SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
 
FORM 6-K
 
REPORT OF FOREIGN PRIVATE ISSUER PURSUANT TO RULE 13A-16 OR 15D-16 OF THE SECURITIES EXCHANGE ACT OF 1934
For the month of
November
 2024
Commission File Number
001-39298
  
 
 Sprott Inc.
(Translation of registrant’s name into English)
 
Suite 2600, 200 Bay Street
Royal Bank Plaza, South Tower
Toronto, Ontario, Canada M5J 2J1
(Address of principal executive offices)
 
Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F:

 
Form 20-F
 
 
Form 40-F
x

image_0.jpg





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DOCUMENTS INCLUDED AS PART OF THIS REPORT

Exhibit 99.1 of this Report on Form 6-K is incorporated by reference into the Registration Statement on Form S-8 of the Registrant, which was originally filed with the Securities and Exchange Commission on August 7, 2020 (File No. 333-242456).

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SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

 
Sprott Inc.
 
(Registrant)
 
Date:
 
 
November 6, 2024
 
 
By:
 
/s/ Kevin Hibbert
 
Name:
 Kevin Hibbert
 Title:
 Senior Managing Partner and Chief Financial Officer


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Table of Contents




Letter to shareholders    2
Management's Discussion and Analysis    5
Consolidated Financial Statements    24
Notes to the Consolidated Financial Statements    29
    





























Dear fellow shareholders,

Q3 2024 Review

During the third quarter of 2024, Sprott’s Assets Under Management (“AUM”) increased to $33.4 billion, up 8% from $31.1 billion as at June 30, 2024 and up 16% from $28.7 billion as at December 31, 2023. Subsequent to the quarter end, on November 1, 2024, AUM stood at $34.2 billion.

Net income for the quarter was $12.7 million ($0.50 per share), up 87% from $6.8 million ($0.27 per share) for the quarter ended September 30, 2023. For the first nine months of 2024, net income was $37.6 million ($1.48 per share) up 17% from $32.1 million ($1.27 per share) for the nine months ended September 30, 2023.

Adjusted base EBITDA was $20.7 million ($0.81 per share) in the quarter, up 16% from $17.9 million ($0.71 per share) for the quarter ended September 30, 2023 and $62.8 million ($2.47 per share) on a year-to-date basis, up 18% from $53.1 million ($2.10 per share) for the nine months ended September 30, 2023. Adjusted base EBITDA on both a three and nine months ended basis benefited from higher management fees on strong market valuations of our precious metals physical trusts and good inflows to our exchange listed products.

During the quarter, we recorded $589 million in net sales, largely in our precious metals physical trusts.

Given the strength of these results and our confidence in Sprott’s future, our Board has declared a third quarter dividend of $0.30 per share, an increase of 20%. Further, we now expect to repay the balance of our line of credit by the end of this month, resulting in a debt-free balance sheet.

Precious Metals

Gold and silver were the key drivers of Sprott’s results during the quarter, as both metals saw significant price increases. Gold posted its largest quarterly percentage change since the first quarter of 2016 and the largest U.S. dollar increase in history. Silver prices also rose, but with more volatility than gold. Year-to-date through September 30, gold was up 27.7% and silver had gained 30.9%. In October, both gold and silver pushed above important thresholds, and now sit above $2,700 per ounce and $32 per ounce, respectively.







During the first half of 2024, gold's surge was driven largely by Central Bank buying, particularly in emerging markets. The metal has registered price gains every month of the year, despite a notable absence of investor interest – at least in the West. This changed during the third quarter when, according to World Gold Council data, gold demand set a new record, topping $100 billion for the first time. The 5% increase during the quarter was driven by Western investor participation as gold ETF flows, historically a good barometer of investor interest, turned positive after an extended period of outflows.

Silver also appears to have recently broken out and is now up 36.5% on the year (as of November 1, 2024). Silver is still trading well below the all-time highs established in 1980 and matched in 2011 at approximately $50 per ounce. Silver differs from gold in that it serves a dual role as both a precious metal and an industrial metal. While it is impacted by many of the same macro-economic factors as gold, it also benefits from rising industrial demand, particularly in clean energy technologies. With approximately $8 billion in physical silver AUM, Sprott is well positioned to benefit from the compelling outlook for the metal.

Sprott’s actively managed equity strategies have performed well this year. Our flagship Sprott Gold Equity Fund was up 21.41% during the quarter and 36.34% on a year-to-date basis (as of November 1, 2024). Notwithstanding the strong results, investors have been slow to allocate capital to the sector. We remain patient and believe the flows will return as the opportunities in gold and silver mining equities become impossible to ignore.
















2


Critical Materials

Critical materials prices were generally softer during the third quarter after a strong start to the year. China’s well-documented struggles and the perceived slowing in the U.S. economy pressured most industrial commodity prices during the quarter. Uranium prices have been subdued, as the metal consolidated in the low $80 per pound range. Uranium equities sold off during much of the third quarter before reversing course in early September. After the seasonally weak summer period, the sector has been bolstered by both the Federal Reserve’s rate cut and seemingly daily news stories about big tech companies embracing nuclear power. Uranium mining equities gained 4.85% in October, while the spot price for physical uranium has yet to respond. We believe the news that “hyper scalers” including Microsoft, Google, Meta and Amazon are turning to nuclear power as a way to meet their electricity needs supports a key element of our critical materials thesis: that the world needs more electricity from all sources.

After hitting a high of $10,899/mt in May, copper prices fell by 18% over the summer. Prices recovered in September on hopes that stimulus from China’s central bank would stoke an economic recovery in China, the world’s largest consumer of copper. We maintain our constructive view on copper due to its essential role in all forms of electrification and a looming supply deficit. Permitting a copper mine has never been more difficult and miners are now focused on lower grade deposits in increasingly difficult locations. At the same time, the largest producers appear focused on growing their copper assets by acquiring their competitors, rather than increasing supply through new mine developments. We expect investor appetite for copper to improve through the end of 2024 and into 2025.

Outlook

Our constructive outlook is largely unchanged from what we have articulated in prior quarters, although with the expectation of greater volatility in the months ahead. The geopolitical situation remains fraught as two wars continue unabated. As of this writing, the outcome of the U.S. Presidential election is highly uncertain and may remain so long after the polls close. We don’t believe inflation is behind us, rather it’s just resting a bit. Which means that interest rates are unlikely to fall to levels that are expected in the longer run. We believe the mini market crisis caused by the recent unwind of the Yen carry trade in August is likely a warning of things to come, and not a one-off event.






The root cause for our concern about volatility is the structure and functioning of the U.S. Treasury markets, by far the largest and most liquid in the world. It is not the size of the U.S. national debt or the rate that it is increasing ($2 trillion per year), it’s the way it’s structured that worries us. Luke Gromen, one of our favorite strategists, has been writing about this for some time in his weekly letter The Forest for the Trees. He shows that while the U.S. debt has more than doubled in the last 10 years, central banks have not added to their net ownership.

totaldebta.jpg


This has required a new source of demand from buyers such as pension funds, insurance companies, money market funds and now hedge funds. Two of the top five creditor nations are homes to these hedge funds, including the Cayman Islands (population 68,000) at number four.

foreigndebta.jpg











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These funds are mostly interested in shorter Treasury bills so the structure of the Treasury market has dramatically shifted toward shorter durations as it has grown. Currently the U.S. Treasury must “roll” (gross issuance volume) $500 billion per week, up from $200 billion in 2018 and $100 billion in 2013. An unexpected event in any market or location can cause these highly-levered macro funds to liquidate on a moment’s notice. We think going forward, the Federal Reserve will be spending much more time dealing with the stability of the U.S. Treasury market rather than worrying about inflation or employment. We believe this explains the strong recent performance of precious metals and don’t expect it to end anytime soon.

As new military and trade alliances are drawn globally, the onshoring trend will continue to accelerate. New technologies will drive increased electricity demand in the developed world and an emerging middle class in the world’s most populous nations will consume steadily increasing volumes of raw materials. A reluctance to rely on foreign suppliers will support domestic mine development for the production of these metals. With our positioning in precious metals and critical materials, we believe we are well positioned to benefit from these powerful global trends and create value for our clients and shareholders.

Thank you for your continued support. We look forward to reporting to you on our progress in the quarters ahead.

Sincerely,
whitneygeorgea.jpg
Whitney George
Chief Executive Officer
4







Management's Discussion and Analysis

Three and nine months ended September 30, 2024



5


Forward looking statements
Certain statements in this Management's Discussion & Analysis ("MD&A"), and in particular the "Outlook" section, 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 MD&A contains Forward-Looking Statements pertaining to: (i) our expectation to repay the balance of our line of credit by the end of this month, resulting in a debt-free balance sheet at that time; (ii) our positioning will benefit from a highly constructive operating environment for precious metals, critical materials and their related equities; 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: (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; (iv) the impact of public health outbreaks; and (v) those assumptions disclosed herein under the heading "Critical Accounting Estimates and significant judgments". 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 private strategies business; (xxvii) those risks described under the heading "Risk Factors" in the Company’s annual information form dated February 20, 2024; and (xxviii) those risks described under the headings "Managing Financial Risk" and "Managing Non-Financial Risk" in this MD&A. 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.

Management's discussion and analysis
This MD&A of financial condition and results of operations, dated November 5, 2024, presents an analysis of the consolidated financial condition of the Company and its subsidiaries as at September 30, 2024, compared with December 31, 2023, and the consolidated results of operations for the three and nine months ended September 30, 2024, compared with the three and nine months ended September 30, 2023. The board of directors of the Company approved this MD&A on November 5, 2024. All note references in this MD&A are to the notes to the Company's September 30, 2024 interim condensed consolidated financial statements ("interim financial statements"), unless otherwise noted. The Company was incorporated under the Business Corporations Act (Ontario) on February 13, 2008.
Presentation of financial information
The interim financial statements, including the required comparative information, have been prepared in accordance with International Financial Reporting Standards ("IFRS"), as issued by the International Accounting Standards Board ("IASB") in effect as at September 30, 2024, specifically, IAS 34 Interim Financial Reporting. Financial results, including related historical comparatives contained in this MD&A, unless otherwise specified herein, are based on the interim financial statements. While the Company's source and presentation currency is the U.S. dollar, IFRS requires that the Company measure its foreign exchange gains and losses through its consolidated statements of operations and comprehensive income using the Canadian dollar as its functional currency. Accordingly, all dollar references in this MD&A are in U.S. dollars, however the translation gains and losses were measured using the Canadian dollar as the functional currency. The use of the term "prior period" refers to the three and nine months ended September 30, 2023.
6


Key performance indicators and non-IFRS and other financial measures
The Company measures the success of its business using a number of key performance indicators that are not measurements in accordance with IFRS and should not be considered as an alternative to net income (loss) or any other measure of performance under IFRS. 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 page 11 of this MD&A.
Assets under management
Assets under management ("AUM") refers to the total net assets managed by the Company through its various investment product offerings and managed accounts.
Net inflows
Net inflows result in changes to AUM, and as such, have a direct impact on the revenues and earnings of the Company. They are described individually below:
At-the-market ("ATM") transactions and ETF unit creations
ATM transactions of our physical trusts and new 'creations' of ETF units are the primary manner in which inflows arise in our exchange listed products segment.
Net sales
Fund sales (net of redemptions) are the primary manner in which inflows arise in our managed equities segment.
Net capital calls
Capital calls, net of capital distributions ("net capital calls") are the primary manner in which inflows arise in our private strategies segment.
Other net inflows
Other net inflows include: (1) fund acquisitions, (2) new AUM from fund launches; and (3) lost AUM from fund closures. It is possible for committed capital in our private strategies to earn a commitment fee despite being uncalled, in which case, it will also be included in this category as AUM.
Net fees
Management fees, net of fund expenses, direct payouts, and carried interest and performance fees, net of carried interest and performance fee payouts (internal and external), 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 from purchases and sales of critical materials in our exchange listed products segment and transaction-based service offerings by our broker-dealer.
Net compensation & net compensation ratio
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, new hire accruals and other which are non-recurring. Net compensation ratio is calculated as net compensation divided by net revenues (see page 8 for net revenue calculation).
Total shareholder return
Total shareholder return is the financial gain (loss) that results from a change in the Company's share price, plus any dividends paid over the period.
Liquid co-investments
Liquid co-investments are the Company's co-investments that can be monetized in less than 90 days.

