Earnings call transcript Q2 2023

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Operator

Good afternoon, and welcome to A-Mark Precious Metals Conference Call for the Fiscal Second ended December 31, 2022. My name is John, and I will be your operator this afternoon.

Before this call, A-Mark issued its results for the fiscal second quarter 2023 in a press release, which is available in the Investor Relations section of the company's website at www.amark.com.

You can find a link to the Investor Relations section at the top of the home page.

Joining us for today's call are A-Mark's CEO, Greg Roberts; President, Thor Gjerdrum; and CFO, Kathleen Simpson-Taylor.

will call we your remarks, their open to the questions. Following call. I'll we made necessary this conclude before provide by the during statements Then forward-looking call, the the cautions management regarding this I call be would available via Investor in replay link for remind A-Mark Relations like everyone section made is recorded of and to being will available the a that website.

please the CEO, Mr. Now, A-Mark's proceed. I to would call like over to Roberts. Sir, turn Greg

Gregory Roberts

call today. you, again our Thank good for everyone. afternoon you Thank and to joining

As from quarter second A-Mark $XX demonstrating integrated latter our the $X.XX that see these X% you represented with quarter the despite the of generated of strength half of We a EBITDA results, of conditions the we can quarterly the release, experienced earnings our equity. business fully market quarter, return EPS another during model. nearly for solid with and on million diluted subdued

significantly of XXX profit overall continued year-over-year. Our our results, to segment increase point basis the XX% generating gross for our in to margin DTC DTC percentage, gross consolidated quarter contribute our with

new year-over-year. new XX% customer DTC in for year-over-year, XXX% XX% grew quarter XX% year-over-year, for XXXX. were customers customers our customers from BGASC total DTC asset grew quarter Our and the the base active of acquired October DTC the grew Approximately purchased

base by performance customer encouraged we that integrated the of the and acquired. are BGASC We the now brand fully

business. our enhance segment remains remain continues our to key overall in We DTC seeking Our to and to business. grow active contributor opportunities strategically a

commerce quarter their in in look customers, in precious has retailer a our minority our of the week, & also we purchased Bullion agreement. our forward XX,XXX & minority to leading leading a Metals exclusive will extension a Atkinsons of based TPM, of retailer interest a through to North Coins metals, metals This XX% supplier is close in calendar and investment interest international entered Last to definitive we with transaction agreement e- Precious the ‘XX As online XX% acquire or outside presence over last America. expected supporting of a four-year first Texas. and month, we Texas a growth United footprint Kingdom. strong geographic TPM Bullion we into Coins, announced in expand precious

of production us Another key levels levels driver minting continues supply second be our to the to performance near with at which ongoing our continuing for business, quarter. access with provides record

our metrics. will financials update detail. CFO, Now, through questions. strategy to Afterwards, to take operating our your business more Kathleen walk and I'll provide discuss in our a I'll turn and Gjerdrum growth Kathleen? Thor President, it you our further over Simpson-Taylor Then on

Kathleen Simpson

And Thank afternoon, you, good Greg. everyone.

an the $X.XXX QX offset of to in from last XX% consolidated The The contributed revenues Our partially sold QX and lower contributed consolidated QX of in DTC of the the to of fiscal X.X% average XX% and XXXX XX% revenues selling last a XXXX, of XX% increased for by for QX Revenue XXXX increase JMB consolidated by billion was to fiscal revenue fiscal revenue in last compared year. sold due of billion in QX year. increase golden in silver. ounces silver decrease of $X.XX ounces prices gold segment QX year. of in represented

an represented to XXXX X.XX% year. QX earned Revenue year XXXX ancillary period or the contributed Gross the by XX, of December six-month and sold. $XX.X XXXX, fiscal $XX revenue XXXX compared the to DTC period. six-month contributed in The the and gold contributed in increase from due for services gross decrease XX% in December of The X% JMB sales billion X% XXXX represented gold million million silver QX from prices XX% consolidated the of sold consolidated the a and silver, and profit profit profits same by decreased period. average to selling in The was from decreased the For the offset our ago wholesale and in decrease $X.XX was to ounces and six for lower QX gross revenue year segment. to of period, last gross in fiscal of DTC months the ended profit segment billion in XX% revenue profit XX% consolidated the ended same respectively. segment the Gross DTC of XX% by in or partially $X.XX period. ounces XX% due same to revenue X.XX% lower decrease of ago compared for year revenues XX, ago

