Sprott Inc. announces 2012 year end results

TORONTO, March 28, 2013 /CNW/ - Sprott Inc. (TSX: SII) ("Sprott" or the 
"Company") today announced its financial results for the year ended 
December31, 2012. 
2012 Overview 


    --  Assets Under Management ("AUM") were $9.9 billion as at
        December 31, 2012, compared to $9.1 billion as at December 31,
        2011 and $10.3 billion as at September 30, 2012
    --  Assets Under Administration ("AUA") were $3.7 billion as at
        December 31, 2012, compared to $4.4 billion as at December 31,
        2011
    --  Management Fees were $118.5 million, a decrease of 19.3%
        compared with the year ended December 31, 2011
    --  Base EBITDA was $52.5 million ($0.31 per share) compared with
        $69.4 million ($0.41 per share) for the year ended December 31,
        2011, a decrease of 24.4%
    --  EBITDA was $59.6 million ($0.35 per share), compared with $64.5
        million ($0.38 per share) for the year ended December 31, 2011,
        a decrease of 7.5%
    --  Net income was $32.0 million ($0.19 per share) for the year
        ended December 31, 2012, a decrease of 3.2% from $33.0 million
        ($0.20 per share) in the year ended December 31, 2011
    --  Raised US $1.6 billion through follow-on offerings of Sprott
        Physical Gold Trust and Sprott Physical Silver Trust Units
    --  Completed the initial public offering of the Sprott Physical
        Platinum and Palladium Trust for gross proceeds of US $280
        million
    --  Finalized acquisition of Toscana Capital Corporation and
        Toscana Energy Corporation (now "Sprott Toscana")
    --  Sprott Resource Corp. marked five years in operation with a
        track record that placed it near the top of all
        resource-focused private equity strategies over the same period

Subsequent events:
    --  Named John Wilson and Scott Colbourne Co-Chief Investment
        Officers of Sprott Asset Management LP
    --  Completed non-brokered private placement with an institutional
        investor for gross proceeds of $25 million
    --  Signed joint venture agreement to launch new offshore fund with
        Zijin Mining Group Co., Ltd.

"In 2012, precious metals equities traded at increasingly depressed valuations 
over the year, while government stimulus programs pushed broader equity 
indices higher," said Peter Grosskopf, Chief Executive Officer of Sprott. "The 
combination of these factors caused several of our principal equities 
strategies to post losses for the year, which had a negative impact on our 
financial results."

"While we are confident in our positioning, the expertise of our investment 
team and our ability to deliver superior results over the long term, we have 
also taken immediate steps to improve our performance," continued Mr. 
Grosskopf. "These include the appointments of John Wilson and Scott Colbourne 
as co-Chief Investment Officers of Sprott Asset Management. John and Scott 
will direct the investment management functions of Sprott Asset Management and 
will be focused on optimizing idea sharing and risk management while 
reinforcing our results-oriented culture."

"Our business continued to grow in 2012, due largely to the success of our 
bullion products franchise," continued Mr. Grosskopf. "On the year, we raised 
approximately $1.9 billion through follow-on offerings of our physical gold 
and silver trusts and the launch of our newest publicly-traded bullion 
product, the Sprott Physical Platinum and Palladium Trust. Our private equity 
and lending businesses continue to perform well and were responsible for the 
majority of our performance fee revenue during the year."

"Looking ahead, one of our key priorities will be leveraging our global brand 
recognition to establish partnerships to manage capital for international 
clients," added Mr. Grosskopf. "We are pleased with the early results of our 
efforts in this area and recently signed a joint venture agreement to launch a 
new offshore fund in partnership with China's largest gold miner. We are also 
in the process of marketing our first institutionally-focused offshore fund, 
which will draw on the combined resources of our entire investment and 
technical teams."
                             For the year ended              
                                 December 31,                

($ in millions)                        2012            2011
                                                             

AUM, beginning of year                    9,137         8,545

Net sales                                 1,308         1,418

Business acquisitions                       428           695

Market value depreciation of              (942)       (1,521)
portfolios

AUM, end of year                          9,931         9,137
    Assets Under Management

At December31, 2012, AUM increased by 8.7% to $9.9 billion from $9.1 billion 
at December31, 2011.

Net sales for the year ended December 31, 2012 were $1.3 billion. The initial 
and follow-on offering of Sprott 2012 Flow-Through LP, the launch of the 
Sprott Silver Equities Class, the Sprott Enhanced Equity Class, the Sprott 
Enhanced Balanced Fund and follow-on offerings of Sprott Physical Gold Trust 
and Sprott Physical Silver Trust along with the initial public offering of 
Sprott Physical Platinum and Palladium Trust added approximately $1.9 billion 
to sales for the year ended December 31, 2012. Collectively, the Company's 
other Mutual Funds, Managed Accounts and Domestic Alternative Investment 
Strategies experienced net redemptions of approximately $0.4 billion for the 
year ended December 31, 2012. The Offshore Funds collectively, had redemptions 
resulting in net outflows for the year ended December 31, 2012 of 
approximately $0.2 billion or 39.9% of offshore AUM at the beginning of the 
year. The launch of Resource Income Partners Limited Partnership by Resource 
Capital Investment Corp. added $50 million to AUM.

Acquisitions during the year added $0.4 billion to the Company's AUM.

Average AUM for the year ended December31, 2012 was $9.6 billion compared 
with $9.8 for the year ended December31, 2011, a decrease of 1.3%.

Income Statement

Total revenue for the year ended December31, 2012, decreased by 1.9% to 
$158.2 million from $161.3 million for the year ended December 31, 2011.

