Money manager Sprott says first-quarter profit and revenue down from year ago

TORONTO – Sprott Inc. (TSX:SII) has reported a profit of $2.1 million in its latest quarter, down from $16.9 million a year ago, as revenue fell by more than a third.

The investment manager said the profit amounted to a penny per share for the quarter ended March 31 compared with a profit 10 cents per share a year ago.

Revenue totalled $27.6 million, down from $44.4 million.

“The first quarter and subsequent month have continued to be challenging for Sprott and our strategies concentrated on investments in precious metals and their related equities,” Sprott chief executive Peter Grosskopf said.

“While we remain confident that this positioning will be rewarded with much better performance once markets become less comfortable with the results of quantitative easing, we also continue to build other areas of our firm to incorporate a broader range of investment strategies.”

Assets under management at the end of the quarter totalled $9.1 billion, down from $9.7 billion a year earlier and $9.9 billion at Dec. 31, 2012.

Sprott said management fees in the quarter were $26 million, down from $33 million a year ago due to the lower assets under management and an increase in lower-fee products such as physical bullion trusts and fixed-income funds.

Losses from proprietary investments totalled $3 million, compared with gains of $4.2 million in the first quarter last year, while commission revenue fell to $1.9 million from $5.7 million a year ago.