Source: The Canadian Press

Sprott Inc. (TSX:SII), a Toronto-based investment company, reports its net profits for the third quarter jumped 74.3% to $9.6 million as the money manager cashed in on its investments in gold and silver.

The company reported Thursday it earned six cents a share for the three months ended Sept. 30. That was up from net earnings of $5.5 million or four cents in the third quarter of 2009.

Assets under management increased to $6.5 billion at the end of the quarter from $4.3 billion a year earlier.

Meanwhile, management fees rose 19% to $24.7 million.

“Our funds continued to perform well during the third quarter, with many of our larger funds benefiting from significant exposure to gold and silver,” CEO Peter Grosskopf said in an earnings report before stock markets opened.

“I’m pleased to report that, as a result of our excellent investment performance this year, the majority of our assets under management are currently in a position to generate performance fees.

“Our assets under management increased significantly during the quarter, driven by our strong investment performance as well as significant net sales from the follow-on offering of units of the Sprott Physical Gold Trust,” continued Grosskopf.

“We are extremely pleased with the response to this Trust, which now exceeds $1.1 billion in assets. In October, we successfully launched our second precious metals specialty product, the Sprott Physical Silver Trust, which raised US$575 million through an initial public offering.”