Q4 2020 A-Mark Precious Metals Inc Earnings Call
Good afternoon, and welcome to embark precious metals conference call for the fiscal fourth quarter for year ended June Thirtyth 2020, My name is Devon and I'll be your operator this afternoon.
This call it issued its results for the fourth quarter and for your 2020 in a press release, which is available in the Investor Relations section.
He's website at <unk> Dot com.
You can find the link.
<unk> relations section at the top.
Joining us for the call today.
Mark CEO, Greg Roberts, President Thor Gjerdrum.
Oh, Kathryn Thompson Taylor.
The remarks, well open the call to your question.
Before we conclude the call I'll provide the mystery cautions regarding forward looking statements made by management during this call.
I'd like to remind everyone that this call is being recorded and will be available for replay via link available in the Investor Relations section.
March website, no I would like to turn the call over the in March CEO Mr., Greg Roberts.
Go ahead.
Thanks, Devin and good afternoon, everybody. Thank you for joining our fiscal fourth quarter and full year 2020 earnings call.
Take a moment to thank our employees and our shareholders for their support and what has been historically challenging year.
The fourth quarter capped off a truly record year for hey, Mark both from a financial results and operational efficiency standpoint.
On the global macro.
Comic events in mid March that spurred the unprecedented volatility in the precious metals market.
Hey, Mark fiscal fourth quarter was characterized by sustained and heightened demand and related product volumes.
This consistency helped to drive sequential improvements in our key financial metrics, including a 25% increase in gross profit to 28 million.
58% increase in net income to 17.8 million.
Or $3.49 per diluted share for the quarter.
And for your our net income of $30 million.
$4.31 per diluted share.
Got it altogether, we produced a companywide return on equity of 18% for Q4 and 30% for the fiscal year.
These figures in that direction not only demonstrate the scalability of our platform, but also the incredible demand for our physical products, which increased significantly during the second half of fiscal 2020.
They also reflect the attractiveness of our business model, which is structured to generate continuing revenue streams and normal market conditions and outsized profitability during volatile market periods, which we experienced in Q3 in Q4.
A real differentiator for a mark is our eco system of synergistic turnkey solutions, which has allowed us to capture significant value across the precious metals market.
No enabled us to be more effectively take advantage of supply constraints and volatile market conditions like those we witnessed in the second half of the here.
The strategic investments we've made over the last several years to expand capacity and operational capabilities.
Ideally positioned a mark to continue to capitalize on the current market conditions, while increasing our market share Android driving growth over the long term.
Before I continue I'm going to take turned the speaker over to our CFO Kathleen Simpson Taylor to walk us through the financial highlights for the fourth quarter and the full fiscal year Kathleen [noise].
Thank you, Greg and good afternoon, everyone.
Our revenues for fiscal Q4, 2020 increased 96% to 1.67 billion from 85 0.2 million in Q4 last year.
For the full year revenues increased 14% to 5.46 billion from 4.78 billion in the same year ago period.
The increase for about Q4, and a four year was primarily due to an increase in the total amount of gold and silver ounces sold and higher selling prices of gold and silver for the full year. This increase was partially offset by lower forward sale.
Gross profit for fiscal Q4, 2020 increased 335% to 28 million or 1.68% of revenue from 6.5 million or 0.76% of revenue in Q4 last year.
For the full year gross profit increased 110% to 67 million or 1.23% of revenue from 32 million or 0.67% of revenue in the same year ago period.
The increase in gross profit for both Q4 and a full year was due to the higher gross profits from a wholesale trading and ancillary services and direct sales segments.
Now looking at our expenses.
<unk> expenses for fiscal Q4, 2020 increased 21% to 10.2 million from 8.4 million in Q4 last year.
The increase was primarily due to increases in compensation expense, including performance based a cool up 1.8 million advertising expense of 0.1 million consulting costs of 0.2 million and computer software expense of 0.2 million.
These were partially offset by decreases in operating expenses, a zero point fivemillion associated with the company's direct sales segment.
For the full year, that's DNA expenses increased 13% to 36.8 million from 32.5 million in the same year ago period.
The increase was primarily due to increases in compensation expense, including performance based a cool.
4.5 million computer software expense of zero point, Fivemillion, and depreciation and amortization expense of zero point Fourmillion. These were partially offset by decreases in operating expenses of 1.1 million associated with our direct sales segment and consulting expense.
