Toronto-based Sprott Inc. (TSX:SII) Thursday reported an increase in profit for the third quarter ended September 30, although assets under management (AUM) fell by 29%.

Net income for the quarter was $13.5 million, or $0.06 per share, compared to net income of $11.0 million, or $0.07 per share, for the year earlier period.

Total revenues increased by 12.3% to $40.2 million from $35.8 million in Q3 2012.

Spott said AUM decreased by 28.8% to $7.3 billion from $10.3 billion a year ago.

Average AUM for the quarter were $7.4 billion compared with $9.3 billion a year ago, a drop of 20.6%.

Net sales for quarter were 2013 were $24.5 million.

Management fees fell by 30.9% to $19.5 million from $28.2 million a year ago, due to the lower average AUM as well as the change in composition of the company’s AUM with lower fee products comprising a greater percentage of AUM.

“During the third quarter, we completed the acquisition of Sprott Resource Lending Corp. in a transaction that further strengthens our balance sheet and gives us the ability to re-launch our resource lending strategy in a structure that will be more attractive to institutional investors,” said Steven Rostowsky, chief financial officer of Sprott.

“We currently have close to $350 million in available capital that will be deployed for various growth initiatives including seeding and launching new funds such as our new offshore fund with Zijin; the pending Sprott Resource Lending LP; and other products under review.”