Sprott Resource Lending Corp (SII)

[NYBob]

Sprott Asset Management reports eight-fold jump in Q4 profit

Sprott Asset Management said the surge in profits was helped by the launch of new funds and its exposure to gold and silver
Posted: Thursday , 24 Mar 2011

(Reuters) -

Canadian fund manager Sprott Inc's quarterly profit rose seven-fold, helped by the launch of new funds and its exposure to gold and silver.

For the October-December quarter, the company's net income rose to C$108 million, or 72 Canadian cents a share, from C$13.3 million, or 9 Canadian cents a share, a year ago.

Total revenue rose 578 percent to C$241.9 million.

Analysts, on average, expected the company to earn 74 Canadian cents a share, on revenue of C$225.9 million, according to Thomson Reuters I/B/E/S.

Assets under management jumped nearly 80 percent to $8.5 billion at the end of 2010, partly helped by net sales related to the launch of its Sprott Physical Silver Trust and a growth in the net market value of its funds.

Shares of the company, which have gained about a fifth in value over the last three months, closed at C$9.28 on Wednesday on the Toronto Stock Exchange. (Reporting by Abhiram Nandakumar; Editing by Saumyadeb Chakrabarty) ([e-mail]; within U.S. [phone] ; outside U.S. [phone] ; Reuters Messaging: [e-mail])