For the year ended December 31, 2012, management fees decreased by 19.3% to 
$118.5 million from $146.8 million the prior year. The decrease in 
management fees is primarily attributable to both the lower average AUM for 
the year ended December 31, 2012 as well as an increase in lower fee offerings 
such as the physical bullion trusts and fixed-income products.

Gains from proprietary investments, which include investments in products that 
Sprott manages, certain other resource-related stocks and warrants, and 
bullion, totaled $2.3 million, compared with losses of $8.0 million during 
2011.

Commission revenue for the year ended December31, 2012, decreased by $0.7 
million to $13.5 million from $14.2 million during the prior year. During the 
year ended December 31, 2012, Sprott Global Resource Investments Ltd. ("GRIL") 
and Sprott Private Wealth LP ("SPW") earned commissions primarily from the 
sale and purchase of stocks by its clients, private placements and from sales 
of Sprott sponsored Funds and shares of Managed Companies to GRIL and SPW 
clients.

Total expenses for the year ended December 31, 2012 were $116.4 million, a 
decrease of 0.7% from $117.3 million in the year ended December31, 2011.

Base EBITDA, which excludes the impact of income taxes and certain non-cash 
expenses and gains or losses on proprietary investments, decreased by 24.4% to 
$52.5 million from $69.4 million in 2011.

Net income for the year ended December31, 2012 was $32.0 million ($0.19 per 
share), compared with $33.0 million ($0.20 per share) earned during the year 
ended December31, 2011.

For the fourth quarter of 2012, management fee revenues decreased to $29.2 
million from $33.7 million during the fourth quarter of 2011. Gross 
performance fees increased to $9.8 million from $2.5 million in the fourth 
quarter of 2011. Base EBITDA was $15.5 million, compared with $16.0 million in 
the fourth quarter of 2011. Net income was $3.3 million ($0.02 per share) 
compared to $4.6 million ($0.03 per share) in the prior year period.

Dividends

On November 13 2012, a dividend of $0.03 per common share was declared for 
the quarter ended September 30, 2012. This dividend was paid on December 4, 
2012 to shareholders of record at the close of business on November 22, 2012.

On March 26, 2013, a dividend of $0.03 per common share was declared for the 
quarter ended December 31, 2012. The dividend will be paid on April 23, 2013 
to shareholders of record at the close of business on April 8, 2013.

Conference Call and Webcast

A conference call and webcast will be held today, Thursday, March 28, 2013 at 
10:00am ET to discuss the Company's financial results. To participate in the 
call, please dial 647-427-7450 or 1-888-231-8191 ten minutes prior to the 
scheduled start of the call. A taped replay of the conference call will be 
available until Thursday, April 4, 2014 by calling 416-849-0833 or 
1-855-859-2056, reference number 26711530. The conference call will be webcast 
live at www.sprottinc.com and www.newswire.ca

*Non-IFRS Financial Measures

This press release includes financial terms (including AUM, AUA, EBITDA, Base 
EBITDA, Cash Flow from Operations and net sales) that the Company utilizes to 
assess the financial performance of its business that are not measures 
recognized under International Financial Reporting Standards ("IFRS"). These 
non-IFRS measures should not be considered alternatives to performance 
measures determined in accordance with IFRS and may not be comparable to 
similar measures presented by other issuers. For additional information 
regarding the Company's use of non-IFRS measures, including the calculation of 
these measures, please refer to the "Non-IFRS Financial Measures" section of 
the Company's Management's Discussion and Analysis and its financial 
statements available on the Company's website at www.sprottinc.com and on 
SEDAR at www.sedar.com.

Forward-Looking Statements

This release contains "forward-looking statements" which reflect the current 
expectations of the Company. These statements reflect management's current 
beliefs with respect to future events and are based on information currently 
available to management. Forward-looking statements involve significant known 
and unknown risks, uncertainties and assumptions. Many factors could cause 
actual results, performance or achievements to be materially different from 
any future results, performance or achievements that may be expressed or 
implied by such forward-looking statements including, without limitation, 
those listed under the heading "Risk Factors" in the Company's annual 
information form dated March 26, 2013. Should one or more of these risks or 
uncertainties materialize, or should assumptions underlying the 
forward-looking statements prove incorrect, actual results, performance or 
achievements could vary materially from those expressed or implied by the 
forward-looking statements contained in this release. Although the 
forward-looking statements contained in this release are based upon what the 
Company believes to be reasonable assumptions, the Company cannot assure 
investors that actual results, performance or achievements will be consistent 
with these forward-looking statements. These forward-looking statements are 
made as of the date of this release and the Company does not assume any 
obligation to update or revise them to reflect new events or circumstances.

About Sprott Inc.

Sprott Inc. is a leading independent asset manager dedicated to achieving 
superior returns for its clients over the long term. The Company currently 
operates through four business units: Sprott Asset Management LP, Sprott 
Private Wealth LP, Sprott Consulting LP, and Sprott U.S. Holdings Inc. 
Sprott Asset Management is the investment manager of the Sprott family of 
mutual funds and hedge funds and discretionary managed accounts; Sprott 
Private Wealth provides wealth management services to high net worth 
individuals; and Sprott Consulting provides management, administrative and 
consulting services to other companies. Sprott U.S. Holdings Inc. includes 
Sprott Global Resource Investments Ltd, Sprott Asset Management USA Inc., and 
Resource Capital Investments Corporation. Sprott Inc. is headquartered in 
Toronto, Canada, and is listed on the Toronto Stock Exchange under the symbol 
"SII". For more information on Sprott Inc., please visit www.sprottinc.com.



Investor contact information:

Glen Williams

Director of Communications

Sprott Inc.

(416) 943-4394

gwilliams@sprott.com

SOURCE: Sprott Inc.

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CO: Sprott Inc.
ST: Ontario
NI: FIN ERN CONF 

-0- Mar/28/2013 11:00 GMT


 
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