Q2 2024 A-Mark Precious Metals Inc Earnings Call

Operator: Good afternoon, and welcome to the A-Mark Precious Metals conference call for the fiscal second quarter ended December 31, 2020. My name is Paul, and I will be your operator this afternoon.

Good afternoon, and welcome to a Mark precious metals conference call for the fiscal second quarter ended December 31, 2023. My name is Paul and I will be your operator this afternoon.

Operator: For this call, A-Mark issued its results for the fiscal second quarter 2024 in a press release. Available, Investor Relations section of the company's website, www.amarkprecious.com; Find the link to the Investor Relations section at the top. Joining us for today's call are A-Mark's CEO, Greg Roberts; President Thor Gjerde, and CFO Kathleen. Following their remarks, we will open the call to your questions. Then, before we conclude the call, I'll provide the necessary cautions regarding the forward-looking statements made by management during the call.

Before this call a mark issued its results for the fiscal second quarter 2024, and our press release, which is available in the Investor Relations section of the company's website at Www Dot <unk> Dot Com you can find the link to the Investor Relations section at the top of the homepage.

Joining us for today's call are a Mark's CEO, Greg Roberts, President Thor <unk> and CFO Kathleen Simpson Taylor.

Following their remarks, we will open the call to your questions then.

Then before we conclude the call I'll provide the necessary cautions regarding the forward looking statements made by management during this call.

Greg Roberts: I would like to remind everyone that this call is being recorded and will be made available for replay via a link available in the Investor Relations section of A-Mark's website. Now, I would like to turn the call over to A-Mark's CEO, Mr. Greg Roberts. Thank you, Paul, and good afternoon, everyone.

I would like to remind everyone that this call is being recorded and will be made available for replay via a link available in the Investor Relations section of a Mark's website.

Now I would like to turn the call over to a Mark's CEO Mr. Greg Roberts Sir Please proceed.

Thank you Paul and good afternoon, everyone. Thank you for joining our call today, our second quarter results demonstrate the strength of our fully integrated platform to generate profitable results. We delivered 57 per diluted share and generated $25 1 million of non-GAAP EBITDA during the quarter underscoring our.

Greg Roberts: Thank you for joining our call today. Our second quarter results demonstrate the strength of our fully integrated platform to generate profitable results. We delivered 57 cents per diluted share and generated $25.1 million of non-GAAP EBITDA during the quarter, underscoring our ability to manage less favorable market conditions while still delivering solid results. During the quarter, we successfully repaid our notes payable for $100 million on our asset-backed securitization and continued to enhance shareholder value by increasing our share repurchase program by buying back an additional 440,000 shares of our common stock for approximately $12 million This morning, we announced that we entered into a non-binding letter of intent with AMS Holdings, a leading multi-channel marketer of vintage and modern coins, which provides for three transactions.

Ability to manage less favorable market conditions, while still delivering solid results.

During the quarter, we successfully repaid our notes payable for $100 million on our asset backed securitization and continue to enhance shareholder value by increasing our share repurchase program.

By buying back an additional 440000 shares of our common stock for approximately $12 million.

This morning, we announced that we entered into a nonbinding letter of intent with Ams holdings, a leading multichannel marketer of vintage and modern coins, which provided for three transactions.

Greg Roberts: The most significant of these transactions is our planned acquisition of LPM Group Ltd., one of Asia's largest fabricated precious metals dealers. This strategic acquisition is an important step in growing A-Mark's international presence in Asia and reflects our commitment to expanding A-Mark's global reach. With access to A-Mark's inventory and resources, we expect that LPM will be able to secure larger purchase orders and will be able to provide its customers with a broader set of product offers. We are hopeful that our proven wholesale and e-commerce expertise and our portfolio of products and ancillary services, such as storage and fulfillment, will assist LPM in its planned growth strategy. In addition to the LPM transaction, Pinehurst Coin Exchange, our strategic affiliate of which A-Mark owns 49% and one of the nation's largest distributors of modern certified coins, will be acquiring all of the assets of Modern CoinMart from AMS. Modern Coin Art is one of the more established modern bullion coin dealers in the U.S., while also shipping to many international locations.

The most significant of these transactions is our planned acquisition of L. P. M Group limited one of Asia's largest fabricated precious metals dealers.

This strategic acquisition is an important step in growing <unk> international presence in Asia and reflects our commitment to expanding <unk> global reach with access to <unk> inventory and resources, we expect that L. P. M. We will be able to secure largest larger purchase orders and we will be able to prove.

<unk> their customers with a broader set of product offerings.

We are hopeful that our proven wholesale and e-commerce expertise and our portfolio of products and ancillary ancillary services, such as storage and fulfillment.

Just L P M and its planned growth strategy.

In addition to the L. P M transaction Pinehurst quite exchange, our strategic affiliate of which a mark owns 49%.

And one of the nation's largest distributors of modern certified coins will be acquiring all of the assets of modern coin Mark from Ams.

Modern coin market is one of the more established modern bullion coin dealers in the U S. While also shipping to many international locations.

Greg Roberts: Through this strategic acquisition, Pinehurst intends to further expand its direct-to-consumer business and its product offering to its customers. The third transaction involves a joint venture between A-Mark, Pinehurst, and Stax Bowers Numismatics, a related party of A-Mark, to acquire a 10% common equity interest in AMS. We expect to close these three transactions simultaneously by the end of this month, subject to the preparation and execution of definitive agreements and the receipt of third-party consents or approval.

Through this strategic acquisition Pinehurst intends to further expand its direct to consumer business and its product offering to its customers.

The third transaction involves a joint venture between a mark Pinehurst and stacks Bowers numismatics, a related party of <unk> to acquire a 10% common equity interest in.

A M S.

We expect to close these three transactions simultaneously by the end of this month.

Subject to preparation and execution of definitive agreements and the receipt of third party consents or approval.

Kathleen Simpson-Taylor: As we continue to invest in growing our platform and global footprint, we will also continue our focus on logistics automation initiatives at our AMGL facility in Las Vegas. These initiatives are designed to enhance our operational efficiency, enabling us to effectively manage a larger number of SKUs and increased volume, all while minimizing operational costs. We are confident that these strategic measures will support our growth strategy as we strive to further expand and diversify our business. Now, I will hand the call over to our CFO, Kathleen Simpson-Taylor, who will provide a more detailed overview of our financials. Then, A-Mark President Thor Gjertum will discuss our key operating metrics. Afterward, I will provide further insights into our business and growth strategy. Kathleen

As we continue to invest in growing our platform and global footprint. We will also continue our focus on logistics automation initiatives at our a M. G L facility in Las Vegas.

These initiatives are designed to enhance our operational efficiency, enabling us to effectively manage a larger number of skus and increased volume all while minimizing operational costs.

We are confident that these strategic measures will support our growth strategy as we strive to further expand and diversify our business now I will hand, the call over to our CFO Kathleen Simpson Taylor, who will provide a more detailed overview of our financials.

Hey, Mark President Thor <unk> will discuss our key operating metrics afterwards, I will provide further insights into our business and growth strategy Kathleen.

Kathleen Simpson-Taylor: Thank you, Greg, and good afternoon, everyone. Our revenues for fiscal Q2 2024 increased 7% to $2.079 billion from $1.950 billion in Q2 of last year. However, excluding an increase of $231.6 million in forward sales, revenues decreased $102.5 million, or 7%, which was due to a decrease in gold and silver ounces sold, partially offset by higher average selling prices of gold and silver. The DTC segment contributed 18% and 23% of the consolidated revenue in the fiscal second quarters of 2024 and 2023, respectively. Revenue contributed by JMB represented 16% of the consolidated revenue for Q2 of 2024 compared to 21% in Q2 of last year. For the six-month period, revenues increased 19% to $4.563 billion from $3.850 billion in the same year-ago period.

Thank you, Greg and good afternoon, everyone.

Our revenues for fiscal Q2, 2024 increased 7% to 2.079 billion from $1 90, 501 billion in Q2 of last year.

Excluding an increase of 231 6 million of forward sales revenue decreased 102, 5 million or 7%, which was due to a decrease in gold and silver ounces sold partially offset by higher average selling prices of gold and.

Selman.

The DTC segment contributed 18% and 23% of the consolidated revenue in the fiscal second quarters of 2024 and 2023, respectively.

Revenue contributed by J M. D represented 16% of the consolidated revenues for Q2 of 2024.

3rd% to 21% in Q2 of last year.

For the six month period, our revenues increased 19% to 456 3 billion country 850, 1 billion in the same year ago period.

Kathleen Simpson-Taylor: Excluding an increase of $891.6 million in forward sales, revenues decreased $178.2 million, or 6 percent, which was due to a decrease in gold and silver ounces sold, partially offset by higher average selling prices of gold and silver. The DTC segment contributed 15% and 23% of the consolidated revenue for the six months ended December 31, 2023 and 2022, respectively. Revenue contributed by JMB represented 14% of the consolidated revenues for the six months ended December 31, 2023, compared with 21% in the same year-ago period. Gross profit for fiscal Q2 2024 decreased 28% to $46.0 million, or 2.21% of revenue, from $64.0 million, or 3.28% of revenue, in Q2 of last year. The decrease in gross profit was due to lower gross profits earned from both the Wholesale Sales and Ancillary Services and DTC sectors.

Excluding an increase of $891 6 million of forward sales revenues decreased $178 2 million or 6%, which was due to a decrease in gold and silver ounces sold partially offset by higher average selling prices of gold and silver.

The DTC segment contributed 15% and 23% of the consolidated revenue for the six months ended December 31, 2023, and 2022, respectively.

Revenue contributed by J M. D represented 14% of the consolidated revenues for the six months ended December 31, 2023, compared with 21% in the same year ago period.

Gross profit for fiscal Q2, 2024 decreased 28% to 46.0 million or Q point Q1 percent of revenue from 64.0 million or 3.28% of revenue in Q2 of last year.

The decrease in gross profit was due to lower gross profit earned from both the wholesale sales and ancillary services and DTC segment.

