Sprott Inc. announces 2013 first quarter results

TORONTO, May 8, 2013 /CNW/ - Sprott Inc. (TSX: SII) ("Sprott" or the 
"Company") today announced its financial results for the three months ended 
March31, 2013. 
Q1 2013 Overview 


    --  Assets Under Management ("AUM") were $9.1 billion as at
        March 31, 2013, compared to $9.7 billion as at March 31, 2012
        and $9.9 billion as at December 31, 2012
    --  Assets Under Administration ("AUA") were $3.3 billion as at
        March 31, 2013, compared to $4.6 billion as at March 31, 2012
        and $3.7 billion as at December 31, 2012
    --  Management Fees were $26.0 million, a decrease of 21.3%
        compared with the three months ended March 31, 2012
    --  EBITDA was $10.4 million ($0.06 per share), compared with $16.2
        million ($0.10 per share) for the three months ended March 31,
        2012, a decrease of 35.6%
    --  Net income was $2.1 million ($0.01 per share) for the three
        months ended March 31, 2013, a decrease of 87.7% from $16.9
        million ($0.10 per share) in the three months ended March 31,
        2012
    --  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 and seeded Sprott
        Macro Managers Fund
    --  Resource Capital Investment Corporation raised US$35 million in
        a new fixed-term limited partnership
    --  Signed joint venture agreement to launch new global mining fund
        with Zijin Mining Group Co., Ltd.

"The first quarter and subsequent month have continued to be challenging for 
Sprott and our strategies concentrated on investments in precious metals and 
their related equities," said Peter Grosskopf, Chief Executive Officer of 
Sprott. "While we remain confident that this positioning will be rewarded with 
much better performance once markets become less comfortable with the results 
of quantitative easing, we also continue to build other areas of our firm to 
incorporate a broader range of investment strategies. We are pleased with the 
growth of our enhanced equity, private equity and lending and fixed income 
areas."

"One of our priorities is to make our products more attractive to 
institutional investors," continued Mr. Grosskopf. "During the first quarter, 
we took an important step in this process with the launch of our first 
institutionally-focused hedge fund, which will draw on the combined strengths 
of our organization."

"We have also recently increased our international presence through an 
agreement to launch a global mining fund with Zijin Mining Co., Ltd., one of 
China's largest gold and copper miners," added Mr. Grosskopf. "Our global 
brand positioning has led to a number of new opportunities to co-invest with 
international partners and we expect this to become a growing part of our 
business going forward."
                                            For the three     
                                            months ended
                                               March 31,      

($ in millions)                                   2013     2012
                                                              

AUM, beginning of period                          9,931   9,137

Net sales (redemptions)                           (274)    540

Market value appreciation (depreciation) of       (547)      6
portfolios

AUM, end of period                                9,110   9,683

Assets Under Management

At March31, 2013, AUM decreased by 5.9% to $9.1 billion from $9.7 billion at 
March31, 2012.

Net redemptions for the three months ended March31, 2013 were $0.3 billion. 
Collectively, the Company's other Mutual Funds, Managed Accounts and Domestic 
Alternative Investment Strategies experienced net redemptions of approximately 
$0.2 billion for the three months ended March31, 2013. The Offshore Funds 
collectively, had redemptions resulting in net outflows for the three months 
ended March31, 2013 of approximately $49 million or 25.6% of offshore AUM at 
the beginning of the year. The launch of Resource Capital Investment 
Corporation added $35 million to AUM.

Average AUM for the three months ended March31, 2013 was $9.5 billion 
compared with $10.1 billion for the three months ended March31, 2012, a 
decrease of 6%.

Income Statement

Total revenue for the three months ended March31, 2013, decreased by 37.9% 
to $27.6 million from $44.4 million for the three months ended March31, 2012.

For the three months ended March31, 2013, management fees decreased by 21.3% 
to $26.0 million from $33.0 million in the three months ended March31, 
2012. The decrease in management fees is primarily attributable to both the 
lower average AUM for the three months ended March31, 2013 as well as an 
increase in lower fee products such as the physical bullion trusts and 
fixed-income funds.

Losses from proprietary investments, which include investments in products 
that Sprott manages, certain other resource-related stocks and warrants, and 
bullion, totaled $3.0 million, compared with gains of $4.2 million in the 
three months ended March31, 2012.

Commission revenue for the three months ended March31, 2013, decreased by 
$3.8 million to $1.9 million from $5.7 million during the three months ended 
March31, 2012.

Total expenses for the three months ended March31, 2013 were $23.7 million, 
an increase of 2.3% from $23.2 million in the three months ended March31, 
2012.

EBITDA, which excludes the impact of income taxes and certain non-cash 
expenses, decreased by 35.6% to $10.4 million from $16.2 million in the three 
months ended March31, 2012.

Net income for the three months ended March31, 2013 was $2.1 million ($0.01 
per share), compared with $16.9 million ($0.10 per share) earned during the 
three months ended March31, 2012.

Dividends

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

On May 7, 2013, a dividend of $0.03 per common share was declared for the 
quarter ended March 31, 2013.

Conference Call and Webcast

A conference call and webcast will be held today, Wednesday, May 8, 2013 at 
11:00am ET to discuss the Company's financial results. To participate in the 
call, please dial 1-877-856-6014 ten minutes prior to the scheduled start of 
the call and either provide the name of the call or enter reference number 
63961026. A taped replay of the conference call will be available until 
Tuesday, May 14, 2013 by calling 416-849-0833 or 1-855-859-2056, reference 
number 63961026.

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 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- May/08/2013 11:00 GMT


 
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