TORONTO, May 08, 2024 (GLOBE NEWSWIRE) -- Sprott Inc. (TSX:SII) ("Sprott" or the "Company") today announced its financial results for the quarter ended March 31, 2024. Management commentary "Sprott's AUM once again reached record highs during the quarter, driven by stronger gold and silver prices late in the period, offset somewhat by what we view as short-term weakness in uranium and related equities. As of March 31, 2024, AUM was $29.4 billion, up $0.6 billion from the end of 2023. Subsequent to quarter end, on May 6, 2024, AUM stood at $31.2 billion," said Whitney George, CEO of Sprott. "During the quarter, we further expanded our critical materials offerings with the launch of the Sprott Copper Miners ETF. We also added to our growing European product suite by introducing the Sprott Junior Uranium Miners UCITS ETF. We are pleased with the early responses to both." "We expect 2024 to be a volatile year for investors as geopolitical conflicts spread, inflation remains stubbornly high and global elections present an uncertain backdrop for investors," continued Mr. George. "We are very confident that our core themes will continue to perform well for our clients and that our sales and marketing activities will deliver substantial asset growth as the commodities cycle accelerates." Key AUM highlights1 AUM was $29.4 billion as at March 31, 2024, up 2% from $28.7 billion as at December 31, 2023. On a three months ended basis, we benefited from market value appreciation in our precious metals physical trusts and managed equities, partially offset by net out flows in the same fund categories. Key revenue highlights Management fees were $36.4 million in the quarter, up 17% from $31.2 million for the quarter ended March 31, 2023. Carried interest and performance fees were $Nil in the quarter, flat from the quarter ended March 31, 2023. Net fees were $32.7 million in the quarter, up 16% from $28.2 million for the quarter ended March 31, 2023. Our revenue performance was due to higher average AUM across most of our exchange listed products and private strategies funds. Commission revenues were $1 million in the quarter, down 78% from $4.8 million for the quarter ended March 31, 2023. Net commissions were $0.5 million in the quarter, down 79% from $2.4 million for the quarter ended March 31, 2023. Lower commissions were primarily due to the sale of our former Canadian broker-dealer in the second quarter of last year. Finance income was $1.8 million in the quarter, up 9% from $1.7 million for the quarter ended March 31, 2023. Our results were primarily driven by higher income generation in co-investment positions we hold in LPs managed in our private strategies segment. Key expense highlights Net compensation expense was $16.3 million in the quarter, up 6% from $15.4 million for the quarter ended March 31, 2023. The increase in the quarter was primarily due to increased AIP accruals on higher net fee generation. SG&A expense was $4.2 million in the quarter, up 4% from $4 million for the quarter ended March 31, 2023. The slight increase in the quarter was due to higher marketing costs. Earnings summary Net income was $11.6 million ($0.45 per share) in the quarter, up 51% from $7.6 million ($0.30 per share) for the quarter ended March 31, 2023. Net income in the quarter benefited from market value appreciation across most of our exchange listed products and private strategies AUM, partially offset by lower commission income due to the sale of our former Canadian broker-dealer during the second quarter of last year. Our earnings also benefited from no severance and other expenses in the quarter. Adjusted base EBITDA was $19.8 million ($0.78 per share) in the quarter, up 14% from $17.3 million ($0.68 per share) for the quarter ended March 31, 2023. The increased management fees generated from market value gains in our AUM this quarter was partially offset by lower commission income due to the sale of our former Canadian broker-dealer during the second quarter of last year. Subsequent events Subsequent to quarter-end, on May 6, 2024, AUM was $31.2 billion, up 6% from $29.4 billion at March 31, 2024. On May 7, 2024, the Sprott Board of Directors announced a quarterly dividend of $0.25 per share. 1 See "non-IFRS financial measures" section in this press release and schedule 2 and 3 of "Supplemental financial information" Supplemental financial information Please refer to the March 31, 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 March 31, 2024 and the Company's financial performance for the quarter ended March 31, 2024. Schedule 1 - AUM continuity 3 months results                               (In millions $) AUMDec. 31,2023 Netinflows (1) Marketvaluechanges Othernet inflows (1) AUMMar. 31,2024   Netmanagementfee rate (2)                 Exchange listed products               - Precious metals physical trusts and ETFs             - Physical Gold Trust 6,532 (144) 507 — 6,895   0.35% - Physical Gold and Silver Trust 4,230 (113) 284 — 4,401   0.40% - Physical Silver Trust 4,070 (19) 191 — 4,242   0.45% - Precious Metals ETFs 339 (9) 7 — 337   0.30% - Physical Platinum & Palladium Trust 116 5 (9) — 112   0.50%   15,287 (280) 980 — 15,987   0.39%                 - Critical materials physical trust and ETFs             - Physical Uranium Trust 5,773 56 (203) — 5,626   0.32% - Critical Materials ETFs 2,143 49 43 — 2,235   0.58%   7,916 105 (160) — 7,861   0.39%                 Total exchange listed products 23,203 (175) 820 — 23,848   0.39%                 Managed equities (3) 2,890 (70) 103 — 2,923   0.89%                 Private strategies 2,645 (39) (8) — 2,598   0.91%                 Total AUM (4) 28,738 (284) 915 — 29,369   0.49% (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 (34%) and U.S. value strategies (9%).(4) 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 earn carried interest calculated as a predetermined net profit over a preferred return. Schedule 2 - Summary financial information (In thousands $) Q1 2024 Q42023 Q32023 Q22023 Q12023 Q42022 Q32022 Q22022 Summary income statement                 Management fees (1) 36,372   34,244   32,867   32,940   31,170   28,152   28,899   30,302   Fund expenses (2), (3) (2,234 ) (2,200 ) (1,740 ) (1,871 ) (1,795 ) (1,470 ) (1,466 ) (1,607 ) Direct payouts (1,461 ) (1,283 ) (1,472 ) (1,342 ) (1,187 ) (1,114 ) (1,121 ) (1,272 ) Carried interest and performance fees —   503   —   388   —   1,219   —   —   Carried interest and performance fee payouts - internal —   (222 ) —   (236 ) —   (567 ) —   —   Carried interest and performance fee payouts - external (3) —   —   —   —   —   (121 ) —   —   Net fees 32,677   31,042   29,655   29,879   28,188   26,099   26,312   27,423                     Commissions 1,047   1,331   539