Kathleen Simpson-Taylor: Gross profit contributed by the DGC segment represented 48% of the consolidated gross profit in fiscal Q2 2024 compared to 57% in the same year-ago period. Gross profit contributed by JMV represented 41% of the consolidated gross profit in fiscal Q2 2024 compared to 51% in Q2 of last year. For the six-month period, gross profit decreased 32% to $95.4 million, or 2.09% of revenue, from $140.6 million, or 3.65% of revenue, in the same year-ago period. The decrease in gross profit was due to lower gross profits earned from both the wholesale sales and ancillary services and DGC segments.

Gross profit contributed by the DTC segment represented 48% of the consolidated gross profit in fiscal Q2, 2024 compared to 57% in the same year ago period.

Gross profit contributed by J M. D represented 41% of the consolidated gross profit in fiscal Q2, 2024 compared to 51% in Q2 of last year.

For the six months period gross profit decreased 32% to $95 4 million or 2.09% of revenue from $140 6 million or six 5% of revenue in the same year ago period.

Increase in gross profit was due to lower gross profit earned from both the wholesale sales and ancillary services and DTC segment.

Kathleen Simpson-Taylor: Gross profit contributed by the DTC segment represented 45% of the consolidated gross profit in the six-month period ended December 31, 2023, compared to 56% in the same year-ago period. Gross profit contributed by JMB represented 38% and 49% of the consolidated gross profit for the six months ended December 31, 2023 and 2022, respectively. SG&A expenses for fiscal Q2 2024 increased 8% to $22.4 million from $20.8 million in Q2 of last year.

Gross profit contributed by the DTC segment represented 45% at the consolidated gross profit in the six month period ended December 31, 2023 compared to 56% in the same year ago period.

Gross profit contributed by J M. D represented 38% and 49% of consolidated gross profit for the six months ended December 31, 2023, and 2022, respectively.

SG&A expenses for fiscal Q2, 2024 increased 8% to $22 4 million from $20 8 million in Q2 of last year.

Kathleen Simpson-Taylor: The change was primarily due to an increase in compensation expense, including performance-based accruals, of $1.4 million, higher consulting and professional fees of $0.6 million, an increase in information technology costs of $0.4 million, partially offset by a decrease in insurance costs of $0.9 million and lower advertising costs of $0.4 million. For the six-month period, SG&A expenses increased 15 percent to $44.2 million from $38.6 million in the same year-ago The change was primarily due to an increase in consulting and professional fees of $2.6 million, an increase in compensation expense, including performance-based accruals, of $2.6 million, and an increase in information technology costs of $0.7 million, partially offset by a decrease in insurance costs of $0.5 million. Depreciation and amortization expense for fiscal Q2 2024 decreased 14% to $2.8 million from $3.3 million in Q2 of last year.

The change was primarily due to an increase in compensation expense.

Including performance based accruals of $1 4 million.

Higher consulting and professional fees of <unk> 6 million, an increase in information technology cost of zero point $4 million.

Partially offset by a decrease in insurance cost zero point $9 million and lower advertising costs of <unk> 4 million.

For the six months period, SG&A expenses increased 15% to 44 2 million from $38 6 million in the same year ago period.

The change was primarily due to an increase in consulting and professional fees of $2 6 million.

An increase in compensation expense, including performance based accruals of $2 6 million.

An increase in information technology costs, the 0.7 million, partially offset by a decrease in insurance costs.

Zero point $5 million.

Depreciation and amortization expense for fiscal Q2, 2024 decreased 14% to $2 8 million from $3 3 million in Q2 of last year.

Kathleen Simpson-Taylor: The change was primarily due to a $0.6 million decrease in amortization of acquired intangibles related to JMV. For the six-month period, depreciation and amortization expense decreased 13% to $5.6 million from $6.4 million in the same year-ago period. The change was primarily due to a $1.1 million decrease in amortization of acquired intangibles related to J&J. Interest income for fiscal Q2 2024 increased 27% to $6.3 million from $5.0 million in Q2 of last year. The aggregate increase in interest income was primarily due to an increase in other finance product income of $0.8 million and an increase in interest income earned by our secured lending segment of $0.6 million. For the six-month period, interest income increased 23% to $12.4 million from $10.1 million in the same year-ago period.

The change was primarily due to a 0.6 million decrease in amortization of acquired intangibles related to J M D.

For the six months period, depreciation and amortization expense decreased 13% to $5 6 million from $6 4 million in the same year ago period.

The change was primarily due to a $1 1 million decrease in amortization of acquired intangibles related to JMP.

Interest income for fiscal Q2, 2024 increased 27% to $6 3 million from 5.0 million in Q2 of last year.

The aggregate increase in interest income was primarily due to an increase in other finance product income of 0.8 million and an increase in interest income earned by our secured lending segment of zero point $6 million.

For the six month period interest income increased 23% to $12 4 million from $10 1 million in the same year ago period.

The aggregate increase in interest income was primarily due to an increase in other finance product income of $1 5 million and an increase in interest income earned by our secured lending segment of zero point $8 million.

Kathleen Simpson-Taylor: The aggregate increase in interest income was primarily due to an increase in other finance product income of $1.5 million and an increase in interest income earned by our secured lending segment of $0.8 million. Interest expense for fiscal Q2 2024 increased 41% to $10.2 million from $7.2 million in Q2 of last fiscal year. The increase in interest expense was primarily due to an increase of $2.4 million associated with our trading credit facility due to an increase in interest rates as well as increased borrowing, and an increase of $1.1 million related to product financing arrangements, partially offset by a decrease of $0.3 million related to the AMCS notes, including amortization of debt issuance costs, due to their repayment in December 2023. For the six-month period, interest expense increased 50% to $20.0 million from $13.4 million in the same year-ago period.

Interest expense for fiscal Q2, 2020 or increased 41% to $10 2 million from $7 2 million in Q2 of last fiscal year.

The increase in interest expense was primarily due to an increase of $2 4 million associated with our trading credit facility due to an increase in interest rates as well as increased borrowings.

And an increase of $1 1 million related to product financing arrangements.

Partially offset by a decrease of zero point $3 million related to the amcs nodes, including amortization of debt issuance cost due to their repayment in December 2023.

For the six months period interest expense increased 50% to 20.0 million from $13 4 million in the same year ago period.

The increase was primarily driven by an increase of five 6 million associated with our trading credit facility due to an increase in interest rates as well as increased borrowing.

Kathleen Simpson-Taylor: The increase was primarily driven by an increase of $5.6 million associated with our trading credit facility due to an increase in interest rates as well as increased borrowing, an increase of $1.6 million related to product financing arrangements, partially offset by a decrease of $0.4 million related to the AMCF notes, including amortization of debt issuance costs, due to their repayment in December 2023. We also had a $0.2 million decrease in loan servicing. Earnings from equity method investments in Q2 2024 decreased 83% to $0.8 million from $4.7 million in the same year-ago quarter. For the six-month period, earnings from equity method investments decreased 53% to $3.5 million from $7.3 million in the same year-ago period.

An increase of $1 6 million related to product financing arrangements, partially offset by a decrease of <unk> 4 million related to the Amcs notes.

Including amortization of debt issuance cost due to their repayment in December 2023.

We also had a zero point $2 million decrease in loan servicing fee.

Earnings from equity method investments in Q2, 2024 decreased 83% to 0.8 million from $4 7 million in the same year ago quarter.

For the six months period earnings from equity method investments decreased 53% to $3 5 million from $7 3 million in the same year ago period.

The decrease in both periods was due to decreased earnings of our equity method investees.

Net income attributable to the company for the second quarter of fiscal 2024 totaled $13 8 million or <unk> 57 per diluted share. This compares to net income attributable to the company of $33 5 million or $1 35 per diluted share in.

Kathleen Simpson-Taylor: The decrease in both periods was due to decreased earnings of our equity method investors. Net income attributable to the company for the second quarter of fiscal 2024 totaled $13.8 million, or $0.57 per diluted share. This compares to net income attributable to the company of $33.5 million, or $1.35 per diluted share, in Q2 of last year. For the six-month period, net income attributable to the company totaled $32.6 million, or $1.34 per diluted share, which compares to net income attributable to the company of $78.6 million, or $3.18 per diluted share, in the same year-ago period Adjusted net income before provision for income taxes is a non-GAAP financial measure that excludes acquisition expenses, amortization, and depreciation.

Q2 of last year.

For the six month period net income attributable to the company totaled $32 6 million or $1 34 per diluted share, which compares to net income attributable to the company of $78 6 million or $3 18 per diluted share in the same year ago period.

Adjusted net income before provision for income taxes, a non-GAAP financial measure, which excludes acquisition expenses amortization and depreciation for Q2 fiscal 2024 totaled $21 7 million a decrease of 53%.

Compared to $46 5 million in the same year ago quarter.

Adjusted net income before provision for income taxes for the six month period totaled $48 5, Million% to 55% decrease from $107 7 million in the same year ago period.

Kathleen Simpson-Taylor: For Q2 fiscal 2024, totaled $21.7 million, a decrease of 53% compared to $46.5 million in the same year-ago quarter. Adjusted net income before provision for income taxes for the six-month period totaled $48.5 million, a 55 percent decrease from $107.7 million in the same year-ago period. EBITDA, a non-GAAP liquidity measure, totaled $25.1 million, a 4 David Doss's total revenue for the six-month period totaled $55.5 million, a 50% decrease compared to $110.9 million in the same year-ago period.

EBITDA, a non-GAAP liquidity measure for Q2 fiscal 2024 totaled $25 1, million% to 48% decrease compared to $48 7 million in Q2 of fiscal 2023.

EBITDA for the six months period totaled $55 5, million% to 50% decrease compared to $110.

$9 million in the same year ago period.

Turning to our balance sheet at.

At quarter end, we had $28 5 million of cash compared to $39 3 million at the end of fiscal year 2023.

Our tangible net worth at the end of the quarter was $426 1 million down from $436 8 million at the end of the prior fiscal year.

<unk> Board of Directors has continued to maintain the company's regular quarterly cash dividend program of <unk> 20 per common share. The most recent quarterly cash dividend was paid in January it is expected that the next quarterly dividend will be paid in April 2020 for.

That completes my financial summary, now I will turn the call over to Thor, who will provide an update on our key operating metrics Thor.

Kathleen Simpson-Taylor: Turning to our balance sheet, at quarter end, we had $28.5 million in cash compared to $39.3 million at the end of fiscal year 2023. Our tangible net worth at the end of the quarter was $426.1 million, down from $436.8 million at the end of the prior fiscal year. A-Mark's Board of Directors has continued to maintain the company's regular quarterly cash dividend program of $0.20 per common share. The most recent quarterly cash dividend was paid in January. It is expected that the next quarterly dividend will be paid in April 2024.