Gross JMB XXXX gross compared by of to year. fiscal profit XX% profit QX the QX in consolidated in representing XX% contributed last of

expenses in to increase of offset partially in profit December For XXXX of for $X.X and same fees an services performance-based $X.X the sales profits million. advertising gross year The by and ago QX, profit contributed XXXX, ended the six-month earned Gross DTC from wholesale in computer segment. increased period, by or increase XX% the represented JMB the expense, million, respectively. consulting $X.X due SG&A X.XX% XX% of period. million, gross of related to due compensation million, XX, an $XXX.X gross gross costs of lower DTC contributed December and an consolidated fiscal costs and year. segment million, in from XX% of six from increase of gross to same million profit period expenses professional insurance was Gross profit the to by QX revenue million for higher accrual profit increase ancillary XX% $X.X increased six-month was XX% compared primarily XX, ago in XXXX, and ended or the $XX.X higher million to $X.X $XXX.X revenue last represented consolidated of the in in profit X.XX% XXXX, of The $XX.X period. months year the XX% and including increase of million

of million six-month of accruals increase from expenses million, increase expense, advertising of an the million. $X.X offset a $X.X to The same year increase acquired amortization million $X.X higher lower QX to last partially costs For million expenses QX fee million of related Depreciation in million, the decrease amortization and decrease of in $X.X compensation JMB. period. in $X.X X% related increase to an intangibles XX% to primarily ago costs of million due The million, period, professional $X.X $XX.X primarily million SG&A for in expense computer fiscal of was and $X.X was from including $XX.X insurance increased in performance-based and by consulting $X decreased due to XXXX in year.

amortization primarily decreased year. XX% fiscal $X.X of of year same in was primarily QX, intangibles XXXX, income to decreased offset million to interest and to period. was aggregate by depreciation JMB. decrease period, million in amortization acquired income. interest from higher products to to due ago in $XX.X $XX.X six-month in other expense the million segment income X% Interest income million for finance For decrease last the related by The The million lending our earned QX decrease lower $X from due $X.X secured a

XX% was the liabilities expense and increase for fiscal our The AMCF of year. to loan decreased with aggregate period, $XX.X decrease arrangements, QX to by interest primarily the lower other For increased segment in driven $X.X by $X.X associated million income credit with QX, the million $XX.X finance due in interest secured XXXX earned to facility million income from metals, by of decrease from interest income million year million last company's $X.X period. to interest fees. financing in primarily same $X.X million income. associated lending million million offset The $X.X on Interest a related lower was of trading X% $X.X servicing ago the and in Notes, product six-month products borrowed

our by amortization servicing of XX% credit increase debt borrowed fees. For was same interest $X.X ago with financing million product increased period, from with in million And $XX.X liabilities the to decrease primarily costs, associated million facility the by six-month to interest including metals. million was associated $X.X Notes, The expense a year period. issuance and $X.X $XX.X on trading AMCF in the million of offset $X.X this of loan million arrangements, related driven

in same our million XX% increase investments Silver $X.X to method additional Gold QX, increased XXXX from to the due million equity Bull quarter. primarily in was interest net $X.X XXXX. from ownership The in year-ago June Earnings which XXX% in acquired

in Silver equity earnings XXX% to period. The investments method in Net million to Gold million which in XX% June primarily interest XXXX. acquired Bull the increased the attributable additional we company stock diluted second our QX $X.XX XXXX from $X.X period, share. year June for diluted the same million six-month $X.X due $XX.X was to from net the for For income ownership ago in split or the increase totaled the of last in fiscal of quarter income This or two-for-one attributable as company $X.XX per year, million share XXXX. effect per compares adjusted to $XX.X of net of to

