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    Graham Ryding • TD Securities

    Graham Ryding's questions to Sprott Inc (SII) leadership

    Graham Ryding's questions to Sprott Inc (SII) leadership • Q2 2025

    Question

    Graham Ryding of TD Securities requested a breakdown of the quarter's carried interest and performance fees, the reason for the low associated compensation payout, and the multi-year outlook for these fees. He also sought to confirm an estimate for quarter-to-date net flows.

    Answer

    CFO Kevin Hibbert explained that 65-70% of the carried interest came from a legacy LP where the original team members are no longer with the firm, resulting in a higher retention for shareholders. CEO Whitney George clarified that most performance fees crystallize at year-end and carried interest is lumpy, making it difficult to model. Regarding flows, Kevin Hibbert, with input from Whitney George and John Ciampaglia, adjusted the estimate to be closer to $150 million for the quarter-to-date, accounting for redemptions in uranium ETFs.

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    Graham Ryding's questions to Sprott Inc (SII) leadership • Q1 2025

    Question

    Graham Ryding asked for a reminder on why redemptions in the exchange-listed trusts have historically been low and whether this was due to arbitrage activity. He also questioned why the combined gold and silver trust experienced outflows while the individual metal trusts saw inflows. Finally, he requested guidance on the outlook for the compensation ratio given the significant AUM growth.

    Answer

    CEO Whitney George attributed low redemptions to two factors: attracting long-term oriented investors and the closed-end structure, which allows an arbitrage community to step in when trusts trade at a significant discount. John Ciampaglia confirmed this dynamic was at play in late 2023. George also explained that institutional investors prefer single-commodity products, leading to stronger flows into the pure-play gold and silver trusts over the combined fund. CFO Kevin Hibbert addressed the compensation ratio, stating that the current level of approximately 47% is a reasonable assumption for modeling purposes and that he expects EBITDA margins to improve due to operating leverage.

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