7


EBITDA, adjusted base EBITDA and adjusted base EBITDA margin
EBITDA in its most basic form is defined as earnings before interest expense, income taxes, depreciation and amortization. Adjusted base EBITDA further adjusts for items noted in the below reconciliation table. Adjusted base EBITDA margin is calculated as adjusted base EBITDA from reportable segments divided by net revenues. Net revenues are calculated as total net revenues before: (1) gains (losses) on investments, (2) revenues from non-reportable segments; and (3) carried interest and performance fees, net of carried interest and performance fee payouts (internal and external).
EBITDA, adjusted base EBITDA and adjusted base EBITDA margin are measures 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 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. Adjusted base EBITDA margins are a key indicator of a Company’s profitability on a per dollar of revenue basis, and as such, is commonly used in the financial services sector by analysts, investors and management.
Neither EBITDA, adjusted base EBITDA, or adjusted base EBITDA margin have a standardized meaning under IFRS. Consequently, they should not be considered in isolation, nor should they be used in substitute for measures of performance prepared in accordance with IFRS.
The following table outlines how our EBITDA, adjusted base EBITDA and adjusted base EBITDA margin measures are determined:
3 months ended9 months ended
(in thousands $)Sep. 30, 2024Sep. 30, 2023Sep. 30, 2024Sep. 30, 2023
Net income for the period12,697 6,773 37,614 32,135 
Net income margin (1)
27 %20 %28 %29 %
Adjustments:
Interest expense933 882 2,478 3,216 
Provision for income taxes5,698 (1,349)14,899 7,333 
Depreciation and amortization502 731 1,621 2,185 
EBITDA19,830 7,037 56,612 44,869 
Adjustments:
(Gain) loss on investments (2)
(937)1,441 (3,879)1,433 
Stock-based compensation (3)
4,806 4,408 13,829 12,447 
Foreign exchange (gain) loss (4)
1,028 37 1,318 1,917 
Severance, new hire accruals and other (4)
58 122 58 5,446 
Revaluation of contingent consideration (4)
— — (580)(2,254)
Costs relating to exit of non-core business (4)
— 3,615 — 4,987 
Non-recurring regulatory, professional fees and other (4)
— 1,194 — 3,023 
Shares received on recognition of contingent asset (4)
— — — (18,588)
Carried interest and performance fees(4,110)— (4,808)(388)
Carried interest and performance fee payouts - internal— — 251 236 
Carried interest and performance fee payouts - external— — — — 
Adjusted base EBITDA 20,675 17,854 62,801 53,128 
Adjusted base EBITDA margin (5)
58 %56 %58 %57 %
(1) Calculated as IFRS net income divided by IFRS total revenue.
(2) 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 above are met.
(3) In prior years, the mark-to-market expense of DSU issuances were included with "other (income) and expenses". In the current period, these costs are included as part of "stock-based compensation". Prior year figures have been reclassified to conform with current presentation.
(4) Foreign exchange (gain) and loss; severance, new hire accruals and other; revaluation of contingent consideration; costs relating to exit of non-core business; non-recurring regulatory, professional fees and other; and shares received on recognition of contingent asset were previously included with "other (income) and expenses" and are now shown separately in the reconciliation of adjusted base EBITDA above. Prior year figures have been reclassified to conform with current presentation.
(5) Prior year figures have been revised to remove the adjustment of depreciation and amortization.
8


Business overview
businessoverviewa.jpg
Our reportable operating segments are as follows:
Exchange listed products
The Company's closed-end physical trusts and exchange traded funds ("ETFs").
Managed equities
The Company's alternative investment strategies managed in-house and on a sub-advised basis.
Private strategies
The Company's lending and streaming activities which occur through limited partnership vehicles ("private strategies LPs").
Corporate
Provides the Company's operating segments with capital, balance sheet management and other shared services.
All other segments
Contains all non-reportable segments as per IFRS 8, Operating Segments ("IFRS 8").
For a detailed account of the underlying principal subsidiaries within our reportable operating segments, refer to the Company's Annual Information Form and Note 2 of the audited annual financial statements.






9


Business development and outlook
Our constructive outlook on precious metals and critical materials and their related equities is largely unchanged from what we have articulated in prior quarters, although with the expectation of greater volatility in the months ahead. For more insight into our outlook, please refer to our letter to shareholders.
Subsequent to quarter-end, as at November 1, 2024, AUM was $34.2 billion, up 2% from $33.4 billion at September 30, 2024.

10


Results of operations
Summary financial information
(In thousands $)Q3
2024
Q2
2024
Q1
2024
Q4
2023
Q3
2023
Q2
2023
Q1
2023
Q4
2022
Summary income statement
Management fees (1)
38,693 38,065 36,372 34,244 32,867 32,940 31,170 28,152 
   Fund expenses (2), (3)
(2,385)(2,657)(2,234)(2,200)(1,740)(1,871)(1,795)(1,470)
   Direct payouts (1,483)(1,408)(1,461)(1,283)(1,472)(1,342)(1,187)(1,114)
Carried interest and performance fees4,110 698 — 503 — 388 — 1,219 
   Carried interest and performance fee payouts - internal — (251)— (222)— (236)— (567)
   Carried interest and performance fee payouts - external (3)
— — — — — — — (121)
Net fees38,935 34,447 32,677 31,042 29,655 29,879 28,188 26,099 
Commissions 498 3,332 1,047 1,331 539 1,647 4,784 5,027 
   Commission expense - internal (147)(380)(217)(161)(88)(494)(1,727)(1,579)
   Commission expense - external (3)
(103)(1,443)(312)(441)(92)(27)(642)(585)
Net commissions248 1,509 518 729 359 1,126 2,415 2,863 
Finance income (2)
1,574 4,084 1,810 1,391 1,795 1,650 1,655 1,738 
Gain (loss) on investments937 1,133 1,809 2,808 (1,441)(1,950)1,958 (930)
Co-investment income (2)
418 416 274 170 462 1,327 93 370 
Total net revenues (2)
42,112 41,589 37,088 36,140 30,830 32,032 34,309 30,140 
Compensation (2)
18,547 19,225 17,955 17,096 16,939 21,468 19,556 17,148 
   Direct payouts(1,483)(1,408)(1,461)(1,283)(1,472)(1,342)(1,187)(1,114)
   Carried interest and performance fee payouts - internal— (251)— (222)— (236)— (567)
   Commission expense - internal(147)(380)(217)(161)(88)(494)(1,727)(1,579)
   Severance, new hire accruals and other(58)— — (179)(122)(4,067)(1,257)(1,240)
Net compensation 16,859 17,186 16,277 15,251 15,257 15,329 15,385 12,648 
Net compensation ratio46 %44 %47 %47 %50 %48 %52 %44 %
Severance, new hire accruals and other
58 — — 179 122 4,067 1,257 1,240 
Selling, general and administrative ("SG&A") (2)
4,612 5,040 4,173 3,963 3,817 4,752 4,026 3,814 
SG&A recoveries from funds (1)
(275)(260)(231)(241)(249)(282)(264)(253)
Interest expense933 715 830 844 882 1,087 1,247 1,076 
Depreciation and amortization502 568 551 658 731 748 706 710 
Foreign exchange (gain) loss (2)
1,028 122 168 1,295 37 1,440 440 (484)
Other (income) and expenses (2)
— (580)— 3,368 4,809 (18,890)1,249 1,686 
Total expenses23,717 22,791 21,768 25,317 25,406 8,251 24,046 20,437 
Net income 12,697 13,360 11,557 9,664 6,773 17,724 7,638 7,331 
Net income per share 0.50 0.53 0.45 0.38 0.27 0.70 0.30 0.29 
Adjusted base EBITDA20,675 22,375 19,751 18,759 17,854 17,953 17,321 18,083 
Adjusted base EBITDA per share0.81 0.88 0.78 0.75 0.71 0.71 0.68 0.72 
Summary balance sheet
Total assets 412,477 406,265 389,784 378,835 375,948 381,519 386,765 383,748 
Total liabilities 82,198 90,442 82,365 73,130 79,705 83,711 108,106 106,477 
Total AUM33,439,221 31,053,136 29,369,191 28,737,742 25,398,159 25,141,561 25,377,189 23,432,661 
Average AUM31,788,412 31,378,343 29,035,667 27,014,109 25,518,250 25,679,214 23,892,335 22,323,075 
(1) Previously, management fees within the above summary financial information table included SG&A recoveries from funds consistent with IFRS 15. For management reporting purposes, these recoveries are now shown next to their associated expense as management believes this will enable readers to transparently identify the net economics of these recoveries. However, SG&A recoveries from funds are still shown within the "Management fees" line on the consolidated statement of operations. Prior year figures have been reclassified to conform with current presentation.
(2) Current and prior period figures on the consolidated statements of operations include the following adjustments: (1) trading costs incurred in managed accounts are now included within "Fund expenses" (previously included within "SG&A"); (2) interest income earned on cash deposits are now included within "Finance income" (previously included within "Other income"); (3) co-investment income and income attributable to non-controlling interest are now included as part of "Co-investment income" (previously included within "Other income"); (4) expenses attributable to non-controlling interest is now included within "Co-investment income" (previously included within "Other expenses"); (5) the mark-to-market expense of DSU issuances are now included within "Compensation" (previously included within "Other expenses"); (6) foreign exchange (gain) loss is now shown separately (previously included within "Other expenses"); and (7) shares received on a previously unrecorded contingent asset in Q2 2023 are now included within "Other (income) and expenses" (previously included within "Other income"). Prior year figures have been reclassified to conform with current presentation.
(3) These amounts are included in the "Fund expenses" line on the consolidated statements of operations.

11


AUM summary
AUM was $33.4 billion as at September 30, 2024, up 8% from $31.1 billion as at June 30, 2024 and up 16% from $28.7 billion as at December 31, 2023. On a three and nine months ended basis, we primarily benefited from strong market value appreciation in our precious metals physical trusts. We also benefited from net inflows to our exchange listed products and the launch of our Physical Copper Trust in the second quarter. Subsequent to quarter-end, as at November 1, 2024, AUM was $34.2 billion, up 2% from $33.4 billion at September 30, 2024.
3 months results
(In millions $)AUM
Jun. 30, 2024
Net
inflows
(1)
Market
value changes
Other
net inflows (1)
AUM
Sep. 30, 2024
Net management
fee rate (2)
Exchange listed products
 - Precious metals physical trusts and ETFs
      - Physical Gold Trust7,2833619738,6170.35%
      - Physical Silver Trust4,9942243485,5660.45%
      - Physical Gold and Silver Trust4,7105155,2250.40%
      - Precious Metals ETFs355(11)604040.33%
      - Physical Platinum & Palladium Trust143711510.50%
17,4855811,89719,9630.39%
 - Critical materials physical trusts and ETFs
      - Physical Uranium Trust5,61523(230)5,4080.32%
      - Critical Materials ETFs2,40856(157)2,3070.55%
      - Physical Copper Trust98231030.32%
8,12181(384)7,8180.38%
Total exchange listed products25,6066621,51327,7810.39%
Managed equities (3)(4)
2,962(55)3693,2760.90%
Private strategies (4)
2,485(18)(85)2,3820.80%
Total AUM (5)
31,0535891,79733,4390.47%
9 months results
(In millions $)AUM
Dec. 31, 2023
Net
inflows
(1)
Market
value changes
Other
net inflows (1)
AUM
Sep. 30, 2024
Net management
fee rate (2)
Exchange listed products
 - Precious metals physical trusts and ETFs
      - Physical Gold Trust6,5323161,7698,6170.35%
      - Physical Silver Trust4,0702561,2405,5660.45%
      - Physical Gold and Silver Trust4,230(161)1,1565,2250.40%
      - Precious Metals ETFs339(14)794040.33%
      - Physical Platinum & Palladium Trust11642(7)1510.50%
15,2874394,23719,9630.39%
 - Critical materials physical trusts and ETFs
      - Physical Uranium Trust5,773266(631)5,4080.32%
      - Critical materials ETFs2,143294(130)2,3070.55%
      - Physical Copper Trust2(9)1101030.32%
7,916562(770)1107,8180.38%
Total exchange listed products23,2031,0013,46711027,7810.39%
Managed equities (3)(4)
2,874(167)5693,2760.90%
Private strategies (4)
2,661(172)(107)2,3820.80%
Total AUM (5)
28,7386623,92911033,4390.47%
(1) See "Net inflows" and "Other net inflows" in the key performance indicators and non-IFRS and other financial measures section of this MD&A.
(2) Management fee rate represents the weighted average fees for all funds in the category, net of fund expenses.
(3) Managed equities is made up of primarily precious metal strategies (57%), high net worth managed accounts (35%) and U.S. value strategies (8%).
(4) Prior period figures have been reclassified to conform with current presentation.
(5) No performance fees are earned on exchange listed products. Performance fees are earned on certain of our managed equities products and are based on returns above relevant benchmarks. Private strategies
     LPs primarily earn carried interest calculated as a predetermined net profit over a preferred return.
12