EPS diluted in of that for the outstanding XXXX. two-for-one shares as for weighted the is with quarter shares of the million fiscal second effect of of last XXXX outstanding based average split $XX.X diluted quarter diluted million on year, $XX.X during June average weighted stock occurred Our compared the second adjusted

effect ago net company share to same or the two-for-one of per $X.XX per adjusted occurred income share, diluted stock attributable of that company income the for diluted million six-month the period, as attributable $XX.X period XXXX. the the compares in the For or to $XX.X to million year which net split $X.XX totaled June in

provision shares expenses, before six-month weighted which of the to measure $XX.X $XX.X XXXX compared has Our Adjusted increase adjusted fiscal ago in financial based the in fiscal on ago ago XXXX. decrease quarter. year $XX.X split been X% compared in before XXXX and six-month outstanding same million $XX for $XX.X Adjusted XX% period $XX.X totaled million million, XXXX. in compared with a year excludes a a QX income period non-GAAP same the period diluted for a $XX.X million, a June depreciation shares non-GAAP net X% for ago income average outstanding XX% the period increase which fiscal that income totaled to diluted occurred same diluted period. year the taxes income provision year $XX.X for stock taxes, average six-month million two-for-one compared QX totaled the a EPS for the to $XXX.X of decrease in is QX EBITDA effect for EBITDA, acquisition million, $XXX.X measure, net for amortization, same million during million, from the the weighted of million period. totaled at million liquidity for

Turning of compared balance At to the of $XX.X cash $XX.X end, quarter XXXX. last fiscal we sheet. million end our year. at million had to

of the at the the year. million $XXX.X up end tangible quarter of worth Our net end $XXX.X fiscal from the million, at was prior

as reported now have maturity current $XX.X Our a balance a XX, December Notes XXXX are sheet. of our AMCF on liability date of and million

the of resources, regular including determination of of applicable the cash uses financial in announced Directors the share, That $X.XX dividend on of as the factors, A-Mark’s prior of a its regular dividends by the The and bank quarterly release, cash in It quarter expected available next per cash Finally, each summary. previously April policy and which subjected covenants. we number my company's Board the declaration company XXXX. cash are declared completes common paid press in in January. to announced future quarterly cash paid Board is requirements, a alternative Directors the of be based and dividend is will that performance, reaffirmed financial

an operating provide will will I key Thor? the our over on to turn Now update who metrics. call Thor

Thor Gjerdrum

Thank you, Kathleen.

for Looking from gold as year, XXXX, of in quarter as XXX,XXX our well We the QX metrics was of second of which sold ounces operating fiscal XX% XXXX. QX fiscal quarter. last down at previous key the

X.X QX year ounces last which sold ounces year down was quarter. XX% which gold, from and X% XX.X from million up we of period. period, silver QX six-month the was fiscal a up last ago million X% in of sold from For We XXXX of

time registered six-month a customers segment, the period from period. million made we as have to is DTC a number from BGASC set the defined is in was up XXX% XXX,XXX of new acquired from in first which that XXXX The were XXXX. during XX% up quarter. customers the XXXX for XXX% the in Approximately QX For purchase of was of or account, XX% ounces QX of customers fiscal which QX of attributable period the same new up October sold of fiscal last silver, or the XX.X customer list the last which ago and in number up new the year, year

the prior to customer of JMB due increases were in in acquired organic up order DTC October orders as year. quarter were end number year as of new in was XXXX. base, was dollar excluding list The of value customers ago X.X the The the the well DTC was of attributable of Approximately of is period. to XXX% DTC in customer the customers customers average QX segment XXXX. list to product a the acquired QX primarily year-over-year same period, For the the from of six-month approximately XX% of in customers new number the customers which represents total average orders the DTC The base in second period metrics our from fiscal $XX $X,XXX increase customer XX% the XXX,XXX, BGASC growth segment segment accumulation the at BGASC value XXXX. program which the which fiscal six-month segment’s in of XX,XXX in up new October third-party which is million, was delivered a during customer XXXX

For $XX the same period. average $X,XXX, ago the DTC order our is from period, value was six-month year up which

second which from the ratio year. of turn was a our XX% quarter, is last in X.X For inventory QX fiscal X.X, decrease

the decrease inventory six-month from was For the ratio six-month XX% a of year. period, X.X, last period which our was turn

it million, XXXX XXXX. remarks. December of at for secured portfolio XX% XX, now of a totaled loans which prepared concludes $XXX.X end up value of That December my X,XXX, Greg remarks. a and to from decrease the closing September December of XX% the from decrease Greg? XX, the I'll September, of XX% end loan XXXX, our down of from the but is December end dollar X% number Finally, from of The at XX, XXXX. over totaled turn