It's a zero point fourmillion.
Interest income for fiscal Q4, 2020 decreased 38% to 3.3 million from 5.3 million in the same year ago corridor.
Aggregate decrease in interest income was primarily due to lower interest income earned by our secured lending segment.
For the full year interest income increased 10% to 21.2 million from 19.3 million in the same year ago period.
The aggregate increase in interest income was primarily due to interest income earned fire secured lending segment and other finance product income.
Interest expense for fiscal Q4, 2020 decreased 24% to Threed Sixmillion from 4.7 million in Q4 last year.
The decrease in interest expense was primarily related to our trading credit facility and loan servicing fees, partially offset by an increase in interest expense related to our product financing arrangements and our liabilities on borrowed metals.
Interest expense for the full year increased 10% to 18.9 million from 17.1 million in the same year ago period, the in Greece and interest expense was due to our notes payable loan servicing fees products financing arrangements and liability.
He's on borrowed metals, which was partially offset by reductions in interest expense related to our trading credit facility and the gold line credit facility.
Net income for the fourth quarter fiscal 2020 totaled 17.8 million or $2.49 per diluted share. This was a significant improvement compared to a net loss of 823000 or 12 cents per diluted share in Q4.
Last year.
Our income tax expense for the fourth quarter of 2020 was 4 million compared to an income tax benefit of 128000 in Q4 last year.
For the full year net income totaled 30.5 million or $4.31 per diluted share compared to net income of 2.2 million or 31 cents per diluted share in the same year ago period.
Our income tax expense was 6.4 million for the fiscal year ended June Thirtyth 2020, and 1 million for the fiscal year ended June Thirtyth 2019, our effective tax rate was 16.9% in fiscal year, 20, and 31% in fiscal year 19.
Our lower effective tax rate for the year ended June Thirtyth 2020 is due primarily to the income tax benefit from the carry back a fiscal 2019 and 2018 net operating losses.
Now turning to our balance sheet at fiscal year end, we had $52.3 million the cash compared to 8.3 million at the end of fiscal year 2019.
26.7 million of our cash balance at fiscal year end represented collateral for asset backed securitization.
Our tangible net worth at the ended the quarter was 91 million up from 57.8 million at the end of fiscal year 2019.
Last week, we expanded our existing credit facility from 220 million to 257.5 million expanded facility reflects the continued support from our lending partners and provides us with additional liquidity to address higher commodity prices and increase.
Activity levels in the current environment.
Additionally, I am pleased to announce that our board of directors approved a special dividend of $1.50 cents per common share. The special dividend will be paid on or about September 25th 2020 to stockholders of record as of September 21st 2020.
That completes my financial summary, now I will like to turn the call over just door, who will provide an update on our key performance metrics the worth.
Exactly.
Our key operational metrics were strong across the board the fourth quarter and for your fiscal 2020, well put them in more detail.
We sold 669000 ounces of gold in Q4, which was up 32% from the prior quarter, 91% for Q4 last year.
Full year, we sold 2.2 million ounces of gold, which was up 21% from the same period last year.
As a particularly strong quarter in terms of silver sales and must be sold 29.6 million ounces in Q4 hundred 50% from the prior quarter and up 136% from Q4 of last year for the full year, we sold 90.4 million ounces of silver, which was up 34% from the same period last year. It is important and.
Firstly on these recent market conditions resulted in an expansion of premium spreads, which produce higher gross profit and gross profit percentages in the quarter as Cavalier noted the gross profit percentage increased 4.76% in Q4 fiscal my gene to 1.68% in Q4 fiscal 2020.
These improved results relate primarily to the premiums earned over the spot prices recent conditions highlight our profit potential during periods of volatility where the prices are trending higher or lower.
In terms of wholesale treaty ticket volume, which represents a total number of product orders process star trading desk, we saw a 44% decreased to 27199 tickets from a prior quarter and a 12% increase from Q4 of last year, while the ticket volume decreased as compared to prior quarter Your average.
Order size per ticket was higher in Q4 for the full year trading ticket volume increased 19% to 142690 tickets from the prior year the increase in our trading ticket volume for the year is indicative of increased trading activity due to higher demand as compared to June 2018.
The third key metric we closely evaluating is inventory turn defined as the cost of sales divided by the average inventory during the relevant period inventory turnover is a measure of how quickly inventories move during the period for the fourth quarter, our inventory turnover ratio was 4.5, which was up 50% from 3.0.
