Sprott Asset Management is leaning into gold.
The firm announced Friday it’s expanding its at-the-market equity program for the Sprott Physical Gold Trust (NYSE: PHYS, TSX: PHYS) by an additional US$1 billion, allowing it to issue more units directly into U.S. and Canadian markets.
The proceeds will be used to purchase more physical gold bullion, in line with the Trust’s investment objective, , according to the fund manager.
The move comes just as the yellow metal flirts with all-time highs and institutional demand for physical gold continues to build amid global macro and geopolitical uncertainty.
The updated ATM program was formalized via a new prospectus supplement filed April 11, replacing the prior version dated December 2024. The Trust’s existing base shelf prospectus, dated September 6, 2024, remains in effect.
Trading of units under the ATM will be handled by a syndicate of U.S. and Canadian dealers including Cantor Fitzgerald, Virtu, BMO Capital Markets and Canaccord Genuity, with distribution limited to U.S. marketplaces for U.S. agents and Canadian exchanges for Canadian dealers.
In its filing, Sprott noted that unit sales will be executed at prevailing market prices, which could vary throughout the course of the program. The volume and timing of distributions will be determined at the Trust’s discretion, and sales may occur on either the NYSE Arca or TSX, depending on where investor demand materializes.
The structure of the deal reinforces Sprott’s commitment to physical, fully allocated bullion, at a time when many gold funds continue to rely on futures or unallocated holdings.
No comment was provided in the release on the pace or scale of expected sales under the expanded program. But the $1 billion figure — more than double the amount raised under earlier ATM tranches — signals the firm’s expectation that demand for physical gold exposure remains robust.
Listing of the newly issued units will be subject to approval by both the NYSE and TSX.
Sprott Physical Gold Trust, which offers a lower-cost alternative to traditional gold ETFs and is backed entirely by physical gold bars held at the Royal Canadian Mint, has long been positioned as a go-to vehicle for investors seeking direct exposure to bullion without derivatives risk.
The ramped-up offering comes just as central banks continue to stockpile gold and retail investors look for portfolio hedges amid sticky inflation, higher-for-longer rates, and intensifying geopolitical flashpoints. Whether that backdrop translates to unit demand remains to be seen, but the mechanics are in place.