great industry and business pick, but i'm surprised that you don't even mention any valuation metrics. i liked SII more last year and now am wondering if it's close to full value at 31x next year PE?
Our objective was to elucidate the Multiflation Method and Archetypes--we don't make stock recommendations or discuss timing etc. That said, if you re-run the numbers and EV/EBITDA given recent inflows and underlying price appreciation the multiples look different, and are also worth comparing to RoyaltyCo multiples. Will depend how much of incremental profit is actually passed through to shareholders, however.
This is awesome analysis - a great multiflation case study. It would be interesting to see explore the enhancement opportunities and how it could change the financial profitability of Sprott. Also, would like to understand the moat this business has. If resources come back into vogue why can’t others just intercede their market position (perhaps buying them is easier than copying but j/w how defensible the market position and how you go about analyzing and quantifying that)
great industry and business pick, but i'm surprised that you don't even mention any valuation metrics. i liked SII more last year and now am wondering if it's close to full value at 31x next year PE?
Our objective was to elucidate the Multiflation Method and Archetypes--we don't make stock recommendations or discuss timing etc. That said, if you re-run the numbers and EV/EBITDA given recent inflows and underlying price appreciation the multiples look different, and are also worth comparing to RoyaltyCo multiples. Will depend how much of incremental profit is actually passed through to shareholders, however.
99% of your readers care about everything to the right of your dashes ;-)
Hmm, very interesting, I'm about 50/50 Precious Metals, miners and streamers and BTC. Would some Sprott de risk me a bit I wonder.
Thanks, great article. Definitely would like to read more about Sprott Inc.
Very interesting. I like the systematic evaluation approach.
Thanks for sharing such a clear and illuminating example.
This is awesome analysis - a great multiflation case study. It would be interesting to see explore the enhancement opportunities and how it could change the financial profitability of Sprott. Also, would like to understand the moat this business has. If resources come back into vogue why can’t others just intercede their market position (perhaps buying them is easier than copying but j/w how defensible the market position and how you go about analyzing and quantifying that)