Q2 2026 Quinsam Capital Corp Earnings Call

August 17, 2026

Roger Dent: All right. Good morning, everyone, and welcome to the second quarter conference call for Quinsam. I'm going to assume that everybody's seen and read the press release, so I'm not going to reiterate what's in the press release. We had an okay second quarter. We made some money. We retired a few more shares, which helps to tighten up the float. Not a great deal of activity on the buy side or the sell side. We have some cash ready to deploy. We have an increasing proportion of assets in the liquid portfolio, which is the goal, and we expect to see some nice moves there in the coming quarter with the expected listing of Peninsula Capital. The third quarter, I would say, is off to a modestly positive start. We've seen some improvements in EDM Resources again, in BluMetric, in Reflex.

Speaker #1: Right, morning everyone, and welcome to the second quarter conference call for Quinsam. I'm going to assume that everybody's seen and read the press release, so I'm not going to sort of reiterate what's in the press release.

Speaker #1: We had an okay second quarter. We made some money, and we retired a few more shares, which helps to tighten up the float. Not a great deal of activity on the buy side or the sell side.

Speaker #1: You know, we have some cash ready to deploy. We have an increasing proportion of assets in the liquid portfolio, which is the goal, and we expect to see some nice moves there in the coming quarter.

Speaker #1: With the expected listing of Peninsula Capital, I would say that the third quarter is off to a modestly positive start. We've seen some improvements in EDM Resources, again in BluMetric, and in Reflex.

Speaker #1: Reflex has actually had a very nice move; it's not a big position, but it's had a very, very nice move, with nothing in particular on the negative side.

Roger Dent: Reflex has actually had a very nice move. It's not a big position, but it's had a very nice move. With nothing in particular on the negative side. If I were to guess today, I'd guess we're up another CAD 0.2 or CAD 0.3 as of today. But the key factor for Q3 is going to be the listing of Peninsula Capital. It's something we've been in for quite a long time. We have a very low cost base relative to asset value and recent financings. This is the United States single-family home rental business. They own a very large portfolio of single-family homes, mostly in the US Northwest, Buffalo, Rochester, Cleveland places like this. The typical kind of former Rust Belt type communities, where houses were available very cheaply with very nice rental economics. That's looking to list.

Speaker #1: So, you know, if I were to guess today, I'd guess we're up another 0.2 or 0.3 cents as of today. But the key factor for Q3 is going to be the listing of Peninsula Capital.

Speaker #1: It's something we've been in for quite a long time. We have a very low cost base relative to asset value in recent financings. This is the United States single-family home rental business.

Speaker #1: They own a very large portfolio of single-family homes, mostly in sort of the U.S. Northwest—Buffalo, Rochester, Cleveland, you know, places like this that, you know, the typical kind of former Rust Belt-type communities where houses were available very cheaply, with very nice rental economics.

Speaker #1: So that's looking to list. We thought it was going to be August; it looks like maybe it's going to be pushed to September. We expect them to come out with a dividend, and an NAV of around $2.

Roger Dent: We thought it was going to be August, it looks like maybe it's going to be pushed to September. We expect them to come out with a dividend and an NAV of around two bucks. So the key question is going to be where it trades. That is, I think, quite unpredictable. We're carrying it at CAD 1.45. So, the thing to watch is going to be where that quote ends up relative to the CAD 1.45. I'm hoping that it can do that or better, but it's definitely potentially going to trade below NAV because it is a situation where it's been private for a long time, and there are probably sellers. The key question is what the buying side of the equation looks like. However, the asset value is strong. It's a great business. It has a yield coming out of the gate, we're led to believe.

Speaker #1: So, the key question is going to be where it trades. That is, I think, quite unpredictable. We're carrying it at $1.45. So, you know, the thing to watch is going to be where that quote ends up relative to the $1.45.

Speaker #1: You know, I'm hoping that it can do that or better, but it's definitely potentially going to trade below NAV, because it is a situation where it's been private for a long time and there are probably sellers.

Speaker #1: The key question is, you know, what the buying side of the equation looks like. However, you know, the asset value is strong—it's a great business, it has a yield coming out of the gate.

Speaker #1: We're led to believe. So, you know, we're quite confident in it as a holding. It will move close to 2 cents from the private portfolio to the public portfolio.

