Document
Table of Contents
Letter to shareholders 2
Management's Discussion and Analysis 4
Consolidated Financial Statements 23
Notes to the Consolidated Financial Statements 28
Dear fellow shareholders,
Q2 2025 Review
Sprott’s Assets Under Management (“AUM”) were $40 billion as of June 30, 2025, up 14% from $35.1 billion as of March 31, 2025 and up 27% from $31.5 billion as of December 31, 2024. Subsequent to quarter-end, as of August 1, 2025, AUM increased slightly to $40.1 billion.
During the quarter we benefited from market value appreciation across our product suite, driven by rising precious metals and uranium prices and improved performance in our managed equities segment. We also reported $1.2 billion in net sales during the quarter, concentrated largely in our physical trusts.
Net income for the quarter was $13.5 million ($0.52 per share), up 1% from $13.4 million ($0.53 per share) for the quarter ended June 30, 2024 and was $25.5 million ($0.99 per share) on a year-to-date basis, up 2% from $24.9 million ($0.98 per share) for the six months ended June 30, 2024. Our relatively flat net income performance in the quarter and on a year-to-date basis was primarily due to market value appreciation, positive flows, and carried interest and performance fee crystallizations being largely offset by new accounting requirements brought on by our new stock-based compensation program taking effect this year that requires us to use mark-to-market and graded vest accounting at a time when our stock price appreciated 54% in the quarter and 64% on a year-to-date basis. I encourage you to read page 12 of the Management Discussion and Analysis for more details.
Adjusted EBITDA was $25.5 million ($0.99 per share) for the quarter, up 14% from $22.4 million ($0.88 per share) for the quarter ended June 30, 2024 and $47.4 million ($1.83 per share) on a year-to-date basis, up 12% from $42.1 million ($1.66 per share) for the six months ended June 30, 2024.
Trade and Tariffs
As our market strategist Paul Wong wrote in one of his recent notes: “The global trade and inventory system for some metals is starting to break down due to geopolitical tensions, protectionist trade policies, and resource nationalism. This fragmentation is creating a new kind of scarcity, not the usual supply-demand kind, but a new dynamic formed by logistical and political frictions. The result is greater volatility in spreads, higher regional price differences, and a long-term premium on strategically essential metals. Prices may stay elevated even without significant changes in traditional supply-demand metrics because it's becoming harder for metals to flow freely around the world. A structural repricing of some metals is underway due to fractured trade, state-driven competition, and inventory systems that no longer rebalance smoothly.”
We have already seen this dynamic play out in gold and copper. Silver is now following suit with supplies of physical silver in London warehouses being rapidly drawn down, while platinum and palladium are becoming increasingly challenging to source.
Precious Metals
Precious metals continued to move higher during the second quarter as the U.S. dollar weakened amid global trade tensions. Gold gained 6% in Q2 and is up 26% on a year-to-date basis (as of July 28). Silver prices have broken out with the metal also rising 6% during the quarter and an impressive 32% on a year-to-date basis (as of July 28). Platinum and palladium prices have also seen dramatic increases, up 36% and 12%, respectively, in the quarter and 54% and 36% on a year-to-date basis (as of July 28).
Against this backdrop, our precious metals strategies continued to perform well. The Sprott Gold Equity Fund posted a gain of 15.5% for the quarter and is now up more than 47.4% on a year-to-date basis (as of July 28). In the first quarter of 2025, we launched two new precious metals ETFs: The Sprott Silver Miners & Physical Silver ETF (“SLVR”), and the Sprott Active Gold & Silver Miners ETF (“GBUG”), our first actively-managed ETF. We are very pleased with the response to these new offerings, which are our most successful ETF launches to date. SLVR has gained 61% since its inception in January and recently surpassed $160 million in assets. GBUG, which was designed to provide investors with access to our precious metals equity strategies in an ETF format, is up 33% since its inception in mid-February and has more than $50 million in assets.
Critical Materials
After drifting lower throughout 2024 and the first quarter of 2025, uranium prices firmed late in the second quarter. The Sprott Physical Uranium Trust (“SPUT”) completed two financings during the quarter, raising $226 million. These capital raises were supported by a broad range of investors including both SPUT and Sprott Inc. shareholders. Uranium equities performed well during the period, with the Sprott Uranium Miners ETF (“URNM”) gaining 48% in the second quarter. However, our uranium mining ETFs have seen outflows in recent months following investors profit-taking.
Outlook
Since my last letter, we have witnessed extreme volatility in all markets. A 20% correction in the S&P 500 Index followed by a full recovery to new highs in one quarter is extreme but not unexpected. Given American leadership’s obsession with creating a new headline at least daily, I would expect more of the same going forward. In the short term, who knows what comes next? Surely any prediction will be out of date by the time you read this letter. Longer term, all the trends in place before U.S. mid-term elections in 2026 remain and are accelerating. Debt and deficits continue to grow. The “Big Beautiful Bill” is projected to add over $3 trillion to the U.S. debt over the next 10 years. Conflicts in Ukraine and the Middle East are ongoing and the process of de-globalization continues via the “Groundhog Day” (continued extensions) / “Whack-a-mole” (send a letter) tariff announcements from Washington. Whether they are legal or not remains to be seen but they are being collected. While the markets have become desensitized to the headlines, the fact remains that tariffs are a tax, and a regressive one. Which is why they have historically failed.
At Sprott, we are pleased with how our balanced product offerings have performed year-to-date, providing our clients with both safe-haven and growth opportunities. Our AUM is currently at all-time highs, and investor allocations to our precious metals and critical materials strategies are steadily increasing, with $1.6 billion in net sales during the first half of 2025. Our financial performance has reflected the growth in our asset base as well as our commitment to carefully managing expenses while continuing to invest in growing the business.
As always, we are grateful to our long-term shareholders and are pleased to welcome several significant new shareholders. We look forward to reporting to you on our progress in the quarters ahead.
Sincerely,
Whitney George
Chief Executive Officer
Management's Discussion and Analysis
Three and six months ended June 30, 2025
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 positioning will benefit from a highly constructive operating environment for precious metals, critical materials and their related equities; and (ii) 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 Sprott Inc. (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 ("FX") 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 25, 2025; 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 August 5, 2025, presents an analysis of the consolidated financial condition of the Company and its subsidiaries as at June 30, 2025, compared with December 31, 2024, and the consolidated results of operations for the three and six months ended June 30, 2025, compared with the three and six months ended June 30, 2024. The board of directors of the Company approved this MD&A on August 5, 2025. All note references in this MD&A are to the notes to the Company's June 30, 2025 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 June 30, 2025, 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 primary transactional currency 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 six months ended June 30, 2024.
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 10 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:
Trust unit issuances and ETF unit ‘creations’
The primary manner in which inflows arise in our exchange listed products segment is through: (1) units of our physical trusts being issued through at-the-market (“ATM”) transactions and, secondary public and private offerings; and (2) new 'creations' of ETF units.
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
Net fees are calculated as: (1) total management fees net of fund expense recoveries, fund expenses and direct payouts; and (2) carried interest and performance fees, net of their related payouts. Net fees is a key revenue indicator as it represents revenue contributions after directly associated costs in managing our AUM.
Net commissions
Net commissions are calculated as total commissions, net of commission expenses. Net commissions primarily arise from the purchase and sale of critical materials in our exchange listed products segment.
Net revenues
Net revenues are calculated as the total of: (1) net fees, excluding carried interest and performance fees, net of their related payouts; (2) net commissions; (3) finance income; and (4) co-investment income.
Net compensation & net compensation ratio
Net compensation is calculated as total compensation expense before: (1) commission expenses paid to employees; (2) direct payouts to employees; (3) carried interest and performance fee payouts to employees; (4) severance and new hire accruals; and (5) impact of market value fluctuations and graded vesting amortization on cash-settled equity plans. Net compensation ratio is calculated as net compensation divided by net revenues.
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.
EBITDA, adjusted EBITDA and adjusted EBITDA margin
Effective in the first quarter of the year, we changed the name of one of our key non-IFRS measures: “adjusted base EBITDA” to “adjusted EBITDA”. The change was made to simplify wording and there was no impact to the underlying calculation.
EBITDA in its most basic form is defined as earnings before interest expense, income taxes, depreciation and amortization. Adjusted EBITDA further adjusts for items noted in the below reconciliation table. Adjusted EBITDA margin is calculated as adjusted EBITDA divided by net revenues.
EBITDA, adjusted EBITDA and adjusted 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 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 EBITDA margins are a key indicator of the 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 EBITDA, or adjusted 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 EBITDA and adjusted EBITDA margin measures are determined:
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3 months ended |
6 months ended |
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| (In thousands $) |
Jun. 30, 2025 |
Jun. 30, 2024 |
Jun. 30, 2025 |
Jun. 30, 2024 |
| Net income for the period |
13,501 |
|
13,360 |
|
25,458 |
|
24,917 |
|
Net income margin (1) |
21 |
% |
28 |
% |
23 |
% |
28 |
% |
| Adjustments: |
|
|
|
|
| Interest expense |
286 |
|
715 |
|
566 |
|
1,545 |
|
| Provision for income taxes |
5,359 |
|
5,438 |
|
9,154 |
|
9,201 |
|
| Depreciation and amortization |
637 |
|
568 |
|
1,178 |
|
1,119 |
|
| EBITDA |
19,783 |
|
20,081 |
|
36,356 |
|
36,782 |
|
| Adjustments: |
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|
(Gain) loss on investments (2) |
(2,703) |
|
(1,133) |
|
(4,237) |
|
(2,942) |
|
Stock-based compensation (3) |
18,587 |
|
4,332 |
|
24,843 |
|
9,023 |
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| Foreign exchange (gain) loss |
3,263 |
|
122 |
|
3,817 |
|
290 |
|
Severance, new hire accruals and other |
32 |
|
— |
|
84 |
|
— |
|
| Revaluation of contingent consideration |
— |
|
(580) |
|
— |
|
(580) |
|
| Carried interest and performance fees |
(14,807) |
|
(698) |
|
(14,807) |
|
(698) |
|
Carried interest and performance fee payouts (4) |
1,298 |
|
251 |
|
1,298 |
|
251 |
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|
|
Adjusted EBITDA (5) |
25,453 |
|
22,375 |
|
47,354 |
|
42,126 |
|
Adjusted EBITDA margin (6) |
61 |
% |
58 |
% |
60 |
% |
58 |
% |
(1) Calculated as IFRS net income divided by IFRS total revenue.
(2) This adjustment removes the income effects of gains or losses on short-term investments, co-investments, and private holdings to ensure the reporting objectives of our adjusted EBITDA metric are met.
(3) The increase in the quarter and on a year-to-date basis was primarily due to the Company transitioning its employees, effective January 1, 2025, to a "cash-settled" stock-based compensation plan. This required mark-to-market accounting under IFRS 2 which led to market value fluctuations that were driven by NYSE:SII being up 54% in the quarter and 64% on a year-to-date basis. The Q2 balance also includes the effect of the new program's requirement to use graded vesting amortization.
