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  • Sprott’s fourth quarter earnings climb eight-fold 0 comments
    Mar 29, 2011 8:49 AM | about stocks: PHYS, PSLV, SCPZF, SPOXF

    Asset management firm Sprott Inc. (TSE:SII) said Thursday its fourth quarter net income grew more than eight-fold, helped by asset growth and strong fund performance. 

    For the quarter ended December 31, the Toronto-based company had a net income of $108 million, or 72 cents per share, compared to $13.3 million, or 9 cents per share, in the prior year period.  Revenues were $241.9 million, up from $35.7 million.

    Analysts polled by Thomson Reuters expected the company to earn 74 cents a share on revenues of roughly $226 million. 

    Management fees increased 36% year-over-year to $31.5 million while revenue from performance fees increased to $199.1 million from $10.6 million for the same period a year ago. 

    At year end, the company had $8.5 billion of assets under management, up 80% from $4.8 billion a year ago.  The increase was driven by the launch of its Sprott Physical Gold Trust (NYSE:PHYS) and the Sprott Physical Silver Trust (NYSE:PSLV) as well as strong investment performance of its funds. 

    "On the year, eleven of our funds posted returns of more than 30% of which four delivered returns greater than 50%,” said CEO Peter Grosskopf.

    The initial public offering (NYSEARCA:IPO) of the Sprott Physical Gold Trust, its follow up offerings, and the IPO of the Sprott Physical Silver Trust during the year helped raise gross proceeds of $1.6 billion.

    For the full year, the company reported a net income of $131.2 million, or 87 cents per share, compared with net income of $31.8 million, or 21 cents per share in 2009. Revenue for the year tripled to $323 million. 

    In a separate statement today, Sprott Power (TSE:SPZ), a renewable energy developer owned indirectly by Sprott Inc., said it signed a power purchase agreement with Hydro-Quebec Distribution for the 24 megawatts wind farm in the Saint-Philémon village in Quebec. 

    Sprott Inc.’s shares rose 5.6% to trade at $9.80 as of 9:44 am EST.  The shares have rallied 132% over the past year.

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