TD Securities analyst Graham Ryding has adjusted his rating on Sprott (SII, Financial), shifting from a Buy to a Hold recommendation. Alongside this change, he revised the price target for the stock upward to C$100, an increase from the previous C$84 target. This adjustment reflects a reassessment of Sprott's potential in the current market environment.
SII Key Business Developments
Release Date: May 07, 2025
- Assets Under Management (AUM): Increased by $3.5 billion in Q1 to $35.1 billion, up 11% from $31.5 billion on December 31, 2024.
- Net Sales: Generated $407 million in net sales during the quarter.
- Net Income: $12 million, up 3% from $11.6 million over the same period last year.
- Adjusted EBITDA: $21.9 million, up 11% from $19.8 million over the same period last year.
- Physical Gold Trust AUM: Crossed the $12 billion mark, up from less than $9 billion at the beginning of the year.
- Physical Silver Trust AUM: Eclipsed $6 billion in size.
- Physical Gold and Silver Trust AUM: Eclipsed $6 billion in size.
- Physical Uranium Trust AUM: Approaching $5 billion.
- Net Redemptions in Managed Equities: Reported $20 million in net redemptions during the quarter.
- Private Strategies AUM: $2.2 billion, down slightly from December 31, 2024.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- Sprott Inc (SII, Financial) reported an increase in assets under management (AUM) by $3.5 billion in Q1, reaching $35.1 billion, driven by a surge in gold prices and strong inflows to precious metal strategies.
- The company's flagship gold equity fund posted a gain of 26.4%, benefiting from rising precious metal prices.
- Sprott Inc (SII) launched two new ETFs, the Sprott Silver Miners and Physical Silver ETF, and the Sprott Active Gold and Silver Miners ETF, which have been well-received and are among the most successful ETF launches to date.
- Net income for the quarter was $12 million, up 3% from the same period last year, and adjusted EBITDA increased by 11% to $21.9 million.
- The Sprott Physical Gold Trust crossed the $12 billion mark in assets, reflecting strong growth and investor interest in physical gold.
Negative Points
- Despite strong performance, investors have been slow to allocate capital to the managed equity sector, resulting in $20 million in net redemptions during the quarter.
- The company's Critical Materials products experienced weaker market valuations, partially offsetting gains from precious metals.
- Silver has not attracted the same level of investor interest and capital flows as gold, despite being up 12% this year.
- The uranium and copper trusts have been held back by market sentiment and shorting pressure, affecting their performance.
- The combined Gold and Silver Trust experienced outflows, as investors seem to prefer more focused products.