Gregory Roberts

and Kathleen you, Thor. Thank

market Our for to fully platform of our benefits favorable conditions. quarter positive results results the modest the in demonstrate integrated business generate more even

subdued quarter returns macro periods opportunity experiencing face We've elevated demand third environment. to in currently are a some as the volatility. fiscal start headwinds we the outsized market more With continued of for and to

grow opportunities We create shareholders. in international to markets continue value and investment further evaluate US our and our footprint both for to expand to in the business our

business term. We are very the and us which proven Operator? model. model We prioritizing are opportunities growth and over A-Mark which will platform long our to profitability with integrated and for allow are realize synergistic remain that our aligned business optimistic

Operator

[Operator Instructions]

with first D.A. question Forte Our comes from Davidson. Tom

Thomas Forte

Great.

and is additional than Is So Greg, questions. comments had prices the go headwinds, for elevated I time. When macro partly Or two is talking of that I a at I'll there. about one much And gold that how any more that? silver? it? appreciate it

Gregory Roberts

Sure.

I has as you spot think think exactly said, I some what higher as in the well prices compression, demand. caused some softening premium

was the gold X, $X,XXX to an up November as It XX think ounce. of January were XX, we I around at year ended And $X,XXX. plus.

generate generally steady any and a or of followed had price pullbacks on you the generate volatility spot fairly we really silver the So significant suit, see that without increased that demand. increase

think pullback. be to expected February. we're there the in whether gold we we level we're going or a silver pullback. drop out did have at gold of we our that looking But to of had conditions reached that to demand a I part we'll Friday a in to week, was significant rose silver. Now, I QX if our see of a not point breakout upside, first plays and a a get extreme October whether through this definitely, and how the we that prices get think markets that And through really QX, the and see or to see last did November without fairly we spot and And such going and do, see through

there as States coming Mint the coming there in -- the new December, the little online, other January in bit, We the supply some of issue you had a think softening United the these was product where coming well had of mints market sovereign first had just of we demand. timing little Plus so product market circumstances. the timing the I a was a at bit we into little some expected in to into see also January. had as

functioning in I December of in do had think and bit working. the is supply is imbalance January. everything that business little I great, we But demand So think a

Thomas Forte

second versus make have compare you you do you questions, And on acquisition Great. my can contrast would just and your M&A for domestic your did strategy? international the a how on front, an you quick strategy that of plans Given a the and describe three asset? hurry, UK to

Gregory Roberts

States. Yes, I footprint think, markets I most, where have mean, North are, our and the America is United the biggest we Canada in the

know possibly for staff talking our and don't a US or haven't outside in the that America, be to think a I the purchase. part business, is XX%. we've business people, agreement into partners little at, under North to excited looking that the that think I ideas build months, as have I an we getting to look are slows to anything we just to And really where I an and getting And been we're the that that investment right, addition and then made know to our down also, option our So priced moat to at outside it'd for nine we're come but will the and Atkinsons continue into we have insight more to go this looked we model to, of first good where acquisitions six something of before, believe we America. think deal, think North up get

product nice by taking some that, to can giving for us that we hope offer to products able or then, for and the with agreement, customers, offer and what hasn't for we meld moving not think access them access quicker of that to product past, we that I will marketing a Atkinsons consistently. the at least that our UK look very seeing over what can opportunity their be to So a We DTC our I think market supplier access we the inventory can the principles that and know close in those strongly much get And that together. seeing to and how are be guys very do feel two and Atkinsons to to course, been looking I very we'll in Atkinsons they're feel a of the digest what our think to help, they will think together. open at segment we kind is. how And forward

Thomas Forte

Great. The last question.

talked increase, you you about can level significant talked capacity. So mint Mint? you very sold. think your capacity last a talk about But ounces in SilverTowne quarter, at high today And mint your Sunshine about your and silver at I

Gregory Roberts

Sure.

