Financial Data and Key Metrics Changes - Assets under management (AUM) increased by $9 billion during the quarter, reaching $49.1 billion, a 23% increase from $40 billion as of June 30, and a 56% increase from $31.5 billion as of December 31, 2024 [3][6] - Net income for the quarter was $13.2 million, up 4% from $12.7 million year-over-year, while year-to-date net income was $38.6 million, up 3% from $37.6 million [7][10] - Adjusted EBITDA for the quarter was $31.9 million, a 54% increase from $20 million year-over-year, and year-to-date adjusted EBITDA was $79.3 million, up 26% from $62.8 million [10] Business Line Data and Key Metrics Changes - The managed equities business performed exceptionally well, with some strategies up more than 100% as of October 31 [4] - The physical trusts segment finished October at $39.4 billion, representing 76% of overall AUM, with year-to-date growth of $15.4 billion or 64% [12] - The ETF product suite saw AUM growth of 83% this year, with most ETFs exceeding break-even AUM levels [15] Market Data and Key Metrics Changes - The company experienced record high net flows in September, with the highest-ever monthly sales number achieved across 18 different funds [14] - The uranium market saw a price increase, with the term price reaching a multi-year high of $86, indicating strong demand [25] - The silver market experienced a dislocation, with significant trading activity and movement of physical silver between markets [55] Company Strategy and Development Direction - The company is focused on expanding its suite of funds to include a broader range of metals and listing ETFs across multiple jurisdictions to attract institutional investors [14] - The strategic importance of critical material supply chains and energy security is emphasized, with the U.S. government ramping up interventions in critical materials markets [20] - The company aims to leverage the strengths of its investment team through actively managed ETFs, which are gaining popularity among investors [18] Management's Comments on Operating Environment and Future Outlook - Management noted that the current environment is favorable for multiple metals, driven by geopolitical shifts and the demand for critical materials due to AI infrastructure build-out [13][20] - The company believes that gold is chronically under-owned among U.S. investors, suggesting potential for significant price increases with slight allocation adjustments [19] - The outlook for critical materials remains strong, with government initiatives aimed at securing supply and reducing reliance on foreign sources [20] Other Important Information - The board declared a third-quarter dividend of $0.40 per share, a 33% increase from the previous quarter [4][10] - The company announced the strengthening of its executive team with new appointments, signaling confidence in its leadership [5] Q&A Session Summary Question: Challenges in sourcing uranium material - Management indicated that sourcing uranium has been active, with 7 million pounds purchased in the spot market since late June, despite market tightness [24] Question: Impact of ETF growth on net flow volatility - Management explained that physical trusts are less volatile than mining stocks, and institutions typically start with physical allocations before moving to equities [28] Question: Flows in the quarter and institutional demand - Management noted that flows have been largely institutional-driven, with a mix of retail and institutional interest, and a growing trend of institutional allocations to the space [36] Question: Plans for cash on the balance sheet - Management expressed commitment to not building a money market fund, indicating plans for potential acquisitions and continued share buybacks [42] Question: Update on uranium trust inventory and U.S. origin material - Management clarified that a small percentage of uranium inventory is of U.S. origin, with ongoing discussions about a strategic uranium reserve by the U.S. government [52] Question: Insights on the physical silver market - Management provided insights into recent dislocations in the silver market, highlighting significant trading activity and the movement of silver between jurisdictions [55]

The Sprott Critical Materials ETF (NASDAQ: SETM ) is a sector exchange-traded fund (ETF) designed to provide investors with global exposure to the companies that develop critical materials, covering uranium, lithium, and rare earth elements (REEs), among others. The strategy may be positioned for growth as the development ofMonte Independent Investment Research: Michael Del Monte is a buy-side equity analyst with over 5 years of industry experience. Prior to working in the investment management industry, Mi ...