Sprott Inc.: 146% Earnings Growth Proves My Operational Leverage Thesis

2026-02-24 05:37:00 ET

In August 2024, I wrote that Sprott Inc. ( SII ) ( SII:CA ) was perfectly positioned to profit from the incoming bull markets in gold and uranium. Today, despite the stock's massive run-up since that initial call, I am reiterating my Buy rating because the macroeconomic and structural drivers pushing these critical commodities higher are still firmly in play. I recommend giving my previous article a read for a refresher on my original thesis, but my core idea was simple: Sprott offered a unique "multiplier effect." Because their cost structure remains relatively fixed, any increase in the underlying prices of gold and uranium, as well as any inflows of new investor capital, would flow almost directly into their bottom-line earnings. Coupled with the very promising outlook for precious metals and uranium, this created a stellar investment opportunity. Since then, Sprott has generated a total return of over 250%, compared with the 34% given by the S&P 500. ...

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