Key revenue lines                     

Management, carried interest and performance fees
Management fees were $38.7 million in the quarter, up 18% from $32.9 million for the quarter ended September 30, 2023 and $113.1 million on a year-to-date basis, up 17% from $97 million for the nine months ended September 30, 2023. Carried interest and performance fees were $4.1 million in the quarter, up from $nil for the quarter ended September 30, 2023 and $4.8 million on a year-to-date basis, up from $0.4 million for the nine months ended September 30, 2023. Net fees were $38.9 million in the quarter, up 31% from $29.7 million for the quarter ended September 30, 2023 and $106.1 million on a year-to-date basis, up 21% from $87.7 million for the nine months ended September 30, 2023. Our revenue performance on both a three and nine months ended basis was primarily due to higher average AUM on strong market value appreciation in our precious metals physical trusts and continuous inflows to the majority of our exchange listed products. We also benefited from carried interest crystallization in a legacy fixed-term exploration LP in our managed equities segment.
Commission revenues
Commission revenues were $0.5 million in the quarter, down 8% from the quarter ended September 30, 2023 and $4.9 million on a year-to-date basis, down 30% from $7 million for the nine months ended September 30, 2023. Net commissions were $0.2 million in the quarter, down 31% from $0.4 million for the quarter ended September 30, 2023 and $2.3 million on a year-to-date basis, down 42% from $3.9 million for the nine months ended September 30, 2023. Commission revenue was lower in the quarter due to modest ATM activity in our critical materials physical trusts. On a year-to-date basis, the decline in commission revenue was due to the sale of our former Canadian broker-dealer in the second quarter of last year.
Finance income
Finance income was $1.6 million in the quarter, down 12% from $1.8 million for the quarter ended September 30, 2023 and $7.5 million on a year-to-date basis, up 46% from $5.1 million for the nine months ended September 30, 2023. The decrease in the quarter was due to lower income generation in co-investment positions we hold in our LPs managed in our private strategies segment. The increase on a year-to-date basis was due to higher income earned on streaming syndication activity in the second quarter.
Key expense lines
Compensation
Net compensation expense was $16.9 million in the quarter, up 11% from $15.3 million for the quarter ended September 30, 2023 and $50.3 million on a year-to-date basis, up 9% from $46 million for the nine months ended September 30, 2023. The increase in the quarter and on a year-to-date basis was primarily due to increased AIP accruals on higher net fee generation. Our net compensation ratio was 46% in the quarter (September 30, 2023 - 50%) and 45% on a year-to-date basis (September 30, 2023 - 50%).
SG&A
SG&A expense was $4.6 million in the quarter, up 21% from $3.8 million for the quarter ended September 30, 2023 and $13.8 million on a year-to-date basis, up 10% from $12.6 million for the nine months ended September 30, 2023. The increase in the quarter and on a year-to-date basis was due to higher technology and professional services costs.
Earnings
Net income for the quarter was $12.7 million ($0.50 per share), up 87% from $6.8 million ($0.27 per share) for the quarter ended September 30, 2023 and was $37.6 million ($1.48 per share) on a year-to-date basis, up 17% from $32.1 million ($1.27 per share) for the nine months ended September 30, 2023. Our earnings benefited from higher management fees on strong market valuations of our precious metals physical trusts and good inflows to our exchange listed products. We also benefited from carried interest crystallization in our managed equities funds and market value appreciation of our co-investments.

Adjusted base EBITDA was $20.7 million ($0.81 per share) in the quarter, up 16% from $17.9 million ($0.71 per share) for the quarter ended September 30, 2023 and $62.8 million ($2.47 per share) on a year-to-date basis, up 18% from $53.1 million ($2.10 per share) for the nine months ended September 30, 2023. Adjusted base EBITDA on both a three and nine months ended basis benefited from higher management fees on strong market valuations of our precious metals physical trusts and good inflows to our exchange listed products.




13


Additional revenues and expenses
Investment gains on both a three and nine months ended basis benefited from market value appreciation in our co-investments.
Depreciation of property and equipment was lower in the quarter and on a year-to-date basis due to a decrease in depreciation expense related to cancelled lease agreements on the sale of our legacy non-core asset management business domiciled in Korea in the third quarter of last year.
Other (income) and expenses were $nil in the quarter and lower on a year-to-date basis due to the recognition of income on the recording of a non-recurring contingent asset in the second quarter of last year.
















Balance sheet                
Total assets were $412.5 million, up 9% from $378.8 million as at December 31, 2023. The increase was mainly due to the setup of a lease asset on the renewal of an existing lease, higher cash balances on increased earnings and higher other assets attributable to non-controlling interest on the funds we consolidate. Total liabilities were $82.2 million, up 12% from $73.1 million as at December 31, 2023. The increase was related to the office lease asset mentioned above (i.e. under IFRS 16, the $9.3 million lease asset must be accompanied by a corresponding $9.6 million accrued lease liability) and higher liabilities related to non-controlling interest on the funds we consolidate, which more than offset the partial repayment of our line of credit. Total shareholder's equity was $330.3 million, up 8% from $305.7 million as at December 31, 2023.


















14


Reportable operating segments
Exchange listed products
3 months ended9 months ended
(In thousands $)Sep. 30, 2024Sep. 30, 2023Sep. 30, 2024Sep. 30, 2023
Summary income statement
Management fees27,268 20,378 78,813 58,673 
   Fund expenses(1,955)(1,165)(5,819)(3,478)
Net fees25,313 19,213 72,994 55,195 
Commissions100 183 3,542 1,443 
   Commission expense - internal(8)(14)(286)(105)
   Commission expense - external(50)(92)(1,694)(745)
Net commissions42 77 1,562 593 
Gain (loss) on investments395 (641)2,692 (676)
Co-investment income— — 29 1,014 
Finance income (1)
116 71 313 186 
Total net revenues25,866 18,720 77,590 56,312 
Net compensation 4,414 3,537 12,852 9,904 
Severance, new hire accruals and other— 30 — 33 
SG&A1,698 1,618 4,936 4,266 
Interest expense332 568 1,058 1,900 
Depreciation and amortization34 46 98 115 
Foreign exchange (gain) loss (1)
480 (414)139 (103)
Other (income) and expenses (1)
— 338 (580)(20,205)
Total expenses6,958 5,723 18,503 (4,090)
Income before income taxes18,908 12,997 59,087 60,402 
Adjusted base EBITDA20,021 15,022 59,245 44,902 
Adjusted base EBITDA margin (2)
79 %78 %79 %80 %
Total AUM27,780,581 20,328,574 27,780,581 20,328,574 
Average AUM26,202,349 19,724,530 25,204,327 19,093,726 
(1) See footnote 2 of the summary financial information table on page 11 of the MD&A.
(2) Prior year figures have been revised to remove the adjustment of depreciation and amortization.

3 and 9 months ended

Income before income taxes was $18.9 million in the quarter, up 45% from $13 million for the quarter ended September 30, 2023. Our earnings benefited from higher management fees on strong market valuations of our precious metals physical trusts and good inflows to the majority of our exchange listed products. On a year-to-date basis, income before income taxes was $59.1 million, down 2% from $60.4 million for the nine months ended September 30, 2023. The decline in our year-to-date earnings from this time last year was mainly due to the recording of a non-recurring contingent asset in the second quarter of last year that more than offset the increased revenue in the current period from higher management fees.
Adjusted base EBITDA was $20 million in the quarter, up 33% from $15 million for the quarter ended September 30, 2023 and was $59.2 million on a year-to-date basis, up 32% from $44.9 million for the nine months ended September 30, 2023. Our three and nine months ended results benefited from higher management fees on strong market valuations of our precious metals physical trusts and inflows to the majority of our exchange listed products.

15


Managed equities
3 months ended9 months ended
(In thousands $)Sep. 30, 2024Sep. 30, 2023Sep. 30, 2024Sep. 30, 2023
Summary income statement
Management fees (1)
7,160 6,841 20,515 20,727 
   Fund expenses (2)
(383)(456)(1,305)(1,515)
   Direct payouts(1,041)(891)(2,992)(2,696)
Carried interest and performance fees4,110 — 4,808 388 
   Carried interest and performance fee payouts - internal— — (251)(236)
Net fees9,846 5,494 20,775 16,668 
Gain (loss) on investments1,218 (1,219)3,135 (1,452)
Co-investment income 56 — 93 281 
Finance income (2)
142 30 222 163 
Total net revenues11,262 4,305 24,225 15,660 
Net compensation 3,617 3,087 10,251 9,837 
Severance, new hire accruals and other58 30 58 512 
SG&A (2)
1,078 1,002 3,598 3,294 
SG&A recoveries from funds (1)
(275)(249)(766)(795)
Interest expense411 230 839 1,137 
Depreciation and amortization95 138 282 344 
Foreign exchange (gain) loss (2)
160 (138)46 (45)
Other (income) and expenses (2)
— 135 — 314 
Total expenses5,144 4,235 14,308 14,598 
Income (loss) before income taxes6,118 70 9,917 1,062 
Adjusted base EBITDA2,157 2,132 5,227 6,155 
Adjusted base EBITDA margin (3)
36 %39 %32 %36 %
Total AUM3,276,153 2,455,086 3,276,153 2,455,086 
Average AUM3,131,978 2,676,780 2,969,909 2,800,978 
(1) See footnote 1 of the summary financial information table on page 11 of the MD&A.
(2) See footnote 2 of the summary financial information table on page 11 of the MD&A.
(3) Prior year figures have been revised to remove the adjustment of depreciation and amortization.

3 and 9 months ended

Income before income taxes was $6.1 million in the quarter, up from $0.1 million for the quarter ended September 30, 2023 and was $9.9 million on a year-to-date basis, up from $1.1 million for the nine months ended September 30, 2023. Income before income taxes on both a three and nine months ended basis benefited from carried interest crystallization in a legacy fixed-term exploration LP and market value appreciation of our co-investments.

Adjusted base EBITDA was $2.2 million in the quarter, up 1% from $2.1 million for the quarter ended September 30, 2023 and was $5.2 million on a year-to-date basis, down 15% from $6.2 million for the nine months ended September 30, 2023. Our three months ended results benefited from improved market valuations across our fund products. Our year-to-date results were partially impacted by lower net management fees and higher SG&A from increased technology costs.



16


Private strategies
3 months ended9 months ended
(In thousands $)Sep. 30, 2024Sep. 30, 2023Sep. 30, 2024Sep. 30, 2023
Summary income statement
Management fees 4,627 5,516 14,785 15,986 
   Fund expenses(47)(36)(152)(137)
   Direct payouts(442)(581)(1,360)(1,305)
Net fees4,138 4,899 13,273 14,544 
Finance income (1)
1,195 1,110 6,601 3,364 
Gain (loss) on investments(767)1,275 56 1,930 
Total net revenues4,566 7,284 19,930 19,838 
Net compensation 2,394 2,739 8,353 7,417 
Severance, new hire accruals and other— — — 54 
SG&A663 388 1,555 1,220 
Interest expense
Depreciation and amortization21 18 
Foreign exchange (gain) loss (1)
652 (828)(697)75 
Other (income) and expenses (1)
— 56 — 240 
Total expenses3,718 2,364 9,238 9,028 
Income before income taxes848 4,920 10,692 10,810 
Adjusted base EBITDA2,276 2,882 9,967 9,271 
Adjusted base EBITDA margin (2)
43 %48 %50 %52 %
Total AUM2,382,487 2,614,499 2,382,487 2,614,499 
Average AUM2,454,085 2,585,922 2,564,701 2,343,000 
(1) See footnote 2 of the summary financial information table on page 11 of the MD&A.
(2) Prior year figures have been revised to remove the adjustment of depreciation and amortization.

3 and 9 months ended

Income before income taxes was $0.8 million in the quarter, down 83% from $4.9 million for the quarter ended September 30, 2023 and was $10.7 million on a year-to-date basis, down 1% from $10.8 million for the nine months ended September 30, 2023. Our three months ended results were impacted by market value depreciation of our co-investments and lower management fees due to a combination of net capital distributions and lower commitment fee earning assets. Our nine months ended results were impacted by market value depreciation of our co-investments and lower management fees mentioned above, partially offset by income earned on streaming syndication activity in the second quarter.

Adjusted base EBITDA was $2.3 million in the quarter, down 21% from $2.9 million for the quarter ended September 30, 2023 and was $10 million on a year-to-date basis, up 8% from $9.3 million for the nine months ended September 30, 2023. Our three months ended results were impacted by lower management fees due to a combination of net capital distributions and lower commitment fee earning assets. Our year-to-date results benefited from higher finance income earned on streaming syndication activity.




17


Corporate
This segment is a cost center that provides capital, balance sheet management and shared services to the Company's subsidiaries.
3 months ended9 months ended
(In thousands $)Sep. 30, 2024Sep. 30, 2023Sep. 30, 2024Sep. 30, 2023
Summary income statement
Gain (loss) on investments 67 (239)(236)(25)
Finance income (1)
22 17 58 84 
Total revenues89 (222)(178)59 
Net compensation (1)
6,037 5,110 17,589 15,269 
Severance, new hire accruals and other— 53 — 4,723 
SG&A906 451 2,930 1,827 
Interest expense188 35 575 94 
Depreciation and amortization363 441 1,210 1,297 
Foreign exchange (gain) loss (1)
(318)1,423 1,673 1,918 
Other (income) and expenses (1)
— 691 — 1,446 
Total expenses7,176 8,204 23,977 26,574 
Income (loss) before income taxes(7,087)(8,426)(24,155)(26,515)
Adjusted base EBITDA(3,420)(2,400)(10,544)(8,093)
(1) See footnote 2 of the summary financial information table on page 11 of the MD&A.

3 and 9 months ended

Net compensation was higher primarily due to increased AIP accruals on higher net fee generation.

Severance and other expenses were $nil compared to the prior period.

SG&A was higher primarily due to increased technology and professional services costs.




18


Dividends
The following dividends were declared by the Company during the nine months ended September 30, 2024:
Record datePayment dateCash dividend
    per share
Total dividend amount (in thousands $)
March 4, 2024 - Regular dividend Q4 2023March 19, 2024$0.256,466 
May 21, 2024 - Regular dividend Q1 2024June 5, 2024$0.256,466 
August 19, 2024 - Regular dividend Q2 2024September 3, 2024$0.256,466 
Dividends declared in 2024 (1)
19,398 
(1) Subsequent to quarter end, on November 5, 2024, a regular dividend of $0.30 per common share was declared for the quarter ended September 30, 2024. This dividend is payable on December 3, 2024 to shareholders of record at the close of business on November 18, 2024.

