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Sprott Inc. CEO Peter Grosskopf .
Sprott Inc. CEO Peter Grosskopf .
(Fred Lum/Fred Lum/The Globe and Mail)

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Sprott’s protracted pain remains palpable

At this point executives at Sprott Inc. must be praying for a magnificent rebound in the resource sector.

Last year the company’s management fees -- its bread and butter -- dropped 20 per cent, sending its stock price, which started at $10 after its initial public offering in 2008, to just $3.55.

To top it off, there were some strategic missteps in 2012 – chiefly, investing in Flatiron Capital Management, only to see it to go bust six months later. Sprott has now disclosed it wrote off the entire investment, costing the company $5-million before tax last quarter, about one-third of the $15-million in earnings before interest, taxes, depreciation and amortization.