I think to both businesses. great both year, the quarters strong in companies start a are -- have had both were fiscal very

up build and products shifts that out capacity in, think production found back we or we We're operating currently right products shift ways we December. go of both items XX% product on I regularly we imbalances, see we different of. February, and we've producing that and facilities. still supply for more to think most squeeze through the November took that And product XXX% in through everything I is that production of to part probably demand to in now, orders

our close again, trying book that to But up out and customers. a is catch that to and and that an how as we demand eye orders right product we we'll we're and keep now overall looking supply inventory So And I product. eye the get on good think keep mix. on product the, on the much forward will as on have our

Operator

Riley. with Lucas Pipes from B. The next question comes

Lucas Pipes

may in Is far? very much recent you Europe very a be for up much is on ask and investment everyone. operator not go good afternoon, Thank that the strategy your list you to maybe M&A I should with priority the or also that color. that Thank specifically want internationally UK. sign higher the the and we about

Gregory Roberts

outside the I Yes, UK, we be challenges. US, comes just in I think mean make of any it or investment with different whether it set Europe of the in a

products. the we're much, very I although because partner those selling same a very similar, business, good nuance think need that of of in very the areas the many we

evolution I hope the platforms nuance hasn't of level in particular bit the few had the relates from are bit And that what believe mind. in consumer, UK that North that the A-Mark I here a less think there's we the my what detail, UK behind the do the something and we we Atkinsons in And there's more it are little to the is as to investment. players think a competition in to in and the little able to of see And of businesses see I e-commerce probably businesses online execute North exposure America. America. is, a

big Royal is Mint think Mint. So wise, the by is Certainly big UK very I And the opportunity a a market. it's player the there. dominated Royal

North of to So presence Royal Royal lot we're the America, Mint, here distributor although with for believe there. that a grow the in we UK continue the of over business the potential a relationship to our Mint big and has us

said the cut this We happy are BGASC we of the in slower to TPM deal able places both were North in we sovereign think But this away we identified, process UK. haven't that partners investment it. away I is that we mint I there's founders, good six nine we think than we the the little wanted this was did said, on outside doesn't in do and signed I as in we the target. sides us last decision we with opportunity we the So the year. came to a the came that as aren't to as, the at or America. and something ago, the focus feel albeit that we feeling we other a in a employees And months believe knew as it well results specifically definitive agreement players the Diligence week, opportunities in the mean very other had I and diligence maybe that model, I do looked earlier probably lot that's of at as looking we -- was were UK, the or this interesting to very

Lucas Pipes

right? And there for --did impact on of mentioned elaborate sovereign I something an couple may new year. products have more or speaking I your supply? that that it you color That's structural you Can had color. seasonal is that. a potentially is earlier think Can of on that were Thank you that there's for here very you that that more this on hear premiums helpful. you that? And Thank mints,

Gregory Roberts

exactly to. know through of gold But a you're don't period try what think constrained it referring QX, answer extreme through from I I'll silver silver. to the US supply part is, time on went both US QX we the first our I constraint the Eagles Sure. supply before, and quite period question Mint what of and in And the a I we the and haven't, continued. Gold think about in I've talked really seen some constraints hadn't

are benefit date producing premiums the It appear in as QX move we've to significant So able turn as QX. of dated of it. that experienced QX and supply absorbed in inventory amount that October. XXXX. now that we at benefited the manage we a beginning that a mints we've we been from from able that believe a I those been to digest also into did that does periods XXXX. constraint. to direct change. we It's, it, we bullion And in calendar all And new We've the higher of the result do from were

believe a I up we are if if back into have get situation, supply or very constraints well a demand we We increase. set

positioned Mint at to that I'm very relates US inventory. from are It does months. plenty will over believe through well six are of first least to of that as to Silver it Eagles DTC of continue Eagles the the six A-Mark hearing Silver think be in and the with appear months particular, that I the And what coming on limit will into I allocation. ‘XX the marketplace continue next amount our

plays up see we're But that. from we'll that the the with demand how how right that's So out. US see what We'll now. Mint hearing matches

Operator

The with MKM. next coming from ROTH is question Andrew Scutt

Andrew Scutt

and afternoon, taking thanks for my questions. Good

in gross First DTC little dived was business, XXX-basis just or bit, one model. in maybe just a expansion if kind that the market margin kind wondering pick just the point here, the more so you but of apart into the of operating improvements please environment,

Gregory Roberts

expansion a the that and little don't discussed, I our bit seen or as it erosion for December as specific And it for was And I model anything we've there while. January, QX I relates demand. most which to think to the to premium I at with think I within model had supply wholesale in anything I again, our segment. supply think premium enjoyed move expenses and think reflective just I mint part, a a sovereign of but think that premium of that significant that start think QX, as see level said, is by at lot or some pretty do, both discussed, much And those level. in else, we advantage of what the the metal, did extreme driven I our -- it constraints of chain to I was to and some and we is compression ability at DTC

