TORONTO - Sprott Inc. (NYSE/TSX: SII) ('Sprott' or the 'Company') today announced its financial results for the year ended December 31, 2020.
Management commentary
'Sprott's AUM increased by 88% in 2020 to a record high of $17.4 billion,' said Peter Grosskopf, CEO of Sprott. 'This strong AUM growth translated into substantial improvements in our key financial metrics. Adjusted base EBITDA was $44.2 million for 2020, up $15.2 million or 52% from the prior year. Sprott's strong financial performance and track record of creating shareholder value resulted in the company's addition to the S&P/TSX Composite Index in 2020 and our inclusion in the annual TSX30 program. During the second quarter of 2020, Sprott began trading on the New York Stock Exchange and subsequently increased its dividend in November 2020.'
'Investor interest in precious metals has remained strong in the early months of 2021. Our exchange listed products are generating new inflows, particularly the Sprott Physical Silver Trust, and our managed equities team continues to deliver excellent performance. Looking ahead, we remain committed to extending our reach into new markets and expanding our client base by launching new strategies in all of our key segments.'
Non-IFRS Financial Measures
This press release includes financial terms (including AUM, net revenues, net commissions, net fees, expenses, adjusted base EBITDA, net compensation and net sales) 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.
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) market outlook and future metal prices, which are generating new inflows and excellent performance in our Exchange Listed Products and Managed Equities segments; (ii) our commitment to extending our reach into new markets and expanding our client base by launching new strategies in all of our key segments; (iii) the continued pay-for-performance aspect of the compensation program; (iv) Mr. Rule's continued role with the company; (v) the acceptance of our normal course issuer bid by the Toronto Stock Exchange and the timing thereof; (vi) the declaration, payment and designation of dividends and confidence that our business will support the dividend level without impacting our ability to fund future growth initiatives.
Although the Company believes that the Forward-Looking Statements are reasonable, they are not guarantees of future results, performance or achievements. A number of factors or assumptions have been used to develop the Forward-Looking Statements, including, without limitation: (i) the impact of increasing competition in each business in which the Company operates will not be material; (ii) quality management will be available; (iii) the effects of regulation and tax laws of governmental agencies will be consistent with the current environment and (iv) the impact of COVID-19 and (v) those assumptions disclosed under the heading 'Critical Accounting Estimates, Judgments and Changes in Accounting Policies' in the Company's MD&A for the period ended December 31, 2020. Actual results, performance or achievements could vary materially from those expressed or implied by the Forward-Looking Statements should assumptions underlying the Forward-Looking Statements prove incorrect or should one or more risks or other factors materialize, including: (i) difficult market conditions; (ii) poor investment performance; (iii) failure to continue to retain and attract quality staff; (iv) employee errors or misconduct resulting in regulatory sanctions or reputational harm; (v) performance fee fluctuations; (vi) a business segment or another counterparty failing to pay its financial obligation; (vii) failure of the Company to meet its demand for cash or fund obligations as they come due; (viii) changes in the investment management industry; (ix) failure to implement effective information security policies, procedures and capabilities; (x) lack of investment opportunities; (xi) risks related to regulatory compliance; (xii) failure to manage risks appropriately; (xiii) failure to deal appropriately with conflicts of interest; (xiv) competitive pressures; (xv) corporate growth which may be difficult to sustain and may place significant demands on existing administrative, operational and financial resources; (xvi) failure to comply with privacy laws; (xvii) failure to successfully implement succession planning; (xviii) foreign exchange risk relating to the relative value of the U.S. dollar; (xix) litigation risk; (xx) failure to develop effective business resiliency plans; (xxi) failure to obtain or maintain sufficient insurance coverage on favorable economic terms; (xxii) historical financial information being not necessarily indicative of future performance; (xxiii) the market price of common shares of the Company may fluctuate widely and rapidly; (xxiv) risks relating to the Company's investment products; (xxv) risks relating to the Company's proprietary investments; (xxvi) risks relating to the Company's lending business; (xxvii) risks relating to the Company's brokerage business; (xxviii) those risks described under the heading 'Risk Factors' in the Company's annual information form dated February 25, 2021 and (xxix) those risks described under the headings 'Managing Risk: Financial' and 'Managing Risk: Non-Financial' in the Company's MD&A for the period ended December 31, 2020. 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 and a leader in precious metal investments. With offices in Toronto, New York, and London, Sprott is dedicated to providing investors with specialized investment strategies that include Exchange Listed Products, Managed Equities, Lending, and Brokerage. Sprott's common shares are listed on the New York Stock Exchange under the symbol (NYSE:SII) and on the Toronto Stock Exchange under the symbol (TSX:SII).
Contact:
Glen Williams
Tel: (416) 943-4394
SPROTT INC. 