(4) Includes both internal and external carried interest and performance fee payouts.
(5) Effective Q1 2025, we changed the name of one of our key non-IFRS measures: "adjusted base EBITDA" to "adjusted EBITDA". This was made to simplify wording and there was no impact to its calculation.
(6) Prior period adjusted EBITDA margin excludes adjusted EBITDA from non-reportable segments of ($274) for the three months ended June 30, 2024 and ($735) for the six months ended June 30, 2024.
Business overview
Our reportable operating segments are as follows:
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.
Business development and outlook
In the second quarter of the year, the Sprott Physical Uranium Trust ("SPUT") closed a $200 million bought deal financing and a $25.6 million non-brokered private placement.
At Sprott, we are pleased with how our balanced product offerings have performed year-to-date, providing our clients with both safe-haven and growth opportunities. Our AUM is currently at all-time highs, and investor allocations to our precious metals and critical materials strategies are steadily increasing, with $1.6 billion in net sales during the first half of 2025. Our financial performance has reflected the growth in our asset base as well as our commitment to carefully managing expenses while continuing to invest in growing the business.
Subsequent to quarter-end, as at August 1, 2025, AUM was $40.1 billion, up slightly from $40 billion as at June 30, 2025.
Results of operations
Summary financial information
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| (In thousands $) |
Q2
2025 |
Q1
2025 |
Q4
2024 |
Q3
2024 |
Q2
2024 |
Q1
2024 |
Q4
2023 |
Q3
2023 |
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| Management fees |
44,446 |
|
39,989 |
|
41,441 |
|
38,968 |
|
38,325 |
|
36,603 |
|
34,485 |
|
33,116 |
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|
| Fund expense recoveries |
(327) |
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(279) |
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(280) |
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(275) |
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(260) |
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(231) |
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(241) |
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(249) |
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| Fund expenses |
(2,699) |
|
(2,464) |
|
(2,708) |
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(2,385) |
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(2,657) |
|
(2,234) |
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(2,200) |
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(1,740) |
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| Direct payouts |
(1,709) |
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(1,602) |
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(1,561) |
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(1,483) |
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(1,408) |
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(1,461) |
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(1,283) |
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(1,472) |
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| Carried interest and performance fees |
14,807 |
|
— |
|
2,511 |
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4,110 |
|
698 |
|
— |
|
503 |
|
— |
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|
| Carried interest and performance fee payouts |
(1,298) |
|
— |
|
(830) |
|
— |
|
(251) |
|
— |
|
(222) |
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— |
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| Net fees |
53,220 |
|
35,644 |
|
38,573 |
|
38,935 |
|
34,447 |
|
32,677 |
|
31,042 |
|
29,655 |
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| Commissions |
1,725 |
|
286 |
|
819 |
|
498 |
|
3,332 |
|
1,047 |
|
1,331 |
|
539 |
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| Commission expense - internal |
(180) |
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(52) |
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(146) |
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(147) |
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(380) |
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(217) |
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(161) |
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(88) |
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Commission expense - external |
(779) |
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(47) |
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(290) |
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(103) |
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(1,443) |
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(312) |
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(441) |
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(92) |
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| Net commissions |
766 |
|
187 |
|
383 |
|
248 |
|
1,509 |
|
518 |
|
729 |
|
359 |
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| Finance income |
1,213 |
|
1,402 |
|
1,441 |
|
1,574 |
|
4,084 |
|
1,810 |
|
1,391 |
|
1,795 |
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| Co-investment income |
280 |
|
151 |
|
296 |
|
418 |
|
416 |
|
274 |
|
170 |
|
462 |
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|
| Less: Carried interest and performance fees (net of payouts) |
(13,509) |
|
— |
|
(1,681) |
|
(4,110) |
|
(447) |
|
— |
|
(281) |
|
— |
|
|
Total net revenues (1) |
41,970 |
|
37,384 |
|
39,012 |
|
37,065 |
|
40,009 |
|
35,279 |
|
33,051 |
|
32,271 |
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|
| Add: Carried interest and performance fees (net of payouts) |
13,509 |
|
— |
|
1,681 |
|
4,110 |
|
447 |
|
— |
|
281 |
|
— |
|
|
| Gain (loss) on investments |
2,703 |
|
1,534 |
|
(3,889) |
|
937 |
|
1,133 |
|
1,809 |
|
2,808 |
|
(1,441) |
|
|
Fund expenses (2) |
3,478 |
|
2,511 |
|
2,998 |
|
2,488 |
|
4,100 |
|
2,546 |
|
2,641 |
|
1,832 |
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|
Direct payouts (3) |
3,187 |
|
1,654 |
|
2,537 |
|
1,630 |
|
2,039 |
|
1,678 |
|
1,666 |
|
1,560 |
|
|
| Fund expense recoveries |
327 |
|
279 |
|
280 |
|
275 |
|
260 |
|
231 |
|
241 |
|
249 |
|
|
| Total revenues |
65,174 |
|
43,362 |
|
42,619 |
|
46,505 |
|
47,988 |
|
41,543 |
|
40,688 |
|
34,471 |
|
|
|
|
|
|
|
|
|
|
|
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| Compensation |
33,825 |
|
19,597 |
|
19,672 |
|
18,547 |
|
19,225 |
|
17,955 |
|
17,096 |
|
16,939 |
|
|
Direct payouts (3) |
(3,187) |
|
(1,654) |
|
(2,537) |
|
(1,630) |
|
(2,039) |
|
(1,678) |
|
(1,666) |
|
(1,560) |
|
|
| Severance, new hire accruals and other |
(32) |
|
(52) |
|
(166) |
|
(58) |
|
— |
|
— |
|
(179) |
|
(122) |
|
|
|
Impact of market value fluctuation and graded vesting
amortization on cash-settled equity plans (4)
|
(12,758) |
|
(412) |
|
71 |
|
(114) |
|
(252) |
|
(155) |
|
(157) |
|
79 |
|
|
| Net compensation |
17,848 |
|
17,479 |
|
17,040 |
|
16,745 |
|
16,934 |
|
16,122 |
|
15,094 |
|
15,336 |
|
|
| Net compensation ratio |
43 |
% |
47 |
% |
44 |
% |
46 |
% |
44 |
% |
47 |
% |
47 |
% |
50 |
% |
|
|
|
|
|
|
|
|
|
|
|
Fund expenses (2) |
3,478 |
|
2,511 |
|
2,998 |
|
2,488 |
|
4,100 |
|
2,546 |
|
2,641 |
|
1,832 |
|
|
Direct payouts (3) |
3,187 |
|
1,654 |
|
2,537 |
|
1,630 |
|
2,039 |
|
1,678 |
|
1,666 |
|
1,560 |
|
|
Severance, new hire accruals and other |
32 |
|
52 |
|
166 |
|
58 |
|
— |
|
— |
|
179 |
|
122 |
|
|
Impact of market value fluctuation and graded vesting amortization on cash-settled equity plans (4) |
12,758 |
|
412 |
|
(71) |
|
114 |
|
252 |
|
155 |
|
157 |
|
(79) |
|
|
| Selling, general, and administrative ("SG&A") |
4,825 |
|
4,127 |
|
4,949 |
|
4,612 |
|
5,040 |
|
4,173 |
|
3,963 |
|
3,817 |
|
|
| Interest expense |
286 |
|
280 |
|
613 |
|
933 |
|
715 |
|
830 |
|
844 |
|
882 |
|
|
| Depreciation and amortization |
637 |
|
541 |
|
600 |
|
502 |
|
568 |
|
551 |
|
658 |
|
731 |
|
|
| Foreign exchange (gain) loss |
3,263 |
|
554 |
|
(2,706) |
|
1,028 |
|
122 |
|
168 |
|
1,295 |
|
37 |
|
|
| Other (income) and expenses |
— |
|
— |
|
— |
|
— |
|
(580) |
|
— |
|
3,368 |
|
4,809 |
|
|
| Total expenses |
46,314 |
|
27,610 |
|
26,126 |
|
28,110 |
|
29,190 |
|
26,223 |
|
29,865 |
|
29,047 |
|
|
|
|
|
|
|
|
|
|
|
|
| Net income |
13,501 |
|
11,957 |
|
11,680 |
|
12,697 |
|
13,360 |
|
11,557 |
|
9,664 |
|
6,773 |
|
|
| Net income per share |
0.52 |
|
0.46 |
|
0.46 |
|
0.50 |
|
0.53 |
|
0.45 |
|
0.38 |
|
0.27 |
|
|
Adjusted EBITDA (5) |
25,453 |
|
21,901 |
|
22,362 |
|
20,675 |
|
22,375 |
|
19,751 |
|
18,759 |
|
17,854 |
|
|
| Adjusted EBITDA per share |
0.99 |
|
0.85 |
|
0.88 |
|
0.81 |
|
0.88 |
|
0.78 |
|
0.75 |
|
0.71 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Total assets |
439,429 |
|
386,131 |
|
388,798 |
|
412,477 |
|
406,265 |
|
389,784 |
|
378,835 |
|
375,948 |
|
|
| Total liabilities |
93,955 |
|
59,986 |
|
65,150 |
|
82,198 |
|
90,442 |
|
82,365 |
|
73,130 |
|
79,705 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Total AUM |
40,040,822 |
|
35,076,761 |
|
31,535,062 |
|
33,439,221 |
|
31,053,136 |
|
29,369,191 |
|
28,737,742 |
|
25,398,159 |
|
|
| Average AUM |
37,580,867 |
|
33,265,327 |
|
33,401,157 |
|
31,788,412 |
|
31,378,343 |
|
29,035,667 |
|
27,014,109 |
|
25,518,250 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Prior period net revenues includes revenues from non-reportable segments: Q4 2024 - $406; Q3 2024 - $497; Q2 2024 - $650; Q1 2024 - $465; Q4 2023 - $749; and Q3 2023 - $1,517.
(2) Includes fund expenses and commission expense - external. Together, these amounts are included in "Fund expenses" on the income statement.
(3) Includes direct payouts, internal carried interest and performance fee payouts and commission payouts - internal. Together, these amounts are included in "Compensation" on the income statement.
(4) The increase in the quarter and on a year-to-date basis was primarily due to the Company transitioning its employees, effective January 1, 2025, to a "cash-settled" stock-based compensation plan. This required mark-to-market accounting under IFRS 2 which led to market value fluctuations that were driven by NYSE:SII being up 54% in the quarter and 64% on a year-to-date basis. The Q2 balance also includes the effect of the new program's requirement to use graded vesting amortization.
(5) Effective Q1 2025, we changed the name of one of our key non-IFRS measures: "adjusted base EBITDA" to "adjusted EBITDA". This was made to simplify wording and there was no impact to its calculation.