Capital stock
Including the 0.5 million unvested common shares currently held in the EPSP Trust (December 31, 2023 - 0.5 million), total capital stock issued and outstanding was 25.9 million (December 31, 2023 - 25.9 million).
Earnings per share for the current and prior period have been calculated using the weighted average number of shares outstanding during the respective periods. Basic earnings per share was $0.50 for the quarter and $1.48 on a year-to-date basis compared to $0.27 and $1.27 in the prior periods, respectively. Diluted earnings per share was $0.49 in the quarter and $1.44 on a year-to-date basis compared to $0.26 and $1.23 in the prior periods, respectively. Diluted earnings per share reflects the dilutive effect of in-the-money stock options, unvested shares held in the EPSP Trust and outstanding restricted stock units.
A total of 12,500 stock options are outstanding pursuant to our stock option plan, all of which are exercisable.
19


Liquidity and capital resources
As at September 30, 2024, the Company had $43.5 million (December 31, 2023 - $20.7 million) of cash and cash equivalents. In addition, the Company had $89.4 million of co-investments (December 31, 2023 - $93.5 million) of which $40 million (December 31, 2023 - $39.5 million) can be monetized in less than 90 days (liquid co-investments).
As at September 30, 2024, the Company had $18.7 million (December 31, 2023 - $24.2 million) outstanding on its credit facility, all of which is due on August 8, 2028. As at September 30, 2024, the Company was in compliance with all covenants, terms and conditions under the credit facility.
The Company has access to a credit facility of $75 million with a major Canadian schedule I chartered bank. Amounts under the facility may be borrowed in U.S. dollars through SOFR or base rate loans. Amounts may also be borrowed in Canadian dollars through prime rate loans or CORRA loans.
Key terms under the current credit facility are noted below:

Structure
5-year, $75 million revolver with "bullet maturity" August 8, 2028
Interest rate
SOFR + 2.33%
Covenant terms
Minimum AUM: CAD$15.4 billion;
Debt to EBITDA less than or equal to 2.5:1; and
EBITDA to interest expense more than or equal to 2.5:1

Commitments
The Company has commitments to make co-investments in private strategies LPs or commitments to make co-investments in fund strategies in the Company's other segments. As at September 30, 2024, the Company had $2.1 million in co-investment commitments in private strategies LPs due within one year (December 31, 2023 - $4 million) and $nil due after 12 months (December 31, 2023 - $1.9 million).


20


Critical accounting estimates and significant judgments
The key assumptions concerning the future and other key sources of estimation uncertainty at the reporting date that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities are described below. The Company based its assumptions and estimates on parameters available when the financial statements were prepared. Existing circumstances and assumptions about future developments may change due to market changes or circumstances arising beyond the control of the Company. Such changes are reflected in the assumptions and estimates as they occur. The Company’s material accounting policy information are described in Note 2 of the December 31, 2023 audited annual financial statements. Certain of these accounting policies require management to make key assumptions concerning the future and consider other sources of estimation uncertainty at the reporting date. These accounting estimates are considered critical because they require subjective and/or complex judgments that may have a material impact on the value of our assets, liabilities, revenues and expenses.

Critical accounting estimates

Impairment of goodwill and intangible assets

All indefinite life intangible assets and goodwill are assessed for impairment annually, however, finite life intangibles are only tested for impairment to the extent indicators of impairment exist at the time of a quarterly assessment. In the case of goodwill and indefinite life intangibles, this annual test for impairment augments the quarterly impairment indicator assessments. Values associated with goodwill and intangibles involve estimates and assumptions, including those with respect to future cash inflows and outflows, discount rates, AUM and asset lives. These estimates require significant judgment regarding market growth rates, fund flow assumptions, expected margins and costs, which could affect the Company's future results if estimates of future performance and fair value change.

Fair value of financial instruments

When the fair value of financial assets and financial liabilities recorded in the consolidated balance sheets cannot be derived from active markets, they are determined using valuation techniques and models. Model inputs are taken from observable markets where possible, but where this is not feasible, unobservable inputs may be used. These unobservable inputs include, but are not limited to, projected cash flows, discount rates, comparable recent transactions and volatility of underlying securities in warrant valuations. The use of unobservable inputs can involve significant judgment and materially affect the reported fair value of financial instruments.

Significant judgments

Investments in other entities

IFRS 10 Consolidated Financial Statements ("IFRS 10") and IAS 28 Investments in Associates and Joint Ventures ("IAS 28") provide for the use of judgment in determining whether an investee should be included within the consolidated financial statements of the Company and on what basis (subsidiary, joint venture, financial instrument or associate). Significant judgment is applied in evaluating facts and circumstances relevant to the Company and investee, including: (1) the extent of the Company's direct and indirect interest in the investee; (2) the level of compensation to be received from the investee for management and other services provided to it; (3) "kick out rights" available to other investors in the investee; and (4) other indicators of the extent of power that the Company has over the investee.
21


Managing financial risks
Market risk
The Company separates market risk into three categories: price risk, interest rate risk and foreign currency risk.
Price risk
Price risk arises from the possibility that changes in the price of the Company's on and off-balance sheet assets and liabilities will result in changes in carrying value or recoverable amounts. The Company's revenues are also exposed to price risk since management fees, carried interest and performance fees are correlated with AUM, which fluctuates with changes in the market values of the assets in the funds and managed accounts managed by the Company.
Interest rate risk
Interest rate risk arises from the possibility that changes in interest rates will adversely affect the value of, or cash flows from, financial assets and liabilities. The Company’s earnings, particularly through its private strategies segment, are exposed to volatility as a result of sudden changes in interest rates. Management takes into account a number of factors and is committed to several processes to ensure that this risk is appropriately managed.
Foreign currency risk
The Company enters into transactions that are denominated primarily in U.S. and Canadian dollars. Foreign currency risk arises from foreign exchange rate movements that could negatively impact either the carrying value of financial assets and liabilities or the related cash flows which are denominated in currencies other than the functional currency of the Company and its subsidiaries. The Company may employ certain hedging strategies to mitigate foreign currency risk.
Credit risk
Credit risk is the risk that a borrower will not honor its commitments and a loss to the Company may result. Credit risk generally arises in the Company's investments portfolio.
Investments
The Company incurs credit risk when entering into, settling and financing transactions with counterparties. Management takes into account a number of factors and is committed to several processes to ensure that this risk is appropriately managed.
Other
The majority of receivables relate to management fees, carried interest and performance fees receivable from the funds and managed accounts managed by the Company. These receivables are short-term in nature and any credit risk associated with them is managed by dealing with counterparties that the Company believes to be creditworthy and by actively monitoring credit exposure and the financial health of the counterparties.
Liquidity risk
Liquidity risk is the risk that the Company cannot meet a demand for cash or fund its obligations as they come due. The Company's exposure to liquidity risk is minimal as it maintains sufficient levels of liquid assets to meet its obligations as they come due. The Company has $43.5 million (December 31, 2023 - $20.7 million) of cash and cash equivalents. In addition, the Company has $89.4 million of co-investments (December 31, 2023 - $93.5 million), of which $40 million (December 31, 2023 - $39.5 million) can be monetized in less than 90 days (liquid co-investments). The Company also has access to a credit facility of $75 million with a major Canadian schedule I chartered bank.



22


The Company's exposure to liquidity risk as it relates to our co-investments in private strategies LPs arises from fluctuations in cash flows from making capital calls and receiving capital distributions. The Company manages its co-investment liquidity risk through the ongoing monitoring of scheduled capital calls and distributions ("match funding") and through its broader treasury risk management program and enterprise capital budgeting.
Financial liabilities, including accounts payable and accrued liabilities and compensation payable, are short-term in nature and are generally due within a year.
The Company's management team is responsible for reviewing resources to ensure funds are readily available to meet its financial obligations as they come due and ensuring adequate funds exist to support business strategies and operations growth. The Company manages liquidity risk by monitoring cash balances on a daily basis and through its broader treasury risk management program. To meet any liquidity shortfalls, actions taken by the Company could include but are not limited to: drawing on the line of credit; slowing its co-investment activities; liquidating investments; and adjusting or otherwise temporarily suspending AIPs.
Concentration risk
A significant portion of the Company's AUM and its investments are focused on the natural resource sector, and in particular, precious metals and critical materials related investments and transactions. In addition, from time-to-time, certain investments may be concentrated to a material degree in a single position or group of positions. Management takes into account a number of factors and is committed to several processes to ensure that this risk is appropriately managed.
Disclosure controls and procedures ("DC&P") and internal control over financial reporting ("ICFR")
Management is responsible for the design and operational effectiveness of DC&P and ICFR in order to provide reasonable assurance regarding the disclosure of material information relating to the Company. This includes information required to be disclosed in the Company's annual filings, interim filings and other reports filed under securities legislation, as well as the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with IFRS.
Our chief executive officer and chief financial officer, after evaluating the effectiveness of our DC&P and ICFR (as defined in the applicable U.S. and Canadian securities laws), concluded that the Company's DC&P and ICFR were properly designed and were operating effectively as at September 30, 2024. In addition, there were no material changes to ICFR during the quarter.

Managing non-financial risks
For details around other risks managed by the Company (e.g. confidentiality of information, conflicts of interest, etc.) refer to the Company's annual report as well as the Annual Information Form available on EDGAR at www.sec.gov and SEDAR+ at www.sedarplus.com.
















Additional information relating to the Company, including the Company's Annual Information Form is available on EDGAR at www.sec.gov and SEDAR+ at www.sedarplus.com.
23

                                        











Consolidated Financial Statements

Three and nine months ended September 30, 2024






















Interim condensed consolidated balance sheets (unaudited)
As atSep. 30Dec. 31
(In thousands of U.S. dollars)20242023
Assets
Current
Cash and cash equivalents43,548 20,658 
Fees receivable4,749 7,481 
Short-term investments(Notes 3 & 10)1,768 2,232 
Other assets(Note 5)17,400 13,496 
Income taxes recoverable1,716 1,189 
Total current assets69,181 45,056 
Co-investments(Notes 4 & 10)89,437 93,528 
Other assets(Notes 5 & 10)31,739 24,291 
Property and equipment, net20,532 10,856 
Intangible assets(Note 8)179,208 182,902 
Goodwill(Note 8)19,149 19,149 
Deferred income taxes3,231 3,053 
343,296 333,779 
Total assets412,477 378,835 
Liabilities and shareholders' equity
Current
Accounts payable and accrued liabilities7,430 12,647 
Compensation payable6,933 7,822 
Income taxes payable6,572 980 
Total current liabilities20,935 21,449 
Other accrued liabilities29,227 16,637 
Loan facility(Note 13)18,677 24,237 
Deferred income taxes13,359 10,807 
Total liabilities82,198 73,130 
Shareholders' equity
Capital stock(Note 9)434,927 434,764 
Contributed surplus(Note 9)46,178 35,281 
Deficit(71,186)(89,402)
Accumulated other comprehensive loss(79,640)(74,938)
Total shareholders' equity330,279 305,705 
Total liabilities and shareholders' equity412,477 378,835 
Commitments and provisions(Note 14)
The accompanying notes form part of the unaudited interim condensed consolidated financial statements
        
"Ron Dewhurst"     "Graham Birch"
Director     Director
25


Interim condensed consolidated statements of operations and comprehensive income (unaudited)
For the three months endedFor the nine months ended
Sep. 30Sep. 30Sep. 30Sep. 30
(In thousands of U.S. dollars, except for per share amounts)2024202320242023
Revenues
Management fees38,968 33,116 113,896 97,772 
Carried interest and performance fees4,110 — 4,808 388 
Commissions498 539 4,877 6,970 
Finance income (1)
1,574 1,795 7,468 5,100 
Gain (loss) on investments(Notes 3, 4 and 5)937 (1,441)3,879 (1,433)
Co-investment income (1)
(Note 6)418 462 1,108 1,882 
Total revenues46,505 34,471 136,036 110,679 
Expenses
Compensation (1)
(Note 9)18,547 16,939 55,727 57,963 
Fund expenses (1)
2,488 1,832 9,134 6,167 
Selling, general and administrative (1)
4,612 3,817 13,825 12,595 
Interest expense933 882 2,478 3,216 
Depreciation of property and equipment502 731 1,621 2,185 
Foreign exchange (gain) loss (1)
1,028 37 1,318 1,917 
Other (income) and expenses (1)
(Note 7)— 4,809 (580)(12,832)
Total expenses28,110 29,047 83,523 71,211 
Income before income taxes for the period18,395 5,424 52,513 39,468 
Provision for income taxes5,698 (1,349)14,899 7,333 
Net income for the period12,697 6,773 37,614 32,135 
Net income per share:
   Basic(Note 9)0.50 0.27 1.48 1.27 
   Diluted(Note 9)0.49 0.26 1.44 1.23 
Net income for the period12,697 6,773 37,614 32,135 
Other comprehensive income (loss)
Items that may be reclassified subsequently to profit or loss
Foreign currency translation gain (loss) (taxes of $Nil)
3,609 (5,301)(4,702)(792)
Total other comprehensive income (loss)3,609 (5,301)(4,702)(792)
Comprehensive income (loss)16,306 1,472 32,912 31,343 
(1) Prior period figures have been reclassified to conform with current presentation
The accompanying notes form part of the unaudited interim condensed consolidated financial statements