Thank you Kathleen looking at our key operating metrics for the second quarter of fiscal 2024, we sold 450000 ounces of gold in Q2 fiscal 2024, which was down 20% from Q2 of last year and down 9% from the prior quarter.

The six month period, we sold 945000 ounces of gold, which was down 21% from the same year ago period.

We sold $26 6 million ounces of silver in Q2 fiscal 2024, which was down 30% from Q2 of last year and down 13% from last quarter.

Thor Gjertum: That completes my financial summary. Now I will turn the call over to Thor, who will provide an update on our key operating metrics. Thank you, Kathleen.

Six month period, we sold 57.

1 million ounces of silver, which was down 23% from the same year ago period.

The number of new customers in the DTC segment, which is defined as the number of customers that have registered or set up a new account or made a purchase for the first time. During the period was 52500 in Q2 fiscal 2024, which was down 60% from Q2 of last year and increased 34% from last quarter.

Thor Gjertum: Looking at our key operating metrics for the second quarter of fiscal 2024, we sold 450,000 ounces of gold in Q2 fiscal 2024, which was down 20% from Q2 of last year and down 9% from the prior quarter. For the Six Month Period, we sold 945,000 ounces of gold, which is down 21% from the same year ago period. We sold 26.6 million ounces of silver in Q2 fiscal 2024, which was down 30% from Q2 of last year and down 13% from the previous quarter. For the six-month period, we sold 57.0 million ounces of silver, which was down 23% from the same year-ago period. The number of new customers in the DTC segment, which is defined as the number of customers that have registered or set up a new account or made a purchase for the first time during the period, was 52,500 in Q2 fiscal 2024, which was down 60% from Q2 of last year and increased 34% from last quarter. The number of new customers in the DTC segment was 91,600, which is down 49% from 180,200 new customers in the same year-ago period.

For the six month period.

The number of new customers in the DTC segment was 91600, <unk>, which is down 49% from 180200, new customers in the same year ago period.

For October customers in the DTC segment at the end of second quarter was approximately $2 4 million, which was an 11% increase in the prior year the year over year increase in total customers was due to organic growth of our <unk> customer base as well as from acquired customer lists.

The DTC segment average order value, which represents the average dollar value of product orders, excluding accumulation program orders delivered to DTC segment customers. During Q2 fiscal 2024 with $2218, which is down 7% from Q2 fiscal 2023 and down 9% from the prior.

Quarter three to six month period, our DTC average order value was $2316, which is down 2% from the same year ago period.

For the fiscal second quarter, our inventory turn ratio was one nine which is a 21% decrease from two four in Q2 of last year and a 24% decrease from $2 five in the prior quarter for the six month period, our inventory turn ratio was four three or 4% increase from four five in the same year.

Thor Gjertum: The number of total customers in the DTC segment at the end of the second quarter was approximately 2.4 million, which was an 11% increase from the prior year. The year-over-year increase in total customers was due to organic growth of our J&B customer base as well as from acquired customer load. The DTC segment average order value, which represents the average dollar value of product orders, excluding accumulation program orders, delivered to DTC segment customers during Q2 fiscal 2024, was $2,218, which is down 7% from Q2 fiscal 2023 and down 9% from the prior quarter.

Go period finally, the number of secured loans at the end of December totaled 715, a decrease of 32% from December 31 2022.

Decrease of 11% from the end of September while the number of secured loans decreased our secured loans receivable balance increase over the same period, bringing the value of our loan portfolio as of December 31, 2023 to $106 6, Million% to 4% increase from December 31, 2022, and a 7% increase from September <unk>.

<unk> 2023 <unk>.

That concludes my prepared remarks, I will now turn it over to Greg for closing remarks, Greg.

Thank you Kathleen.

Hey, Mark strategic focus remains on opportunities to further expand our geographic presence and market reach that will create synergies with <unk> fully integrated platform, including our reliable access to supply our.

Thor Gjertum: For the six month period, our DTC average order value was $2,316, which is down 2% from the same year-ago period. For the fiscal second quarter, our inventory turn ratio was 1.9, which is a 21% decrease from 2.4 in Q2 of last year and a 24% decrease from 2.5 in the prior quarter. For the six-month period, our inventory turn ratio was 4.3, a 4% increase from 4.5 in the same year-ago period. Finally, the number of secured loans at the end of December totaled 715, a decrease of 32% from December 31, 2022, and a decrease of 11% from the end of September.

Our successful logistics footprint and strong customer relations.

While we work towards finalizing the transactions with Ams, we look forward to our expansion into Asia and to realizing the synergies and growth potential that these strategic initiatives may bring.

Our commitment to generating stockholder value remains firm and we are confident in <unk> diversified and proven business model that.

That concludes my prepared remarks operator.

Thank you at this time, we will be conducting a question and answer session. If you'd like to ask a question. Please press star one on your telephone keypad, a confirmation tone will indicate your line is in the question queue. You May Press Star two if you would like to remove your question from the queue.

For participants using speaker equipment, it may be necessary to pick up your handset before pressing the star keys, one moment, please while we take investment.

The first question today is coming from Mike Baker from D. A Davidson Mike Your line of lives.

Thanks, guys.

Fully appreciate that the acquisitions are they look good and presume are accretive and strategically make make a ton of sense Ah I wanted to ask you about this quarter where.

Thor Gjertum: While the number of secured loans decreased, our secured loans receivable balance increased over these same periods, bringing the value of our loan portfolio as of December 31, 2023, to $106.6 million, a 4% increase from December 31, 2022, and a 7% increase from September 30, 2023. That concludes my prepared remarks. I will now turn it over to Greg for closing remarks.

The EBITDA was little bit less than the last quarter on the earnings were less than the last quarter and frankly less than consensus estimates for whatever consensus estimates are worth but it felt like the business was sort of bottoming last quarter.

No because this quarter you know it seems a little bit softer I guess any visibility into when you know EBITDA might improve our EPS might improve when we might get back to the idea of you know at a minimum $1.50 over a six month period type of metrics.

Greg Roberts: Thank you, Thor and Kathleen. A-Mark's strategic focus remains on opportunities to further expand our geographic presence and market reach that will create synergies with A-Mark's fully integrated platform, including our reliable access to supply, our successful logistics footprint, and strong customer relations. While we work towards finalizing the transactions with AMS, we look forward to our expansion into Asia and to realizing the synergies and growth potential that these strategic initiatives may bring. Our commitment to generating shareholder value remains firm, and we are confident in A-Mark's diversified and proven business model. That concludes my prepared remarks, Operator. Thank you.

Yeah.

Yes. Thank you for the question.

Yeah, I would say that the quarter was.

Saw some continued softness I think premiums on fabricated silver products in particular continue.

<unk> continued to be weaker than we have seen historically over the last 12 months.

There.

Currently is plenty of silver supply in the marketplace.

And that is you know.

That's affecting the premium that that people are willing to pay for the product. So we have been.

Computing, keeping our market share, but we have had to adjust our premiums down both at a wholesale and a retail level.

I think that the.

On a bright note.

Operator: At this time, we will be conducting a question and answer session. If you would like to ask a question, please press star 1 on your telephone. A confirmation tone will indicate your line is in the question. You may press star 2 if you would like to remove your question.

The.

Lower premiums have given us some.

Great opportunities to acquire inventory.

Which we plan on doing in acquiring inventory that we think will be most valuable looking forward, we've been able to.

Make some very opportune purchases, which you will see reflected in our balance sheet and our levels of inventory that we're carrying at the same time.

Unnamed Analyst: For participants using speaker equipment, it may be necessary to pick up your microphone for pressing the, Please let me pose a question. The first question today is coming. Okay, thanks guys. I fully appreciate the acquisitions. They look good and presume creative and strategic make a ton of sense. I wanted to ask you about this quarter where the EBITDA was a little bit less than last quarter and the earnings were less than last quarter and frankly less than consensus estimates for whatever consensus estimates are worth. But it felt like the business was sort of bottoming last quarter, but apparently not because this quarter seems a little bit softer. I guess any visibility into when EBITDA might improve or EPS might improve, when we might get back to the idea of at least $1.50 over a six-month period type of metric. Yeah, thank you for the question. I would say that the quarter saw some continued softness.

We're looking to go through our inventories and more.

Move out or get rid of things that we don't think have great potential looking forward. So there has been a bit of reshuffling.

Last quarter and this quarter.

There are certainly some bright spots, we see the demand for U S silver Eagles, continuing to be strong at the moment and there.

That particular product continues to be an allocation from the U S mint.

We have been continuing to buy.

More silver Eagles, and then our allocation from some of the other distributors, so I think that.

It's what we're dealing with right now I think the spot prices in particular have been fairly range bound.

And that Hasnt really caused any panic or any call to action for.

For customers.

And we've seen this before when when spot prices are range bound.

Greg Roberts: I think premiums on fabricated silver products, in particular, continue to be weaker than we have seen historically over the last 12 months. There is currently plenty of silver supply in the marketplace, and that's affecting the premium that people are willing to pay for the product. So we have been competing, keeping our market share, but we have had to adjust our premiums down both at a wholesale and a retail level. I think that, on a bright note, the lower premiums have given us some great opportunities to acquire inventory, which we plan on doing and acquiring inventory that we think will be most valuable looking forward. We've been able to make some very opportune purchases, which you will see reflected in our At the same time, you know, we're looking to go through our inventories and move out or get rid of things that we don't think have great potential, you know, looking forward. So there has been a bit of reshuffling, both last quarter and this quarter.

And that's certainly a factor right now I think the other factor is up until.

A week or two ago.

The equity markets have been performing very well and that can that can draw money away from from our market. So I think we're seeing a little bit of that also.

Okay that makes sense can I ask a follow up on those points do you in terms of the spreads.

I look at the way we're tracking its silver spreads right now look like they're in the seven to $8 range Gold I don't know 100, 100, and 506 something like that can you remind us historical historically, what those ranges or what you know where where do you start making more money, what what kind of spread it.

Is better for you guys I, obviously higher is better.