AUM summary
AUM was $40 billion as at June 30, 2025, up 14% from $35.1 billion as at March 31, 2025 and up 27% from $31.5 billion as at December 31, 2024. On a three and six months ended basis, we benefited from positive market value appreciation across the majority of our fund products and positive net inflows to our physical trusts. Subsequent to quarter-end, as at August 1, 2025, AUM was $40.1 billion, up slightly from $40 billion as at June 30, 2025.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| 3 months results |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| (In millions $) |
AUM
Mar. 31, 2025 |
Net
inflows (1) |
Market
value changes |
Other
net inflows (1)
|
AUM
Jun. 30, 2025
|
|
Net management
fee rate (2)
|
|
|
|
|
|
|
|
|
| Exchange listed products |
|
|
|
|
|
|
|
| - Precious metals physical trusts and ETFs |
|
|
|
|
|
|
| - Physical Gold Trust |
10,732 |
617 |
614 |
— |
11,963 |
|
0.35% |
| - Physical Silver Trust |
6,235 |
313 |
382 |
— |
6,930 |
|
0.45% |
| - Physical Gold and Silver Trust |
5,764 |
(26) |
326 |
— |
6,064 |
|
0.40% |
| - Precious Metals ETFs |
518 |
70 |
103 |
— |
691 |
|
0.29% |
| - Physical Platinum & Palladium Trust |
196 |
104 |
53 |
— |
353 |
|
0.50% |
|
23,445 |
1,078 |
1,478 |
— |
26,001 |
|
0.39% |
|
|
|
|
|
|
|
|
| - Critical materials physical trusts and ETFs |
|
|
|
|
|
|
| - Physical Uranium Trust |
4,262 |
233 |
941 |
— |
5,436 |
|
0.31% |
| - Critical Materials ETFs |
1,707 |
5 |
778 |
— |
2,490 |
|
0.49% |
| - Physical Copper Trust |
100 |
(1) |
3 |
— |
102 |
|
0.33% |
|
6,069 |
237 |
1,722 |
— |
8,028 |
|
0.36% |
|
|
|
|
|
|
|
|
| Total exchange listed products |
29,514 |
1,315 |
3,200 |
— |
34,029 |
|
0.38% |
|
|
|
|
|
|
|
|
Managed equities (3) |
3,378 |
(61) |
566 |
— |
3,883 |
|
0.79% |
|
|
|
|
|
|
|
|
| Private strategies |
2,185 |
(83) |
27 |
— |
2,129 |
|
0.84% |
|
|
|
|
|
|
|
|
Total AUM (4) |
35,077 |
1,171 |
3,793 |
— |
40,041 |
|
0.45% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
6 months results |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| (In millions $) |
AUM
Dec. 31, 2024 |
Net
inflows (1) |
Market
value changes |
Other
net inflows (1)
|
AUM
Jun. 30, 2025
|
|
Net management
fee rate (2)
|
|
|
|
|
|
|
|
|
| Exchange listed products |
|
|
|
|
|
|
|
| - Precious metals physical trusts and ETFs |
|
|
|
|
|
|
| - Physical Gold Trust |
8,608 |
1,092 |
2,263 |
— |
11,963 |
|
0.35% |
| - Physical Silver Trust |
5,227 |
393 |
1,310 |
— |
6,930 |
|
0.45% |
| - Physical Gold and Silver Trust |
5,013 |
(188) |
1,239 |
— |
6,064 |
|
0.40% |
| - Precious Metals ETFs |
354 |
113 |
222 |
2 |
691 |
|
0.29% |
| - Physical Platinum & Palladium Trust |
168 |
118 |
67 |
— |
353 |
|
0.50% |
|
19,370 |
1,528 |
5,101 |
2 |
26,001 |
|
0.39% |
|
|
|
|
|
|
|
|
| - Critical materials physical trusts and ETFs |
|
|
|
|
|
|
| - Physical Uranium Trust |
4,862 |
233 |
341 |
— |
5,436 |
|
0.31% |
| - Critical Materials ETFs |
2,020 |
95 |
375 |
— |
2,490 |
|
0.49% |
| - Physical Copper Trust |
90 |
(1) |
13 |
— |
102 |
|
0.33% |
|
6,972 |
327 |
729 |
— |
8,028 |
|
0.36% |
|
|
|
|
|
|
|
|
| Total exchange listed products |
26,342 |
1,855 |
5,830 |
2 |
34,029 |
|
0.38% |
|
|
|
|
|
|
|
|
Managed equities (3) |
2,873 |
(54) |
1,091 |
(27) |
3,883 |
|
0.79% |
|
|
|
|
|
|
|
|
| Private strategies |
2,320 |
(198) |
7 |
— |
2,129 |
|
0.84% |
|
|
|
|
|
|
|
|
Total AUM (4) |
31,535 |
1,603 |
6,928 |
(25) |
40,041 |
|
0.45% |
(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) Net 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 (53%), high net worth managed accounts (40%) and U.S. value strategies (7%). |
|
(4) No performance fees are earned on exchange listed products. Certain managed equities products earn either performance fees based on returns above relevant benchmarks or earn carried interest calculated as a
predetermined net profit over a preferred return. Private strategies LPs primarily earn carried interest calculated as a predetermined net profit over a preferred return.
|
Key revenue lines
Management, carried interest and performance fees
Management fees were $44.4 million for the quarter, up 16% from $38.3 million for the quarter ended June 30, 2024 and $84.4 million on a year-to-date basis, up 13% from $74.9 million for the six months ended June 30, 2024. Carried interest and performance fees were $14.8 million in the quarter and on a year-to-date basis, up from $0.7 million for the quarter and six months ended June 30, 2024. Net fees were $53.2 million for the quarter, up 54% from $34.4 million for the quarter ended June 30, 2024 and $88.9 million on a year-to-date basis, up 32% from $67.1 million for the six months ended June 30, 2024. Our revenue performance in the quarter and on a six months ended basis was primarily due to higher average AUM on positive market value appreciation and inflows to our precious metals physical trusts. We also benefited from carried interest crystallization on the wind down of a legacy fixed-term exploration LP and performance fee crystallization in an active mining equities fund, both of which were housed in our managed equities segment.
Commission revenues
Commission revenues were $1.7 million for the quarter, down 48% from $3.3 million for the quarter ended June 30, 2024 and $2 million on a year-to-date basis, down 54% from $4.4 million for the six months ended June 30, 2024. Net commissions were $0.8 million for the quarter, down 49% from $1.5 million for the quarter ended June 30, 2024 and $1 million on a year-to-date basis, down 53% from $2 million for the six months ended June 30, 2024. Commission revenue decreased in the quarter and on a six months ended basis primarily due to last year's higher commissions earned on the physical copper trust offering and last year's higher ATM activity in our physical uranium trust.
Finance income
Finance income was $1.2 million for the quarter, down 70% from $4.1 million for the quarter ended June 30, 2024 and $2.6 million on a year-to-date basis, down 56% from $5.9 million for the six months ended June 30, 2024. Finance income decreased in the quarter and on a six months ended basis mainly due to last year's syndication activity in the first half of the year in our private strategies segment.
Key expense lines
Compensation
Net compensation expense was $17.8 million for the quarter, up 5% from $16.9 million for the quarter ended June 30, 2024 and $35.3 million on a year-to-date basis, up 7% from $33.1 million for the six months ended June 30, 2024. The increase in the quarter and on a six months ended basis was primarily due to higher incentive compensation on increased net fee generation. Our net compensation ratio was 43% in the quarter (June 30, 2024 - 44%) and 45% on a year-to-date basis (June 30, 2024 - 45%).
Stock-based compensation was $18.6 million for the quarter, up $14.3 million from $4.3 million for the quarter ended June 30, 2024 and $24.8 million on a year-to-date basis, up $15.8 million from $9 million for the six months ended June 30, 2024. The increase in the quarter and on a year-to-date basis was primarily due to a change in accounting requirements as we moved our employees to a new cash-settled stock-based compensation plan this year. Cash-settled stock plans require the use of mark-to-market and graded vest accounting under IFRS 2, which creates the dual impact of: (1) accelerating the amount of vesting that occurs each period; and (2) adding market volatility to each vested amount, in our case, at a time when our stock has appreciated 54% in the quarter and 64% on a year-to-date basis. In contrast, last year, we had an equity-settled program that required each vest to be valued at the original grant date fair value on a constant basis over the entire amortization period.
SG&A
SG&A expense was $4.8 million for the quarter, down 4% from $5 million for the quarter ended June 30, 2024 and $9 million on a year-to-date basis, down 3% from $9.2 million for the six months ended June 30, 2024. The decrease in the quarter and on a six months ended basis was primarily due to lower technology costs.
Earnings
Net income for the quarter was $13.5 million ($0.52 per share), up 1% from $13.4 million ($0.53 per share) for the quarter ended June 30, 2024 and was $25.5 million ($0.99 per share) on a year-to-date basis, up 2% from $24.9 million ($0.98 per share) for the six months ended June 30, 2024. Our flat net income performance was primarily due to a change in accounting requirements brought on by our new cash-settled stock plan that took effect this year, largely offsetting much of the net income we otherwise generated on market appreciation and flows into our physical trusts and carried interest and performance fee crystallizations in our managed equities segment. Cash-settled stock plans like the one we implemented this year require the use of mark-to-market and graded vest accounting under IFRS 2, which creates the dual impact of: (1) accelerating the amount of vesting that occurs each period; and (2) adding market volatility to each vested amount, in our case, at a time when our stock has appreciated 54% in the quarter and 64% on a year-to-date basis. In contrast, last year we had an equity-settled stock program that required each vest to be valued at the original grant date fair value on a constant basis over the entire amortization period.
Adjusted EBITDA was $25.5 million ($0.99 per share) for the quarter, up 14% from $22.4 million ($0.88 per share) for the quarter ended June 30, 2024 and $47.4 million ($1.83 per share) on a year-to-date basis, up 12% from $42.1 million ($1.66 per share) for the six months ended June 30, 2024. Adjusted EBITDA in the quarter and on a year-to-date basis benefited from higher average AUM on market value appreciation and inflows to our precious metals physical trusts. However, offsetting these positives was our finance income being down due to last year's higher syndication fees and our net commissions also being down due to last year's physical copper trust IPO and higher ATM activity in our physical uranium trust.
Additional revenues and expenses
Investment gains were $2.7 million for the quarter, up from investment gains of $1.1 million for the quarter ended June 30, 2024 and on a year-to-date basis, investment gains were $4.2 million, up 44% from investment gains of $2.9 million for the six months ended June 30, 2024. Investment gains in the quarter and on a six months ended basis were mainly driven by market value appreciation of our co-investments.
Depreciation of property and equipment was $0.6 million for the quarter, largely flat from the quarter ended June 30, 2024 and $1.2 million on a year-to-date basis, up 5% from $1.1 million for the six months ended June 30, 2024.