        
26
                    


Interim condensed consolidated statements of changes in shareholders' equity (unaudited)
(In thousands of U.S. dollars, other than number of shares)Number of shares
  outstanding
Capital stockContributed surplusDeficitAccumulated other comprehensive income (loss)Total
 equity
At Dec. 31, 202325,410,151 434,764 35,281 (89,402)(74,938)305,705 
Shares acquired for equity incentive plan(Note 9)(26,321)(963)— — — (963)
Shares issued and released on equity incentive plans(Note 9)28,379 1,126 (2,042)— — (916)
Foreign currency translation gain (loss)— — — — (4,702)(4,702)
Stock-based compensation(Note 9)— — 12,939 — — 12,939 
Dividends declared(Note 11)— — — (19,398)— (19,398)
Net income— — — 37,614 — 37,614 
Balance, Sep. 30, 2024
25,412,209 434,927 46,178 (71,186)(79,640)330,279 
At Dec. 31, 202225,325,894 428,475 33,716 (105,305)(79,615)277,271 
Shares acquired for equity incentive plan(Note 9)(154,131)(5,252)— — — (5,252)
Shares issued and released on equity incentive plans(Note 9)111,996 4,736 (4,736)— — — 
Shares acquired and canceled under normal course issuer bid(Note 9)(117,375)(3,881)— — — (3,881)
Foreign currency translation gain (loss)— — — — (792)(792)
Stock-based compensation(Note 9)— — 16,151 — — 16,151 
Dividends declared(Note 11)1,389 49 — (19,438)— (19,389)
Net income— — — 32,135 — 32,135 
Balance, Sep. 30, 2023
25,167,773 424,127 45,131 (92,608)(80,407)296,243 
The accompanying notes form part of the unaudited interim condensed consolidated financial statements
27


Interim condensed consolidated statements of cash flows (unaudited)
For the nine months ended
Sep. 30Sep. 30
(In thousands of U.S. dollars)20242023
Operating activities
Net income for the period37,614 32,135 
Add (deduct) non-cash items:
(Gain) loss on investments(3,879)1,433 
Stock-based compensation12,939 16,151 
Depreciation of property and equipment 1,621 2,185 
Deferred income tax expense2,520 2,772 
Current income tax expense12,379 4,561 
Other items(2,578)(6,961)
Shares received on recognition of a previously unrecorded contingent asset— (18,588)
Income taxes paid(6,887)(6,523)
Changes in:
Fees receivable2,732 2,870 
Other assets(7,725)(4,898)
Accounts payable, accrued liabilities and compensation payable(6,494)(6,882)
Cash provided by (used in) operating activities42,242 18,255 
Investing activities
Purchase of investments(12,256)(17,633)
Sale of investments22,626 14,532 
Purchase of property and equipment(1,458)(1,033)
Proceeds received on exit of non-core businesses— 4,583 
Management contract consideration(3,906)— 
Cash provided by (used in) investing activities5,006 449 
Financing activities
Acquisition of common shares for equity incentive plan(963)(5,252)
Acquisition of common shares under normal course issuer bid— (3,881)
Repayment of lease liabilities(1,004)(1,846)
Contributions from non-controlling interest4,060 3,226 
Net advances (repayments) from loan facility(5,560)(20,000)
Dividends paid(19,398)(19,389)
Cash provided by (used in) financing activities(22,865)(47,142)
Effect of foreign exchange on cash balances(1,493)620 
Net increase (decrease) in cash and cash equivalents during the period22,890 (27,818)
Cash and cash equivalents, beginning of the period20,658 51,678 
Cash and cash equivalents, end of the period43,548 23,860 
Cash and cash equivalents:
Cash40,070 23,860 
Short-term deposits3,478 — 
43,548 23,860 
The accompanying notes form part of the unaudited interim condensed consolidated financial statements

28


SPROTT INC.
Notes to the interim condensed consolidated financial statements (unaudited)
For the three and nine months ended September 30, 2024 and 2023
1 Corporate information
Sprott Inc. (the "Company") was incorporated under the Business Corporations Act (Ontario) on February 13, 2008. Its registered office is at Royal Bank Plaza, South Tower, 200 Bay Street, Suite 2600, Toronto, Ontario M5J 2J1.

2 Summary of material accounting policy information
Statement of compliance
These unaudited interim condensed consolidated financial statements ("interim financial statements") have been prepared in accordance with International Financial Reporting Standards ("IFRS") in effect as at September 30, 2024, specifically, IAS 34 Interim Financial Reporting.
Compliance with IFRS requires the Company to exercise judgment and make estimates and assumptions that effect the reported amount of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results may vary. Except as otherwise noted, significant accounting judgments and estimates are described in Note 2 of the December 31, 2023 annual audited consolidated financial statements and have been applied consistently to the interim financial statements as at and for the three and nine months ended September 30, 2024.
The interim financial statements have been authorized for issue by a resolution of the board of directors of the Company on November 5, 2024 and include all subsequent events up to that date.
Basis of presentation
These interim financial statements have been prepared on a going concern basis and on a historical cost basis, except for certain financial instruments classified as fair value through profit or loss ("FVTPL") and which are measured at fair value to the extent required or permitted under IFRS and as set out in the relevant accounting policies. The interim financial statements are presented in U.S. dollars and all values are rounded to the nearest thousand ($000), except when indicated otherwise.
Principles of consolidation
These interim financial statements of the Company are prepared on a consolidated basis so as to include the accounts of all limited partnerships and corporations the Company is deemed to control under IFRS. Controlled limited partnerships and corporations ("subsidiaries") are consolidated from the date the Company obtains control. All intercompany balances with subsidiaries are eliminated upon consolidation. Subsidiary financial statements are prepared for the same reporting period as the Company and are based on accounting policies consistent with that of the Company.
The Company records third-party interest in the funds which do not qualify to be equity due to redeemable or limited life features, as non-controlling interest liabilities. Such interests are initially recognized at fair value, with any changes recorded in the co-investment income line of the consolidated statements of operations and comprehensive income.
Control exists if the Company has power over the entity, exposure or rights to variable returns from its involvement with the entity and the ability to use its power over the entity to affect the amount of returns the Company receives. In many, but not all instances, control will exist when the Company owns more than one half of the voting rights of a corporation, or is the sole limited and general partner of a limited partnership.




29


SPROTT INC.
Notes to the interim condensed consolidated financial statements (unaudited)
For the three and nine months ended September 30, 2024 and 2023
The Company currently controls the following principal subsidiaries:
Sprott Asset Management LP ("SAM");
Sprott U.S. Holdings Inc. ("SUSHI"), parent of: (1) SGRIL Holdings Inc. ("SGRIL Holdings"); (2) Sprott Global Resource Investments Ltd. ("SGRIL"); (3) Sprott Asset Management USA Inc. ("SAM US"); and (4) Resource Capital Investment Corporation ("RCIC"). Collectively, the interests of SUSHI are referred to as "US entities" in these financial statements;
Sprott Resource Streaming and Royalty Corporation and Sprott Private Resource Streaming and Royalty (Management) Corp. ("SRSR");
Sprott Resource Lending Corp. ("SRLC"); and
Sprott Inc. 2011 Employee Profit Sharing Plan Trust (the "Trust").

Other accounting policies
All accounting policies, judgments, and estimates described in the December 31, 2023 annual audited consolidated financial statements have been applied consistently to the interim financial statements unless otherwise noted.
























30


SPROTT INC.
Notes to the interim condensed consolidated financial statements (unaudited)
For the three and nine months ended September 30, 2024 and 2023
3 Short-term investments
Primarily consist of equity investments in public and private entities the Company receives as consideration during private strategies, managed equities and broker-dealer activities (in thousands $):
Classification and measurement criteriaSep. 30, 2024Dec. 31, 2023
Public equities and share purchase warrantsFVTPL290 754 
Private holdingsFVTPL1,478 1,478 
Total short-term investments1,768 2,232 
Gains and losses on financial assets and liabilities classified at FVTPL are included in the gain (loss) on investments line in the consolidated statements of operations and comprehensive income.

4 Co-investments
Consists of the following (in thousands $):
Classification and measurement criteriaSep. 30, 2024Dec. 31, 2023
Co-investments in funds (1)
FVTPL89,437 93,528 
Total co-investments89,437 93,528 
(1) Includes investments in funds managed and previously managed by the Company.


Gains and losses on co-investments are included in the gain (loss) on investments line in the consolidated statements of operations and comprehensive income.














31


SPROTT INC.
Notes to the interim condensed consolidated financial statements (unaudited)
For the three and nine months ended September 30, 2024 and 2023
5 Other assets and non-controlling interest
Other assets
Consist of the following (in thousands $):
Sep. 30, 2024Dec. 31, 2023
Assets attributable to non-controlling interest19,428 15,439 
Fund recoveries and investment receivables10,144 6,658 
Advance on unrealized carried interest8,063 4,517 
Prepaid expenses4,565 4,017 
Other (1)
3,596 3,744 
Digital gold strategies (2)
3,343 3,412 
Total other assets49,139 37,787 
(1) Includes miscellaneous third-party receivables.
(2) Digital gold strategies are financial instruments classified at FVTPL. Gains and losses are included in the gain (loss) on investments line in the consolidated statements of operations and comprehensive income.

Non-controlling interest assets and liabilities
Non-controlling interest consists of third-party interest in the Company's co-investments. The following table provides a summary of amounts attributable to this non-controlling interest (in thousands $):
Sep. 30, 2024Dec. 31, 2023
Assets19,42815,439
Liabilities - current (1)
(62)(133)
Liabilities - long-term (1)
(19,366)(15,306)
(1) Current and long-term liabilities attributable to non-controlling interest are included in accounts payable and accrued liabilities and other accrued liabilities, respectively.

32


SPROTT INC.
Notes to the interim condensed consolidated financial statements (unaudited)
For the three and nine months ended September 30, 2024 and 2023
6 Co-investment income
For the three months ended
For the nine months ended
Sep. 30, 2024Sep. 30, 2023Sep. 30, 2024Sep. 30, 2023
Co-investment income418 462 1,1081,882
Income attributable to non-controlling interest520 (1,149)856(992)
Expense attributable to non-controlling interest(520)1,149 (856)992
Total co-investment income418 4621,1081,882


7 Other (income) and expenses
For the three months ended
For the nine months ended
Sep. 30, 2024Sep. 30, 2023Sep. 30, 2024Sep. 30, 2023
Shares received on recognition of contingent asset— — — (18,588)
Revaluation of contingent consideration— — (580)(2,254)
Costs related to exit of non-core business— 3,615 — 4,987 
Non-recurring regulatory, professional fees and other— 1,194 — 3,023 
Total other (income) and expenses — 4,809(580)(12,832)


33


SPROTT INC.
Notes to the interim condensed consolidated financial statements (unaudited)
For the three and nine months ended September 30, 2024 and 2023
8 Goodwill and intangible assets
Consist of the following (in thousands $):
GoodwillFund
management
contracts
(indefinite life)
Total
Cost
At Dec. 31, 2022132,251 178,613 310,864 
   Net exchange differences— 4,289 4,289 
At Dec. 31, 2023132,251 182,902 315,153 
   Net exchange differences— (3,694)(3,694)
At Sep. 30, 2024132,251 179,208 311,459 
Accumulated amortization/impairment
At Dec. 31, 2022(113,102)— (113,102)
   Amortization charge for the year— — — 
At Dec. 31, 2023(113,102)— (113,102)
   Amortization charge for the period— — — 
At Sep. 30, 2024(113,102)— (113,102)
Net book value at:
At Dec. 31, 202319,149 182,902 202,051 
At Sep. 30, 202419,149 179,208 198,357 













34


SPROTT INC.
Notes to the interim condensed consolidated financial statements (unaudited)
For the three and nine months ended September 30, 2024 and 2023
Goodwill
The Company has identified 5 cash generating units ("CGU") as follows:
Exchange listed products
Managed equities
Private strategies
Brokerage
Corporate
As at September 30, 2024, the Company had allocated $19.1 million (December 31, 2023 - $19.1 million) of goodwill between the exchange listed products CGU ($17.9 million) and the managed equities CGU ($1.2 million). Goodwill was allocated on a relative value approach basis.
Indefinite life fund management contracts
As at September 30, 2024, the Company had indefinite life intangibles related to fund management contracts of $179.2 million (December 31, 2023 - $182.9 million). These contracts are held within the exchange listed products and managed equities CGUs.
Impairment assessment of goodwill and indefinite life fund management contracts
In the normal course, goodwill and indefinite life fund management contracts are tested for impairment once per annum, which for the Company is during the fourth quarter of each year or earlier if there are indicators of impairment. There were no indicators of impairment in either the exchange listed products or the managed equities CGUs as at September 30, 2024.
35


