* Rev up 54 pct
* AUM rises 88 pct to C$9.7 bln
* Shares rise 5 pct (Adds CEO comment, details in paragraphs 2-4,7, share movement)
June 2 (Reuters) - Canadian asset manager Sprott Inc reported a two-thirds jump in first-quarter profit, helped by a rise in assets under management (AUM).
Sprott, one of Canada’s best-known resource investment firms, has placed its bets on precious metals.
“While precious metals have experienced a correction in recent weeks, their fundamentals remain extremely compelling in the face of rising inflation and ongoing international debt issues. We expect prices to continue to rise in the coming quarters,” the CEO said in a statement.
In March, Chief Executive Peter Grosskopf said the number one area for investment in the future within the precious metals is silver. He felt silver was undervalued compared to gold, and believed the price should be closer to $90 an ounce within the next 12 months or so. [ID:nN24111834]
For the January-March quarter, net income rose to C$10.6 million, or 7 Canadian cents a share, from C$6.4 million, or 4 Canadian cents a share, a year ago.
Total revenue rose 54 percent to C$39.5 million.
AUM for the hedge fund manager rose 88 percent to C$9.7 billion. Management fees were up 53 percent at C$35.5 million, the company said.
Shares of Sprott, which was founded by Bay Street contrarian investor Eric Sprott and taken public in 2008, rose 5 percent to C$9.07 in morning trade on Thursday on the Toronto Stock Exchange. (Reporting by Bhaswati Mukhopadhyay in Bangalore; Editing by Gopakumar Warrier)