Balance sheet
Total assets were $439.4 million, up 13% from $388.8 million as at December 31, 2024. The increase was primarily due to higher cash balances from increased earnings and an increase in the value of intangible assets primarily from the strengthening of the Canadian dollar. Total liabilities were $94 million, up 44% from $65.2 million as at December 31, 2024. The increase was primarily due to higher stock-based compensation payable as a result of a change in accounting requirements brought on by our new cash-settled stock plan that took effect this year. Cash-settled stock plans like the one we implemented this year require the use of mark-to-market and graded vest accounting under IFRS 2, which creates the dual impact of: (1) accelerating the amount of vesting that occurs each period; and (2) adding market volatility to each vested amount, in our case, at a time when our stock has appreciated 54% in the quarter and 64% on a year-to-date basis. Total shareholder's equity was $345.5 million, up 7% from $323.6 million as at December 31, 2024.
Reportable operating segments
Exchange listed products
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
3 months ended |
6 months ended |
|
|
|
|
|
| (In thousands $) |
Jun. 30, 2025 |
Jun. 30, 2024 |
Jun. 30, 2025 |
Jun. 30, 2024 |
|
|
|
|
|
| Management fees |
32,202 |
|
26,901 |
|
60,386 |
|
51,545 |
|
| Fund expenses |
(2,033) |
|
(2,107) |
|
(3,871) |
|
(3,864) |
|
| Net fees |
30,169 |
|
24,794 |
|
56,515 |
|
47,681 |
|
|
|
|
|
|
| Commissions |
1,419 |
|
2,776 |
|
1,419 |
|
3,442 |
|
| Commission expense - internal |
(105) |
|
(208) |
|
(105) |
|
(278) |
|
| Commission expense - external |
(721) |
|
(1,388) |
|
(721) |
|
(1,644) |
|
| Net commissions |
593 |
|
1,180 |
|
593 |
|
1,520 |
|
|
|
|
|
|
| Finance income |
— |
|
105 |
|
— |
|
197 |
|
| Co-investment income |
— |
|
29 |
|
— |
|
29 |
|
| Total net revenues |
30,762 |
|
26,108 |
|
57,108 |
|
49,427 |
|
| Gain (loss) on investments |
145 |
|
1,479 |
|
1,104 |
|
2,297 |
|
Fund expenses (1) |
2,754 |
|
3,495 |
|
4,592 |
|
5,508 |
|
Direct payouts (2) |
105 |
|
208 |
|
105 |
|
278 |
|
| Total revenues |
33,766 |
|
31,290 |
|
62,909 |
|
57,510 |
|
|
|
|
|
|
| Net compensation |
5,165 |
|
4,252 |
|
10,063 |
|
8,438 |
|
Fund expenses (1) |
2,754 |
|
3,495 |
|
4,592 |
|
5,508 |
|
Direct payouts (2) |
105 |
|
208 |
|
105 |
|
278 |
|
|
|
|
|
|
Impact of market value fluctuation and graded vesting amortization on cash-settled equity plans (3) |
3,083 |
|
— |
|
3,145 |
|
— |
|
| SG&A |
2,255 |
|
1,943 |
|
3,577 |
|
3,238 |
|
| Interest expense |
47 |
|
372 |
|
92 |
|
726 |
|
| Depreciation and amortization |
37 |
|
33 |
|
69 |
|
64 |
|
| Foreign exchange (gain) loss |
2,384 |
|
(87) |
|
2,781 |
|
(341) |
|
| Other (income) and expenses |
— |
|
(580) |
|
— |
|
(580) |
|
| Total expenses |
15,830 |
|
9,636 |
|
24,424 |
|
17,331 |
|
|
|
|
|
|
|
|
|
|
|
| Income before income taxes |
17,936 |
|
21,654 |
|
38,485 |
|
40,179 |
|
Adjusted EBITDA (4) |
24,881 |
|
20,524 |
|
46,536 |
|
39,224 |
|
Adjusted EBITDA margin |
81 |
% |
79 |
% |
81 |
% |
79 |
% |
|
|
|
|
|
| Total AUM |
34,029,131 |
|
25,606,477 |
|
34,029,131 |
|
25,606,477 |
|
| Average AUM |
31,732,088 |
|
25,783,331 |
|
29,788,418 |
|
24,705,316 |
|
|
|
|
|
|
(1) Includes fund expenses and commission expense - external. Together, these amounts are included in "Fund expenses" on the income statement.
(2) Includes commission payouts - internal. This is included in "Compensation" on the income statement.
(3) The increase in the quarter and on a year-to-date basis was primarily due to the Company transitioning its employees, effective January 1, 2025, to a "cash-settled" stock-based compensation plan. This required mark-to-market accounting under IFRS 2 which led to market value fluctuations that were driven by NYSE:SII being up 54% in the quarter and 64% on a year-to-date basis. The Q2 balance also includes the effect of the new program's requirement to use graded vesting amortization.
(4) Effective Q1 2025, we changed the name of one of our key non-IFRS measures: "adjusted base EBITDA" to "adjusted EBITDA". This was made to simplify wording and there was no impact to its calculation.
3 and 6 months ended
Income before income taxes was $17.9 million for the quarter, down 17% from $21.7 million for the quarter ended June 30, 2024 and was $38.5 million on a year-to-date basis, down 4% from $40.2 million for the six months ended June 30, 2024. The decline on a three and six months ended basis was primarily due to a change in accounting requirements brought on by our new cash-settled stock plan that took effect this year, largely offsetting much of the earnings we otherwise generated on positive market value appreciation and inflows to our precious metals physical trusts. Cash-settled stock plans like the one we implemented this year require the use of mark-to-market and graded vest accounting under IFRS 2, which creates the dual impact of: (1) accelerating the amount of vesting that occurs each period; and (2) adding market volatility to each vested amount, in our case, at a time when our stock has appreciated 54% in the quarter and 64% on a year-to-date basis. In contrast, last year we had an equity-settled stock program that required each vest to be valued at the original grant date fair value on a constant basis over the entire amortization period. Our results were also impacted by FX losses in the period.
Adjusted EBITDA was $24.9 million for the quarter, up 21% from $20.5 million for the quarter ended June 30, 2024 and was $46.5 million on a year-to-date basis, up 19% from $39.2 million for the six months ended June 30, 2024. Our three and six months ended results benefited from higher management fees from higher average AUM on positive market value appreciation and inflows to our precious metals physical trusts, partially offset by lower net commissions due to last year's physical copper trust IPO and higher ATM activity in our physical uranium trust.
Managed equities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
3 months ended |
6 months ended |
|
|
|
|
|
| (In thousands $) |
Jun. 30, 2025 |
Jun. 30, 2024 |
Jun. 30, 2025 |
Jun. 30, 2024 |
|
|
|
|
|
| Management fees |
8,177 |
|
7,213 |
|
15,487 |
|
13,846 |
|
| Fund expense recoveries |
(327) |
|
(260) |
|
(606) |
|
(491) |
|
| Fund expenses |
(544) |
|
(450) |
|
(1,116) |
|
(922) |
|
| Direct payouts |
(1,313) |
|
(989) |
|
(2,480) |
|
(1,951) |
|
| Carried interest and performance fees |
14,799 |
|
698 |
|
14,799 |
|
698 |
|
| Carried interest and performance fee payouts |
(1,296) |
|
(251) |
|
(1,296) |
|
(251) |
|
| Net fees |
19,496 |
|
5,961 |
|
24,788 |
|
10,929 |
|
|
|
|
|
|
| Finance income |
54 |
|
45 |
|
103 |
|
80 |
|
| Co-investment income |
— |
|
37 |
|
— |
|
37 |
|
| Less: Carried interest and performance fees (net of payouts) |
(13,503) |
|
(447) |
|
(13,503) |
|
(447) |
|
| Total net revenues |
6,047 |
|
5,596 |
|
11,388 |
|
10,599 |
|
| Add: Carried interest and performance fees (net of payouts) |
13,503 |
|
447 |
|
13,503 |
|
447 |
|
| Gain (loss) on investments |
2,184 |
|
813 |
|
3,609 |
|
1,917 |
|
Fund expenses (1) |
544 |
|
450 |
|
1,116 |
|
922 |
|
Direct payouts (2) |
2,609 |
|
1,240 |
|
3,776 |
|
2,202 |
|
| Fund expense recoveries |
327 |
|
260 |
|
606 |
|
491 |
|
| Total revenues |
25,214 |
|
8,806 |
|
33,998 |
|
16,578 |
|
|
|
|
|
|
| Net compensation |
3,751 |
|
3,515 |
|
7,395 |
|
6,634 |
|
Fund expenses (1) |
544 |
|
450 |
|
1,116 |
|
922 |
|
Direct payouts (2) |
2,609 |
|
1,240 |
|
3,776 |
|
2,202 |
|
| Severance, new hire accruals and other |
30 |
|
— |
|
82 |
|
— |
|
Impact of market value fluctuation and graded vesting amortization on cash-settled equity plans (3) |
1,597 |
|
— |
|
1,629 |
|
— |
|
| SG&A |
1,056 |
|
1,212 |
|
1,946 |
|
2,520 |
|
| Interest expense |
64 |
|
151 |
|
129 |
|
428 |
|
| Depreciation and amortization |
101 |
|
93 |
|
196 |
|
187 |
|
| Foreign exchange (gain) loss |
1,882 |
|
(29) |
|
2,000 |
|
(114) |
|
|
|
|
|
|
| Total expenses |
11,634 |
|
6,632 |
|
18,269 |
|
12,779 |
|
|
|
|
|
|
|
|
|
|
|
| Income before income taxes |
13,580 |
|
2,174 |
|
15,729 |
|
3,799 |
|
Adjusted EBITDA (4) |
2,382 |
|
1,821 |
|
4,275 |
|
3,070 |
|
Adjusted EBITDA margin |
39 |
% |
33 |
% |
38 |
% |
29 |
% |
|
|
|
|
|
Total AUM (5) |
3,883,071 |
|
2,961,613 |
|
3,883,071 |
|
2,961,613 |
|
Average AUM (5) |
3,676,156 |
|
3,009,256 |
|
3,409,486 |
|
2,885,823 |
|
(1) Includes fund expenses. This is included in "Fund expenses" on the income statement.
(2) Includes direct payouts and internal carried interest and performance fee payout. This is included in "Compensation" on the income statement.
(3) The increase in the quarter and on a year-to-date basis was primarily due to the Company transitioning its employees, effective January 1, 2025, to a "cash-settled" stock-based compensation plan. This required mark-to-market accounting under IFRS 2 which led to market value fluctuations that were driven by NYSE:SII being up 54% in the quarter and 64% on a year-to-date basis. The Q2 balance also includes the effect of the new program's requirement to use graded vesting amortization.
(4) Effective Q1 2025, we changed the name of one of our key non-IFRS measures: "adjusted base EBITDA" to "adjusted EBITDA". This was made to simplify wording and there was no impact to its calculation.
(5) Prior period figures have been reclassified to conform with current presentation.