SPROTT INC.
Notes to the interim condensed consolidated financial statements (unaudited)
For the three and nine months ended September 30, 2024 and 2023
9 Shareholders' equity
Capital stock and contributed surplus
The authorized and issued share capital of the Company consists of an unlimited number of common shares, without par value.
Number
of shares
Stated value
 (in thousands $)
At Dec. 31, 202225,325,894 428,475 
Shares acquired for equity incentive plan(154,131)(5,252)
Shares issued and released on equity incentive plans363,352 15,649 
Shares acquired and canceled under normal course issuer bid(126,353)(4,157)
Shares issued under dividend reinvestment program1,389 49 
At Dec. 31, 202325,410,151 434,764 
Shares acquired for equity incentive plan(26,321)(963)
Shares issued and released on equity incentive plans28,379 1,126 
At Sep. 30, 202425,412,209 434,927 
Contributed surplus consists of stock option expense, earn-out shares expense, equity incentive plans' expense, and additional purchase consideration.
Stated value
(in thousands $)
At Dec. 31, 202233,716 
Released on equity incentive plans (18,846)
Stock-based compensation20,411 
At Dec. 31, 202335,281 
Released on equity incentive plans(2,042)
Stock-based compensation12,939 
At Sep. 30, 202446,178 









36


SPROTT INC.
Notes to the interim condensed consolidated financial statements (unaudited)
For the three and nine months ended September 30, 2024 and 2023
Stock option plan
The Company has an option plan (the "Plan") intended to provide incentives to directors, officers and employees of the Company and its wholly owned subsidiaries. The aggregate number of shares issuable upon the exercise of all options granted under the Plan and under all other stock-based compensation arrangements including the Trust and Equity Incentive Plan ("EIP") cannot exceed 10% of the issued and outstanding shares of the Company as at the date of grant. The options may be granted at a price that is not less than the market price of the Company's common shares at the time of grant. The options typically vest annually over a three-year period and may be exercised during a period not to exceed 10 years from the date of grant.
There were no stock options issued or exercised during the three and nine months ended September 30, 2024 (three and nine months ended September 30, 2023 - Nil).
For valuing share option grants, the fair value method of accounting is used. The fair value of option grants is determined using the Black-Scholes option-pricing model, which takes into account the exercise price of the option, the current share price, the risk-free interest rate, the expected volatility of the share price over the life of the option and other relevant factors. Compensation cost is recognized over the vesting period, assuming an estimated forfeiture rate, with an offset to contributed surplus. When exercised, amounts originally recorded against contributed surplus as well as any consideration paid by the option holder is credited to capital stock.
As at September 30, 2024, there are 12,500 options outstanding (December 31, 2023 - 12,500) with a weighted average exercise price of CAD$27.30 and 1.5 years remaining on their contractual life.
Equity incentive plan
For employees in Canada, the Trust has been established and the Company will fund the Trust with cash, which will be used by the trustee to purchase: (1) on the open market, common shares of the Company that will be held in the Trust until the awards vest and are distributed to eligible members; and (2) from treasury, common shares of the Company that will be held in the Trust until the awards vest and are distributed to eligible employees. For employees in the U.S. under the EIP plan, the Company will allot common shares of the Company as either: (1) restricted stock; (2) unrestricted stock; or (3) restricted stock units ("RSUs"), the resulting common shares of which will be issued from treasury.
There were no RSUs granted during the three months ended September 30, 2024 (three months ended September 30, 2023 - Nil) and no RSUs granted during the nine months ended September 30, 2024 (nine months ended September 30, 2023 - 50,000).
Number of
common shares
Unvested common shares held by the Trust, Dec. 31, 2022630,431 
Acquired154,131 
Released (331,672)
Unvested common shares held by the Trust, Dec. 31, 2023452,890 
Acquired26,321 
Released (28,379)
Unvested common shares held by the Trust, Sep. 30, 2024450,832 
Included in the compensation line of the consolidated statements of operations and comprehensive income is $12.9 million of stock-based compensation for the nine months ended September 30, 2024 (nine months ended September 30, 2023 - $16.2 million).


37


SPROTT INC.
Notes to the interim condensed consolidated financial statements (unaudited)
For the three and nine months ended September 30, 2024 and 2023
Basic and diluted earnings per share
The following table presents the calculation of basic and diluted earnings per common share:
For the three months endedFor the nine months ended
Sep. 30, 2024Sep. 30, 2023Sep. 30, 2024Sep. 30, 2023
Numerator (in thousands $):
Net income - basic and diluted12,697 6,773 37,614 32,135 
Denominator (number of shares in thousands):
Weighted average number of common shares25,863 25,866 25,863 25,911 
Weighted average number of unvested shares purchased by the Trust(458)(679)(460)(661)
Weighted average number of common shares - basic25,405 25,187 25,403 25,250 
Weighted average number of dilutive stock options13 13 13 13 
Weighted average number of unvested shares under EIP622 979 624 959 
Weighted average number of common shares - diluted26,040 26,179 26,040 26,222 
Net income per common share
Basic0.50 0.27 1.48 1.27 
Diluted0.49 0.26 1.44 1.23 

Capital management
The Company's objectives when managing capital are:
to meet regulatory requirements and other contractual obligations;
to safeguard the Company's ability to continue as a going concern so that it can continue to provide returns to shareholders;
to provide financial flexibility to fund possible acquisitions;
to provide adequate seed capital for the Company's new product offerings; and
to provide an adequate return to shareholders through growth in assets under management, growth in management fees, carried interest and performance fees and return on the Company's invested capital that will result in dividend payments to shareholders.
The Company's capital is comprised of equity, including capital stock, contributed surplus, retained earnings (deficit) and accumulated other comprehensive income (loss). SAM is a registrant of the Ontario Securities Commission ("OSC") and the U.S. Securities and Exchange Commission ("SEC") and SGRIL is a member of the Financial Industry Regulatory Authority ("FINRA"). As a result, all of these entities are required to maintain a minimum level of regulatory capital. To ensure compliance, management monitors regulatory and working capital on a regular basis. SAM US and RCIC are also registered with the SEC. As at September 30, 2024 and 2023, all entities were in compliance with their respective capital requirements.
38


SPROTT INC.
Notes to the interim condensed consolidated financial statements (unaudited)
For the three and nine months ended September 30, 2024 and 2023
10     Fair value measurements
The following tables present the Company's recurring fair value measurements within the fair value hierarchy. The Company did not have non-recurring fair value measurements as at September 30, 2024 and December 31, 2023 (in thousands $).

Short-term investments
Sep. 30, 2024Level 1Level 2Level 3Total
Public equities and share purchase warrants215669290
Private holdings— — 1,478 1,478 
Total recurring fair value measurements215 66 1,487 1,768 
Dec. 31, 2023Level 1Level 2Level 3Total
Public equities and share purchase warrants70844 754 
Private holdings— 1,478 1,478 
Total recurring fair value measurements708 44 1,480 2,232 

Co-investments
Sep. 30, 2024Level 1Level 2Level 3Total
Co-investments (1)
11,02178,41689,437
Total recurring fair value measurements11,021 78,416 — 89,437 
Dec. 31, 2023Level 1Level 2Level 3Total
Co-investments (1)
15,35778,17193,528
Total recurring fair value measurements15,35778,17193,528
(1) Co-investments also include investments made in funds which the Company consolidates that directly hold publicly traded equities or precious metals.









39


SPROTT INC.
Notes to the interim condensed consolidated financial statements (unaudited)
For the three and nine months ended September 30, 2024 and 2023
Other assets
Sep. 30, 2024Level 1Level 2Level 3Total
Digital gold strategies— — 3,343 3,343 
Assets attributable to non-controlling interest3,104 16,324 — 19,428 
Total recurring fair value measurements3,104 16,324 3,343 22,771 
Dec. 31, 2023Level 1Level 2Level 3Total
Digital gold strategies— — 3,412 3,412 
Assets attributable to non-controlling interest1,706 13,733 — 15,439 
Total recurring fair value measurements1,706 13,733 3,412 18,851 

The following tables provides a summary of changes in the fair value of Level 3 financial assets (in thousands $):
Short-term investments
Changes in the fair value of Level 3 measurements - Sep. 30, 2024
Dec. 31, 2023Purchases and reclassificationsSalesNet unrealized gains (losses) included in net incomeSep. 30, 2024
Share purchase warrants225(18)9
Private holdings1,4781,478
Total1,48025(18)1,487

Changes in the fair value of Level 3 measurements - Dec. 31, 2023
Dec. 31, 2022Purchases and reclassificationsSalesNet unrealized gains (losses) included in net incomeDec. 31, 2023
Share purchase warrants4748(37)(56)2
Private holdings1,485(7)1,478
Total1,53248(37)(63)1,480










40


SPROTT INC.
Notes to the interim condensed consolidated financial statements (unaudited)
For the three and nine months ended September 30, 2024 and 2023
Other assets
Changes in the fair value of Level 3 measurements - Sep. 30, 2024
Dec. 31, 2023Purchases and reclassificationsSalesNet unrealized gains (losses) included in net incomeSep. 30, 2024
Digital gold strategies3,412(69)3,343
Total3,412(69)3,343

Changes in the fair value of Level 3 measurements - Dec. 31, 2023
Dec. 31, 2022Purchases and reclassificationsSalesNet unrealized gains (losses) included in net incomeDec. 31, 2023
Digital gold strategies3,778(366)3,412
Total3,778(366)3,412

During the nine months ended September 30, 2024, the Company transferred public equities of $nil (December 31, 2023 - $0.1 million) from Level 2 to Level 1 within the fair value hierarchy.
The following table presents the valuation techniques used by the Company in measuring fair values:
TypeValuation technique
Public equities, precious metals and share purchase warrantsFair values are determined using publicly available prices or pricing models which incorporate all available market-observable inputs.
Alternative funds and private equity fundsFair values are based on the last available net asset value.
Fixed income securitiesFair values are based on independent market data providers or third-party broker quotes.
Private holdings (including digital gold strategies)Fair values based on variety of valuation techniques, including discounted cash flows, comparable recent transactions and other techniques used by market participants.

The Company’s Level 3 securities consist of private holdings and share purchase warrants. The significant unobservable inputs used in these valuation techniques can vary considerably over time, and include gray market financing prices, volatility and discount rates. A significant change in any of these inputs in isolation would result in a material impact in fair value measurement. The potential impact of a 5% change in the significant unobservable inputs on profit or loss would be approximately $0.2 million (December 31, 2023 - $0.2 million).

Financial instruments not carried at fair value
The carrying amounts of fees receivable, other assets, accounts payable and accrued liabilities, compensation payable and loan facility represent a reasonable approximation of fair value.





41


SPROTT INC.
Notes to the interim condensed consolidated financial statements (unaudited)
For the three and nine months ended September 30, 2024 and 2023
11     Dividends
The following dividends were declared by the Company during the nine months ended September 30, 2024:
Record datePayment dateCash dividend
per share
Total dividend amount (in thousands $)
March 4, 2024 - Regular dividend Q4 2023March 19, 2024$0.256,466
May 21, 2024 - Regular dividend Q1 2024June 5, 2024$0.256,466
August 19, 2024 - Regular dividend Q2 2024September 3, 2024$0.256,466
Dividends declared in 2024 (1)
19,398 
(1) Subsequent to quarter end, on November 5, 2024, a regular dividend of $0.30 per common share was declared for the quarter ended September 30, 2024. This dividend is payable on December 3, 2024 to shareholders of record at the close of business on November 18, 2024.

12     Segmented information
For management purposes, the Company is organized into business units based on its products, services and geographical locations and has four reportable segments as follows:
Exchange listed products (reportable), which provides management services to the Company's closed-end physical trusts and exchange traded funds ("ETFs"), both of which are actively traded on public securities exchanges;
Managed equities (reportable), which provides management services to the Company's alternative investment strategies managed in-house and on a sub-advisory basis;
Private strategies (reportable), which provides lending and streaming activities through limited partnership vehicles;
Corporate (reportable), which provides capital, balance sheet management and enterprise shared services to the Company's subsidiaries; and
All other segments (non-reportable), which do not meet the definition of reportable segments per IFRS 8.
Management monitors the operating results of its business units separately for the purpose of making decisions about resource allocation and performance assessment. Segment performance is evaluated based on earnings before interest expense, income taxes, amortization and impairment of intangible assets and goodwill, gains and losses on investments (as if such gains and losses had not occurred), stock-based compensation, severance, new hire accruals and other, foreign exchange (gain) loss, costs relating to the exit of non-core businesses, revaluation of contingent considerations, non-recurring regulatory, professional fees and other, shares received on recognition of contingent consideration, carried interest and performance fees and carried interest and performance fee payouts (adjusted base EBITDA).
Adjusted base EBITDA is not a measurement in accordance with IFRS and should not be considered as an alternative to net income or any other measure of performance under IFRS.
Transfer pricing between operating segments is performed on an arm's length basis in a manner similar to transactions with third parties.