Q4 of last year for the full year 2020, our inventory turnover ratio increased by 6% to 17.6 from 60.6 in 2019.
The increase in our inventory turnover ratio was primarily due to higher volumes of ounces sold the precious metals, partially offset by lower volume of ounces sold on forward contracts as well as higher average inventory compared to the same periods last year.
And finally, the number secured loans that here in the quarter totaled 717, which is up 67% from the prior quarter and John 74% from Q4 last year. The dollar value for our loan portfolio totaled 63 point, Sevenmillion, which was up 28% than the prior quarter, but got 49% for Q4 last.
This year.
Typically the number of loans increased during periods of rising precious metals prices and decrease drinkers are declining precious metals prices as you may recall numerous CFC loans were paid off during the third quarter when the market experienced a rapid immaterial drop in precious metals prices primarily in silver.
At silver prices rebounded in Q4, new loans were originated and acquired crazy, but the number and value of secured loan portfolio. During the fourth quarter that concludes my prepared remarks, I'll now turn it back over to Greg to talk about the progress we've been making our key operational initiatives Greg.
Hi store [noise].
Yes.
In addition to our record financial results in K P. Eyes, we made significant traction our operational plan to enhance our organizational processes improve efficiencies and expand on our overall capacity.
Our successful execution on this plan has further remarks position as one of the leading full service providers to the globe is global precious metals market.
In terms of our business segments. It was certainly a momentous year for our wholesale trading and ancillary services segment.
Yes, there were highlighted.
The significant improvements in product volumes and trading activities in the second half of the year hope to drive record financial results for fiscal 2020.
The new the moves we made earlier in the year to strengthen our trading team and overall capabilities such as our 24 seven portal couldn't have been timelier.
We also continued to benefit from our majority stake in the Silvertowne Mint, which has provided us with better price stability as well as access to silver products that we've been able to distribute into the market.
Even when supplies in the market were scarce.
The Silvertowne mint.
Has been operating out of <unk>.
Maximum capacity since the first few weeks of Q4, reaching production levels of more than 500000 ounces per week.
Our continued success with the man.
And their ability to operate 24 sovereign and the broader impacts it provides gave us the confidence to invest in new machinery.
Which will increase the mens overall capacity and product quality over the coming months.
We saw our secured lending segment bounced back in Q4.
Hi store noted numerous loans were paid off during Q3, when the market experienced a rapid and material drop in silver prices.
But since that time, we've seen a significant increase in demand, which we believe puts us on track to return to a 100 million dollar bullion loan portfolio by mid fiscal 2021.
This could you talk thousand 20 marked a tremendous turnaround for our direct sales segment, notably gold line.
The marketing programs and initiatives, we implemented earlier in the year provided proved to be successful.
And the driving force and turning around the business.
On top of this the decisive measures we've implemented over the last year optimized gold mines cost structure and made this segment much more efficient.
This was evident in the segments reported net income for the fiscal year of 2.1 million.
Which is which was a significant improvement over their net loss of three point Sixmillion reported for fiscal year 2019.
Looking ahead, our operational and financial success in the fourth quarter allowed us to enter our new fiscal year with success significant operating momentum.
I'm encouraged to report that the market dynamics and trends we experienced in Q4.
Have continued to date in the first two months in fiscal Q1.
Highlighted by sustained demand and high volatility.
These factors gives us optimism for the year ahead, as we look to take advantage of the opportunities in front of us.
We believe our strong competitive position robust platform expanding customer base and diversified business model will help drive growth and profitability in the years ahead.
Operator, please provide the appropriate instructions for queuing it.
Thank you at this time, we will be conducted acuity extension.
I would like to ask questions. Please press star one on your telephone keypad a confirmation so indicate your line is in the question Q.
<unk> per store to if you would like to remove your question from the Q.
For participants using speaker equipment, it may be necessary to pick up your hand said before passing the sarkies one moment pieces, we pull for questions.
Our first question comes a lot of Andrew Scott with Roth Capital. Please proceed with your question.
Oh, Thank you for taking my questions and congratulations on the extremely strong quarter I'm very impressive results.
So my first question.
On lines of trading volumes in the quarter like I said.
Great numbers you guys reported you do you see this.
Continuing into the September quarter, and particularly on a strength in silver or that you guys saw in the quarter. He see that continuing on with strong silver returns year to date.