3 and 6 months ended
Income before income taxes was $13.6 million for the quarter, up from $2.2 million for the quarter ended June 30, 2024 and was $15.7 million on a year-to-date basis, up from $3.8 million for the six months ended June 30, 2024. Adjusted EBITDA was $2.4 million for the quarter, up 31% from $1.8 million for the quarter ended June 30, 2024 and was $4.3 million on a year-to-date basis, up 39% from $3.1 million for the six months ended June 30, 2024. Our three and six months ended results benefited from higher management fees resulting from higher average AUM on market value appreciation across the majority of our funds in this segment. Our income before income taxes also benefited from carried interest crystallization on the wind down of a legacy fixed-term exploration LP and performance fee crystallization in an active mining equities fund.
Private strategies
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
3 months ended |
6 months ended |
|
|
|
|
|
| (In thousands $) |
Jun. 30, 2025 |
Jun. 30, 2024 |
Jun. 30, 2025 |
Jun. 30, 2024 |
|
|
|
|
|
| Management fees |
4,347 |
|
4,561 |
|
8,993 |
|
10,158 |
|
| Fund expenses |
(122) |
|
(100) |
|
(176) |
|
(105) |
|
| Direct payouts |
(396) |
|
(419) |
|
(831) |
|
(918) |
|
| Carried interest and performance fees |
8 |
|
— |
|
8 |
|
— |
|
| Carried interest and performance fee payouts |
(2) |
|
— |
|
(2) |
|
— |
|
|
|
|
|
|
| Net fees |
3,835 |
|
4,042 |
|
7,992 |
|
9,135 |
|
|
|
|
|
|
| Finance income |
768 |
|
3,817 |
|
1,758 |
|
5,406 |
|
| Less: Carried interest and performance fees (net of payouts) |
(6) |
|
— |
|
(6) |
|
— |
|
| Total net revenues |
4,597 |
|
7,859 |
|
9,744 |
|
14,541 |
|
| Add: Carried interest and performance fees (net of payouts) |
6 |
|
— |
|
6 |
|
— |
|
| Gain (loss) on investments |
740 |
|
550 |
|
407 |
|
823 |
|
Fund expenses (1) |
122 |
|
100 |
|
176 |
|
105 |
|
Direct payouts (2) |
398 |
|
419 |
|
833 |
|
918 |
|
| Total revenues |
5,863 |
|
8,928 |
|
11,166 |
|
16,387 |
|
|
|
|
|
|
| Net compensation |
2,105 |
|
3,243 |
|
4,382 |
|
5,959 |
|
Fund expenses (1) |
122 |
|
100 |
|
176 |
|
105 |
|
Direct payouts (2) |
398 |
|
419 |
|
833 |
|
918 |
|
|
|
|
|
|
| SG&A |
394 |
|
485 |
|
832 |
|
892 |
|
| Interest expense |
1 |
|
2 |
|
3 |
|
4 |
|
| Depreciation and amortization |
13 |
|
7 |
|
25 |
|
14 |
|
| Foreign exchange (gain) loss |
2,663 |
|
(454) |
|
2,729 |
|
(1,349) |
|
|
|
|
|
|
| Total expenses |
5,696 |
|
3,802 |
|
8,980 |
|
6,543 |
|
|
|
|
|
|
|
|
|
|
|
| Income before income taxes |
167 |
|
5,126 |
|
2,186 |
|
9,844 |
|
Adjusted EBITDA (3) |
2,105 |
|
4,131 |
|
4,544 |
|
7,691 |
|
Adjusted EBITDA margin |
46 |
% |
53 |
% |
47 |
% |
53 |
% |
|
|
|
|
|
Total AUM (4) |
2,128,620 |
|
2,485,046 |
|
2,128,620 |
|
2,485,046 |
|
Average AUM (4) |
2,172,623 |
|
2,585,756 |
|
2,236,016 |
|
2,616,531 |
|
(1) Includes fund expenses. This is included in "Fund expenses" on the income statement.
(2) Includes direct payouts and internal carried interest and performance fee payout. This is included in "Compensation" on the income statement.
(3) Effective Q1 2025, we changed the name of one of our key non-IFRS measures: "adjusted base EBITDA" to "adjusted EBITDA". This was made to simplify wording and there was no impact to its calculation.
(4) Prior period figures have been reclassified to conform with current presentation.
3 and 6 months ended
Income before income taxes was $0.2 million for the quarter, down 97% from $5.1 million for the quarter ended June 30, 2024 and was $2.2 million on a year-to-date basis, down 78% from $9.8 million for the six months ended June 30, 2024. Adjusted EBITDA was $2.1 million for the quarter, down 49% from $4.1 million for the quarter ended June 30, 2024 and was $4.5 million on a year-to-date basis, down 41% from $7.7 million for the six months ended June 30, 2024. Our three and six months ended results were impacted by lower management fees due to lower commitment fee earning assets and lower finance income due to last year's syndication activity in the first half of the year. Income before income taxes was also impacted by FX losses in the period.
This segment is a cost center that provides capital, balance sheet management and shared services to the Company's subsidiaries.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
3 months ended |
6 months ended |
|
|
|
|
|
| (In thousands $) |
Jun. 30, 2025 |
Jun. 30, 2024 |
Jun. 30, 2025 |
Jun. 30, 2024 |
|
|
|
|
|
| Gain (loss) on investments |
(11) |
|
(143) |
|
9 |
|
(303) |
|
| Finance income |
314 |
|
23 |
|
590 |
|
36 |
|
| Total revenues |
303 |
|
(120) |
|
599 |
|
(267) |
|
|
|
|
|
|
| Net compensation |
6,666 |
|
5,511 |
|
12,998 |
|
11,145 |
|
|
|
|
|
|
Impact of market value fluctuation and graded vesting amortization on cash-settled equity plans (2) |
8,078 |
|
252 |
|
8,396 |
|
407 |
|
| SG&A |
982 |
|
1,116 |
|
2,261 |
|
2,024 |
|
| Interest expense |
174 |
|
190 |
|
342 |
|
387 |
|
| Depreciation and amortization |
483 |
|
432 |
|
882 |
|
847 |
|
| Foreign exchange (gain) loss |
(3,623) |
|
742 |
|
(3,657) |
|
1,991 |
|
|
|
|
|
|
| Total expenses |
12,760 |
|
8,243 |
|
21,222 |
|
16,801 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Income (loss) before income taxes |
(12,457) |
|
(8,363) |
|
(20,623) |
|
(17,068) |
|
Adjusted EBITDA (1) |
(3,866) |
|
(3,827) |
|
(7,694) |
|
(7,124) |
|
(1) Effective Q1 2025, we changed the name of one of our key non-IFRS measures: "adjusted base EBITDA" to "adjusted EBITDA". This was made to simplify wording and there was no impact to its calculation.
(2) The increase in the quarter and on a year-to-date basis was primarily due to the Company transitioning its employees, effective January 1, 2025, to a "cash-settled" stock-based compensation plan. This required mark-to-market accounting under IFRS 2 which led to market value fluctuations that were driven by NYSE:SII being up 54% in the quarter and 64% on a year-to-date basis. The Q2 balance also includes the effect of the new program's requirement to use graded vesting amortization.
3 and 6 months ended
•Net compensation was higher primarily due higher incentive compensation on increased net fee generation.
•Impact of market value fluctuation and graded vest amortization on cash settled equity plans was higher in the quarter and on a year-to-date basis primarily due to a change in accounting requirements as we moved our employees to a new cash-settled stock-based compensation plan this year. Cash-settled stock plans require the use of mark-to-market and graded vest accounting under IFRS 2, which creates the dual impact of: (1) accelerating the amount of vesting that occurs each period; and (2) adding market volatility to each vested amount, in our case, at a time when our stock has appreciated 54% in the quarter and 64% on a year-to-date basis. In contrast, last year, we had an equity-settled program that required each vest to be valued at the original grant date fair value on a constant basis over the entire amortization period
•SG&A was lower in the quarter primarily due to lower technology costs and higher on a six months ended basis primarily due to increased professional services costs.
Dividends
The following dividends were declared by the Company during the six months ended June 30, 2025:
|
|
|
|
|
|
|
|
|
|
|
|
|
| Record date |
Payment date |
Cash dividend
per share |
Total dividend amount (in thousands $) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| March 10, 2025 - Regular dividend Q4 2024 |
March 25, 2025 |
$0.30 |
7,744 |
|
|
| May 20, 2025 - Regular dividend Q1 2025 |
June 4, 2025 |
$0.30 |
7,740 |
|
|
Dividends declared in 2025 (1) |
|
|
15,484 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Subsequent to quarter-end, on August 5, 2025, a regular dividend of $0.30 per common share was declared for the quarter ended June 30, 2025. This dividend is payable on September 2, 2025 to shareholders of record at the close of business on August 18, 2025.
Capital stock
Total capital stock issued and outstanding was 25.8 million (December 31, 2024 - 25.8 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 $0.52 for the quarter and $0.99 on a year-to-date basis compared to $0.53 and $0.98 in the prior periods, respectively. Diluted earnings per share was $0.52 for the quarter and $0.99 on a year-to-date basis compared to $0.51 and $0.96 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 (December 31, 2024 - 12,500) pursuant to our stock option plan with 0.8 years (December 31, 2024 - 1.4 years) remaining on their contractual life, all of which are exercisable.
Liquidity and capital resources
As at June 30, 2025, the Company had $75.1 million (December 31, 2024 - $46.8 million) of cash and cash equivalents. In addition, the Company had $71.5 million of co-investments (December 31, 2024 - $72.8 million) of which $30.6 million (December 31, 2024 - $23.8 million) can be monetized in less than 90 days (liquid co-investments).
As at June 30, 2025, the Company had $nil (December 31, 2024 - $nil) outstanding on its credit facility, which matures on August 8, 2028. As at June 30, 2025, 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 + 2.36%
Covenant terms
•Minimum AUM: $11.7 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 June 30, 2025, the Company had $3.5 million in co-investment commitments in private strategies LPs due within one year (December 31, 2024 - $5.2 million) and $1.4 million due after 12 months (December 31, 2024 - $1.5 million).
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, 2024 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. 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.
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 the liquidity of the Company as determined at the transactional currency level.
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 $75.1 million (December 31, 2024 - $46.8 million) of cash and cash equivalents. In addition, the Company has $71.5 million of co-investments (December 31, 2024 - $72.8 million) of which $30.6 million (December 31, 2024 - $23.8 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.
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 Annual Incentive Plans ("AIP"s).
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 June 30, 2025. 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.