Andrew Scutt

there demand the any maybe in so Great, updates in and but to CFC the seeing book, a color. loan gears, decline talk the the be of kind the one second you on My shifting here, and then you're is the Collectibles simultaneously, well? the book, of notice thanks increase loans business, just great in can talk loan to for also as outstanding, kind guess I Group partnerships the with would

Gregory Roberts

and bullion sudden Sure, loan to that spot increase have prices, particular. when rising you to talked tend on loans, in to book, significant tend we the the drops be in have I would in when loans or book and off, price you paid lose loans this we've times the many think have drops tends past, loan the we the of metal, about as

to book sports loan that of quite with And loans that also and our little think the invest our or in, months, of credit four going relates our higher do it two customers. has than increase on our to charge our numismatic start CFC downs, I last that our the to increase quarters and ups interest And think we've generally, we we've and more the up. faster rising in funds as the gone rates saw last card it's believe is started to to we cost rates did to five have But to a the the expand significant will as I volatile. the it's facility, to over I not in loans in in raise a ability cost funds that seen of we the cost been, funds our borrowers.

over we on are to I relates straight pulled to the as little think opposed numismatic focused our which bullion a loans, of to as it more the the increase book we've have CGC cards, more arrangement, or the and collectible back right things, that's, we trying on little on the is which some side also, now we've better bullion we're a seen months, that offset be loans. and so the going focused see bit And four margin potential in that. loan, last some on we to in of bit collectible drop the on to nice the three increase

Operator

The question from Securities. Gibas Northland next comes with

Greg Gibas

versus in volatility market if were in Great, I guess the supply Thanks taking Kathleen those much could How first questions. from lack you of thanks. of follow up increase of that Greg, about? on the talked conditions. I do subdued Thor. you headwinds think and maybe Hey, that for market the kind

Gregory Roberts

about do I tend to about up a when volatility of think pullback But what's silver going, I to And And I plus year that's where the issue. good again, really run-on in cause think it's over a And we've pretty uncertainty to rise is a prices. that or the for We demand. from in last point bit it and significant I rise, I how natural. think, always to in prices just there's Yes, talked that going about causing mean, $XX, $XX. to us. it's as is particular, spot I had think good little

So people have you some prices to a spot And also have taking bit when up. higher are tend buybacks profits. little we

a Towne the selling So everybody is in September a do. of February. now the as were the going think active, into supply, I And Silver have marketplace, in that also deliver of like we January their forward very not and we and had hedges product situation lot where October. lot position it coming And Sunshine and you we that's to in affect our that a marketplace product

spot be take into the you may from if October product when selling lower it. have delivery us wholesalers back they're going September, of marketplace, to that that So at they product prices, back bought be

So the think would number there's this, are a that are the of factors good number one say probably into going I higher spot but are prices I issue.

silver a that that and And we then I go our operationally, of price in think in are Friday by December, this it cases, all combination are putting business so weekend a I then may and pullback expected And all pretty little down a things is a our and the until in well. product all very morning, and for the much we've these of liquidity, are head rising And with periods before, had over effect. to saw is again, we gold what Friday one demand said, before most more be this we into say us, up when has a coming as throughout pickup see in DTC is from segment hard factor exactly it's as -- together, slowed stagnate we and said January, it in me as did but tight of have to range these experienced our little the is do I on January, kind as business, it to when the me, have bit, the these through business. we've able subdued conditions all, think we're time. we that as we performing the do outsized the important we volatile a used in continued levels. returns, of with believe great volatility. demand. logistics, and this well said marketplace But I at And handling here, pretty everything more say we And we than well slowing time, more we are before And in all as another. prices, have But operations, operate to seen to how

So to everything seems seems, pretty me. standard

Greg Gibas

that? follow of given production little from minting this but January, idea have forward touched couldn't in they've going on And up, in any the for that very their maybe of if any terms plans products, new mint new a levels helpful. you indications Right, I bit, already in supply