Oh, Yeah, I mean, I think enough in the first quarter.
You know July and August a work, we're very busy for us and and our volumes and our ounces were extremely strong.
The price of silver.
Generally as it rises.
You know, we slowed down a little bit.
Just because there is a bit of a stone and people that are used to buying products at $18. They slow down a little better you know when silver is $28. So I think that.
You know our market our business reacts a little differently to.
Different movements in just the price of silver historically.
We've made tremendous.
Progress on when silver drops currently we're seeing a great deal of demand and if you look at the inflows into the each yes, yes I'll be E G.
You're going to see in July and August unprecedented inflows of silver. So what we are witnessing in the current quarter is you know.
A very unusual at unprecedented demand for silver across all products, whether it be miners, whether it be E. T. F and you know if you have some we have no definitely seen as I said in July and August we saw some very good volumes, how that's going to play out in September and going for.
Toward you know, it's going to depend a lot on on the appetite for people to add positions at it and in the markets that we supply.
As well as whether or not you see any pull backs or any buying opportunities are going forward.
But I would say that.
The other thing a store pointed out is.
We lost [noise].
Quite a few loans in Q3, when we had to an incredible 48 hour period, where silver went from $18 to $12 and we we picked up a lot of income on trading and sale of silver, but we lost a lot of loans just due to pay offs and.
What we're seeing you know in the last.
A couple of months is silvers up and and we're seeing some good healthy rebound in our loan our loan portfolio. So you never know exactly where it's going to come from or whats happening tomorrow, but like I said, a moment ago, we feel really well positioned and we feel like we're ready to take advantage of whatever the mark.
It can throw at us.
Great. Thank you next question.
Going off your comments on the Silvertowne congrats on getting capacity up to about 500000 ounces per week.
So just doing some math here that would equate to about.
6.5, knowing a quarter what should be about 20% of the ounces you guys don't per quarter.
That makes you guys are targeting or do you have a certain contribution makes you guys are targeting in the in the long term.
Uh huh.
I would say that the percentage isn't isn't something that we focus too much on as it relates to our overall ounces because the mix of of silver ounces that we sell comes from a lot of different products not just the silvertowne products I think that the more impressive thing is that that.
We are incredibly pleased with the job Jamie Meadows has done it silvertowne and and the ability for that.
Our investment in that business of ours to ramp up from very quickly in January and February. They they would probably you know running at about 150000 ounces a week to where they currently are at at the 500000.
A week level and their ability through out you know this very challenging period that they had been running 24 seven.
Three ships today and they they've just been able to keep the machines running they've been able to keep the flow going and that's really given a mark a huge advantage I think this last weekend Labor day weekend was the first weekend since March where they actually were closed for threed.
Days. So it's just an incredible run and and then you know our traders ability to move move the the metal necessary to the facility. The large bars that they use it and have that that metal showing up there every week, so that Jamie can turn it into proud.
Thanks.
It's just been an incredible accomplishment.
I think that.
Weve recently as I said, a few more a moment ago. We've we've invested in a couple of new pieces of machinery that we believe are going to just just continue to increase our production.
And make products that weve never made before there and offer them to our customers or the one on specific piece of machinery, we're hoping to be online by the middle of November so lot of good things going onto Silvertowne Mint and we're very very pleased with with what they've been able to either.
Great and yeah. Congrats it's a significant ramp in a short period of time spread here and my last question before I hop back in the Q on secured lending business I believe I heard you said.
Mid year 2020 should be back to about 100 million dollar loan book I can you just kind of get the puts and takes there for <unk> for what it's going to take you guys do you get get back thereafter, the sharp decline in Threeq you with the drop in silver prices and kind of just write a cadence and what you guys see there.
I think the comment was that we felt we could be back at 100 million by the middle of fiscal year 2021.
So I think that on on the the current.
Trajectory that we're going assuming things keep up and again you know it's in very important to note that.
The silver prices a direct.
Indicator of how fast we grow the book.
If silver was to drop back pre below $20 the growth it will be slowed and we'll lose some loans.
But if silver continues to move up you know the pace could pick up a little bit, but I believe that it's you know it's a fair estimate that by you know I would say January calendar year 2021, we believe we can we can get back to the 100 million level, which is very important for us because.
You know we do have as we've talked about before we have this ABS facility and when we lose loans.