But what gets you excited to be honest with you I think making 25 million EBITDA in this market and this quarter was a fantastic result, so let's start there secondly, I don't understand your question. So youre going to have to be more specific I know the <unk>.

Number you just threw out.

You need to be specific what you're asking because I didn't it didn't make sense to me in okay.

Greg Roberts: You know, there are certainly some bright spots. For example, we see the demand for U.S. Silver Eagles continuing to be strong at the moment, and that particular product continues to be on allocation from the U.S. Mint, and we have been continuing to buy more Silver Eagles than our allocation from some of the other distributors. So I think that you know, it's what we're dealing with right now. I think the spot prices, in particular, have been fairly range bound, and that hasn't really caused any panic or any call to action for customers. And we've seen this before when spot prices are range bound, and that's certainly a factor right now. I think the other factor is, you know, up until a week or two ago.

I've heard a lot of questions about that one.

No.

The simple answer is the higher the spreads between our cost of product and what we sell them for the more money we make.

It's pretty basic.

Sure No sorry, well, let me, let me rephrase it maybe I just didnt ask properly. So we're trying what I'm trying to do it. So we're tracking like this the spot prices versus retail prices Jam boy and a number of of our competitors and if we just look at silver for instance, it looks like it's around silver silver spreads around $7 I think.

The way, we look at it maybe I'm wrong with that that's what I'm.

That doesn't that doesn't really make sense to me okay alright.

Unnamed Analyst: The equity markets have been performing very well, and that can, you know, that can draw money away from, you know, our markets. So I think we're seeing a little bit of that also. Okay, that makes sense. Can I ask a follow-up question on those points? In terms of the spreads, you know, the way I look at it, the way we're tracking it, silver spreads right now look like they're in the $7 to $8 range. Gold, I don't know, $100, $105, $106, something like that.

Alright.

On what it depends on what specific product you're talking about so to help you a little bit the United States Mint sell silver Eagles at approximately $3 premium per ounce over the melt value.

The and then the.

Whether <unk> sells at wholesale at $4 or whether JM bullion sales at wholesale at a six $7 premium that's that's what the coins and up selling out at.

If you're talking about a silver counter sunshine minted product or even a royal Canadian mint product that premium is going to be lower than the silver eagle. So it is the question.

Greg Roberts: Can you remind us historically what those ranges are, where you start making more money, what kind of spread is better for you guys, obviously, higher is better, but what gets you excited? To be honest with you, I think making $25 million EBITDA in this market this quarter was a fantastic result, so let's start there. Secondly, I don't understand your question, so you're going to have to be more specific. The numbers you just threw out... You need to be specific about what you're asking, because it didn't make sense to me. Okay. I apologize. I've heard a lot of questions, but that one, I don't know.

<unk> premium is really it has to be tied specifically to the product and there is no one product that is going to.

Instantly make.

Hey, Mark more profitable, because we probably sell 1200 different products or more.

Okay. Okay.

As it relates to the question on gold I don't know, what you're talking about $100 per ounce is that $100 premium per ounce.

I'll just follow up after I'll I'll take it offline.

Thank you.

Unnamed Analyst: The simple answer is, the higher the spread between our cost of products and what we sell them for, the more money we make, which is pretty basic. Sure. No, sorry.

Thank you. The next question is coming from Lucas pipes from B Riley Lucas Your line is nice.

Thank you very much operator, good afternoon, everyone.

Hello Luca.

Start with some higher level question on the strategy and then maybe dig into some more specifics, but first first question is kind of how do you think about your presence in Asia.

Unnamed Analyst: Let me rephrase it. Maybe I just didn't ask properly. So, what I'm trying to do is we're tracking the spot prices versus retail prices at Jamboree and a number of competitors, and if we just look at silver, for instance, it looks like it's around $7. Silver spreads around $7, I think, the way we look at it. Maybe I'm wrong.

Cultural issues.

Issues to be aware off or how do you envision any integration to proceed to.

Thank you for your perspective on that.

Sure.

I mean, we're very excited enthusiastic about this acquisition as well as all three of the acquisitions, but leading with L. P M.

Greg Roberts: That's what I'm... That doesn't really make sense to me. It depends on what specific product you're talking about. So to help you a little bit, the United States Mint sells Silver Eagles at approximately three dollars a premium per ounce over melt value, and then whether A-Mark sells at wholesale for $4 or whether JM Bullion sells at wholesale for a $6-$7 premium, that's what the coins end up selling out at. If you're talking about a Silvertown or Sunshine minted product or even a Royal Canadian Mint So the question about premiums really has to be tied specifically to the product, and there's no one product that is going to, you know, instantly make A-Mark more profitable because we probably sell 1,200 different products. Okay.

Which which we believe and based on the price we paid it's the most significant of the three transactions.

L. P M. As you can see from our release has been around for over a decade they've been operating.

Exclusively in Hong Kong.

We here at a mark have looked at a number of different opportunities in Asia.

Over the last five or six years, and we've never been able.

To complete a transaction that we thought was.

Good good for us as well as good for the other side of this transaction came together.

Through a fairly long negotiating period in quite a bit of diligence to this point.

And obviously when you have.

A lot of different factors as well as our international target it.

It was fairly complicated for for the diligence side and for us to get to a deal.

Unnamed Analyst: Okay. As it relates to the question on gold, I don't know what you're talking about $100 per ounce. Is that a $100 premium per ounce? You know, I'll just follow up afterward. I'll take it off.

We're very happy with the deal we're happy with the price we paid we're happy with the.

The earn out.

Potential here for the seller, which would be very good for us we looked at the whole transaction.

As.

Unnamed Analyst: Thank you. The next question is coming from... A-Mark Precious. Thank you very much, operator. Good afternoon, everyone.

Is it structured and is the risk risk.

Our risk to reward properly recognized and we think that has happened so we're happy with it.

Unnamed Analyst: I'll start with some higher-level questions on the strategy and then maybe dig into some more specifics. But the first question is kind of, how do you think about your presence in Asia? Cultural issues to be aware of, or how do you imagine an integration to proceed? Thank you for your perspective. Sure, yeah.

I think it's important to note that.

Historically, we were a wholesale trading company before we got into our DTC segment.

As we've now expanded that greatly with J M. We believe we've built up a tremendous amount of.

Expertise.

In DTC and e-commerce retail.

Greg Roberts: I mean, we're very excited and enthusiastic about this acquisition as well as all three of the acquisitions, but leading with LPM, which we believe, and based on the price we paid, is the most significant of the three transactions. LPM, as you can see from our release, has been around for over a decade. They've been operating exclusively in Hong Kong.

L. P M. Currently.

Is is a.

Supplier of a number of different specialty products.

And a supply of those all around the world both retail and wholesale.

A number of licenses and a number of relationships with.

Sovereign mints.

Pivot mens different different.

Product suppliers that we believe will be very accretive to a mark that <unk> currently does not have in their wholesale segment.

Greg Roberts: We here at A-Mark have looked at a number of different opportunities in Asia over the last five or six years, and we've never been able to complete a transaction that we thought was good for us as well as good for the other side. This transaction came together through a fairly long negotiating period and quite a bit of diligence to this point, and obviously when you have a lot of different factors as well as an international target. It was fairly complicated on the diligence side and for us to get to a deal.

L. P. M. Currently is approximately 75% to 80% wholesale and about 20%, 25% retail. So we think theres a tremendous amount of opportunity in the region.

To grow the retail side of things, obviously, we have struggled.

Over the years by not.

Making an acquisition or expanding in this area for the cultural reasons that we.

Just arent familiar with I think.

Greg Roberts: We're very happy with the deal. We're happy with the price we paid. We're happy with the earn-out potential here for the seller, which would be very good for us. We looked at the whole transaction, as you know. Is it structured, and is the risk to reward properly recognized? And we think that has happened, so we're happy with it.

The opportunity for us to acquire the business the customers.

The intellectual property and the pipeline of products that we have.

<unk> not had access to before it is extremely important.

This transaction gives us the best of both worlds it gives us a very strong wholesaler.

Greg Roberts: I think it's important to note that historically, we were a wholesale trading company before we got into our DTC segment, and as we've now expanded that greatly with JM, we believe we've built up a tremendous amount of expertise in DTC and e-commerce retail. LPM is currently a supplier of a number of different specialty products, and they supply those all around the world, both retail and wholesale.

Which if youre going to be doing business in Asia, you need a wholesaler and you need.

Trading desk and you need people that are used to trading both wholesale and retail and you need the right people and I think we are very excited about.

The LTM staff, particularly the CEO and founder Charlie Chang.

And we think we are fortunate that we've been able to acquire a business or we are going to acquire in a business that has both wholesale and retail.

Greg Roberts: They have a number of licenses and a number of relationships with sovereign mints, private mints, different different product suppliers that we believe will be very accretive to A-Mark that A-Mark currently does not have in their wholesale segment. LPM currently is approximately 75-80% wholesale and about 20-25% retail. So we think there's a tremendous amount of opportunity in the region to grow the retail side of things. Obviously, we have struggled over the years by not making an acquisition or expanding in this area for cultural reasons that we just aren't familiar with.

Bringing in both Charlie's local knowledge and his cultural knowledge of being in business in Asia as long as he has as well as the expertise we bring.

Rob to Sally and his team at Jambeau in on E Commerce.

We're very enthusiastic about what what.

What the potential is and we think that.

We are well positioned right now too.

Go there and to go to that expansion I think we're also closely looking at the Singapore market.

We believe that <unk> is a good platform for us to expand into Singapore, and we think there's some great opportunity there both from the local population.

Greg Roberts: The opportunity for us to acquire the business, the customers, the intellectual property, and the pipeline of products that we've not had access to before is extremely important. This transaction gives us the best of both worlds. It gives us a very strong wholesaler, which if you're going to be doing business in Asia, you need a wholesaler, and you need a trading desk, and you need people that are used to trading both wholesale and retail, and you need the right people. And I think we're very excited about that, the LPM staff, particularly the CEO and founder, Charlie Chang. And we think we are fortunate that we've been able to acquire a business, or we are going to acquire a business that has both wholesale and retail, bringing in both Charlie's local knowledge and his cultural knowledge of being in business in Asia for as long as he has, as well as the expertise we bring from Rob Pacelli and his team at JM Bullion on e-commerce. We're very enthusiastic about what the potential is.

As well as.