Roger Dent: So, we're quite confident in it as a holding. It will move close to two cents from the private portfolio to the public portfolio, so it's quite a big factor in that. Otherwise, we've got a few other much less important privates looking to list. A company called Pelican AI, which we've been in for quite a while. It was supposed to have listed some time ago. I think it's finally going to trade in Q3. That one wasn't a big investment. It should be a win. We have another one that's announced, Longview Gold. Again, it's not a big investment, so it's not going to move the needle very much. That's probably Q4. And a company called Vaughan Intelligence, which was a little bit bigger investment at around 250,000. That one, hoping for Q4. I'd say it's not certain it's Q4, but hopefully Q4.

Speaker #1: So it's quite a big factor in that. Otherwise, we've got a few other, much less important privates looking to list—a company called Pelican AI, which we've been in for quite a while.

Speaker #1: It's supposed to have listed some time ago. I think it's finally going to trade in Q3. That one wasn't a big investment. It should be a win.

Speaker #1: We have another one that's announced—Longview Gold. Again, it's not a big investment, so it's not going to move the needle very much. That's probably Q4.

Speaker #1: And a company called Bon Intelligence, which was a little bit bigger investment at around $250,000. That one, hoping for Q4. I'd say it's not certain it's Q4, but hopefully Q4.

Speaker #1: Those three, we expect all to be on the positive side as far as impact on NAV is concerned. So that's, in a nutshell, the Q3 outlook.

Roger Dent: Those three we expect all to be on the positive side as far as impact on NAV is concerned. That is in a nutshell the Q3 outlook. I would say in terms of significant transaction, I would not say at this point that anything is imminent. One company that we had been having some discussions with is Vaughan Intelligence, that has decided to go with a kind of a conventional shell with very few assets. That one didn't work out. We didn't really get terribly far with them, but it was a business that we feel quite good about. Its go public, just as an aside, its go public has been announced at twice the valuation that we paid on that CAD 250,000. Assuming it successfully does that raise, we would expect it to trade there or better. It has been doing quite nicely.

Speaker #1: I'd say, in terms of significant transactions, I would not say at this point that anything is imminent. You know, one company that we had been having some discussions with is Bon Intelligence, that has decided to go with, you know, kind of a conventional shell with very few assets.

Speaker #1: And, you know, that one didn't work out. We didn't really get terribly far with them, but it was a business that, you know, we feel quite good about.

Speaker #1: And its go-public, just as an aside—its go-public has been announced at twice the valuation that we paid on that $250,000. So, assuming it successfully does that raise, you know, we would expect it to trade there or better.

Speaker #1: It's been doing quite nicely. So, I would say that's the Q3 outlook. Q2, there weren't too many developments. I'm happy to take questions on Q2 or where we stand at this point.

Roger Dent: I would say, that is the Q3 outlook. Q2, there weren't too many developments. Happy to take questions on Q2 or where we stand at this point. Any questions?

Speaker #1: Any questions?

Speaker #2: Hey Roger, it's John Lewis. How are you? Excellent, thank you. As a longtime holder, it is nice to see what appears to be a turn in the portfolio.

John Lewis: Hey, Roger. It is John Lewis. How are you?

[Analyst]: Hey, Roger. It is John Lewis. How are you?

Roger Dent: John, how are you?

John Lewis: Excellent. Thank you. As a longtime holder, it is nice to see what appears to be a turn in the portfolio, so well done there. One of the ones that maybe people have a little bit of familiar area with or not is the California Nanotechnologies Corp.

[Analyst]: Excellent. Thank you. As a longtime holder, it is nice to see what appears to be a turn in the portfolio, so well done there. One of the ones that maybe people have a little bit of familiar area with or not is the California Nanotechnologies Corp.

Speaker #2: So, you know, well done there. One of the ones that maybe people have a little bit of familiarity with, or not, is the California Nanotech.

Roger Dent: Yeah.

Speaker #2: Is there an update there that you could share with us?

John Lewis: Is there an update there that you could share with us?

[Analyst]: Is there an update there that you could share with us?

Roger Dent: Well, California Nanotechnologies Corp., I am a director there, so I am quite familiar with the situation. We are quite optimistic that we will be, in the near term, securing commercial contracts. We are quite optimistic about the prospects in the small nuclear reactor space. We think we are probably the only viable source of supply for boron carbide control rods, and boron carbide heat shielding. We are in discussion with more than one of the companies that are in the United States behind these small nuclear reactors, which are a pretty exciting area and a big target for growth for Trump and for the US Department of Energy. We have made submissions for US government funding. Basically, the US government is very keen on domestic secure supply chains for critical industries, and obviously the small nuclear reactor industry is a critical industry. So, we have been pursuing government funding opportunities.

Speaker #1: Well, California Nano, you know, I'm a director there, so I'm quite familiar with the situation. We’re quite optimistic that we will, in the near term, be securing commercial contracts. We're also quite optimistic about the prospects in the small nuclear reactor space.