We are less profitable at CFC, just because the the ABS has to be filled that its can be filled with cash or inventory or loans, we make the most money when its filled with loans. So currently we're just dealing with some headwinds there because as we build back up to that hundred million number which was import.
No because that's the the total ABS facility. We are you know were.
Where we're starting to gain some some a little bit we're losing some of those headwinds as we get closer to the 100 million. The other important factor is we've worked very hard towards worked very hard the last 60 days to increase our credit line, which we announced which Kathleen announced and we've added another 35 million I believe it is.
To our facility important to note that we are trying to prepare for all you know different scenarios and that 35 million from our from our lending group will allow us if we do.
Get the ABS filled and if we do see a big uptick in loans and the you know assuming that that would happen we have the liquidity and we have the ability to use that extra extra money in our and our credit facility to fund the loans. So I think we're we're super well positioned right now.
To take advantage if prices stay here and if they the trajectory we're seeing right now on the loan book continues I think we're in a great position to fund those loans.
Great. Thanks for the color and once again congrats on the quarter. That's all for me. Thank you.
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Our next question comes on line of Crystacomm singular research. Please proceed with your question.
Oh, hi, everyone on the or how to question on a.
Gold line, how our demand there how is that have you seen demand demand low recently or is it still staying strong.
You know obviously.
The numbers speak for themselves out we had a very strong turnaround in gold line I would say that it it lagged a little bit too.
The other.
Customers of ours or other other.
There are other numbers, we see or participants in the market I think I think.
Gold line started to really.
See some big improvement in their numbers.
In April.
And I would say that.
Currently go line is continuing to show very strong.
Performance as well as what we've we've found most encouraging is is a very large percentage of their sales.
Today, our to new customers something we really haven't seen the last couple of years.
A percentage of new customers. This is higher than we've seen.
I think that the gold line customer base is certainly.
In tune with the current stimulus and the incredible printing of money and the likelihood of you know some of some issues down the road as it as it relates to that as well as the gold line customer base seems to be very focused on the election and I.
I think that you know what's going on in the in the pre election.
The answer is certainly creating some anxiety with the goal line customer base.
But I you know, we're all very pleased here of us give us some hard work we had a number of these calls over the last year and a half that.
Weren't particularly positive as it relates to go line, but again the work that the people there have done and the work we've done here at a mark in in helping them to have product when nobody else had product into our product. That's that's a very.
Very good deal for their customers.
Really has worked out and we're we're super optimistic about gold line going going forward, we feel that our timing and sizing that business and getting our costs in line, even though it took a little longer than we had hoped.
Timing coming out of.
No December into the new year was was perfect and they were.
You know tight and they were in great shape to take advantage of the increased volatility in volumes in April so very happy with gold line right now.
Okay.
Great and then.
Oh I just wanted to get your.
[laughter] opinion.
<unk> recent me since August.
The pricing gold and silver sort of been how to top and sort of just been hovering around the same area wanted to get your opinion. This deal is this good or bad for your business.
Well I think that you hit the nail and ahead I mean, we we have seen some slowing of of the activity in the last I would say three weeks.
And that is probably directly correlated to Goldman sold are starting to get into a a bit range bound and you're seeing a little bit less volatility although will occasionally see.
You know very active days in particular, a Tuesday and Wednesday of this week.
When you saw some some significant reaction in the stock market I think that you know that had had some effect on on on gold and silver and them. The number that the price started to move a little bit outside of the range. We saw some more intraday volatility.
But but I think that.
Right now it seems the gold is very much being driven by.
The dollar and what's going on in.
In the U.S. dollar versus the other currencies and I think that you're going to continue to see a gold and silver perform better on a week U.S. dollar days and they're going to perform probably a little worse when the dollar stronger so.
We we feel that.
There's a good runway ahead of us and even if we stay range bound we're still going to be fine I'm going to do okay, and but if you see a you know if you see a break above 30 on silver and have a break above 2100 on gold I think it's you know it's gonna be really good for us.
Okay.
All right. Thanks.
Our next question comes on line of which are growth with our EG capital more capital Advisors. Please state your question.
Thank you, but this regard the.
Speaking on the part of the board.
Regarding the dividend that was announced.
It's it's terrific that the company has been able to.
Make the earnings into cash flow over the last couple of quarters that enables that special dividends, but I'm wondering if.
Any consideration had been given to using those monies to repurchase shares instead of.