Visitors to Singapore or people, who are doing business in Singapore that are from other countries. So we.

We think that's a very that's a very safe environment for us.

A very safe place to expand into.

We're very comfortable with with L. P M in Hong Kong right now, but just see this as just a really good.

Good opportunity for a mark to expand outside of the United States.

That's very helpful. Thanks, Thank you very much Greg.

Two follow ups on that should we think of this as a.

Rich had platform into the Asian market and then.

Two kind of what is your appetite for M&A.

After after this announcement today is it a lot.

We put some.

Good amount here on our plate, but let US digest. This first or do you think you will continue to be active.

Elsewhere around the world or North America.

For sure I think that the platform and the people and the business that we're acquiring.

Greg Roberts: And we think that we're well positioned right now to go there and to pursue that expansion. I think we're also closely looking at the Singapore market. We believe that LPM is a good platform for us to expand into Singapore, and we think there's some great opportunities there, both from the local population as well as visitors to Singapore or people who are doing business in Singapore that are from other countries. We think that's a very safe environment for us, a very safe place to expand into. We're very comfortable with LPM in Hong Kong right now, but just see this as just a really good opportunity for A-Mark to expand outside of the United States. That's very helpful.

Really gives us.

Great starting point to organically grow.

<unk> business in Hong Kong.

So I think it's very it's very important and.

We've looked long and hard at this acquisition and we're very enthusiastic about this opportunity is going to give us and I think again just to reiterate that.

We really.

We really to expand on the e-commerce side and retail in Asia, we would have needed to either relocate or we would have needed a desk and we need logistics and storage and we would have needed to create all of those things.

Before we could have even moved into the DTC market.

And so the ability to to.

To acquire this business that has both things going as really a great platform for us and we believe it will be very good.

Unnamed Analyst: Thank you very much, Greg. Two follow-ups on that. Should we think of this as a kind of bridgehead platform into the Asian market? And then, two, kind of what is your appetite for M&A after this announcement today? Look, we put some on our plate. Good to have you on our plate, let us digest this first, or do you think you will continue to be active elsewhere around the world or North America?

We can expand very efficiently.

As I've said before one of the silver linings to a slower market and lower premiums.

Is that we are seeing.

Opportunities for M&A, and we are still continue to look at a number of potential acquisitions and I think that the.

Greg Roberts: Thank you. For sure, I think that the platform and the people and the business that we're acquiring really gives us a great starting point to organically grow LPM's business in Hong Kong. So I think it's very important, and we've looked long and hard at this acquisition, and we're very enthusiastic about this opportunity it's going to give us. But I think again, just to reiterate that we really, we really, to expand on the e-commerce side and retail in Asia, we would have needed to either relocate, or we would have needed a desk, and we would have needed logistics and storage, and we would have needed to create all those things before we could have even moved into the DTC market.

The two to three months that we are experience where things are softer. It's also very difficult on our competitors and I have.

Always been a big proponent of if you by your competitors good things happen.

And we see there are there is opportunity out there.

And we were still very enthusiastic about that.

But other M&A opportunities I think the.

The size of this transaction.

The $41 million as well as the other the other two smaller acquisitions and I think it's a very good size for us.

It's about 10% of our tangible net worth.

I think that we are we're able to do this very comfortably.

With no new debt or without any any thought of raising more money. So I think this <unk> transaction is the right size for a market at the moment, but I think we thought long and hard about this deal.

Greg Roberts: And so the ability to acquire this business that has both things going is really a great platform for us, and we believe it will be very good and we can expand very efficiently. As I've said before, one of the silver linings to a slower market and lower premiums is that we are seeing opportunities for M&A, and we still continue to look at a number of potential acquisitions. And I think that the two, three months that we have experienced where things are softer, it's also very difficult for our competitors.

And I think <unk>.

<unk> is very focused on being able to continue.

Everything that we've talked about and everything we've been able to do in the past.

We want to make sure that everything is sized properly. So that we can look at things from a risk reward standpoint without having to be.

Be tight and I think the.

Key components for us are continuing our dividends continuing to buy back stock when we believe that the stock is undervalued.

And and returning shareholder value that way as.

Greg Roberts: And I have always been a big proponent of if you buy your competitors, good things happen. We see there is opportunity out there, and we're still very enthusiastic about other M&A opportunities. I think the size of this transaction, the $41 million, as well as the other two smaller acquisitions, I think it's a very good size for us. It's about 10% of our tangible net worth.

As well as being able to take advantage of opportune inventory.

Times and.

And things that we can buy and add to our inventory.

As well as taking.

Taking advantage of M&A opportunities.

When we are able to look at results of targets.

Greg Roberts: I think that we're able to do this very comfortably with no new debt or without any thought of raising more money. So I think this LPM transaction is the right size for A-Mark at the moment, but I think we thought long and hard about this deal, and I think A-Mark is very focused on being able to continue. Everything that we've talked about and everything we've been able to do in the past, we want to make sure that everything is sized properly so that we can, you know, look at things from a risk to reward standpoint without having to be tight. And I think that the key components for us are continuing our dividends, continuing to buy back stock when we believe that the stock is undervalued and, and returning shareholder value that way, as well as being able to take the advantage of opportune inventory, times and things that we can buy and add to our inventory, as well as taking advantage of M&A opportunities when we are able to look at results of targets and be able to negotiate from a little bit more from strength in that, you know, the results from targets we're looking at aren't going to be as robust as maybe they would have been two years ago.

And be able to negotiate from a little bit more from strength in the <unk>.

Results from targets, we're looking at arent going to be as robust as maybe they would have been two years ago. So I think the company is very well positioned.

And we're very thoughtful and all of these sizing and the transactions we're looking at.

And feel very good that.

We're in this for the long haul and we can make very good decisions and take advantage of all of these opportunities as they present themselves.

Great really appreciate all the color I will turn it over for now best of luck.

Thank you. The next question is coming from Andrew Scott from Roth and Cam Andrew Your line is live.

Good afternoon, guys, Matt. Thank you for taking my question.

First I'd just like to ask a few follow ups on a L. P. N. Just maybe ask a little bit differently. So you mentioned in the prepared remarks that you see opportunities in leveraging your own inventory to help L. P M secure larger orders.

I was just kind of wondering how many skus or products and what not you'll be able to provide.

L. P M and then kind of secondly on that Asian consumers I guess, you could say.

Have a higher propensity to invest their personal wealth in our precious metals and western consumers. So.

So do you kind of see like you said, maybe expanding in Singapore, but just further growth opportunities there.

Absolutely.

So as the prepared remarks illustrated.

Greg Roberts: So I think the company is very well positioned and we're very thoughtful in all of this sizing and the transactions we're looking at and feel very good that, you know, we're in this for the long haul and we can make very good decisions and take advantage of all of these opportunities as they present themselves. Greg, I really appreciate all the color.

L P M.

<unk> has.

Operated over the last 10 years with.

With our balance sheet debt.

<unk> has more likely than not restricted a little bit the amount of inventory in precious metals that they are able to buy and hold I think that one of the great.

You could call it a synergy or you can call. It an opportunity is that it gives L. P M. The opportunity to work out of a Mark's inventory. So as we take these opportunities to buy new inventory at favorable premiums or prices.

Unnamed Analyst: I will turn it over for now. Best of luck. Coming from Andrew Scott. Good afternoon, guys, and thanks for taking my question. First, I'd just like to ask a few follow-up questions on LPM, maybe ask them a little bit differently. So you mentioned in the prepared remarks that you see opportunities to leverage your own inventory to help LPM secure larger orders. So I was just kind of wondering how many SKUs or products, whatnot, you'll be able to provide to LPM. And then, kind of secondly on that, Asian consumers, I guess you could say, have a higher propensity to invest their personal wealth in precious metals than Western consumers.

We will start to take into consideration what LPN believes they can sell and when we talk about larger purchases.

In the marketplace. The more you buy the cheaper the price so as as L. P. M can identify products. They can sell and take advantage of <unk> balance sheet to help purchase more and hopefully get a.

Get a discount.

That will be a synergy that L. P M, we will be able to.

Greg Roberts: So do you kind of see, like you said, maybe expanding into Singapore, but just further growth opportunities there? Absolutely. So, as the prepared remarks illustrated, you know, LPM has operated over the last 10 years with a balance sheet that has more likely than not restricted a little bit the amount of inventory and precious metals that they're able to buy and hold. I think that one of the great synergies, or you can call it an opportunity, is that it gives LPM the opportunity to work out of A-Mark's inventory. So as we take these opportunities to buy new inventory at favorable premiums or prices, we will start to take into consideration what LPM believes they can sell.

Take advantage of it will also be helpful for our own wholesale and retail business in North America that.

We can get a bigger price in OPM helps us sell through.

30%, 40% of what we're buying it it's going to make <unk> stronger and have better negotiating power when we look to byproducts.

Makes sense and answers your question.

No that was perfect. Thank you very much and then just one more follow up so kind of in the last 12 months you guys have acquired at a handful of additional businesses now entered a few new geographies.

Meanwhile, the minutes, one men's had been running at near or no.

At where our full capacity I know theres kind of oversupply in the market right now, but maybe over the medium term could you share any thoughts around that man capacity expansion.

Greg Roberts: And when we talk about larger purchases, in the marketplace, the more you buy, the cheaper the price. So as LPM can identify products they can sell and take advantage of A-Mark's balance sheet to help purchase more and, hopefully, get a discount, that will be a synergy that LPM will be able to take advantage of. It will also be helpful for our own wholesale and retail business in North America, you know, if we can get a bigger price and LPM helps us sell through, you know, 30-40% of what we're buying, it's going to make A-Mark stronger and have better negotiating power when we look to buy products. If that makes sense and answers your questions. No, that was perfect.

Yes, I mean at the moment, we're not looking too much for expansion.

We are comfortably at the moment managing the production out of out of the silver town meant we have been fortunate enough that the silver <unk> does a great job at at pivoting and being very nimble when it comes to.

What they produce so whether it's one ounce rounds are 100 ounce bars.

Or specialty products whatever it is we're able to keep them busy.

With.

With altering or adjusting what product theyre, making every week. So this is just a balance and production discussion that we go through once or twice a week on what what we want them to manufacture.

At the moment I don't I don't see.

A situation, where we need to grow.

The production ounce numbers at either Sunshine or silver town.