Speaker #1: We think we are probably the only viable source of supply for boron control rods—boron carbide control rods and boron carbide heat shielding. So, you know, we're in discussion with more than one of the companies that are in the United States behind these small nuclear reactors, which are a pretty exciting area and a big target for growth for Trump and for the U.S.

Speaker #1: Department of Energy. We've also been, you know, we've made submissions for U.S. government funding. Basically, the U.S. government is very keen on domestic, secure supply chains for critical industries, and obviously the small nuclear reactor industry is a critical industry.

Speaker #1: So, you know, we have been pursuing government funding opportunities. It's very hard for us to assess our probability of getting it because, you know, it's sort of a whole new area.

Roger Dent: It is very hard for us to assess our probability of getting it, because it is sort of a whole new area. That being said, there is a great deal of US money and focus being put in this area, and we think we have an extremely sound case. So, we are optimistic on government funding, we are optimistic on contracts. But as of now, we have not got those. So I would say we are very hopeful. We think these things are coming, but they are not in our control, so we do not know that they are coming with certainty.

Speaker #1: That being said, there's a great deal of U.S. money and focus being put in this area, and we think we have an extremely sound case.

Speaker #1: So, we're optimistic on government funding. We're optimistic on contracts. But as of now, we have not got those. So I'd say we're, you know, very hopeful; we think these things are coming, but, you know, they're not in our control, so we don't know that they're coming.

John Lewis: Just to flesh that out a little bit further. Canadian listing, but the company solely operates in the US, is that the

Speaker #2: So, just to flesh that out a little bit—so it’s a Canadian listing, but the company solely operates in the U.S., is that the—?

[Analyst]: Just to flesh that out a little bit further. Canadian listing, but the company solely operates in the US, is that the

Roger Dent: The entity that is pursuing all this business is a California company.

Speaker #1: The entity that is, you know, pursuing all this business is a California company.

Speaker #2: Okay.

John Lewis: Okay.

[Analyst]: Okay.

Speaker #1: It's a subsidiary of the listed company.

Roger Dent: It is a subsidiary of the listed company.

Speaker #2: You also said something that sort of piqued my curiosity, because as I remember, CNO has always been looking for—they worked with a lot of companies on a research, sort of test basis.

John Lewis: You also said something that sort of piqued my curiosity, because as I remember, CNO has always been looking for. They have worked with a lot of companies on a research sort of test basis. But you used the word commercial, so as in like ongoing or?

[Analyst]: You also said something that sort of piqued my curiosity, because as I remember, CNO has always been looking for. They have worked with a lot of companies on a research sort of test basis. But you used the word commercial, so as in like ongoing or?

Speaker #2: But you said you used the word "commercial." So, as in, like, ongoing, or?

Speaker #1: Yes. No, you know, as of this moment, there are zero small nuclear commercial reactors in operation. However, it's a major target, and there's a very large number of companies getting behind these, and they're targeting them for uses in things like data centers. You know, there's this exploding demand for electricity kind of across the economy, but especially in certain critical areas like data centers.

Roger Dent: Yes. As of this moment, there are zero small nuclear commercial reactors in operation. However, it is a major target and there is a very large number of companies getting behind these, and they are targeting them for uses in things like data centers. It is this exploding demand for electricity, kind of across the economy, but in certain critical areas like data centers. We did R&D work, basically about, I guess almost a year ago, about 10 months ago. We were approached by Valore, which is one of the leading small nuclear reactor companies. They found us basically through an internet search. They were trying to get boron control rods. They needed them urgently because the DOE had given them a window to do a test at one of the national labs where they could actually run their reactor.

Speaker #1: So, we did R&D work—basically about, I guess, almost a year ago, about 10 months ago. We were approached by Valor, which is one of the leading small nuclear reactor companies. They found us basically through an internet search. They were trying to get boron control rods—they needed them urgently because the DOE had given them a window to do a test at one of the national labs where they could actually run their reactor.

Speaker #1: And they came to the conclusion that the only way to make them was spark plasma sintering, so they gave us a call as the only commercial spark plasma sintering service provider in the United States.

Roger Dent: They came to the conclusion that the only way to make them was spark plasma sintering, so they gave us a call as the only commercial spark plasma sintering service provider in the United States. In the space of three or four weeks, we actually delivered them boron carbide control rods. From their perspective, it was sort of a life-saving situation. If they did not get them, they would have missed their DOE experimental window. Also to deliver them, having never even heard of them a month before, was pretty extraordinary. Anyway, we delivered them, they worked just fine. The test was a success. It was a great win. Obviously, we have been in discussion with Valore ever since. We have been in discussion with others in the space because everybody needs them, basically. They are consumable.