Consolidated Financial Statements
Three and six months ended June 30, 2025
Interim condensed consolidated balance sheets (unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| As at |
|
Jun. 30 |
Dec. 31 |
| (In thousands of U.S. dollars) |
|
2025 |
2024 |
|
|
|
|
| Assets |
|
|
|
| Current |
|
|
|
| Cash and cash equivalents |
|
75,075 |
|
46,834 |
|
| Fees receivable |
|
11,637 |
|
15,393 |
|
| Short-term investments |
(Notes 3 & 10) |
305 |
|
225 |
|
| Other assets |
(Note 5) |
13,737 |
|
14,657 |
|
| Income taxes recoverable |
|
7,728 |
|
2,079 |
|
| Total current assets |
|
108,482 |
|
79,188 |
|
|
|
|
|
| Co-investments |
(Notes 4 & 10) |
71,472 |
|
72,848 |
|
| Other assets |
(Notes 5 & 10) |
31,514 |
|
27,279 |
|
| Property and equipment, net |
|
21,882 |
|
19,185 |
|
| Intangible assets |
(Note 8) |
183,786 |
|
168,254 |
|
| Goodwill |
(Note 8) |
19,149 |
|
19,149 |
|
| Deferred income taxes |
|
3,144 |
|
2,895 |
|
|
|
330,947 |
|
309,610 |
|
| Total assets |
|
439,429 |
|
388,798 |
|
|
|
|
|
| Liabilities and shareholders' equity |
|
|
|
| Current |
|
|
|
| Accounts payable and accrued liabilities |
|
14,761 |
|
7,605 |
|
| Compensation payable |
|
24,698 |
|
11,829 |
|
| Income taxes payable |
|
3,358 |
|
10,844 |
|
| Total current liabilities |
|
42,817 |
|
30,278 |
|
|
|
|
|
| Other accrued liabilities |
|
36,979 |
|
22,958 |
|
|
|
|
|
| Deferred income taxes |
|
14,159 |
|
11,914 |
|
| Total liabilities |
|
93,955 |
|
65,150 |
|
|
|
|
|
| Shareholders' equity |
|
|
|
| Capital stock |
(Note 9) |
449,575 |
|
450,127 |
|
| Contributed surplus |
(Note 9) |
35,020 |
|
36,267 |
|
| Deficit |
|
(57,281) |
|
(67,255) |
|
| Accumulated other comprehensive loss |
|
(81,840) |
|
(95,491) |
|
| Total shareholders' equity |
|
345,474 |
|
323,648 |
|
| Total liabilities and shareholders' equity |
|
439,429 |
|
388,798 |
|
|
|
|
|
| Commitments and provisions |
(Note 14) |
|
|
|
|
|
|
| The accompanying notes form part of the unaudited interim condensed consolidated financial statements |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
"Ron Dewhurst" "Graham Birch"
Director Director
Interim condensed consolidated statements of operations and comprehensive income (unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the three months ended |
For the six months ended |
|
|
|
|
|
|
|
|
Jun. 30 |
Jun. 30 |
Jun. 30 |
Jun. 30 |
| (In thousands of U.S. dollars, except for per share amounts) |
2025 |
2024 |
2025 |
2024 |
|
|
|
|
|
|
| Revenues |
|
|
|
|
|
| Management fees |
|
44,446 |
|
38,325 |
|
84,435 |
|
74,928 |
|
| Carried interest and performance fees |
|
14,807 |
|
698 |
|
14,807 |
|
698 |
|
| Commissions |
|
1,725 |
|
3,332 |
|
2,011 |
|
4,379 |
|
| Finance income |
|
1,213 |
|
4,084 |
|
2,615 |
|
5,894 |
|
| Gain (loss) on investments |
(Notes 3, 4 and 5) |
2,703 |
|
1,133 |
|
4,237 |
|
2,942 |
|
| Co-investment income |
(Note 6) |
280 |
|
416 |
|
431 |
|
690 |
|
| Total revenues |
|
65,174 |
|
47,988 |
|
108,536 |
|
89,531 |
|
|
|
|
|
|
|
| Expenses |
|
|
|
|
|
| Compensation |
(Note 9) |
33,825 |
|
19,225 |
|
53,422 |
|
37,180 |
|
Fund expenses |
|
3,478 |
|
4,100 |
|
5,989 |
|
6,646 |
|
| Selling, general and administrative |
|
4,825 |
|
5,040 |
|
8,952 |
|
9,213 |
|
| Interest expense |
|
286 |
|
715 |
|
566 |
|
1,545 |
|
| Depreciation of property and equipment |
|
637 |
|
568 |
|
1,178 |
|
1,119 |
|
| Foreign exchange (gain) loss |
|
3,263 |
|
122 |
|
3,817 |
|
290 |
|
| Other (income) and expenses |
(Note 7) |
— |
|
(580) |
|
— |
|
(580) |
|
| Total expenses |
|
46,314 |
|
29,190 |
|
73,924 |
|
55,413 |
|
|
|
|
|
|
|
| Income before income taxes for the period |
18,860 |
|
18,798 |
|
34,612 |
|
34,118 |
|
| Provision for income taxes |
|
5,359 |
|
5,438 |
|
9,154 |
|
9,201 |
|
| Net income for the period |
|
13,501 |
|
13,360 |
|
25,458 |
|
24,917 |
|
|
|
|
|
|
|
| Net income per share: |
|
|
|
|
|
| Basic |
(Note 9) |
0.52 |
|
0.53 |
|
0.99 |
|
0.98 |
|
| Diluted |
(Note 9) |
0.52 |
|
0.51 |
|
0.99 |
|
0.96 |
|
|
|
|
|
|
|
| Net income for the period |
|
13,501 |
|
13,360 |
|
25,458 |
|
24,917 |
|
|
|
|
|
|
|
| Other comprehensive income (loss) |
|
|
|
|
|
| Items that may be reclassified subsequently to profit or loss |
|
|
|
|
Foreign currency translation gain (loss) (taxes of $Nil) |
13,550 |
|
(2,432) |
|
13,651 |
|
(8,311) |
|
| Total other comprehensive income (loss) |
13,550 |
|
(2,432) |
|
13,651 |
|
(8,311) |
|
| Comprehensive income (loss) |
|
27,051 |
|
10,928 |
|
39,109 |
|
16,606 |
|
|
|
|
|
|
|
| The accompanying notes form part of the unaudited interim condensed consolidated financial statements |
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 stock |
Contributed surplus |
Deficit |
Accumulated other comprehensive income (loss) |
Total
equity |
|
|
|
|
|
|
|
|
| At Dec. 31, 2024 |
|
25,814,859 |
|
450,127 |
|
36,267 |
|
(67,255) |
|
(95,491) |
|
323,648 |
|
|
|
|
|
|
|
|
|
| Shares released on equity incentive plans |
(Note 9) |
— |
|
— |
|
(1,283) |
|
— |
|
— |
|
(1,283) |
|
| Shares acquired and canceled under normal course issuer bid |
(Note 9) |
(13,215) |
|
(552) |
|
— |
|
— |
|
— |
|
(552) |
|
| Foreign currency translation gain (loss) |
|
— |
|
— |
|
— |
|
— |
|
13,651 |
|
13,651 |
|
| Stock-based compensation |
(Note 9) |
— |
|
— |
|
36 |
|
— |
|
— |
|
36 |
|
| Dividends declared |
(Note 11) |
— |
|
— |
|
— |
|
(15,484) |
|
— |
|
(15,484) |
|
| Net income |
|
— |
|
— |
|
— |
|
25,458 |
|
— |
|
25,458 |
|
Balance, Jun. 30, 2025 |
|
25,801,644 |
|
449,575 |
|
35,020 |
|
(57,281) |
|
(81,840) |
|
345,474 |
|
|
|
|
|
|
|
|
|
| At Dec. 31, 2023 |
|
25,410,151 |
|
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) |
12,261 |
|
462 |
|
(1,382) |
|
— |
|
— |
|
(920) |
|
|
|
|
|
|
|
|
|
| Foreign currency translation gain (loss) |
|
— |
|
— |
|
— |
|
— |
|
(8,311) |
|
(8,311) |
|
| Stock-based compensation |
(Note 9) |
— |
|
— |
|
8,327 |
|
— |
|
— |
|
8,327 |
|
|
|
|
|
|
|
|
|
| Dividends declared |
|
— |
|
— |
|
— |
|
(12,932) |
|
— |
|
(12,932) |
|
| Net income |
|
— |
|
— |
|
— |
|
24,917 |
|
— |
|
24,917 |
|
Balance, Jun. 30, 2024 |
|
25,396,091 |
|
434,263 |
|
42,226 |
|
(77,417) |
|
(83,249) |
|
315,823 |
|
|
|
|
|
|
|
|
|
| The accompanying notes form part of the unaudited interim condensed consolidated financial statements |
|
|
|
Interim condensed consolidated statements of cash flows (unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the six months ended |
|
|
|
|
|
|
Jun. 30 |
Jun. 30 |
| (In thousands of U.S. dollars) |
|
2025 |
2024 |
|
|
|
|
| Operating activities |
|
|
|
| Net income for the period |
|
25,458 |
|
24,917 |
|
| Add (deduct) non-cash items: |
|
|
|
| (Gain) loss on investments |
|
(4,237) |
|
(2,942) |
|
| Stock-based compensation |
|
36 |
|
8,327 |
|
| Depreciation of property and equipment |
|
1,178 |
|
1,119 |
|
| Deferred income tax expense |
|
1,419 |
|
1,627 |
|
| Current income tax expense |
|
7,735 |
|
7,574 |
|
| Other items |
|
(390) |
|
(2,573) |
|
| Income taxes paid |
|
(20,670) |
|
(3,881) |
|
| Changes in: |
|
|
|
| Fees receivable |
|
3,756 |
|
(1,070) |
|
| Other assets |
|
1,914 |
|
(7,303) |
|
| Accounts payable, accrued liabilities and compensation payable |
|
19,561 |
|
(4,763) |
|
| Cash provided by (used in) operating activities |
|
35,760 |
|
21,032 |
|
|
|
|
|
| Investing activities |
|
|
|
| Purchase of investments |
|
(5,866) |
|
(10,410) |
|
| Sale of investments |
|
11,385 |
|
10,763 |
|
| Purchase of property and equipment |
|
(1,115) |
|
(1,116) |
|
| Management contract consideration |
|
— |
|
(3,906) |
|
| Cash provided by (used in) investing activities |
|
4,404 |
|
(4,669) |
|
|
|
|
|
| Financing activities |
|
|
|
| Acquisition of common shares for equity incentive plan |
|
— |
|
(963) |
|
| Acquisition of common shares under normal course issuer bid |
|
(552) |
|
— |
|
| Repayment of lease liabilities |
|
(530) |
|
(658) |
|
| Contributions from non-controlling interest |
|
1,689 |
|
2,796 |
|
| Advances from loan facility |
|
— |
|
6,440 |
|
|
|
|
|
| Dividends paid |
|
(15,484) |
|
(12,932) |
|
| Cash provided by (used in) financing activities |
|
(14,877) |
|
(5,317) |
|
| Effect of foreign exchange on cash balances |
|
2,954 |
|
(1,978) |
|
| Net increase (decrease) in cash and cash equivalents during the period |
|
28,241 |
|
9,068 |
|
| Cash and cash equivalents, beginning of the period |
|
46,834 |
|
20,658 |
|
| Cash and cash equivalents, end of the period |
|
75,075 |
|
29,726 |
|
| Cash and cash equivalents: |
|
|
|
| Cash |
|
69,013 |
|
27,024 |
|
| Short-term deposits |
|
6,062 |
|
2,702 |
|
|
|
75,075 |
|
29,726 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| The accompanying notes form part of the unaudited interim condensed consolidated financial statements |
|
|
|
|
|
SPROTT INC.
