Mike Kozak

Mike Kozak asked about Sprott's approach to special dividends or metal-price-linked dividends given recent gold and silver highs, and the dynamics of the physical silver market during recent volatility.

Answer

Whitney George, CEO of Sprott Inc., stated that while investor opinions on special dividends are mixed, the company prioritizes growing the regular dividend, considering opportunistic stock buybacks, and then a special dividend for non-recurring income. John Ciampaglia, CEO of Sprott Asset Management, described the physical silver market as initially driven by strong buying in India and China, but later influenced by paper markets. He noted silver scarcity in London, India, and China, with China implementing export restrictions. Regulators have intervened to curb speculative activity. George added that silver, a small market in supply deficit for five years, presents a good entry point for new investors.

Mike Kozak asked about Sprott's approach to special dividends or a dividend linked to metal prices, given the record highs in gold and silver. He also sought color on the physical silver market dynamics, including tightness, jurisdictional metal flows, and how current conditions compare to the parabolic move earlier in the year.

Answer

Whitney George, CEO of Sprott Inc., stated that while there are mixed investor opinions on special dividends, the company prioritizes growing the regular dividend, opportunistic stock buybacks, and then considers special dividends for non-recurring income. John Ciampaglia, CEO of Sprott Asset Management, described extreme volatility in silver, noting that physical buying in India and China initially drove the move, but paper markets and derivatives have recently pushed prices down. He mentioned that silver is more scarce in London, India, and China, with China implementing export restrictions. He also noted that regulators and the CME have intervened to curb speculative activity. Whitney George added that silver's inflation-adjusted all-time high is much higher, and the current consolidation presents a good re-entry point for investors.

Mike Kozak from Cantor Fitzgerald & Co. asked about Sprott's dividend policy, specifically if a special dividend would be considered given the strong cash flow from multiple metals performing well. He also inquired if Sprott would consider launching an ETF tracking the downstream nuclear fuel cycle, such as conversion and enrichment.

Answer

CEO Whitney George responded that shareholders generally prefer consistent dividend growth over special dividends, and the company will focus on its payout ratio, opportunistic share buybacks, and potential small acquisitions. Regarding a new nuclear ETF, CEO of Sprott Asset Management John Ciampaglia and Whitney George stated that while they are opportunistic, they are cautious about creating 'me-too' products and prefer to stay focused on their core strengths in metals and mining.

Mike Kozak of Cantor Fitzgerald asked if McEwen Mining would consider monetizing its interest in the San Jose mine or Project Phoenix, given the recent strength in silver prices and the company's increasing focus on copper.

Answer

CEO Robert McEwen confirmed that the company would consider selling its interest in the San Jose mine at the right price. He acknowledged there has been internal consideration and that they have been approached by one potential buyer, although nothing is concrete at this time.

Mike Kozak of Cantor Fitzgerald asked if McEwen Mining would consider monetizing its silver assets, such as Project Phoenix or its interest in the San Jose mine, given the recent strength in silver prices and the company's increasing focus on copper.

Answer

CEO Robert McEwen responded that the company would consider selling its interest in the San Jose mine 'at the right price.' He also confirmed that they have been approached by one potential buyer, but stated that nothing concrete has been established.