Greg Roberts: Thank you very much. And then, just one more follow up. So kind of in the last 12 months, you guys have acquired a handful of additional businesses, you know, entered a few new geographies. Meanwhile, the mints' own mints have been running near or at full capacity. I know there's kind of an oversupply in the market right now, but maybe over the medium term, could you share any thoughts around mint capacity expansion? Yeah. I mean, at the moment, we're not looking too much for expansion.

But as the premiums tend to contract.

There is a fixed cost to manufacturing this product and I do believe that we could see opportunity if we get a prolonged.

Lower premium environment.

We could find a situation where a smaller mint.

Can't make money at the at the prices that <unk>.

We can produce at and that May give us an opportunity to acquire some equipment or two.

Greg Roberts: You know, we're comfortably at the moment managing the production out of out of the Silvertown Mint. We have been fortunate enough that the Silvertown Mint does a great job of pivoting and being very nimble when it comes to what they produce. So whether it's one ounce rounds or 100 ounce bars or specialty products, whatever it is, we're able to keep them busy with, you know, altering or adjusting what product they're making every week. So this is just a balance and production discussion that we go through once or twice a week on what we want them to manufacture at the moment. I don't I don't see a situation where we need to grow the production ounce numbers at either Sunshine or Silvertown.

And M&A.

M&A type activity as it relates to maintain.

I think there will be opportunities down the road, but nothing that we're focused on at the moment.

Great. Thank you very much for the detail last very quick one for me you've been mentioning.

Being opportunistic in acquiring inventory do you guys just kind of with the potentially volatile election year coming up do you guys have a an optimal inventory level in mind or are you guys thinking of that.

You're acquiring.

Additionally, FRE.

Certainly we feel here at a mark management that there are a number of events in the future in a number of.

Greg Roberts: But as the premiums tend to contract, there is a fixed cost to manufacturing this product. And I do believe that we could see opportunity if we get a prolonged lower premium environment. We could find a situation where a smaller mint, you know, just can't make money at the prices that we can produce at.

Situations that will be favorable to a mark.

We do.

We try not to predict the future but.

We do see a number of situations that seem to be lining up that historically have.

Greg Roberts: And that may give us an opportunity to acquire some equipment or to, you know, do an M&A M&A type activity as it relates to minting. I think there will be opportunities down the road, but nothing that we're focused on at the moment. Great. Thank you very much for the detail. And last, a very quick one for me.

Shifted the supply and demand.

Equation for us in our products and I think that personally.

Don't want to speak for everybody, but personally I do feel there are a number of things that the election.

The continuing bank situation that commercial real estate.

Greg Roberts: You've been mentioning being opportunistic in acquiring inventory. Do you guys, with the potential volatile election year coming up, have an optimal inventory level in mind? Or are you thinking of that as you're acquiring additional inventory?

Issues, what is really going to happen to interest rates and inflation. So I do I do see a lot of.

Just kind of what I would say yellow lights that are that are that are flashing.

Greg Roberts: Certainly, we feel here at A-Mark Management that there are a number of events in the future and a number of situations that will be favorable to A-Mark. We do, you know, we try not to predict the future, but we do see a number of situations that seem to be lining up that historically have, you know, shifted the supply and demand equation for us in our products. And I think that personally, you know, I don't want to speak for everybody, but personally, I do feel there are a number of things that, you know, the election, the continuing bank situation, the commercial real estate issues, what is really going to happen to interest rates and inflation. So I do see a lot of, you know, just kind of what I would say yellow lights that are, you know, that are flashing.

I think our job is to balance.

And as I mentioned earlier.

We're looking at the balance and the mix of our inventory right now and we want to make sure that as we increase inventory and as we can.

Look towards the future we want to make sure we have the inventory that gives us the greatest potential if an event occurs. So we are conscious consciously looking to the mix of inventory repositioning inventory selling inventory that we don't think currently has potential in acquiring new inventory that will.

<unk> will give us that opportunity.

In conjunction with that you may see our inventories rise over the next six months and you will most likely see our carry costs rise a little bit as we look to position ourselves like we have in the past to make to hopefully be in a position if the supply and demand.

Greg Roberts: I think our job is to balance and, and, as I mentioned earlier, we're looking at the balance and the mix of our inventory right now. And we want to make sure that as we increase inventory, and as we look towards the future, we want to make sure we have the inventory that gives us the greatest potential if an event occurs. So we are consciously looking at the mix of inventory, repositioning inventory, selling inventory that we don't think currently has potential, and acquiring new inventory that will give us that opportunity. In conjunction with that, you may see our inventories rise over the next six months, and you will most likely see our carry costs rise a little bit as we look to position ourselves like we have in the past to make, to hopefully be in a position if the supply and demand equation changes so that we have the product that everybody wants.

Equation changes that we have the product that everybody wants that's that's how we do the best when we're well positioned and have product because.

Production manufacture financing of inventory and being able to do that and pivot quickly in our business. You. Just can't you just can't do that overnight. So we are investing in ourselves, we're investing in and all the different areas that I've talked about but we are currently.

<unk>.

Looking to invest in the right inventory that will make us the most money when we sell it.

Thanks, again, and congrats on the quarter and the acquisitions and that's it for me.

Right.

Okay, great. Thank you.

Thank you. The next question is coming from Greg <unk> from Northland Securities. Greg Your line is live.

Hey, Greg door, Kathleen Thanks for taking the questions and congrats on the transactions.

One of the first act.

How does <unk> margins, maybe compare to <unk> should we think of them as relatively comparable.

Greg Roberts: That's how we do the best when we're well positioned and have a product because production, manufacture, financing of inventory, and being able to do that and pivot quickly in our business, you just can't do that overnight. So we are investing in ourselves. We're investing in all the different areas that I've talked about, but we are currently looking to invest in the right inventory that will make us the most money when we sell. Thanks again.

I think it's a mix it is a mix between.

Retail and wholesale and I think you should look at it as a mix.

And that I think the product mix of what they sell is a little bit skewed more towards license specialty products that do carry a little higher margin even at a wholesale level.

It's important to note that.

All of our DTC brands, whether it be JM bullion or silver global core Pinehurst.

Our customers have L. P M.

Greg Roberts: Congratulations on the quarter and the acquisitions. That's it for me. OK, great. Thank you. And the next question is coming from Greg, from North. Drake, you're live.

So LTM through their licensing and their exclusive products.

Our sellers are products that we have historically needed now we have had to share those products with other retailers.

Unnamed Analyst: Hey, Greg, Thor, Kathleen, thanks for taking the questions and congrats on the transactions. One of the first questions asked was, you know, how do LPMs and margins maybe compare to A-Marks? You know, should we think of them as relatively comparable? I think it's a mix.

No.

I think it's fair to say that.

We haven't historically got as much of Lps wholesale sales of product that we would like so we see that as an opportunity to expand and be a great distributor for LTM on their specialty products.

Greg Roberts: It is a mix between retail and wholesale, and I think you should look at it that way. And that I think the product mix of what they sell is a little bit skewed more towards licensed specialty products that do carry a little higher margin, even at a wholesale level. It's important to note that all of our DTC brands, whether it be J.M. Bullion or Silver Gold Bull, or Pinehurst, are customers of LPM, so LPM, through its licensing and its exclusive products, is a seller of products that we have historically needed. Now, we have had to share those products with other retailers. So I think it's fair to say that

I think that.

They are there.

Their margins should skew a little bit higher than.

Then mark wholesale, but probably not as high as our as our DTC businesses.

Sure makes sense.

And just as we think about modeling.

To say where things move but.

Have you seen just as we think about fiscal Q3, so far have you seen similar spreads relative to fiscal Q2.

Yes, I think that in some areas I would say.

January and February we saw some slight strength I think right now, we're seeing a little bit of strength in the silver Eagle market.

Greg Roberts: We haven't historically got as much of LPM's wholesale sales of product that we would like, so we see that as an opportunity to expand and be a great distributor for LPM on their specialty products. I think that, Uh, you know, their margins should skew a little bit higher than A-Mark Wholesale, but probably not as high as our DTC business. So, it makes sense. Great. And just, you know, as we think about modeling, it's hard to say, you know, where things move, but, you know, have you seen, just as we think about fiscal Q3 so far, have you seen similar spreads, you know, relative to fiscal Q2? Yes, I think that, you know, in some areas, I would say, you know, January and February, we saw some slight strength.

Which generally does bode well for.

Our private mint product or our other sovereign mint products.

And I do feel at the moment, a little a little more demand and a little less supply on the silver Eagle market. So I would say that.

It's probably the plus side of things.

As it relates to.

One ounce five ounce 10 ounce private label product.

I think that we're seeing we're seeing similar premiums as what we saw in the in Q2.

Some products a little bit lower some problems products, a little bit higher but we are trying our best to.

Inventory as broad a mix of products as we can.

Greg Roberts: I think right now we're seeing a little bit of strength in the Silver Eagle market, which generally bodes well for our private mint product or our other sovereign mint products. And I do feel, at the moment, a little more demand and a little less supply on the Silver Eagle market. So I would say that's, you know, that's probably the plus side of things as it relates to the 1 ounce, 5 ounce, 10 ounce private label products. I think that we're seeing similar premiums as what we saw in Q2. Some products are a little bit lower, some products are a little bit higher, but we're trying our best to stock as broad a mix of products as we can so that we're able to fill any orders when they come in. I got it.

So that.

We're able to fill any orders when they come in.

Got it very helpful. Thanks, Greg.

Thank you. The next question is coming from Brendan Hoffman from Praetorian capital.

Brandon Your line is lives.

Hey, guys. Thanks for taking my questions I guess, we're just curious if maybe you could help us understand <unk> relationship with big box retailers like Costco, and Walmart, specifically, where a mark kind of fits into that ecosystem and.

If you could help us just by clarifying which specific business business segments are earning revenue from those two entities.

Yeah, Great question.

Walmart has been selling into the market for a long time.

We indirectly supply them.

We have not seen.

The growth in Walmart that is material to a mark.

Sure.

Unnamed Analyst: Very helpful. Thanks, Craig. Hey, guys, thanks for taking my question. I guess we're just curious if maybe you could help us understand A-Mark's relationship with big box retailers like Costco and Walmart, specifically where A-Mark kind of fits into that ecosystem. And, you know, if you could help us just by clarifying which specific business segments are earning revenue from those two entities. Yeah, great question.

