TORONTO, Jan. 4 /CNW/ - Sprott Inc. (TSX: SII) ("Sprott" or the "Company") today announced its preliminary estimate of gross Performance Fees for the year ended December 31, 2010 and its preliminary estimate of Assets Under Management as at December 31, 2010.
On a preliminary and unaudited basis, the Company generated in excess of $193 million in gross Performance Fees as at December 31, 2010. When combined with Crystallized Performance Fees recorded in previous months, gross Performance Fees for the 2010 fiscal year are estimated to be approximately $196 million. Gross Performance Fees are before the deduction of Performance Fee-related compensation, income taxes and any other related expenses.
In keeping with its established practice, the Company expects that, once its Annual Financial Statements have been audited and approved by the Board of Directors, the Board of Directors will resolve to have the Company pay out, by way of special dividend to its shareholders, a substantial portion of Performance Fees (net of related bonuses, expenses and taxes) earned for the year. In the interim period, management will seek to invest its free cash balances in an appropriate portfolio of interest bearing and other investments.
The Company also estimates that its Assets Under Management as at December 31, 2010 were approximately $8.5 billion.
Non-GAAP Financial Measures
This press release includes financial terms (including Performance Fees and Assets Under Management) that the Company utilizes to assess the financial performance of its business that are not measures recognized under Canadian generally accepted accounting principles ("GAAP"). These non-GAAP measures should not be considered alternatives to performance measures determined in accordance with GAAP and may not be comparable to similar measures presented by other issuers. For additional information regarding the Company's use of non-GAAP measures, including the calculation of these measures, please refer to the "Non-GAAP Financial Measures" section of the Company's Management's Discussion and Analysis and its financial statements available on the Company's website at www.sprottinc.com and on SEDAR at www.sedar.com.
This release may contain "forward-looking statements" which reflect the current expectations of the Company. These statements reflect management's current beliefs with respect to future events and are based on information currently available to management. Forward-looking statements involve significant known and unknown risks, uncertainties and assumptions. Many factors could cause actual results, performance or achievements to be materially different from any future results, performance or achievements that may be expressed or implied by such forward-looking statements including, without limitation, those listed under the heading "Risk Factors" in the Company's annual information form dated March 30, 2010. Should one or more of these risks or uncertainties materialize, or should assumptions underlying the forward-looking statements prove incorrect, actual results, performance or achievements could vary materially from those expressed or implied by the forward-looking statements contained in this release. These forward-looking statements are made as of the date of this release and the Company does not assume any obligation to update or revise them to reflect new events or circumstances.
About Sprott Inc.
Sprott Inc. is a leading independent asset manager dedicated to achieving superior returns for its clients over the long term. The Company currently operates through three business units: Sprott Asset Management LP, Sprott Private Wealth LP and Sprott Consulting LP. Sprott Asset Management is the investment manager of the Sprott family of mutual funds and hedge funds and discretionary managed accounts; Sprott Private Wealth provides wealth management services to high net worth individuals; and Sprott Consulting provides management, administrative and consulting services to other companies, including Sprott Resource Corp. (TSX: SCP) and Sprott Resource Lending Corp. (TSX: SIL) (NYSE AMEX: SILU). Sprott Inc. is headquartered in Toronto, Canada, and is listed on the Toronto Stock Exchange under the symbol "SII". For more information on Sprott Inc., please visit www.sprottinc.com.