Gregory Roberts

cases, and one-ounce I there's that the so likely of many we and, had US how know because QX. affect say many factors and produce. ounce many don't Silver going I benefit that, Eagles not that in ever mean, can Gold American know into to they one Eagles QX or the is they production I part details us can Mint specifics is in to be what even give their

that the no we there there ounce significant Eagles virtually I and a positive for gold as, we point allocation US a fractional product, time, effect us. they have, for there on As positively the did for where American before, that and a you, lack first demand They make were And now said is much gold to affected one back was order. coins have made. of are can being they'll gold and very got as Gold as new the premium where on no was

major a January turned off So for went available as gold change, allocation, that fairly we is and was into delivery. immediate that

increase on January, have the it going kind any allocation, Silver seen exceeded last relates as pretty on was on allocation, up in again, were so allocation silver underperforming we turn the what continues, did we the they of they two by like demand predicting we of be forward. And I regular they side. monthly of Silver said absorbed aren't And and it calendar. what on back years feel did, coming these can large has probably months, sometimes But , a I a that to XX the on we've big at at of see been I a marketplace. fairly number about a the great make. Eagles, basis more throughout from where now then the been for make, the the appears but they're and now don't consistently for be will And periods market they next what to number they that the And production have it, that as months, built heard constant we've six months, predicting the the over Eagles last what going Now, can saw coins again, much they through need.

Greg Gibas

Okay, it. making changing as performance, expectations, a and But perhaps Precious still wanted investment. just That's you're maybe little to uncertainty I a the when it's how I new of there's early. Metals well. hands helpful. BGASC got know always know and to And ask is relative your Texas trending

colors that'd share helpful. you there, be So if any there's can

Gregory Roberts

I being mean, between we just the first BGASC, platform. really I the would differentiate bought the two, that of XXX%

running very the very a go it's customers I they in outperformed you integrate able that we've think the now, I other availability site really, our right Bullion add to the The I JM know transfer than facing JM were the to platform don't that significant site. to And the saw experience. on been tech JM our disruption that with customer difference even expectations, site platform the to the of BGASC on any platform. we product able guys, guys increase just to and BGASC, quickly, at really little if Bullion

of we some seen expecting. And orders welcomed we've little exceeded see. were think seem the own to performance other deal, bigger and our which DTC little think does we system, And that customer customers, hoping we've is larger of does we close what hoping by to As appear been I were relates that to has the I it's expectations, us. number base, it it independently weren't as after probably a orders have echo it the its that functions we it

as our running Texas little the relationship it's them with out we'll numbers investment different basis XX%. I other that we other help And the very they're will but little which there, company, than for things still integrating financials very with I a Precious category. getting them, we the been to and, the at discussed this demand little we so stake more cost making it we seeing far act other the again, management And ways different news that's little positive we're just bit of very will help each the So a more accounting, product, BGASC. animal about can might list Metals, a you looking be in to to how And we supplying on a XX% understanding be ahead, the to be from took able you won't in level. and them a decisions, really have a them be we wholesale level, relates get of months on and accounting then closer have a be there by know well. going the is not won't numbers entry those and they're increase think on A-Mark so that still

know Texas Metals of and move our get how functions it -- they as customer Precious about how to see mentioned the management but offer very Texas partners think opportunities specifically new the and we're curious very I how in to to we that as centric and So here to mentioned, base that to they're good us the customers I know different, value both and I we think and interested release forward. and press get

Operator

Equity question Dunlop from comes Next Carter Dunlop Management. with

Carter Dunlop

of experience terms terms from any, realize cyber in becoming in I sort glean early. how it's you what's or metal And react either anything month? But anything to if you've customers the every programmatic volatility else? had Hi. of of the buyers can those progress,

Gregory Roberts

Yes.

to in I think, marketing couple of on a we've people new CyberMetals quarter. the on last brought for focus

although We going existing mind likely likely not be be in crossover. than are customers customer some than more to CyberMetals younger. -- get to And seeing more think is we growth, are coming positive there's our that do into JM what no we customers, the they're the new doubt

have to we is CyberMetals believe to do I demo. I And a So metals, great it the different JM. introduce way for at a us that platform ownership this think is physical

on seen metal think level. developing certainly, as about have with earlier, we we people us we've think at talked rising, people discussed regular as I little believe some automatic, we prices from I just that, we, plan quarterly trading a where bit we're monthly or we customers platform as I back redemptions earlier, when higher there. would we purchase had So some get seeing it's and actually to positive this a seen be feedback the spot And on expected were platform, that and in promoting, are

we're and find platform how as to new we're it's , slow good paying out it. going than and it this relates need steady. for just there We how to point, new be the to feel We the So, new we're sweet expected behaving customers going I'm to with find the attracting plan spot But to think it's is for again, to platform. better pleased functionality. marketing customers. customers I our and about what And