But they have been there for a while so that big box.

Comment is not really anything new.

For Us I think everybody is very interested in Costco Costco has been in the news.

What Costco is doing at the moment I think that a mark is very well positioned for this.

I will say that are our partners at silver gold Bull in Calgary, our COO.

Currently supplying Costco they are selling products in the Costco stores silver global has a presence on the floor of Costco's in Canada.

Greg Roberts: You know, Walmart has been selling into the market for a long time. We indirectly supply them. We have not seen the growth in Walmart that is material to A-Mark, but they have been there for a while.

As well as handling some of their logistics and some of their order fulfillment. So we are definitely.

Greg Roberts: So that big box comment is not really anything new to us. I think everybody is very interested in Costco. Costco has been in the news a lot, you know, what Costco is doing at the moment. I think that A-Mark is very well positioned for this.

In June.

Silver global specifically at the moment is working in Canada.

And we can continue.

Continue to look for opportunities, where <unk> can participate in any domestic needs that Costco may have in general I think costco's entry into precious the precious metals market has the potential to expand the overall market.

Greg Roberts: I will say that our partners at Silver Gold Bull in Calgary are currently supplying Costco. They are selling products in the Costco stores. Silver Gold Bull has a presence on the floor of Costco stores in Canada and as well as handling some of their logistics and some of their order fulfillment. So we are definitely, you know, in tune.

As a trusted retailer Costco could introduce new investors to the benefits of owning precious metals, thereby contributing to the growth of growth of our overall industry. So I believe that as a positive.

I think that Costco's widespread presence and accessibility can can just make presses precious metals more convenient for a broader demographic and I think the move allows consumers to explore and purchase precious metals during their routine shopping experience.

Greg Roberts: Silver Gold Bull, specifically at the moment, is working in Canada, and we continue to look for opportunities where A-Mark or Silver Gold Bull can participate in any domestic needs that Costco may have. In general, I think Costco's entry into the precious metals market has the potential to expand the overall market. As a trusted retailer, Costco could introduce new investors to the benefits of owning precious metals, thereby contributing to the growth of our overall industry. I think that Costco's widespread presence and accessibility can make precious metals more convenient for a broader demographic, and I think the move allows consumers to explore and purchase precious metals during their routine shopping experience. I've heard different numbers, but I think Costco has over 140 million members across North America and Canada, so obviously, we see this as a large opportunity to bring new customers into a marketplace we have been excited about for a long time. I think that any time that you see a new demographic or a new group of people in our marketplace, it does give A-Mark and our DTC an opportunity to try to take advantage of that. At this point, what we've seen is Costco is limiting the amount of ounces that a customer can buy.

I've heard different numbers, but I think Costco has over 140 million members across North America and Canada.

So obviously, we see this as a large opportunity to bring new customers into a marketplace, where we have been excited about.

For a long time.

I think that any any time that you see a new demographic or a new group of people.

In our marketplace. It does give a mark in our DTC and opportunity to try to.

Take advantage of that to this point.

What we've seen is Costco is limiting.

The amount of ounces that a customer can buy.

They seem to be using this currently.

As a way to to increase membership in their different membership programs and I think that's good for us.

Talking to the guys at silver global and from there there are reports of actually having some pop up store.

The stores in Canada.

To this point they've been very optimistic and they are very positive about their interactions with the Costco customers.

Greg Roberts: They seem to be using this currently as a way to increase membership in their different membership programs, and I think that's good for us. Talking to the guys at Silver Gold Bull and from their reports of actually having some pop-up stores in Canada, to this point, they've been very optimistic, and they're very positive about their interactions with Costco customers and their customers' interest in learning more about precious metals. So I think this is very good for us. I think it really creates a terrific opportunity for A-Mark's DTC segment and their companies in that if a customer is limited to buying five ounces of gold from Costco or one ounce of gold at a time from Costco, if the customer is educated and wants to buy more, we hope very much that they'll find their way to one of our DTC stores. R. D. T. C., brand; we see it as an opportunity for A-Mark. Great, thank you.

And the customers interest in learning more about precious metals. So I think this is very good for us I think it really creates a terrific opportunity for <unk> for <unk> DTC segment and their companies and that if a customer is limited in buying five ounces of gold from Costco.

<unk> are one ounce of gold at a time from Costco.

If the customer is educated and wants to buy more we hope very much that.

They will find their way to one of our DTC.

Our DTC.

Brands.

So that's how we see it as an opportunity for a mark.

Yes.

Great. Thank you and then just a follow up.

Where exactly do you see those potential future opportunities coming first would that be maybe to the wholesale arm or something with the menswear cost cuts potentially buying and selling silver town and Sunshine products.

I think that Costco in Canada has already started to sell Sunshine products. So.

Unnamed Analyst: And then just to follow up, where exactly do you see those potential future opportunities coming first? Would that be, you know, maybe the wholesale arm or something with the mints where, you know, Costco is potentially buying and selling Silvertown and Sunshine products? I think that Costco in Canada has already started to sell Sunshine products, so that answers that question, and I think that we view Costco as... Costco, if it continues and it's long-term, I think we will be able to serve them across a number of our platforms and our businesses, whether it be private mint products, whether it be wholesale, whether it be storage and logistics.

That answers that question and I think that we view.

Costco if it continues and it's long term I think we will be able to service them across.

A number of our our platforms and our businesses, whether it be private mint products, whether it be wholesale whether it be storage and logistics.

We.

We're ready to accept the challenge if Costco.

Once it once once our involvement and we think we're well positioned for that right now.

Okay. Thank you for answering the questions.

Sure.

Thank you. The next question is coming from site Jacobs from Jacobs asset management side of your line of lines.

Greg Roberts: We're ready to accept the challenge if Costco, you know, wants it, wants our involvement, and we think we're well positioned for that right now. Okay, thank you for answering the question. Sure. The next question is coming from... Hey, Greg. Hi, Sir.

Greg.

Hi, Syed.

So I wanted to drill down on the sort of L. P.

Accretion.

Calculation.

So.

This past quarter, which was.

Slow quarter U K.

As it stands at about one 2% EBITDA margin it's been at.

As high as I think triple that.

Unnamed Analyst: So I wanted to drill down on that sort of LPM accretion calculation. This past quarter, which was a slow quarter, A-Mark, as it stands, had about a 1.2% EBITDA margin. It's been as high as, I think, triple that in previous quarters. Given what you said earlier about the mix of retail to wholesale being somewhat similar to A-Mark's, is it fair or conservative or aggressive to apply that range of EBITDA margins in good and bad environments to the $400 million of revenue, average revenue, you're acquiring from LPM? And then I've got two follow-ons.

In previous quarters, given what you said earlier about the mix of retail to wholesale being somewhat similar to <unk> is it fair or conservative or aggressive to apply.

That range of EBITDA margins in good and bad.

Environments to the $400 million.

Revenue average revenue you are acquiring from <unk> P M.

<unk> got two follow ons to that.

Yes, as you can tell from our performance, it's a little bit of a moving target.

L. P M was.

Significantly had had had better margins in 'twenty, one and 'twenty. Two then there than they had in 'twenty three so as we looked at the opportunity and as we looked at the acquisition and the price that we ended up pain, we think that our.

Greg Roberts: Yeah, as you can tell from our performance, it's a little bit of a moving target. LPM significantly had better margins in 21 and 22 than they had in 23. So as we looked at the opportunity and as we looked at the acquisition and the price that we ended up paying, we think that our cash and stock down at $41 million was a very fair entry point for us with $11.5 million of tangible net worth. It, you know, we did negotiate, and we put a little bit of any further payout on this transaction as pay for performance. So we were very in tune with, you know, giving the sellers an opportunity that if the market turns or if things get better, they would participate with us, and each time we worked on the structure and changed the structure or negotiated the structure, we were of the position that if we paid out all of the earn-out numbers and, you know, the performance needed for all of those earn-out numbers, we would be very happy to pay it out.

Our cash and stock down at $41 million.

Was it was a very fair entry point for us with $11 $5 million of tangible net worth.

And.

We did negotiate and we put a little bit of any any further payout on this transaction that its pay per performance. So we were very.

In tune with.

With giving the sellers an opportunity that if the market turns or if things get better that they would participate with us and each time we.

Worked on the structure and change the structure of negotiated the structure. We were of the of the position that if if if we pay out.

All of the earn out numbers.

<unk>.

The.

The performance needed for all of those earn out numbers.

We would be very happy to pay it out it would validate the purchase and maybe it would be.

Greg Roberts: It would validate the purchase, and it would be a very good acquisition for us. So I think that part of the challenge in looking at this transaction, and I know it's what you're thinking and what you're focused on, is how do we look at what's normal and what can we expect. It comes a little bit with market conditions, but I think our belief is that we can add revenue as well as hopefully expand their margin a little bit. But, you know, for the most part, you know, I think this is a business that is going to have, you know, closer to probably 2% EBITDA margins. So maybe a little bit higher than that, as you're trying to compare them.

It would be very good a very good acquisition for us So I think that part of the challenge in.

And looking at this transaction and I know its what Youre thinking on what you are focused on is how do we look at what's normal and what's.

What can we expect and.

It comes a little bit with market conditions, but I think our.

Our belief is that we can.

AD revenue as well as hopefully expand their margin a little bit.

But.

For the most part.

<unk>.

I think this is a business that is going to have.

Closer to probably 2% EBITDA margins.

So maybe a little bit higher than that.

As you as Youre trying to compare them. So I do think the margins are a little bit higher than than a mock wholesale let's say.

Unnamed Analyst: So I do think the margins are a little bit higher than A-Mark Wholesale, let's say. And if we can expand their retail, and we can grow their retail, I don't see any reason why we couldn't that those incrementally increased revenue dollars at the DTC level wouldn't be more in line, or would be more in line with our current DTC margins. Great, thanks.

If we can expand their retail.

And we can we can grow their retail I don't see any reason why we couldnt those incrementally increased revenue dollars at the DTC level wouldn't be more in line or will be more in line with what our current DTC margins are.