Speaker #1: And in the space of three or four weeks, we actually delivered them boron carbide control rods. So, it was, you know, from their perspective, it was sort of a life-saving situation. If they didn't get them, they would have missed their DOE experimental window.

Speaker #1: And, you know, also to deliver them, you know, having never even heard of them a month before, was pretty extraordinary. Anyway, you know, we delivered them, they worked just fine, the test was a success—it was, you know, it was a great win.

Speaker #1: So, obviously, we've been in discussion with Valor ever since. We've been in discussion with others in the space, because everybody needs them, basically, and they're consumable.

Speaker #1: If you are running a reactor on an ongoing basis, these things wear out. So, you know, that's basically the opportunity. As far as we know, our technology remains the only viable way to make them.

Roger Dent: If you are running a reactor on an ongoing basis, these things wear out. That is basically the opportunity. As far as we know, our technology remains the only viable way to make them. Again, we are dealing here with customers who are, in the grand scheme of things, not very price sensitive and extremely focused on domestic supply, security of supply, security of intellectual property, all these sorts of things. We think we are a very good fit, and it is a question of when these companies start to actually place orders for nuclear reactors.

Speaker #1: So, and again, you know, we're dealing here with customers who are, in the grand scheme of things, not very price sensitive. And, you know, extremely focused on domestic supply, security of supply, security of intellectual property—all these sorts of things.

Speaker #1: So, you know, we think we're a very good fit, and it's a question of when these companies start to, you know, to actually place orders for nuclear reactors.

Speaker #2: Well, that sounds exciting.

John Lewis: Well, that sounds exciting.

[Analyst]: Well, that sounds exciting.

Roger Dent: It's all imminent, but it's not quite here yet. But it's getting very close.

Speaker #1: It's all imminent, but it's not—it's not quite here yet. But it's getting very close.

Speaker #2: Excellent. One other thing I noticed—the issue has gotten a bit more active over the last quarter. Is that an indication, I suppose, for you guys?

John Lewis: Excellent. One other thing I noticed, the issuer bid got active over the last quarter. Is that an indication, I suppose, you guys

[Analyst]: Excellent. One other thing I noticed, the issuer bid got active over the last quarter. Is that an indication, I suppose, you guys

Roger Dent: Yeah, it's an indication that we see great value, right? Buying our own stock at CAD 0.50 on the dollar, we're buying our own portfolio. It's like, why wouldn't we buy it at half price?

Speaker #1: Yeah, it's an indication that we see great value, right? Like, you know, buying our own stock at 50 cents on the dollar—you know, we're buying our own portfolio.

Speaker #1: So, it's like, why wouldn't we buy it at half price?

Speaker #2: Yeah.

John Lewis: Yeah.

[Analyst]: Yeah.

Speaker #1: These days, I would just say it's very difficult to actually execute on an issue or bid. The rules are getting tougher, and it makes it quite hard to get stock when you deal with the current CSE rules.

Roger Dent: It is these days, I would just say, it's very difficult to actually execute on an issuer bid. The rules are getting tougher, and it makes it actually quite hard to get stock when you deal with the current CSE rules, when you're dealing with an illiquid stock like us. If we were liquid and trading all the time in a predefined range, it would be easy. But we're not that kind of stock, so it actually is quite difficult. But we are interested in buying more.

Speaker #1: When you're dealing with an illiquid stock like us—like, if we were liquid and trading all the time in a predefined range, it would be easy, but we're not that kind of stock.

Speaker #1: So, it actually is quite difficult. But, you know, we are interested in buying more.

Speaker #2: Excellent. I think that's it from me. Well done. I appreciate it. Thanks, Roger.

John Lewis: Excellent. I think that's it for me. Well done. Appreciate it. Thanks, Roger.

[Analyst]: Excellent. I think that's it for me. Well done. Appreciate it. Thanks, Roger.

Roger Dent: Yeah. Other questions? I'm good. No? Well, if not, have a good end of the summer, everyone. We will talk to people later in the fall. Thanks very much.

Speaker #1: Yeah. Other questions? No? Well, if not, have a, you know, a good end of the summer, everyone, and we will talk to people later in the fall.

Speaker #1: Thanks very much.

Speaker #2: Thanks, Roger. Thank you.

John Lewis: Thanks, Roger.

[Analyst]: Thanks, Roger.

Roger Dent: Okay. Bye-bye. Thank you. Bye.