Sprott(US:SII)2022-02-25 18:31Financial Data and Key Metrics Changes - The company's total assets under management (AUM) reached approximately USD 20.4 billion, an increase of USD 1.4 billion or 8% from September 30, 2021, and up USD 3.1 billion or 18% from December 31, 2020 [9][10] - Adjusted base EBITDA for Q4 was USD 17.7 million, up USD 3 million or 20% year-over-year, while full-year adjusted base EBITDA hit a record USD 64.1 million, an increase of USD 19.9 million or 45% from the previous year [11][12] Business Line Data and Key Metrics Changes - The managed equity segment showed strong relative performance, with a notable increase in net sales [5] - The physical Silver Trust added over USD 1.7 billion in AUM, primarily in the first half of the year, while the newly formed physical Uranium Trust added nearly USD 1 billion in the second half [10] - The combined lending and streaming strategies AUM was USD 1.4 billion at year-end, with significant capital available for further investments [28] Market Data and Key Metrics Changes - The company experienced USD 646 million in net inflows for Q4 and USD 3.1 billion for the full year, an increase of USD 300 million from the prior year [16] - The Sprott Physical Uranium Trust grew from USD 630 million in AUM at acquisition to USD 2.1 billion, reflecting strong institutional interest [18] Company Strategy and Development Direction - The company is focusing on the rapid expansion of interest in carbon transition minerals and has positioned itself as a leader in physical uranium management [6] - The acquisition of the North Shore Global Uranium Mining ETF is part of the strategy to enhance its offerings in the uranium sector [23] - The company aims to expand its lending business in 2022 through new strategies [28] Management's Comments on Operating Environment and Future Outlook - Management noted that the backdrop for precious metals has become increasingly supportive due to rising inflation and geopolitical risks, which have heightened investor demand for safe havens [31] - The company remains optimistic about the uranium sector, citing a price inflection in the spot market and increasing utility contracts [20] Other Important Information - The company reported a compensation ratio of 39% for the year, lower than the previous year's 44%, but management indicated that a more reasonable run rate would be around 45% moving forward [45][46] Q&A Session Summary Question: Timing for the North Shore Global Uranium Miners ETF acquisition - Management indicated that the timing is dependent on reaching a quorum for shareholder votes, with hopes to achieve this in the next 4 to 6 weeks [34] Question: Clarification on the $700 million final close for private strategies - Management confirmed that the $700 million final close is not cumulative and occurred during the year [36] Question: Performance fees and AUM capable of driving them - Management suggested that details on performance fees can be found in the MD&A, specifically on Page 11 of the annual report [40] Question: Direct payouts and trailer fees - Direct payouts are primarily from the brokerage and managed equity segments, with further details to be provided later [42] Question: Future compensation ratio expectations - Management indicated that a compensation ratio of around 45% would be a safer estimate for modeling future expenses [46]