Sprott Inc. (SII) Earnings Call Transcript & Summary

The Annual General Meeting of Shareholders of Sprott Inc. will now come to order. In accordance with the bylaws of the corporation, I shall preside as Chairman of the meeting. In the event I am disconnected from the meeting as a result of a technical malfunction, pursuant to the corporation's bylaws, the shareholders are entitled to choose another director as Chair. Given that management has proxies in hand to carry any such motion, Mr. Peter Grosskopf, a director and Chief Executive Officer of the corporation, will step in and assume the role of Chair of the meeting. Mr. Arthur Einav, the corporation's Corporate Secretary, will act as secretary of the meeting. This year, in light of the COVID-19 pandemic and government regulations and recommendations, we have made the decision to hold our annual meeting in a virtual-only format via this live audio webcast online. In order to make the best use of our time, I will move all motions. And I have been advised by Mr. Grosskopf and Mr. Einav, each a proxy holder in attendance today, that each is prepared to second each of the motions I so move. Accordingly, unless there are any objections, I will not require motions to be seconded. As you may be aware, yesterday, we announced our first quarter results. Our quarterly conference call to discuss those results took place earlier this morning, and a recording of the conference call is available on our website. Therefore, please limit any questions today to a discussion of the business of the meeting. To the extent of the meeting, I appoint Christopher de Lima from TSX Trust Company as scrutineer to report on the number of shareholders present and common shares represented at this meeting and to tabulate the votes on the ballot taken at this meeting and to report to me on those matters. Prior to the commencement of this meeting, the scrutineer filed a preliminary report on attendance. I've asked the scrutineer to deliver its formal report on attendance to the secretary. This year, the corporation used notice and access to deliver its annual financial statements and meeting materials. And as a result, the notice of meeting and the management information circular are accessible on Sprott's website and under Sprott's profile on SEDAR and EDGAR. I have received the affidavits of publication of the record date for this meeting and of distribution of the notice and access notice and the proxy form. I direct that a copy of the notice, together with proof of service, be kept by the secretary with the records of the meeting. Accordingly, the reading of the notice of meeting will be dispensed with. I have received the scrutineers' preliminary report on attendance, which indicates that there are a total of 239 shareholders, either present in person or represented by proxy, holding an aggregate 13,949,114 common shares, which represents approximately 54.27% of the total issued and outstanding.

The scrutineers' report shows that there are sufficient shareholders present or represented by proxy to constitute a quorum.

I declare that the requisite quorum is present and that the meeting is properly constituted for the transaction of business. I direct that the scrutineers' report be annexed to the minutes of this meeting. I will begin with a few comments regarding procedural matters. [Operator Instructions] You are encouraged to submit any comments or questions now or at any time during the formal discussion of the meeting's items of business. At the appropriate junctions of the meeting, comments or questions related to the business of the meeting will be read aloud by Mr. Einav before being addressed. Comments or questions that are redundant or that are inappropriate language or are otherwise unduly disruptive to the orderly conduct of the meeting will not be addressed. And general shareholder questions that are not part of the formal discussions of the meeting's items of business will not be addressed. If during the course of the meeting, we encounter any technical difficulties with the webcast, please remain logged on, and we will resume as soon as practical. Finally, I would like to remind everyone that today's meeting may include forward-looking statements. These statements are given as of today's date and involve risks and uncertainties discussed in our filings with securities regulators. A number of factors and assumptions were applied in the formulation of such statements, and actual results could differ materially. For additional information with respect to forward-looking statements, factors and assumptions, we direct you to Sprott's public filings. Before we begin, I would also like to comment on the voting procedures for today's meeting. Each shareholder of the corporation is entitled to one vote for each share held of record. Voting on the applicable items of business to come before today's meeting will be conducted by a single electronic ballot. Once the voting is open, you will see the ballots automatically displayed on your screen. From there, the resolution and voting choices will be displayed. To vote, simply select your voting direction from the options shown on screen. A confirmation message will appear to show your vote has been received. I will advise later in the meeting when there is 1 minute remaining to complete your ballot. All items of business within the proxy circular to be voted on today require approval by way of an [agreed] resolution. Once you have accessed the voting page, you may use the For or Withhold buttons next to the name of each individual director nominee and next to the resolution appointing KPMG LLP as auditors of the corporation or for the For or Against buttons next to other resolutions. I now declare the polls open to all resolutions. [Voting]

The financial statements of the corporation for its fiscal year ended December 31, 2020, together with the report of the auditors thereon, have been mailed or made available to the shareholders of the corporation. In accordance with the Business Corporations Act (Ontario), the financial statements are presented to the meeting, but no other action is required with respect to them. We will now proceed with the election of directors. The management information circular sets forth the background of each of the nominees and the qualifications considered in making director nominations. The proposed nominees as listed in the circular are: Graham Birch; Peter Grosskopf; Sharon Ranson; Arthur Richards Rule IV; Rosemary Zigrossi; and myself, Ronald Dewhurst. Thank you to the nominees for agreeing to stand for election. I move to formally nominate as a director each of the proposed nominees as listed in the management information circular. As there were no nominations in accordance to the advanced notice requirements to the corporation's bylaw #1, I declare nominations closed. I also move to elect each of the 6 named individuals as directors of the corporation. As advised earlier, I will take such motions as seconded. The motion is now open for discussion. If you are a registered shareholder or proxy holder of record and would like to discuss, please submit such discussion by using the messaging service on your screen. I will pause for 30 seconds. And after 30 seconds, I would ask the moderator to read any applicable comments or questions.

Mr. Chairman, there are no comments or questions to be addressed.

Thank you, Arthur. You are reminded to complete your ballot on this matter. The next item on the agenda is the appointment of the corporation's auditors. I move the resolution be approved reappointing KPMG LLP as auditors of the corporation to hold office until the close of the next annual meeting or until a successor is appointed and take such motion as seconded. The motion is now open for discussion. As before, I will pause for 30 seconds. And after 30 seconds, I would ask the moderator to read any applicable comments or questions.

Mr. Chairman, there are no comments or questions to be addressed.

Thank you, Arthur. You are reminded to complete your ballot on this matter. For shareholders who have not completed their electronic ballot, you will now have 1 minute to complete your electronic ballot. Once voting is completed, the scrutineers will compile the report regarding the results of voting on all items of business, and we will reconvene at that time. Once the electronic balloting closes, the voting page will disappear and your ballots will ultimately be submitted. [Voting]

Mr. Chairman, I'm reporting to you on behalf of the scrutineers that all sufficient votes have been received for all items of business to pass.

Thank you, Arthur and scrutineers. Accordingly, with respect to the resolutions regarding elections of each of the individuals nominated as directors, I declare each of the 6 nominees as elected as a director of the corporation. With respect to the resolution reappointing KPMG LLP as auditors of the corporation, I declare this resolution carried. Is there any further business? I will pause for 30 seconds and after 30 seconds, I would ask the moderator to read any applicable comments.

Mr. Chairman, there is no further business.

Thank you, Arthur. If you have any general questions about the corporation or its business, please do not hesitate to e-mail Mr. Glen Williams, the corporation's Managing Director, Investor Relations and Corporate Communications, at [email protected]. There being no further business, I move that the meeting be terminated and take such motion as seconded. I declare the motion carried and the meeting terminated. Thank you for taking the time to join our meeting today.

Operator, please disconnect.

This concludes today's conference call. Thank you for participating. You may now disconnect.

Thank you. Thank you, everyone.