Doing a cash dividend.
Yeah, I'd be we go through a number of.
Asset allocation discussions at the board level and I think that over the last nine months 12 months, we've had discussions about dividends. We've had discussions about buybacks. We've had discussions about where we can invest capital and where we need capital.
And I think that you know it's always a you know it's always a discussion that that we spend quite a bit a time on and I think that.
You know at the moment, we looked at at where we were liquidity wise, we looked at it areas that we thought.
Could put at a strain on liquidity and we.
I felt that you know at at the moment and at this moment in time, we felt that the dividend was appropriate I mean, we have message historically that when we have a good corridor or when we have a good year, we will be inclined to dividend I'm back money to shareholders, where we see fit.
But I think that.
We were very.
Judicious in looking at the you know the over $4 $4 and Thirtys plus sense a share that we made a we took a very.
What I felt was analytical approach and.
Kind of looked at where we thought we would need liquidity going forward and and in the end. We the board decided upon a you know about a third of what we made that we dividended out so.
That was.
We spent quite a bit of time on it.
But you know as as you probably.
No.
Our shares are very closely held we have you know.
50% of the stock is held with five or six people.
We have not a huge trading volume.
And for the company to just go in and say, we're going to buy X amount of shares.
No it's not always that easy there there's timing considerations and then the stock actually has to be available. So I think unlike you know large companies that have hundreds of millions of shares trading.
You know consideration to buybacks and dividends and asset allocation, we're just very careful on that.
Yeah.
If I can just interject two cents worth it so I I have a very small registered investment advisory firm and I own stock for clients.
And.
The recent purchase the stock.
Was because I.
The over the next two years.
We're going to have a terrific market in gold and silver just as you mentioned, particularly once the breaks out breakout occurs and you put your company is really an almost a unique position as an investment vehicle for investors.
I think repurchasing the shares yes, there it's doesn't trade a lot like now, but that's why because once things really get going a little trade a lot.
I think it'll really leverage back on the future share price as opposed to the cash dividend really doesn't really do much for the current price. It's nice to have nice that you were able to earn money, but the real money is going to be made over the next couple of years of the stock I think you can leverage that share outstanding leverage but.
Mike My opinion, but thank you very much for your hard work.
Thank you. Thank you for your support and thanks for your recommendation of our stock to your clients.
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Our next question comes along a rich few pure.
Accretive capital partners. Please state your question.
Hey, Greg.
Your results or.
Truly extraordinary and.
Just wanted to shareholders of years for more than a decade.
Hey, Mark specifically since the spin off from spectrum back in November 13.
These results today are just evidence of the viability of everything you've been vision for a number of years and that's.
It's it's impressive.
I wanted it really just have one question. It's do you see any constraints operationally.
With respect to continuing these extraordinary results and so.
The volatility of gold and silver driving strong results being kind of the underlying assumption.
And assuming that you have continued strong volatility, which we do think will continue for some time.
Are there other.
Operational constraints, you can address to to maximize the strong volatility or or are you bumping into.
Anything that's kind of holding you back.
I mean, the last six months has been in an incredible challenge as it relates to what everybody here at a mark has had to do I mean it it has.
It has been really you know there were days, where you know every single day, there was a challenge I think that.
What we have realized from this increase demand and increased volume is that.
Keeping our logistics facility and keeping the silvertowne mint functioning and keeping them open.
Is a very high priority and probably something that we didnt really.
Recognize prior to this coated because the covert really shut down almost all logistics.
And movement.
When airplanes stop flying and and mint stopped producing and and people aren't going to work.
It and brink's drivers are driving.
It is a.
No real challenge you know when you're trying to move 600000 ounces of silver around the World you know and that you know if you did you just think about the numbers on the ounces that we traded.
That metal all has to move and it doesn't just you know it moves anywhere from.
You know London to Las Vegas, It moves from Las Vegas to Singapore It moves from.
New York to Winchester, Indiana, where the Silvertowne Mint is and it has to move from the refineries and the mines to two places where we can we can sell it so I think that.
We don't know what's coming next but I will say that you know that Brian ACA Leno and his team.
In operations that really.
You know made made made us give us the ability to trade the product.
His is something that we we are aware of and we are committed and support into two that logistics as well as you know the product supply chain. So I think we're ready for it I mean, we we were one of the few companies.
Out there the last six months that have been able to have product available and to get product to two.