42


SPROTT INC.
Notes to the interim condensed consolidated financial statements (unaudited)
For the three and nine months ended September 30, 2024 and 2023
The following tables present the operations of the Company's segments (in thousands $):
For the three months ended September 30, 2024
Exchange listed productsManaged
equities
Private strategiesCorporate
Consolidation, elimination and all other segments (1)
Consolidated
Total revenue27,87912,9615,0558952146,505
Total expenses8,9716,8434,2077,17691328,110
Income (loss) before income taxes18,9086,118848(7,087)(392)18,395
Adjusted base EBITDA20,0212,1572,276(3,420)(359)20,675
(1) Total revenue includes revenues from non-reportable segments of $497, plus investment gains of $24
For the three months ended September 30, 2023 (1)
Exchange listed productsManaged
equities
Private strategiesCorporate
Consolidation, elimination and all other segments (2)
Consolidated
Total revenue19,9915,9017,901(222)90034,471
Total expenses6,9945,8312,9818,2045,03729,047
Income (loss) before income taxes12,997704,920(8,426)(4,137)5,424
Adjusted base EBITDA15,0222,1322,882(2,400)21817,854
(1) Prior period figures have been updated to conform with current presentation
(2) Total revenue includes revenues from non-reportable segments of $1,517, net of investment losses of $617
For the nine months ended September 30, 2024
Exchange listed productsManaged
equities
Private strategiesCorporate
Consolidation, elimination and all other segments (1)
Consolidated
Total revenue85,38929,53921,442(178)(156)136,036
Total expenses26,30219,62210,75023,9772,87283,523
Income (loss) before income taxes59,0879,91710,692(24,155)(3,028)52,513
Adjusted base EBITDA59,2455,2279,967(10,544)(1,094)62,801
(1) Total revenue includes revenues from non-reportable segments of $1,612, net of investment losses of $1,768
For the nine months ended September 30, 2023 (1)
Exchange listed productsManaged
equities
Private strategiesCorporate
Consolidation, elimination and all other segments (2)
Consolidated
Total revenue60,64020,90221,280597,798110,679
Total expenses23819,84010,47026,57414,08971,211
Income (loss) before income taxes60,4021,06210,810(26,515)(6,291)39,468
Adjusted base EBITDA44,9026,1559,271(8,093)89353,128
(1) Prior period figures have been updated to conform with current presentation
(2) Total revenue includes revenues from non-reportable segments of $9,008, net of investment losses of $1,210

43


SPROTT INC.
Notes to the interim condensed consolidated financial statements (unaudited)
For the three and nine months ended September 30, 2024 and 2023
For geographic reporting purposes, transactions are primarily recorded in the location that corresponds with the underlying subsidiary's country of domicile that generates the revenue. The following table presents the revenue of the Company by geographic location (in thousands $):
For the three months ended
For the nine months ended
Sep. 30, 2024Sep. 30, 2023Sep. 30, 2024Sep. 30, 2023
Canada37,594 31,341 117,912 100,027 
United States8,911 3,130 18,124 10,652 
46,505 34,471 136,036 110,679 
13     Loan facility
As at September 30, 2024, the Company had $18.7 million (December 31, 2023 - $24.2 million) outstanding on its credit facility, all of which is due on August 8, 2028. As at September 30, 2024, the Company was in compliance with all covenants, terms and conditions under the credit facility.
The Company has access to a credit facility of $75 million with a major Canadian schedule I chartered bank. Amounts under the facility may be borrowed in U.S. dollars through SOFR or base rate loans. Amounts may also be borrowed in Canadian dollars through prime rate loans or CORRA loans.
Key terms under the current credit facility are noted below:
Structure
5-year, $75 million revolver with "bullet maturity" August 8, 2028
Interest rate
SOFR + 2.33%
Covenant terms
Minimum AUM: CAD$15.4 billion;
Debt to EBITDA less than or equal to 2.5:1; and
EBITDA to interest expense more than or equal to 2.5:1

14     Commitments and provisions
The Company has commitments to make co-investments in private strategies LPs or commitments to make co-investments in fund strategies in the Company's other segments. As at September 30, 2024, the Company had $2.1 million in co-investment commitments in private strategies LPs due within one year (December 31, 2023 - $4 million) and $nil due after 12 months (December 31, 2023 - $1.9 million). On January 1, 2024, the lease for the Company's existing Toronto office was renewed and as a result, a right-of-use asset and corresponding lease liability was setup on the consolidated balance sheets.
44

FORM 52-109F2
CERTIFICATION OF INTERIM FILINGS
FULL CERTIFICATE
I, Whitney George, Chief Executive Officer of Sprott Inc., certify the following:
1.Review: I have reviewed the interim financial report and interim MD&A (together, the “interim filings”) of Sprott Inc. (the “issuer”) for the interim period ended September 30, 2024.
2.No misrepresentations: Based on my knowledge, having exercised reasonable diligence, the interim filings do not contain any untrue statement of a material fact or omit to state a material fact required to be stated or that is necessary to make a statement not misleading in light of the circumstances under which it was made, with respect to the period covered by the interim filings.
3.Fair presentation: Based on my knowledge, having exercised reasonable diligence, the interim financial report together with the other financial information included in the interim filings fairly present in all material respects the financial condition, financial performance and cash flows of the issuer, as of the date of and for the periods presented in the interim filings.
4.Responsibility: The issuer’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (DC&P) and internal control over financial reporting (ICFR), as those terms are defined in National Instrument 52-109 Certification of Disclosure in Issuers’ Annual and Interim Filings, for the issuer.
5.Design: Subject to the limitations, if any, described in paragraphs 5.2 and 5.3, the issuer’s other certifying officer(s) and I have, as at the end of the period covered by the interim filings
(a)designed DC&P, or caused it to be designed under our supervision, to provide reasonable assurance that
(i)material information relating to the issuer is made known to us by others, particularly during the period in which the interim filings are being prepared; and
(ii)information required to be disclosed by the issuer in its annual filings, interim filings or other reports filed or submitted by it under securities legislation is recorded, processed, summarized and reported within the time periods specified in securities legislation; and
(b)designed ICFR, or caused it to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with the issuer’s GAAP.
5.1    Control framework: The control framework the issuer’s other certifying officer(s) and I used to design the issuer’s ICFR is the COSO (Committee of Sponsoring Organizations of the Treadway Commission) internal control framework.
5.2    ICFR – material weakness relating to design: N/A
5.3    Limitation on scope of design: N/A
6.Reporting changes in ICFR: The issuer has disclosed in its interim MD&A any change in the issuer’s ICFR that occurred during the period beginning on July 1, 2024 and ended on September 30, 2024 that has materially affected, or is reasonably likely to materially affect, the issuer’s ICFR.
Date:    November 6, 2024
_”Whitney George”    
Whitney George
Chief Executive Officer


FORM 52-109F2
CERTIFICATION OF INTERIM FILINGS
FULL CERTIFICATE
I, Kevin Hibbert, Chief Financial Officer of Sprott Inc., certify the following:
1.Review: I have reviewed the interim financial report and interim MD&A (together, the “interim filings”) of Sprott Inc. (the “issuer”) for the interim period ended September 30, 2024.
2.No misrepresentations: Based on my knowledge, having exercised reasonable diligence, the interim filings do not contain any untrue statement of a material fact or omit to state a material fact required to be stated or that is necessary to make a statement not misleading in light of the circumstances under which it was made, with respect to the period covered by the interim filings.
3.Fair presentation: Based on my knowledge, having exercised reasonable diligence, the interim financial report together with the other financial information included in the interim filings fairly present in all material respects the financial condition, financial performance and cash flows of the issuer, as of the date of and for the periods presented in the interim filings.
4.Responsibility: The issuer’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (DC&P) and internal control over financial reporting (ICFR), as those terms are defined in National Instrument 52-109 Certification of Disclosure in Issuers’ Annual and Interim Filings, for the issuer.
5.Design: Subject to the limitations, if any, described in paragraphs 5.2 and 5.3, the issuer’s other certifying officer(s) and I have, as at the end of the period covered by the interim filings
(a)designed DC&P, or caused it to be designed under our supervision, to provide reasonable assurance that
(i)material information relating to the issuer is made known to us by others, particularly during the period in which the interim filings are being prepared; and
(ii)information required to be disclosed by the issuer in its annual filings, interim filings or other reports filed or submitted by it under securities legislation is recorded, processed, summarized and reported within the time periods specified in securities legislation; and
(b)designed ICFR, or caused it to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with the issuer’s GAAP.
5.1    Control framework: The control framework the issuer’s other certifying officer(s) and I used to design the issuer’s ICFR is the COSO (Committee of Sponsoring Organizations of the Treadway Commission) internal control framework.
5.2    ICFR – material weakness relating to design: N/A
5.3    Limitation on scope of design: N/A
6.Reporting changes in ICFR: The issuer has disclosed in its interim MD&A any change in the issuer’s ICFR that occurred during the period beginning on July 1, 2024 and ended on September 30, 2024 that has materially affected, or is reasonably likely to materially affect, the issuer’s ICFR.
Date: November 6, 2024
_”Kevin Hibbert”    
Kevin Hibbert
Chief Financial Officer


SPROTT ANNOUNCES THIRD QUARTER 2024 RESULTS
TORONTO, ON - November 6, 2024 - Sprott Inc. (NYSE/TSX: SII) (“Sprott” or the “Company”) today announced its financial results for the three and nine months ended September 30, 2024.
Management commentary
“Sprott’s Assets Under Management (“AUM”) was $33.4 billion as at September 30, 2024, up 8% from June 30, 2024 and up 16% from December 31, 2023," said Whitney George, CEO of Sprott. "This is our third consecutive quarter of record high AUM, driven by strong gold and silver prices, as well as $589 million in net sales during the period. Given the strength of these results and our confidence in Sprott’s future, our Board has declared a third quarter dividend of $0.30 per share, an increase of 20%. Further, we now expect to repay the balance of our line of credit by the end of this month, resulting in a debt-free balance sheet."
"With Sprott's core positioning in precious metals and critical materials, we retain our constructive outlook and believe we are well positioned to navigate volatile market conditions and continue creating value for our clients and shareholders," continued Mr. George.
Key AUM highlights1
AUM was $33.4 billion as at September 30, 2024, up 8% from $31.1 billion as at June 30, 2024 and up 16% from $28.7 billion as at December 31, 2023. On a three and nine months ended basis, we primarily benefited from strong market value appreciation in our precious metals physical trusts. We also benefited from net inflows to our exchange listed products and the launch of our Physical Copper Trust in the second quarter.
Key revenue highlights
Management fees were $38.7 million in the quarter, up 18% from $32.9 million for the quarter ended September 30, 2023 and $113.1 million on a year-to-date basis, up 17% from $97 million for the nine months ended September 30, 2023. Carried interest and performance fees were $4.1 million in the quarter, up from $nil for the quarter ended September 30, 2023 and $4.8 million on a year-to-date basis, up from $0.4 million for the nine months ended September 30, 2023. Net fees were $38.9 million in the quarter, up 31% from $29.7 million for the quarter ended September 30, 2023 and $106.1 million on a year-to-date basis, up 21% from $87.7 million for the nine months ended September 30, 2023. Our revenue performance on both a three and nine months ended basis was primarily due to higher average AUM on strong market value appreciation in our precious metals physical trusts and continuous inflows to the majority of our exchange listed products. We also benefited from carried interest crystallization in a legacy fixed-term exploration LP in our managed equities segment.
Commission revenues were $0.5 million in the quarter, down 8% from the quarter ended September 30, 2023 and $4.9 million on a year-to-date basis, down 30% from $7 million for the nine months ended September 30, 2023. Net commissions were $0.2 million in the quarter, down 31% from $0.4 million for the quarter ended September 30, 2023 and $2.3 million on a year-to-date basis, down 42% from $3.9 million for the nine months ended September 30, 2023. Commission revenue was lower in the quarter due to modest ATM activity in our critical materials physical trusts. On a year-to-date basis, the decline in commission revenue was due to the sale of our former Canadian broker-dealer in the second quarter of last year.
Finance income was $1.6 million in the quarter, down 12% from $1.8 million for the quarter ended September 30, 2023 and $7.5 million on a year-to-date basis, up 46% from $5.1 million for the nine months ended September 30, 2023. The decrease in the quarter was due to lower income generation in co-investment positions we hold in our LPs managed in our private strategies segment. The increase on a year-to-date basis was due to higher income earned on streaming syndication activity in the second quarter.
Key expense highlights
Net compensation expense was $16.9 million in the quarter, up 11% from $15.3 million for the quarter ended September 30, 2023 and $50.3 million on a year-to-date basis, up 9% from $46 million for the nine months ended September 30, 2023. The increase in the quarter and on a year-to-date basis was primarily due to increased AIP accruals on higher net fee generation. Our net compensation ratio was 46% in the quarter (September 30, 2023 - 50%) and 45% on a year-to-date basis (September 30, 2023 - 50%).
SG&A expense was $4.6 million in the quarter, up 21% from $3.8 million for the quarter ended September 30, 2023 and $13.8 million on a year-to-date basis, up 10% from $12.6 million for the nine months ended September 30, 2023. The increase in the quarter and on a year-to-date basis was due to higher technology and professional services costs.
Earnings summary
Net income for the quarter was $12.7 million ($0.50 per share), up 87% from $6.8 million ($0.27 per share) for the quarter ended September 30, 2023 and was $37.6 million ($1.48 per share) on a year-to-date basis, up 17% from $32.1 million ($1.27 per share) for the nine months ended September 30, 2023. Our earnings benefited from higher management fees on strong market valuations of our precious metals physical trusts and good inflows to our exchange listed products. We also benefited from carried interest crystallization in our managed equities funds and market value appreciation of our co-investments.
Adjusted base EBITDA was $20.7 million ($0.81 per share) in the quarter, up 16% from $17.9 million ($0.71 per share) for the quarter ended September 30, 2023 and $62.8 million ($2.47 per share) on a year-to-date basis, up 18% from $53.1 million ($2.10 per share) for the nine months ended September 30, 2023. Adjusted base EBITDA on both a three and nine months ended basis benefited from higher management fees on strong market valuations of our precious metals physical trusts and good inflows to our exchange listed products.