Operator

follow coming Lucas B. a from We with Riley Securities. have Pipes up

Lucas Pipes

at taking my operating to you silver much the follow metrics I looked When for very question. sold. down up Thank go ounces

would we So much. And for why in great gold. a decrease the but saw get is you intuition I in and an ounces be that have very some to explanation on that. increase silver Thank

Gregory Roberts

that. there's a number that of ounces there are think go into I I caveat products always with it that sold

can number. I affect So think times many timing that that

and retail fabricated XXX product XXX-ounce of ounce have wholesale that wise other our the encompasses I the the and only product mints, and also sales US you bars. have to at and to on wholesale or when sold, not Mint ounces internally Towne, Sunshine when ounces XXXX-ounce fabricated of think you and that bars, always that looking Silver sold sold DTC we're gold the ounces big we remember bars, report

can on see the go always as as and depending at those silver you wholesale go always demand well you and vary. gold side up imbalance at demand, you timing have because industrial and And level. they the numbers can see level So DTC the and between don't down both don't

think Mint gold the to have pump gold had we US looking mints, our of gearing certainly probably probably on continue rising Silver effect silver, well price sold. a metal Whereas a our XXXX little the launch the you numbers, in to were spot up lot ounces at as bit they So their of Eagle. has, private as and out I as supply, of the

gold don't pretty to sold more I silver. we it's sold specific a that's pretty, see why but less answer, as So than high-altitude anything we

Lucas Pipes

the for much very you color. Thank

Bullion debt coin, trillion facetious think an agreement a Mint add the distribution. I'll to set come $X recommended comment platinum Now if Congress the has ceiling the I for itself and US on JM doesn't

Best again. of luck. So,

Gregory Roberts

anything Well, how business should make things try whatever this play shouldn't to to count in what sure because I'm We'll just I years, after I've I’m wait XX to happen. settle to on not happen. on all just those to out. learned get might going see we'll to I try, I think's ready react

Lucas Pipes

of best there be might volatility again, luck. well, Yes, but more

Operator

his this Mr. At to our time, I'd this concludes turn back Roberts over remarks. closing to question-and-answer for call like session. now the

Gregory Roberts

Thank you our Thank employees much. A-Mark’s you you today. dedication shareholders further call for look to support. very A-Mark Thank the very joining for for apprised Many joining. you like much I'd continued progress. your many forward thanks and of to for to And thank interest we success. to our and keeping their commitment

Operator

includes conclude I during to call, Safe important cautions call. made we A-Mark Before this forward-looking would Harbor statements today's that regarding statement like provide

and Reform to following. During differ uncertainties are expressed market individually and failure and meaning the that Litigation differ Act or cause and results thereof of speak as they which intent, expressions to which of and current XXXX. materially similar of incurred anticipated, strategy or governmental on should, could than the depress today's business Commission. economic, execute the and The for were plan statements statements execute cause with expect, the the the statements A-Mark’s performance, increased current strategy. filing changes that anticipated A-Mark’s as commodity Securities from certain forward-looking those greater the expectations, to in in future the climate, the as company’s higher like could in company's competition in date estimate, implied the actual in this events, aggregate company's Act environment there doing political the costs the and made business, risk results planned, identify made. in of to statements. to the Exchange financial the pricing, proceed, failure the Factors and Changes which future risks such of and believe, forward-looking margin Securities of actual events, The anticipate, words call, described these include of events, international within model markets, variations regarding market could XXXX domestic Future to Exchange respond plans, were Securities business other services, forward-looking only relate as Private statements general risks objectives,

publicly obligation to improved revise statements are of these The Additionally, earnings and to forward-looking undertakes Readers on revenues statements. update statements. or reliance performance any undue forward-looking statements. forward-looking company share cautioned related any to future per are estimates place and no

everyone you the section company’s remind call. Finally, for be available today’s of via I’d earnings link us call joining like the that A-Mark’s replay today in website. recording will for investor of to for Thank

now You disconnect. may

A-Mark Precious Metals (AMRK) 6 Feb 232023 Q2 Earnings call transcript