Notes to the interim condensed consolidated financial statements (unaudited)
For the three and six months ended June 30, 2025 and 2024
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 June 30, 2025, specifically, IAS 34 Interim Financial Reporting as issued by the International Accounting Standards Board ("IASB").
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, 2024 annual audited consolidated financial statements and have been applied consistently to the interim financial statements as at and for the three and six months ended June 30, 2025.
The interim financial statements have been authorized for issue by a resolution of the board of directors of the Company on August 5, 2025.
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 consolidates interest in its funds or subsidiaries if the Company has control over the entity. 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.
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.
SPROTT INC.
Notes to the interim condensed consolidated financial statements (unaudited)
For the three and six months ended June 30, 2025 and 2024
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"); and
•Sprott Resource Lending Corp. ("SRLC")
Other accounting policies
All other accounting policies, judgments, and estimates described in the December 31, 2024 annual audited consolidated financial statements have been applied consistently to the interim financial statements unless otherwise noted.
SPROTT INC.
Notes to the interim condensed consolidated financial statements (unaudited)
For the three and six months ended June 30, 2025 and 2024
3 Short-term investments
Primarily consist of equity investments in public entities the Company receives as consideration during private strategies, managed equities and broker-dealer activities (in thousands $):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Classification and measurement criteria |
Jun. 30, 2025 |
Dec. 31, 2024 |
|
|
|
|
| Public equities and share purchase warrants |
FVTPL |
305 |
|
225 |
|
|
|
|
|
| Total short-term investments |
|
305 |
|
225 |
|
|
|
|
|
|
|
|
|
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 criteria |
Jun. 30, 2025 |
Dec. 31, 2024 |
|
|
|
|
Co-investments in funds (1) |
FVTPL |
71,472 |
|
72,848 |
|
|
|
|
|
|
|
|
|
| Total co-investments |
|
71,472 |
|
72,848 |
|
(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.
SPROTT INC.
Notes to the interim condensed consolidated financial statements (unaudited)
For the three and six months ended June 30, 2025 and 2024
5 Other assets and non-controlling interest
Other assets
Consist of the following (in thousands $):
|
|
|
|
|
|
|
|
|
|
Jun. 30, 2025 |
Dec. 31, 2024 |
|
|
|
| Assets attributable to non-controlling interest |
17,526 |
|
13,934 |
|
| Fund recoveries and investment receivables |
9,182 |
|
10,071 |
|
| Advance on unrealized carried interest |
8,009 |
|
7,750 |
|
Private holdings (1) |
4,540 |
|
4,371 |
|
| Prepaid expenses |
2,955 |
|
4,158 |
|
Other (2) |
3,039 |
|
1,652 |
|
| Total other assets |
45,251 |
|
41,936 |
|
(1) Private holdings 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.
(2) Includes miscellaneous third-party receivables.
Non-controlling interest assets and liabilities
Non-controlling interest consists of third-party interest in the Company's co-investments that are consolidated. Assets attributable to non-controlling interest represent the underlying investments in the funds. The following table provides a summary of amounts attributable to this non-controlling interest (in thousands $):
|
|
|
|
|
|
|
|
|
|
Jun. 30, 2025 |
Dec. 31, 2024 |
|
|
|
| Assets |
17,526 |
13,934 |
Liabilities - current (1) |
(1,993) |
(90) |
Liabilities - long-term (1) |
(15,533) |
(13,844) |
(1) Current and long-term liabilities attributable to non-controlling interest are included in accounts payable and accrued liabilities and other accrued liabilities, respectively.
SPROTT INC.
Notes to the interim condensed consolidated financial statements (unaudited)
For the three and six months ended June 30, 2025 and 2024
6 Co-investment income
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the three months ended |
For the six months ended |
|
Jun. 30, 2025 |
Jun. 30, 2024 |
Jun. 30, 2025 |
Jun. 30, 2024 |
|
|
|
|
|
| Co-investment income |
280 |
|
416 |
|
431 |
690 |
| Income attributable to non-controlling interest |
1,048 |
|
205 |
|
1,806 |
336 |
| Expense attributable to non-controlling interest |
(1,048) |
|
(205) |
|
(1,806) |
(336) |
| Total co-investment income |
280 |
|
416 |
431 |
690 |
7 Other (income) and expenses
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the three months ended |
For the six months ended |
|
Jun. 30, 2025 |
Jun. 30, 2024 |
Jun. 30, 2025 |
Jun. 30, 2024 |
|
|
|
|
|
|
|
|
|
|
| Revaluation of contingent consideration |
— |
|
(580) |
|
— |
(580) |
| Total other (income) and expenses |
— |
|
(580) |
— |
(580) |
SPROTT INC.
Notes to the interim condensed consolidated financial statements (unaudited)
For the three and six months ended June 30, 2025 and 2024
8 Goodwill and intangible assets
Consist of the following (in thousands $):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Goodwill |
Fund
management
contracts
(indefinite life) |
Total |
|
| Cost |
|
|
|
|
| At Dec. 31, 2023 |
132,251 |
|
182,902 |
|
315,153 |
|
|
| Net exchange differences |
— |
|
(14,648) |
|
(14,648) |
|
|
| At Dec. 31, 2024 |
132,251 |
|
168,254 |
|
300,505 |
|
|
Additions (1) |
— |
|
6,468 |
|
6,468 |
|
|
|
|
|
|
|
| Net exchange differences |
— |
|
9,064 |
|
9,064 |
|
|
| At Jun. 30, 2025 |
132,251 |
|
183,786 |
|
316,037 |
|
|
|
|
|
|
|
| Impairment |
|
|
|
|
| At Dec. 31, 2023 |
(113,102) |
|
— |
|
(113,102) |
|
|
| Impairment charge for the year |
— |
|
— |
|
— |
|
|
| At Dec. 31, 2024 |
(113,102) |
|
— |
|
(113,102) |
|
|
| Impairment charge for the period |
— |
|
— |
|
— |
|
|
|
|
|
|
|
|
|
|
|
|
| At Jun. 30, 2025 |
(113,102) |
|
— |
|
(113,102) |
|
|
|
|
|
|
|
| Net book value at: |
|
|
|
|
| At Dec. 31, 2024 |
19,149 |
|
168,254 |
|
187,403 |
|
|
| At Jun. 30, 2025 |
19,149 |
|
183,786 |
|
202,935 |
|
|
(1) See "Indefinite life fund management contracts" on page 34 for more details
SPROTT INC.
Notes to the interim condensed consolidated financial statements (unaudited)
For the three and six months ended June 30, 2025 and 2024
Goodwill
The Company has identified 5 cash generating units ("CGU") as follows:
•Exchange listed products
•Managed equities
•Private strategies
•Brokerage
•Corporate
As at June 30, 2025, the Company had allocated $19.1 million (December 31, 2024 - $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 June 30, 2025, the Company had indefinite life intangibles related to fund management contracts of $183.8 million (December 31, 2024 - $168.3 million). These contracts are held within the exchange listed products and managed equities CGUs. The addition of $6.5 million in the second quarter of the year was related to the remeasurement of a provision related to a historical acquisition.
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 June 30, 2025.
SPROTT INC.
Notes to the interim condensed consolidated financial statements (unaudited)
For the three and six months ended June 30, 2025 and 2024
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, 2023 |
25,410,151 |
|
434,764 |
|
| Shares acquired for equity incentive plan |
(26,321) |
|
(963) |
|
|
|
|
| Shares issued and released on equity incentive plans |
479,211 |
|
18,348 |
|
| Shares acquired and canceled under normal course issuer bid |
(48,182) |
|
(2,022) |
|
|
|
|
|
|
|
| At Dec. 31, 2024 |
25,814,859 |
|
450,127 |
|
|
|
|
|
|
|
| Shares acquired and canceled under normal course issuer bid |
(13,215) |
|
(552) |
|
|
|
|
|
|
|
| At Jun. 30, 2025 |
25,801,644 |
|
449,575 |
|
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, 2023 |
35,281 |
|
|
|
| Released on equity incentive plans |
(16,628) |
|
| Stock-based compensation |
17,614 |
|
|
|
| At Dec. 31, 2024 |
36,267 |
|
| Released on equity incentive plans |
(1,283) |
|
| Stock-based compensation |
36 |
|
| At Jun. 30, 2025 |
35,020 |
|
SPROTT INC.
Notes to the interim condensed consolidated financial statements (unaudited)
For the three and six months ended June 30, 2025 and 2024
Equity incentive plans
In the first quarter of the year, the Company implemented a cash-settled restricted stock unit ("RSU") plan to replace the existing equity-settled plans for Canadian and U.S. employees. Under the new plan, employees are granted cash-settled RSUs. On each vest date, assuming the vesting criteria is met, the cash value of the RSUs will be paid out to employees. The Company granted nil cash-settled RSUs during the three months ended June 30, 2025 (three months ended June 30, 2024 - nil) and 976,550 cash-settled RSUs during the six months ended June 30, 2025 (six months ended June 30, 2024 - nil). These cash-settled RSUs will vest over a period of up to three years and are expensed on a graded vesting basis.
Under the Company's legacy equity plans, as of June 30, 2025, there were nil unvested shares held in the Sprott Inc. 2011 Employee Profit Sharing Plan Trust (the "Trust") (December 31, 2024 - nil). There were no equity-settled RSUs granted during the three and six months ended June 30, 2025 (three and six months ended June 30, 2024 - nil). There are 12,500 options outstanding (December 31, 2024 - 12,500) with a weighted average exercise price of CAD$27.30 and 0.8 years (December 31, 2024 - 1.4 years) remaining on their contractual life.
The company recorded stock-based compensation of $18.6 million during the three months ended June 30, 2025 (three months ended June 30, 2024 - $4.3 million) and $24.8 million during the six months ended June 30, 2025 (six months ended June 30, 2024 - $9 million).
Basic and diluted earnings per share
The following table presents the calculation of basic and diluted earnings per common share:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the three months ended |
For the six months ended |
|
|
|
Jun. 30, 2025 |
Jun. 30, 2024 |
Jun. 30, 2025 |
Jun. 30, 2024 |
|
|
|
|
|
|
|
| Numerator (in thousands $): |
|
|
|
|
|
|
| Net income - basic and diluted |
|
|
13,501 |
|
13,360 |
|
25,458 |
|
24,917 |
|
|
|
|
|
|
|
|
| Denominator (number of shares in thousands): |
|
|
|
|
|
|
| Weighted average number of common shares |
|
|
25,802 |
|
25,863 |
|
25,806 |
|
25,863 |
|
| Weighted average number of unvested shares in the Trust |
|
|
— |
|
(467) |
|
— |
|
(461) |
|
| Weighted average number of common shares - basic |
|
|
25,802 |
|
25,396 |
|
25,806 |
|
25,402 |
|
| Weighted average number of dilutive stock options |
|
|
13 |
|
13 |
|
13 |
|
13 |
|
| Weighted average number of unvested shares under equity incentive plan |
|
|
5 |
|
630 |
|
5 |
|
624 |
|
| Weighted average number of common shares - diluted |
|
|
25,820 |
|
26,039 |
|
25,824 |
|
26,039 |
|
|
|
|
|
|
|
|
| Net income per common share |
|
|
|
|
|
|
| Basic |
|
|
0.52 |
|
0.53 |
|
0.99 |
|
0.98 |
|
| Diluted |
|
|
0.52 |
|
0.51 |
|
0.99 |
|
0.96 |
|
SPROTT INC.
