to comply with privacy laws;
(xvii) failure to successfully implement succession planning;
(xviii) foreign exchange risk relating to the relative value of the
U.S. dollar; (xix) litigation risk; (xx) failure to develop
effective business resiliency plans; (xxi) failure to obtain or
maintain sufficient insurance coverage on favorable economic terms;
(xxii) historical financial information being not necessarily
indicative of future performance; (xxiii) the market price of
common shares of the Company may fluctuate widely and rapidly;
(xxiv) risks relating to the Company’s investment products; (xxv)
risks relating to the Company's proprietary investments; (xxvi)
risks relating to the Company's lending business; (xxvii) risks
relating to the Company’s brokerage business; (xxviii) the
potential risk that the transaction and the related fund
reorganization will not be approved by the shareholders of URNM;
(xxix) failure to, in a timely manner, or at all, obtain the other
necessary approvals for the transaction and related fund
reorganization; (xxx) failure of the parties to otherwise satisfy
the conditions to complete the transaction and related fund
reorganization; (xxxi) the effect of the announcement of the
transaction and related transaction on URNM generally and other
customary risks associated with transactions of this nature;
(xxxii) those risks described under the heading "Risk Factors" in
the Company’s annual information form dated February 24, 2022; and
(xxxiii) those risks described under the headings "Managing
financial risks " and "Managing non-financial risks" in the
Company’s MD&A for the period ended December 31, 2021. In
addition, the payment of dividends is not guaranteed and the amount
and timing of any dividends payable by the Company will be at the
discretion of the Board of Directors of the Company and will be
established on the basis of the Company’s earnings, the
satisfaction of solvency tests imposed by applicable corporate law
for the declaration and payment of dividends, and other relevant
factors. The Forward-Looking Statements speak only as of the date
hereof, unless otherwise specifically noted, and the Company does
not assume any obligation to publicly update any Forward-Looking
Statements, whether as a result of new information, future events
or otherwise, except as may be expressly required by applicable
securities laws.
About SprottSprott is a global
leader in precious metal and real asset investments. With offices
in Toronto, New York, and London, Sprott is dedicated to providing
investors with specialized investment strategies that include
Exchange Listed Products, Managed Equities, Lending, and Brokerage.
Sprott’s common shares are listed on the New York Stock Exchange
under the symbol (NYSE:SII) and on the Toronto Stock Exchange under
the symbol (TSX:SII). For more information, please visit
www.sprott.com.
Investor contact
information:
Glen WilliamsManaging DirectorInvestor and
Institutional Client Relations;Head of Corporate
Communications(416) 943-4394gwilliams@sprott.com
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