Sprott (SII) was up 10% on the back of its Q4 results, which blew estimates out of the water and came with another step change higher for AUM…
… as investors look to increase their exposure to metals. Listed products were the primary driver, adding $10B Q/Q on a combination of price appreciation and inflows…
… that have potential to keep ramping, with management highlighting the positive feedback loop created as each fund scales…
So as these funds get bigger, they trade more and institutions feel more comfortable putting on positions of size. So it does create a bit of a flywheel effect.
… which should drive margin expansion, specifically in its ETFs. The market is counting on it, with higher forward EBITDA expectations moderating SII’s multiple.