Notes to the interim condensed consolidated financial statements (unaudited)
For the three and six months ended June 30, 2025 and 2024
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 June 30, 2025 and 2024, all entities were in compliance with their respective capital requirements.
SPROTT INC.
Notes to the interim condensed consolidated financial statements (unaudited)
For the three and six months ended June 30, 2025 and 2024
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 June 30, 2025 and December 31, 2024 (in thousands $).
Short-term investments
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Jun. 30, 2025 |
Level 1 |
Level 2 |
Level 3 |
Total |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Public equities and share purchase warrants |
253 |
42 |
10 |
305 |
|
|
|
|
|
|
|
|
|
|
| Total recurring fair value measurements |
253 |
|
42 |
|
10 |
|
305 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Dec. 31, 2024 |
Level 1 |
Level 2 |
Level 3 |
Total |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Public equities and share purchase warrants |
172 |
47 |
|
6 |
|
225 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Total recurring fair value measurements |
172 |
|
47 |
|
6 |
|
225 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Co-investments
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Jun. 30, 2025 |
Level 1 |
Level 2 |
Level 3 |
Total |
|
|
|
|
|
Co-investments (1) |
10,623 |
60,849 |
— |
71,472 |
| Total recurring fair value measurements |
10,623 |
|
60,849 |
|
— |
|
71,472 |
|
|
|
| Dec. 31, 2024 |
Level 1 |
Level 2 |
Level 3 |
Total |
|
|
|
|
|
Co-investments (1) |
5,511 |
67,337 |
— |
72,848 |
| Total recurring fair value measurements |
5,511 |
67,337 |
— |
72,848 |
(1) Co-investments also include investments made in funds which the Company consolidates that directly hold publicly traded equities, precious metals or critical materials.
SPROTT INC.
Notes to the interim condensed consolidated financial statements (unaudited)
For the three and six months ended June 30, 2025 and 2024
Other assets
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Jun. 30, 2025 |
Level 1 |
Level 2 |
Level 3 |
Total |
|
|
|
|
|
| Private holdings |
— |
|
— |
|
4,540 |
|
4,540 |
|
| Assets attributable to non-controlling interest |
— |
|
17,526 |
|
— |
|
17,526 |
|
| Total recurring fair value measurements |
— |
|
17,526 |
|
4,540 |
|
22,066 |
|
|
|
| Dec. 31, 2024 |
Level 1 |
Level 2 |
Level 3 |
Total |
|
|
|
|
|
| Private holdings |
— |
|
— |
|
4,371 |
|
4,371 |
|
| Assets attributable to non-controlling interest |
— |
|
13,934 |
|
— |
|
13,934 |
|
| Total recurring fair value measurements |
— |
|
13,934 |
|
4,371 |
|
18,305 |
|
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 - Jun. 30, 2025 |
|
Dec. 31, 2024 |
Purchases and reclassifications |
Sales |
Net unrealized gains (losses) included in net income |
Jun. 30, 2025 |
|
|
|
|
|
|
| Share purchase warrants |
6 |
— |
— |
4 |
10 |
|
|
|
|
|
|
| Total |
6 |
— |
— |
4 |
10 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Changes in the fair value of Level 3 measurements - Dec. 31, 2024 |
|
Dec. 31, 2023 |
Purchases and reclassifications |
Sales |
Net unrealized gains (losses) included in net income |
Dec. 31, 2024 |
| Share purchase warrants |
2 |
23 |
— |
(19) |
6 |
| Total |
2 |
23 |
— |
(19) |
6 |
SPROTT INC.
Notes to the interim condensed consolidated financial statements (unaudited)
For the three and six months ended June 30, 2025 and 2024
Other assets
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Changes in the fair value of Level 3 measurements - Jun. 30, 2025 |
|
Dec. 31, 2024 |
Purchases and reclassifications |
Sales |
Net unrealized gains (losses) included in net income |
Jun. 30, 2025 |
|
|
|
|
|
|
| Private holdings |
4,371 |
— |
— |
169 |
4,540 |
| Total |
4,371 |
— |
— |
169 |
4,540 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Changes in the fair value of Level 3 measurements - Dec. 31, 2024 |
|
Dec. 31, 2023 |
Purchases and reclassifications |
Sales |
Net unrealized gains (losses) included in net income |
Dec. 31, 2024 |
| Private holdings |
4,890 |
— |
— |
(519) |
4,371 |
| Total |
4,890 |
— |
— |
(519) |
4,371 |
During the six months ended June 30, 2025, the Company transferred public equities of $nil (December 31, 2024 - $nil) 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:
|
|
|
|
|
|
| Type |
Valuation technique |
| Public equities, precious metals and share purchase warrants |
Fair values are determined using publicly available prices or pricing models which incorporate all available market-observable inputs. |
| Co-investments |
Fair values are based on the last available net asset value. |
| Fixed income securities |
Fair values are based on independent market data providers or third-party broker quotes. |
| Private holdings |
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. The potential impact of a 5% change in the significant unobservable inputs on profit or loss would be approximately $0.2 million (December 31, 2024 - $0.2 million).
Included in compensation payable and other accrued liabilities are liabilities related to the cash-settled RSUs of $21.9 million (December 31, 2024 - $nil) which are carried at fair value based on the underlying stock price of Sprott Inc. shares.
Financial instruments not carried at fair value
The carrying amounts of fees receivable, other assets, accounts payable and accrued liabilities and compensation payable excluding the above mentioned RSUs represent a reasonable approximation of fair value.
SPROTT INC.
Notes to the interim condensed consolidated financial statements (unaudited)
For the three and six months ended June 30, 2025 and 2024
11 Dividends
The following dividends were declared by the Company during the six months ended June 30, 2025:
|
|
|
|
|
|
|
|
|
|
|
|
| Record date |
Payment date |
Cash dividend
per share |
Total dividend amount (in thousands $) |
|
|
|
|
|
|
|
|
| March 10, 2025 - Regular dividend Q4 2024 |
March 25, 2025 |
$0.30 |
7,744 |
| May 20, 2025 - Regular dividend Q1 2025 |
June 4, 2025 |
$0.30 |
7,740 |
Dividends declared in 2025 (1) |
|
|
15,484 |
|
(1) Subsequent to quarter-end, on August 5, 2025, a regular dividend of $0.30 per common share was declared for the quarter ended June 30, 2025. This dividend is payable on September 2, 2025 to shareholders of record at the close of business on August 18, 2025.
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, revaluation of contingent considerations, carried interest and performance fees and carried interest and performance fee payouts (adjusted EBITDA).
Adjusted 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.
SPROTT INC.
Notes to the interim condensed consolidated financial statements (unaudited)
For the three and six months ended June 30, 2025 and 2024
The following tables present the operations of the Company's segments (in thousands $):
For the three months ended June 30, 2025
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Exchange listed products |
Managed
equities |
Private strategies |
Corporate |
Consolidation, elimination and all other segments |
Consolidated |
| Total revenue |
33,766 |
25,214 |
5,863 |
303 |
28 |
65,174 |
| Total expenses |
15,830 |
11,634 |
5,696 |
12,760 |
394 |
46,314 |
| Income (loss) before income taxes |
17,936 |
13,580 |
167 |
(12,457) |
(366) |
18,860 |
| Adjusted EBITDA |
24,881 |
2,382 |
2,105 |
(3,866) |
(49) |
25,453 |
For the three months ended June 30, 2024
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Exchange listed products |
Managed
equities |
Private strategies |
Corporate |
Consolidation, elimination and all other segments |
Consolidated |
| Total revenue |
31,290 |
8,806 |
8,928 |
(120) |
(916) |
47,988 |
| Total expenses |
9,636 |
6,632 |
3,802 |
8,243 |
877 |
29,190 |
| Income (loss) before income taxes |
21,654 |
2,174 |
5,126 |
(8,363) |
(1,793) |
18,798 |
| Adjusted EBITDA |
20,524 |
1,821 |
4,131 |
(3,827) |
(274) |
22,375 |
For the six months ended June 30, 2025
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Exchange listed products |
Managed
equities |
Private strategies |
Corporate |
Consolidation, elimination and all other segments |
Consolidated |
| Total revenue |
62,909 |
33,998 |
11,166 |
599 |
(136) |
108,536 |
| Total expenses |
24,424 |
18,269 |
8,980 |
21,222 |
1,029 |
73,924 |
| Income (loss) before income taxes |
38,485 |
15,729 |
2,186 |
(20,623) |
(1,165) |
34,612 |
| Adjusted EBITDA |
46,536 |
4,275 |
4,544 |
(7,694) |
(307) |
47,354 |
For the six months ended June 30, 2024
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Exchange listed products |
Managed
equities |
Private strategies |
Corporate |
Consolidation, elimination and all other segments |
Consolidated |
| Total revenue |
57,510 |
16,578 |
16,387 |
(267) |
(677) |
89,531 |
| Total expenses |
17,331 |
12,779 |
6,543 |
16,801 |
1,959 |
55,413 |
| Income (loss) before income taxes |
40,179 |
3,799 |
9,844 |
(17,068) |
(2,636) |
34,118 |
| Adjusted EBITDA |
39,224 |
3,070 |
7,691 |
(7,124) |
(735) |
42,126 |
SPROTT INC.
Notes to the interim condensed consolidated financial statements (unaudited)
For the three and six months ended June 30, 2025 and 2024
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 six months ended |
|
Jun. 30, 2025 |
Jun. 30, 2024 |
Jun. 30, 2025 |
Jun. 30, 2024 |
| Canada |
43,110 |
|
42,046 |
|
79,981 |
|
80,318 |
|
| United States |
22,064 |
|
5,942 |
|
28,555 |
|
9,213 |
|
|
65,174 |
|
47,988 |
|
108,536 |
|
89,531 |
|
13 Loan facility
As at June 30, 2025, the Company had $nil (December 31, 2024 - $nil) outstanding on its credit facility, which matures on August 8, 2028. As at June 30, 2025, 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 + 2.36%
Covenant terms
•Minimum AUM: $11.7 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 June 30, 2025, the Company had $3.5 million in co-investment commitments in private strategies LPs due within one year (December 31, 2024 - $5.2 million) and $1.4 million due after 12 months (December 31, 2024 - $1.5 million).
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