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Sprott Sprott Announces Second Quarter 2021 Results TORONTO , Aug. 06 , 2021 ( GLOBE NEWSWIRE ) -- Sprott Inc. ( NYSE / TSX : SII ) ( " Sprott " or the " Company " ) today announced its financial results for the three and six months ended June 30 , 2021 . Management commentary " Our business continued to perform well during the second quarter , with assets under management increasing to $ 18.6 billion as of June 30 , 2021. We reported $ 15.1 million ( $ 0.60 per share ) of adjusted base EBITDA during the quarter , a 64 % or $ 5.8 million ( $ 0.22 per share ) increase over the same period last year , " said Peter Grosskopf , CEO of Sprott . " The earnings growth we have delivered this year has been driven by a combination of strong net sales in our physical trusts , higher average AUM in our managed equities segment and solid contributions from our brokerage business . " " Subsequent to the quarter end , on July 19 , Sprott Asset Management LP completed its previously announced transaction with Uranium Participation Corp. to create the Sprott Physical Uranium Trust , " added Mr. Grosskopf . " This transaction added $ 630 million to Sprott's total AUM and provides the company an important strategic foothold in the clean energy metals space . We have a very constructive view on uranium and believe this new trust presents a compelling opportunity to create value for our shareholders by expanding our offerings into areas that complement our core positioning in precious metals . " Financial highlights Key AUM highlights • AUM was $ 18.6 billion as at June 30 , 2021 , up $ 1.5 billion ( 9 % ) from March 31 , 2021 and up $ 1.2 billion ( 7 % ) from December 31 , 2020. In the second quarter , we experienced market value appreciation across the majority of our fund products while continuing to generate strong inflows into our physical trusts . This helped offset the market value depreciation we experienced on a year - to - date - basis . Key revenue highlights Management fees were $ 25.1 million in the quarter , up $ 9.2 million ( 58 % ) from the prior period and $ 47.5 million on a year - to - date basis , up $ 16.6 million ( 54 % ) . Carried interest and performance fees were nil in the quarter and $ 7.9 million on a year - to - date basis , up $ 7.9 million from the prior period . Net fees¹ were $ 23.2 million in the quarter , up $ 8.4 million ( 56 % ) from the prior period and $ 46.9 million on a year - to - date basis , up $ 18 million ( 62 % ) from the prior period mainly due to higher average AUM from strong net inflows in our exchange listed products segment . We also benefited from higher average AUM in our managed equities segment , brokerage segment and carried interest crystallization in the first quarter of the year in our lending segment . • Commission revenues were $ 7.4 million in the quarter , up $ 1.2 million ( 20 % ) from the prior period and $ 19.8 million on a year - to - date basis , up $ 8.5 million ( 75 % ) . Net commissions¹ were $ 4.3 million in the quarter , up $ 0.1 million ( 2 % ) from the prior period and $ 11.5 million on a year - to - date basis , up $ 3.3 million ( 41 % ) due to strong equity origination in our brokerage segment . • Finance income was $ 0.9 million in the quarter , up $ 0.3 million ( 42 % ) from the prior period and $ 2.2 million on a year - to -date basis , up $ 0.6 million ( 39 % ) from the prior period due to higher co - investment income in our lending segment . • Gains on investments were $ 2.5 million this quarter , down $ 5.6 million ( 69 % ) from the prior period and losses were $ 2.2 million on a year - to - date basis , compared to gains of $ 3.8 million in the prior period . Investment gains in the quarter were mainly due to market value appreciation of co - investments and certain equity holdings that resulted in the partial recovery of unrealized losses experienced in the first quarter . Key expense highlights • Compensation was $ 15.5 million in the quarter , up $ 4.5 million ( 41 % ) from the prior period and $ 38.1 million on a year- to - date basis , up $ 17 million ( 80 % ) . Higher total compensation was primarily due to continued strong commission revenues ( which drives our commission expense ) and the crystallization of carried interest in our lending funds in the first quarter ( which led to carried interest payouts to portfolio managers ) . Net compensation¹ ( which excludes the commission and carried interest payouts previously mentioned ) was $ 10.8 million in the quarter , up $ 2.5 million ( 31 % ) from the prior period and $ 22.6 million on a year - to - date basis , up $ 6.8 million ( 43 % ) primarily due to higher annual incentive compensation ( " AIP " ) on improved financial performance and higher base salaries on new hires . Our compensation ratio ( net compensation / net fees & net commissions ) on a year - to - date basis was 39 % compared to 43 % in the prior period . • SG & A was $ 3.5 million in the quarter , up $ 0.5 million ( 19 % ) from the prior period and $ 6.8 million on a year - to - date basis , up $ 0.5 million ( 8 % ) . The increase was mainly due to higher insurance , regulatory and technology costs .