Sprott Q1 2025 presentation slides: AUM surges to $35.1B amid gold rally

Sprott Inc . (NYSE/TSX:SII) reported its first quarter 2025 results on May 7, showing strong growth in assets under management (AUM) and improved financial performance, driven primarily by surging gold prices and significant inflows to its precious metals strategies. The company’s stock rose 1.85% following the presentation, closing at $54.41.

Quarterly Performance Highlights

Sprott delivered solid financial results for Q1 2025, with net income reaching $12 million, a 3% increase compared to the same period in 2024. Adjusted EBITDA grew more impressively, rising 11% year-over-year to $21.9 million, with the adjusted EBITDA margin expanding slightly to 59% from 58% a year earlier.

"Gold has emerged as the last hedge standing," noted Whitney George, CEO of Sprott Inc., during the earnings call, highlighting the company’s strategic positioning in the precious metals space.

As shown in the following chart comparing key financial metrics between Q1 2024 and Q1 2025:

The company’s earnings per share came in at $0.46, meeting analysts’ expectations and slightly improving from $0.45 in Q1 2024. Total (EPA:TTEF) revenues for the quarter reached $43.4 million, exceeding the forecast of $40.97 million, representing a positive surprise of approximately 5.8%.

Assets Under Management Analysis

Sprott’s AUM increased by $3.5 billion during Q1 to reach $35.1 billion, representing significant growth despite market volatility. This expansion was fueled by $407 million in net inflows during the quarter and market value appreciation, primarily in precious metals strategies. By May 2, 2025, AUM had further increased to $36.5 billion, reflecting continued momentum.

The following chart provides a detailed breakdown of Sprott’s AUM by segment and product mix as of March 31, 2025:

Exchange Listed Products dominate Sprott’s AUM at 84% ($29.5 billion), followed by Managed Equities Funds at 10% ($3.4 billion) and Private Strategies Funds at 6% ($2.2 billion). From a product perspective, precious metals account for 78% of AUM, with gold representing 52% ($18.28 billion) and silver 25% ($8.9 billion). Critical materials make up 20% of AUM, with uranium being the largest component at 17% ($5.9 billion).

Physical Trusts Performance

The company’s Physical Trusts showed remarkable growth, with AUM increasing by $3.3 billion or 14% during the quarter. This upward trajectory has continued, with the Trusts gaining $4.5 billion or 19% in AUM to May 2, 2025.

The following chart illustrates the consistent growth of Physical Trust AUM over time:

Sales accelerated significantly in Q1, with net flows of $407 million. Year-to-date net sales reached $1.2 billion, of which $1.1 billion came from PHYS (Physical Gold Trust). The company also recorded its two largest ATM (at-the-market) days ever in April.

The acceleration of net flows into Physical Trusts is clearly visible in this chart:

ETF and Managed Equities Performance

Sprott’s ETF suite AUM stood at $2.5 billion, down 6% in Q1 but rebounding with an 11% increase quarter-to-date. Despite mixed performance across funds, the company saw solid net flows, with contributions from both existing and recently-launched funds.

In the Managed Equities segment, precious metals equities strategies performed well in Q1, with the Flagship Gold Equity fund up 26.4%. However, Managed Equities reported $20 million in net redemptions during Q1, indicating that flows have lagged performance.

The following chart shows the ETF product suite AUM trends:

Strategic Initiatives

During Q1, Sprott launched two new ETFs to expand its product offerings:

• Sprott Silver Miners & Physical Silver ETF
• Sprott Active Gold & Silver Miners ETF

The latter represents the company’s first actively managed ETF, designed to capitalize on the strength and depth of its investment team. As of May 2, 2025, this ETF had already accumulated $33.4 million in AUM.

"Utilities are kind of coming out of the woodwork after being on the sidelines," noted CEO John Ciampaglia during the earnings call, highlighting renewed interest in the sector.

From a balance sheet perspective, Sprott maintained strong liquidity with $55.9 million in cash and cash equivalents as of March 31, 2025, up from $46.8 million at the end of 2024. The company continues to operate with no outstanding debt and repurchased 13,215 shares during the quarter at an average cost of $41.78 per share.

Forward-Looking Statements

Sprott’s outlook remains positive, particularly for precious metals. The company noted that gold has reached a series of record highs in 2025, while silver has lagged but appears poised to move higher once tariff uncertainty dissipates.

For critical materials, the outlook is described as "constructive" despite recent weakness. Uranium prices appear to have bottomed, and copper prices have strengthened in 2025.

The detailed reconciliation of Sprott’s adjusted EBITDA provides insight into the company’s financial performance metrics:

With its strategic focus on precious metals and critical materials, Sprott appears well-positioned to benefit from powerful macro trends in these sectors. The company’s continued expansion of exchange-listed product offerings suggests a commitment to growth and diversification within its core areas of expertise.

Full presentation:

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