To our customers in a timely fashion, so that they can deliver it to their customers.
So I feel like we're well positioned and I don't really feel like we missed a beat I mean, I don't think there was a day I.
I don't think there was a day in the last six months, where we were unable to ship ship packages outs out from our Las Vegas facility and.
No. We were we were constrained on a on a few days just by brings in particular brink's was dealing with a number of other issues as it related to the comex and as it related to some of the T.S. and and we had to take some.
Fairly creative moves to to get our product moving but but we did it and.
It's hard to predict what's going to happen in the future, but I feel like we can you know we're ready to do we're ready to go whatever whatever pitches thrown our way.
Yes, and you you prove yourself capable of doing and probably the most extraordinary times you could have imagined I always thought about the business says.
Your core business being an ability really to capitalize on a widening spreads and the trading opportunities when periods of volatility Crete that widening of spreads and what you've done.
In a very intelligent way is overly really three.
High margin businesses with finance storage and transportation and it sounds like of those three it was really just the transportation.
That was constrained but.
As we return to normalcy, even that is back in full swing is that fair to say.
Yeah, I mean, we've you know we took some extraordinary measures and we were prepared for almost anything I think I think.
Logistics is very important to us logistics being able to to have the liquidity and have the ability to borrow against our inventory to move our inventory to places that that it is eligible for our credit facility Thor Thor did an incredible job Kathleen helps or.
The two of them, we're up you know.
Late many nights, just making sure the metal you know ended up in a place where we needed I'm. So I think that you know we were prepared though I mean, we've you know one thing we've never done before is because it was never profitable, but it worked for a mark as we moved silver from Europe.
In New York on an airplane that it was I was a first in my history never happen, we talked about moving silver on a boat a you know we investigated owning our owning our own 18 Wheeler. So we were very well prepared for you know whatever was thrown our way and I think.
But what we've learned what we were able to put in place. The last six months, you know really sets us up to do more volume going forward I I think we could I could.
There is no doubt, we can sell buying so more gold and silver ounces, if the market lets us do it so.
Think where there.
Well the business you've created Greg is really strong at this point and we're very appreciative below your hard work and congratulations great results and I'm happy to be shareholders are already been listening to this for 10 years now and you know like we've always said, we're going to go through periods of.
Quiet time, but you know we build the business so that when the market gives us an opportunity to take advantage of it.
We're going to hit a home run and nuts on you know what you've been questions you have been asking and your support for the last 10 years I cant. Thank you enough. So I'm I'm very pleased to be able to deliver on our promise to you.
Well you prove yourself. Thanks again, Greg we really appreciate your hard work.
Okay all right.
At this time. This concludes our question answer session now, let's turn the call back over to Mr. Roberts for his closing remarks.
Thanks, everyone for joining us on our call today and thank you for your continued support and confidence in our mission everybody have a great rest of the afternoon or evening. Thank you very much.
Before we conclude today's call I would like to provide a more safe Harbor statement that includes important cautions regarding forward looking statements made during this call.
During today's call do are forward looking statements made regarding future events.
Statements that relate to any more its future plans objectives expectations performance events and the like up or forward looking statements within the meaning of the private Securities Litigation Reform Act of 1995, and the Securities Exchange Act of 1934.
Future events risks and uncertainties individually or in aggregate could cause actual results to differ materially from those expected or implied and statements.
Factors that could cause actual results to differ include the following the failure to execute the company's growth strategy as planned.
Greater than anticipated costs incurred to execute the strategy.
Changes in the current at mesquite domestic and international political climate.
Increased competition for MRV higher margin services, which could depressed pricing.
The failure of the company's business model to respond to changes in the market environment as anticipated.
General risk of doing business, and the commodity markets and other businesses economic financial and governmental risk as described in the company's public filings with the Securities and Exchange Commission.
The words should believe.
Estimate expect intend anticipate for C plant and similar expressions and variations thereof identified certain of these forward looking statements.
Which speak only as of the date and wish they were made.
Additionally.
Any statements related to future improved performance and estimates of revenue and earnings per share our forward looking statements.
The company undertakes no obligation to publicly update or revise any forward looking statements.
Readers are cautioned not to place any undue reliance on these forward looking statements.
Finally, I would like to remind everyone that a recording of today's call will be available for replay via link in the Investor section of the company's website.
Thank you for joining us today for a marts earnings call you may now disconnect.
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