1 See “non-IFRS financial measures” section in this press release and schedule 2 and 3 of "Supplemental financial information"



Subsequent events
Subsequent to quarter-end, on November 1, 2024, AUM was $34.2 billion, up 2% from $33.4 billion at September 30, 2024.
On November 5, 2024, the Sprott Board of Directors announced a quarterly dividend of $0.30 per share.
























Supplemental financial information
Please refer to the September 30, 2024 quarterly 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 September 30, 2024 and the Company's financial performance for the three and nine months ended September 30, 2024.
Schedule 1 - AUM continuity
3 months results
(In millions $)AUM
Jun. 30, 2024
Net
inflows
(1)
Market
value changes
Other
net inflows (1)
AUM
Sep. 30, 2024
Net management
fee rate (2)
Exchange listed products
 - Precious metals physical trusts and ETFs
      - Physical Gold Trust7,2833619738,6170.35%
      - Physical Silver Trust4,9942243485,5660.45%
      - Physical Gold and Silver Trust4,7105155,2250.40%
      - Precious Metals ETFs355(11)604040.33%
      - Physical Platinum & Palladium Trust143711510.50%
17,4855811,89719,9630.39%
 - Critical materials physical trusts and ETFs
      - Physical Uranium Trust5,61523(230)5,4080.32%
      - Critical Materials ETFs2,40856(157)2,3070.55%
      - Physical Copper Trust98231030.32%
8,12181(384)7,8180.38%
Total exchange listed products25,6066621,51327,7810.39%
Managed equities (3)(4)
2,962(55)3693,2760.90%
Private strategies (4)
2,485(18)(85)2,3820.80%
Total AUM (5)
31,0535891,79733,4390.47%
9 months results
(In millions $)AUM
Dec. 31, 2023
Net
inflows
(1)
Market
value changes
Other
net inflows (1)
AUM
Sep. 30, 2024
Net management
fee rate (2)
Exchange listed products
 - Precious metals physical trusts and ETFs
      - Physical Gold Trust6,5323161,7698,6170.35%
      - Physical Silver Trust4,0702561,2405,5660.45%
      - Physical Gold and Silver Trust4,230(161)1,1565,2250.40%
      - Precious Metals ETFs339(14)794040.33%
      - Physical Platinum & Palladium Trust11642(7)1510.50%
15,2874394,23719,9630.39%
 - Critical materials physical trusts and ETFs
      - Physical Uranium Trust5,773266(631)5,4080.32%
      - Critical materials ETFs2,143294(130)2,3070.55%
      - Physical Copper Trust2(9)1101030.32%
7,916562(770)1107,8180.38%
Total exchange listed products23,2031,0013,46711027,7810.39%
Managed equities (3)(4)
2,874(167)5693,2760.90%
Private strategies (4)
2,661(172)(107)2,3820.80%
Total AUM (5)
28,7386623,92911033,4390.47%
(1) See "Net inflows" and "Other net inflows" in the key performance indicators and non-IFRS and other financial measures section of the MD&A.
(2) Management fee rate represents the weighted average fees for all funds in the category, net of fund expenses.
(3) Managed equities is made up of primarily precious metal strategies (57%), high net worth managed accounts (35%) and U.S. value strategies (8%).
(4) Prior period figures have been reclassified to conform with current presentation.
(5) No performance fees are earned on exchange listed products. Performance fees are earned on certain of our managed equities products and are based on returns above relevant benchmarks. Private strategies
     LPs primarily earn carried interest calculated as a predetermined net profit over a preferred return.







Schedule 2 - Summary financial information
(In thousands $)Q3
2024
Q2
2024
Q1
2024
Q4
2023
Q3
2023
Q2
2023
Q1
2023
Q4
2022
Summary income statement
Management fees (1)
38,693 38,065 36,372 34,244 32,867 32,940 31,170 28,152 
   Fund expenses (2), (3)
(2,385)(2,657)(2,234)(2,200)(1,740)(1,871)(1,795)(1,470)
   Direct payouts (1,483)(1,408)(1,461)(1,283)(1,472)(1,342)(1,187)(1,114)
Carried interest and performance fees4,110 698 — 503 — 388 — 1,219 
   Carried interest and performance fee payouts - internal — (251)— (222)— (236)— (567)
   Carried interest and performance fee payouts - external (3)
— — — — — — — (121)
Net fees38,935 34,447 32,677 31,042 29,655 29,879 28,188 26,099 
Commissions 498 3,332 1,047 1,331 539 1,647 4,784 5,027 
   Commission expense - internal (147)(380)(217)(161)(88)(494)(1,727)(1,579)
   Commission expense - external (3)
(103)(1,443)(312)(441)(92)(27)(642)(585)
Net commissions248 1,509 518 729 359 1,126 2,415 2,863 
Finance income (2)
1,574 4,084 1,810 1,391 1,795 1,650 1,655 1,738 
Gain (loss) on investments937 1,133 1,809 2,808 (1,441)(1,950)1,958 (930)
Co-investment income (2)
418 416 274 170 462 1,327 93 370 
Total net revenues (2)
42,112 41,589 37,088 36,140 30,830 32,032 34,309 30,140 
Compensation (2)
18,547 19,225 17,955 17,096 16,939 21,468 19,556 17,148 
   Direct payouts(1,483)(1,408)(1,461)(1,283)(1,472)(1,342)(1,187)(1,114)
   Carried interest and performance fee payouts - internal— (251)— (222)— (236)— (567)
   Commission expense - internal(147)(380)(217)(161)(88)(494)(1,727)(1,579)
   Severance, new hire accruals and other(58)— — (179)(122)(4,067)(1,257)(1,240)
Net compensation 16,859 17,186 16,277 15,251 15,257 15,329 15,385 12,648 
Net compensation ratio46 %44 %47 %47 %50 %48 %52 %44 %
Severance, new hire accruals and other
58 — — 179 122 4,067 1,257 1,240 
Selling, general and administrative ("SG&A") (2)
4,612 5,040 4,173 3,963 3,817 4,752 4,026 3,814 
SG&A recoveries from funds (1)
(275)(260)(231)(241)(249)(282)(264)(253)
Interest expense933 715 830 844 882 1,087 1,247 1,076 
Depreciation and amortization502 568 551 658 731 748 706 710 
Foreign exchange (gain) loss (2)
1,028 122 168 1,295 37 1,440 440 (484)
Other (income) and expenses (2)
— (580)— 3,368 4,809 (18,890)1,249 1,686 
Total expenses23,717 22,791 21,768 25,317 25,406 8,251 24,046 20,437 
Net income 12,697 13,360 11,557 9,664 6,773 17,724 7,638 7,331 
Net income per share 0.50 0.53 0.45 0.38 0.27 0.70 0.30 0.29 
Adjusted base EBITDA20,675 22,375 19,751 18,759 17,854 17,953 17,321 18,083 
Adjusted base EBITDA per share0.81 0.88 0.78 0.75 0.71 0.71 0.68 0.72 
Summary balance sheet
Total assets 412,477 406,265 389,784 378,835 375,948 381,519 386,765 383,748 
Total liabilities 82,198 90,442 82,365 73,130 79,705 83,711 108,106 106,477 
Total AUM33,439,221 31,053,136 29,369,191 28,737,742 25,398,159 25,141,561 25,377,189 23,432,661 
Average AUM31,788,412 31,378,343 29,035,667 27,014,109 25,518,250 25,679,214 23,892,335 22,323,075 
(1) Previously, management fees within the above summary financial information table included SG&A recoveries from funds consistent with IFRS 15. For management reporting purposes, these recoveries are now shown next to their associated expense as management believes this will enable readers to transparently identify the net economics of these recoveries. However, SG&A recoveries from funds are still shown within the "Management fees" line on the consolidated statement of operations. Prior year figures have been reclassified to conform with current presentation.
(2) Current and prior period figures on the consolidated statements of operations include the following adjustments: (1) trading costs incurred in managed accounts are now included within "Fund expenses" (previously included within "SG&A"); (2) interest income earned on cash deposits are now included within "Finance income" (previously included within "Other income"); (3) co-investment income and income attributable to non-controlling interest are now included as part of "Co-investment income" (previously included within "Other income"); (4) expenses attributable to non-controlling interest is now included within "Co-investment income" (previously included within "Other expenses"); (5) the mark-to-market expense of DSU issuances are now included within "Compensation" (previously included within "Other expenses"); (6) foreign exchange (gain) loss is now shown separately (previously included within "Other expenses"); and (7) shares received on a previously unrecorded contingent asset in Q2 2023 are now included within "Other (income) and expenses" (previously included within "Other income"). Prior year figures have been reclassified to conform with current presentation.
(3) These amounts are included in the "Fund expenses" line on the consolidated statements of operations.







Schedule 3 - EBITDA reconciliation
3 months ended9 months ended
(in thousands $)Sep. 30, 2024Sep. 30, 2023Sep. 30, 2024Sep. 30, 2023
Net income for the period12,697 6,773 37,614 32,135 
Net income margin (1)
27 %20 %28 %29 %
Adjustments:
Interest expense933 882 2,478 3,216 
Provision for income taxes5,698 (1,349)14,899 7,333 
Depreciation and amortization502 731 1,621 2,185 
EBITDA19,830 7,037 56,612 44,869 
Adjustments:
(Gain) loss on investments (2)
(937)1,441 (3,879)1,433 
Stock-based compensation (3)
4,806 4,408 13,829 12,447 
Foreign exchange (gain) loss (4)
1,028 37 1,318 1,917 
Severance, new hire accruals and other (4)
58 122 58 5,446 
Revaluation of contingent consideration (4)
— — (580)(2,254)
Costs relating to exit of non-core business (4)
— 3,615 — 4,987 
Non-recurring regulatory, professional fees and other (4)
— 1,194 — 3,023 
Shares received on recognition of contingent asset (4)
— — — (18,588)
Carried interest and performance fees(4,110)— (4,808)(388)
Carried interest and performance fee payouts - internal— — 251 236 
Carried interest and performance fee payouts - external— — — — 
Adjusted base EBITDA 20,675 17,854 62,801 53,128 
Adjusted base EBITDA margin (5)
58 %56 %58 %57 %
(1) Calculated as IFRS net income divided by IFRS total revenue.
(2) 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.
(3) In prior years, the mark-to-market expense of DSU issuances were included with "other (income) and expenses". In the current period, these costs are included as part of "stock based compensation". Prior year figures have been reclassified to conform with current presentation.
(4) Foreign exchange (gain) and loss, severance, new hire accruals and other; revaluation of contingent consideration; costs relating to exit of non-core business; non-recurring regulatory, professional fees and other; and shares received on recognition of contingent asset were previously included with "other (income) and expenses" and are now shown separately in the reconciliation of adjusted base EBITDA above. Prior year figures have been reclassified to conform with current presentation.
(5) Prior year figures have been restated to remove the adjustment of depreciation and amortization.


Conference Call and Webcast

A webcast will be held today, November 6, 2024 at 10:00 am ET to discuss the Company's financial results.
To listen to the webcast, please register at: https://edge.media-server.com/mmc/p/7nbc4pms

Please note, analysts who cover the Company should register at: https://register.vevent.com/register/BIecf4c3c925374bf19a6ce5051f64dd6d

This press release includes financial terms (including AUM, net commissions, net fees, expenses, adjusted base EBITDA, adjusted base EBITDA margin and 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 fund expenses and direct payouts, and carried interest and performance fees, net of carried interest and performance fee payouts (internal and external), 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 purchases and sales of critical materials in our exchange listed products segment and transaction-based service offerings by our broker dealers.
Net compensation & net compensation ratio
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, new hire accruals and other which are non-recurring. Net compensation ratio is calculated as net compensation divided by net revenues.




EBITDA, adjusted base EBITDA and adjusted base EBITDA margin
EBITDA in its most basic form is defined as earnings before interest expense, income taxes, depreciation and amortization. EBITDA (or adjustments thereto) 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 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. Adjusted base EBITDA margins are a key indicator of a company’s profitability on a per dollar of revenue basis, and as such, is commonly used in the financial services sector by analysts, investors and management.

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) our constructive outlook in precious metals and critical materials; (ii) our expectation to repay the balance of our line of credit by the end of this month, resulting in a debt-free balance sheet at that time; 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: (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; (iv) the impact of public health outbreaks; 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 September 30, 2024. 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 private strategies business; (xxvii) those risks described under the heading "Risk Factors" in the Company’s annual information form dated February 20, 2024; and (xxviii) those risks described under the headings "Managing Financial Risks" and "Managing Non-Financial Risks" in the Company’s MD&A for the period ended September 30, 2024. 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 Sprott

Sprott is a global asset manager focused on precious metals and critical materials investments. We are specialists. We believe our in-depth knowledge, experience and relationships separate us from the generalists. Our investment strategies include Exchange Listed Products, Managed Equities and Private Strategies. Sprott has offices in Toronto, New York, Connecticut and California and the company’s common shares are listed on the New York Stock Exchange and the Toronto Stock Exchange under the symbol (SII). For more information, please visit www.sprott.com.

Investor contact information:
Glen Williams
Managing Partner
Investor and Institutional Client Relations
(416) 943-4394
gwilliams@sprott.com





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