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The Globe and Mail

Sprott profit rises on gold investments

Eric Sprott, outgoing CEO of Sprott Inc.

Money manager Sprott Inc. posted a higher net profit in the second quarter as it cashed in on growth in gold-related investment funds.

The company reported Thursday it earned $7.7-million or five cents a share for the three months ended June 30, up from $5.6-million or four cents a share a year earlier.

Sprott also said its assets under management rose to $5.5-billion at the end of the quarter from $4.4-billion a year earlier.

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Management fees also rose 11.7 per cent to $24.2-million, while total revenue increased 16 per cent to $26.8-million from $23.1-million.

"We enjoyed strong investment performance during the quarter, with most of our funds posting gains," CEO Eric Sprott said in a statement before stock markets opened.

"Our best performers were funds with significant gold exposure, such as the Sprott Physical Gold Trust, the Sprott Gold Bullion Fund, and the Sprott Gold and Precious Minerals Fund.

"In May, we completed a follow-on offering of units of the Sprott Physical Gold Trust and introduced the Sprott Private Credit Fund. We have also continued our efforts to broaden our product lineup with the launch of a new suite of fixed-income funds."

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