Greg Roberts: So one little follow-up question on that. You talked about sort of revenue synergies, getting, you know, more wallet share or mind share of their purchases for A-Mark wholesale. Is there an opportunity for Silvertown and Sunshine to become suppliers? I don't know how many Silvertown bars they sell in Hong Kong, but might that become like a part of their menu whereas it wasn't before?

Great. Thanks, So one little follow up question on that you talked about sort of revenue synergies getting more wallet share and mind share of their purchases.

Hey, Mark wholesale is there an opportunity for silver town and Sunshine to become suppliers out of I don't know how much how many silver town bars that they sell in Hong Kong, but right that.

Like a part of their their menu, whereas it wasn't before.

Unnamed Analyst: Yeah, I mean, that's a great synergy because as we, you know, every week we have plenty of Silvertown products on the shelf, and we have both wholesale and retail customers buying out that inventory; it doesn't cost us anymore to introduce LPM customers to that inventory. Now we will have to, we've already started on the process of logistics, and, you know, we will have to stage the product a little bit more in Hong Kong, and we've already been doing that with Brinks in Hong Kong. As well as, I think it's important to note that we entered into a supplier agreement with AMS about two months ago. And as part of the negotiations and part of the test, we had a supplier agreement with AMS and LPM specifically, and we have already started, out of our Vegas facility, shipping product for LPM to their customers, as well as financing some of their inventory in Hong Kong.

Yeah, I mean, that's that's a great synergy because as we.

Every week, we have plenty of silver town product on the shelf and we have both wholesale and retail customers buying out of that inventory it doesn't cost us anymore to introduce L. P M customers to that inventory.

Now we will we will have to we have already started on the process of logistics and we will have.

I have to stage product a little bit more in.

In Hong Kong, and we've been already doing that with brink's in Hong Kong.

As well as I think it's important to note that we <unk>.

<unk> entered into a supplier agreement with Ams about.

Around two months ago.

And as part of the negotiations and part of the test we have had a supplier agreement with Ams and L. P M.

Specifically and we have already started.

Out of our Vegas facility, we have started to ship.

Product for LTM to their customers as well as we've started to finance some of their inventory in Hong Kong. So we've been operational with them for the last two months. So we've we've been able to get a really good idea of what it takes and where we can we can improve <unk> profitability. So we we.

Unnamed Analyst: So we've been working with them for the last two months, so we've been able to get a really good idea of what it takes and where we can improve LPM's profitability. So we have actually been working on that. Okay, and then last question on the transaction and, in general, you're paying almost all cash for this is the cost of capital, you know, missing out on the 5% money market on $40 million, or are there, sort of like Ed, he said you're not borrowing any money to do it. Are there any other sort of costs that you need to subtract from the 2% or more margin?

<unk> actually been working on that.

And then last question on the transaction and in general.

You are paying almost all cash for this is the is the cost of capital.

Missing out on 5% money market on $40 million or are there sort of like add you said, you're not borrow any money to do it are there any other sort of costs that you need to subtract from the 2% or more margin and also vis vis the buyback.

Greg Roberts: And also, vis-à-vis the buyback and how it relates to this. You know, you spent something less than 50% of your cash flow this quarter buying back your stock. Does making this acquisition for $40 million make it any harder to return capital at that pace going forward? Well, I think there's a little bit of unknown in that question. A-Mark Precious, I am super enthusiastic about this acquisition. I didn't do this to make 5% on the money market.

And how it relates to this you spent.

Something less than 50% of your cash flow this quarter in buying back your stock does making this acquisition $40 million.

Make it any harder to return capital at that pace going forward.

Well I think there is a little bit of unknown in that question.

I am Super enthusiastic about this acquisition I didn't I didn't do this to not make 5% on a money market.

Greg Roberts: You know, I think this business has the opportunity to really change and to really add to what A-Mark is doing in a market that we're currently getting a very tiny fraction of the market share. So I, you know... I know what this business has made historically. I know what it has made in good times.

I think this business has the opportunity to to really change and to really add to what <unk> is doing in a market that we're currently getting.

Very tiny fraction of the market share so I.

I know what this business has made historically I know what it made it in good times I know what.

Greg Roberts: I know what that revenue and that profitability is worth to us, and I think that if LPM had been owned by A-Mark in 2021 or 2022 or even 2023, they would have made significantly more money than they did on their own. So I'm looking at this as a home run. I'm not looking at it as a punt single.

That revenue and that profitability is worth to us and I think that if LTM was owned by a mark in 2021 or 2022, or even 2023, they would've made significantly more money than they did on their own.

So.

I'm looking at this is as a homerun I'm not looking at it as a bunch of single.

Greg Roberts: Okay, and then the buyback part of the question: does it impinge on your ability to buy back? No, I think that management and the A-Mark board spent quite a bit of time making sure this was the right size deal that would afford us the opportunity to continue to balance all of these things, whether it be dividends or whether it be stock buyback or whether it be, you know, other acquisitions in the future. I think this deal at this moment was sized very well, and it wasn't that long ago that we made $50 million EBITDA in a quarter or so. As it relates to other opportunities, I think we're very well positioned to keep doing everything when the opportunity presents itself.

Okay, and then the buyback part of the question does it impedes your ability to buyback at this pace.

No I think that.

Management and the <unk> Board, we spent quite a bit of time.

Making sure this was.

<unk> right sized deal.

That would afford us the opportunity to continue to balance all of these things, whether it be dividend or whether it'd be stock buyback or whether it would be.

Other acquisitions in the future I think this deal at this moment was sized.

Very well.

And.

It wasn't that long ago.

We made $50 million EBITDA in a quarter or so.

As it relates to other.

Other opportunities I think we're very well positioned.

You know very well positioned to keep keep doing everything.

When the opportunity presents itself and.

Greg Roberts: And if we feel that the price of the stock is attractive for a buyback, we're going to continue to buy back the stock. Obviously, we've announced here that we bought back 400,000 shares in the quarter. That's a pretty big buyback against a 23 million share outstanding. So I think. I'm pretty excited about continuing to do everything well.

If we feel that the price of the stock is.

Attractive for a buyback we're going to continue to buy back the stock obviously, we've we've announced here that we bought back 400000 shares in the quarter.

That's a pretty big buyback against a 23 million shares outstanding so.

I think.

I'm pretty excited about continuing to do everything well.

Awesome that sounds great. Thanks, Greg.

Operator: Thanks, Greg, for our question and answer session. I'd now like to turn the call back over to Mr. Roberts for his closing remarks. Thank you, Paul.

Yes.

Thank you and this does conclude or question and answer session I would now like to turn the call back over to Mr. Roberts for his closing remarks.

Thank you Paul once again, thanks to all of our shareholders, who joined the call today as well as the shareholders that aren't on the call that will listen to it later recorded.

Greg Roberts: Once again, thanks to all of our shareholders who joined the call today, as well as the shareholders that aren't on the call that will listen to it later recorded. I want to thank our employees for their dedication and commitment to our success and look forward to keeping you apprised of A-Mark's progress in the future. Thank you for joining us.

I want to thank.

Our employees for the dedication and commitment to our success.

And look forward to keeping you apprised of <unk> progress in the future. Thank you for joining.

Operator: Before we conclude today's call, I would like to provide A-Mark's Safe Harbor Statement that includes important call information Regarding forward-looking statements During today's call, there were forward-looking statements made regarding, Projects that relate to A-Mark's future plans, events, and the like are forwarded. The meaning of the Private Securities Litigation Reform Act, Exchange. These include statements regarding expectations with respect to... The amount or timing of any future

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

During today's call. There were forward looking statements made regarding future events statements that relate to a mark's future plans objectives expectations performance events and alike are forward looking statements within the meaning of the private Securities Litigation Reform Act of 1095, and the Securities Exchange Act of 1934.

These include statements regarding expectations with respect to the dividend declarations, the amount or timing of any future dividends future macroeconomic conditions and demand for precious metals products and the company's ability to effectively respond to changing economic conditions future.

Operator: Ability to Effectively Respond, Revenge, and Uncertainties, individually or in the act, cause actual results to differ materially from those expressed or implied. For example, included in the following. Failure of the Parties to Agree on Definitive Transactions, Failure of the Park Playdesh Transaction, currently Failure to obtain necessary therapy, Greater Than Anticipated Cost. Factors That Could Cause Actual Results, A-Mark Forte, Richard Greulich, A-Mark Precious Greater Than Anticipated Cost, Changes in the current international Historically has been favorable, A-Mark Precious Potential adverse effects, Problems in the National Library of Congress. Competition, Higher Margin. A-Mark Precious, Failure, Changes. Consumer Preferences for Precious Metal Products. Natural Negative Effect, Relationary pressure may have... address the press. Economic, Financial.

Future events risks and uncertainties individually or in the aggregate could cause actual results to differ materially from those expressed or implied in these statements.

These include the following with respect to the proposed transactions with Ams holdings. The failure of the parties to agree on definitive transaction documents the failure of the parties to complete to contemplate as transactions within the currently expected timeline or at all.

Failure to obtain necessary third party consents or approvals and greater than anticipated costs incurred to consummate the transactions.

Other factors that could cause actual results to differ include the failure to execute the company's growth strategy.

The inability to identify suitable are available acquisition or investment opportunities.

Greater than anticipated costs incurred to execute the strategy changes in the current international political climate.

Which historically has favorably contributed to demand and volatility volatility in the precious metals markets potential adverse effects of the current problems in the national and global supply chains increased competition for the Companys higher margin services, which could depress pricing the failure of the company's business model to respond to.

Changes in the market environment as anticipated.

Changes in customer and consumer demand and preferences for precious metal products generally.

Potential negative effects that inflationary pressure may have on our business the inability of the company to expand capacity at sort of retirement.

Operator: Public. The company undertakes no obligation, Publicly Update Caution NOT TO PLACE ON DUE RELIANCE. Finally, I would like to remind everyone that a recording of today's call will be available for review by an Investor Sec. The Bollinger Band, LLC. All rights reserved. Thank you for joining us today for. Cole, you may now

Failure of our invested companies to maintain or address the preferences of their customer basis general risks of doing business in the commodity markets and the strategic business economic financial political and governmental risks and other risk factors described in the Companys public filings with the Securities and exchange.

Commission.

The company undertakes no obligation to publicly update or revise any forward looking statements listeners are cautioned not to place 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 a link in the investors section of the company's website.

Thank you for joining us today for a Mark's earnings call you may now disconnect.