A-Mark Precious Metals, Inc.

Good afternoon, and welcome to the AMARC Precious Metals conference call for the fiscal third quarter ended March 31st, 2023. My name is Kelly, and I will be your operator this afternoon. Before this call, AMARC issued its results for the fiscal third quarter 2023 in a press release, which is available in the investor relations section of the company's website at www.amarc.com. You can find the link in the Investor Relations section at the top of the homepage. Joining us today for today's call are AMARC CEO Greg Roberts, President Thor Gerdrum, and CFO Kathleen Simpson-Taylor. 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 this call. 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 sections of AMARC's website. Now, I would like to turn the call over to AMARC CEO, Mr. Greg Roberts. Sir, please proceed.

Thank you, Kelly, and good afternoon, everyone, and thanks for joining us on our call today. As we reported in our earnings release just a few minutes ago, the third quarter marked another period of solid financial performance for AMARC. highlighted by 35.9 million of net income and diluted EPS of $1.46, yielding a quarterly return on equity of 6%. These results further demonstrate the effectiveness of our fully integrated platform, particularly in times of macroeconomic uncertainty and increased market volatility. Our integrated capabilities allow us to optimize access to inventory, providing us with a consistent source of supply during periods of increased demand, which contributed to quarter-over-quarter increases of 19 percent in revenue and 18 percent in gross profit during the third quarter. Our direct-to-consumer segment continued to contribute significantly and impressively to our overall results, generating 57 percent of our consolidated gross profit for the quarter, driven by a 124 basis point increase in the segment's gross margin percentage compared to the third quarter of fiscal 2022. We remain active in our pursuit of investment opportunities that align with our strategic vision and to expand our geographic footprint. Our minting business remains a consistent contributor to our overall performance with production output currently near record levels. The mint is consistently producing over 1 million ounces per week. During the third quarter, Silvertown Mint achieved ISO certification in recognition of the facility's high standards for quality management. The certification not only reaffirms the Mint's longstanding reputation as a leading manufacturer of silver bullion products, but also allows its products to be accepted into individual retirement accounts or IRAs, further expanding AMARC's strong customer base. Jamie Meadows and his team have worked tirelessly to achieve this and we congratulate them. Finally, I'm pleased to report that the company purchased 335,735 shares of its common stock during the quarter for an aggregate value of $9.8 million. We view our share repurchase program as an attractive investment opportunity for the company and another way to deliver value to our shareholders. Now, I'll turn it over to our CFO, Kathleen Simpson-Taylor, to walk you through our financials in more detail. Then our president, Thor Jerdrum, will discuss our key operating metrics. Afterwards, I will provide a further update on our business and growth strategy and take questions. Kathleen, take it away.

Thank you, Greg, and good afternoon, everyone. Our revenues for fiscal Q3 2023 increased 10% to $2.3 billion from 2.1 billion in Q3 of last year. Excluding an increase of 312.5 million of forward sales, revenues decreased 104.5 million, or 6%, which was due to a decrease in gold ounces sold and lower average selling prices of silver, partially offset by an increase in silver ounces sold and higher average selling prices of gold. The DTC segment contributed 23% of the consolidated revenue in fiscal Q3 2023 and 28% of the consolidated revenue in Q3 of last year. Revenue contributed by JM Bullion, JMD, represented 20% of the consolidated revenues for fiscal Q3 of 2023 compared to 26% in Q3 of last year. For the nine-month period, our revenues increased 2% to $6.2 billion from $6.1 billion in the same year-ago period. Excluding an increase of $596.1 million of forward sales, our revenues decreased $498.3 million, or 10%, which was due to a decrease in gold ounces sold and lower average selling prices of gold and silver, partially offset by an increase in silver ounces sold. The DTC segment contributed 23% and 27% of the consolidated revenue for the nine months ended March 31, 2023 and 2022, respectively. Revenue contributed by JMB represented 21% of the consolidated revenues for the nine months ended March 31, 2023, compared to 25% in the same year-ago period. Gross profit for fiscal Q3 2023 increased 5% to $75.5 million or 3.26% of revenue from $72.1 million or 3.42% of revenue in Q3 of last year. Excluding the $312.5 million increase in forward sales, gross margin percentage increased to 4.5% of revenue from 4.0% of revenue last year. The overall increase in gross profit was due to higher gross profits earned from both the wholesale sales and ancillary services and direct-to-consumer segments. Gross profit contributed by our DTC segment represented 57% of the consolidated gross profit in fiscal Q3 2023 compared to 58% in the same year-ago period. Gross profit contributed by JMB represented 47% of the consolidated gross profit in fiscal Q3 2023 compared to 48% in Q3 of last year. For the nine-month period, Gross profit increased 11% to $216.1 million or 3.5% of revenue from $194.0 million or 3.2% of revenue in the same year-ago period. Excluding the $596.1 million increase in forward sales, gross margin percentage increased to 4.7% of revenue from 3.8% of revenue. The gross profit increase was due to higher gross profits earned from both the wholesale sales and ancillary services and DTC segments. Gross profit contributed by the DTC segment represented 56% of the consolidated gross profit in both of the nine-month periods ended March 31st, 2023 and 2022, respectively. Gross profit contributed by JMB represented 48% and 46% of consolidated gross profit for the nine months ended March 31, 2023 and 2022, respectively. SG&A expenses for fiscal Q3 2023 increased 16% to $23.8 million from $20.5 million in Q3 of last year. The increase was primarily due to an increase in compensation expense, including performance-based accruals, of 2.6 million, higher advertising costs of 0.5 million, an increase in computer-related expenses of 0.3 million, and an increase in insurance costs of 0.2 million, partially offset by lower consulting and professional fees of $0.5 million. For the nine-month period, SG&A expenses increased 12% to $62.4 million from $55.9 million in the same year-ago period. The increase was primarily due to an increase in compensation expense, including performance-based accruals, of $5.1 million, higher advertising costs of $2.4 million, an increase in computer related expenses of $0.8 million, and an increase in insurance costs of $0.4 million, partially offset by lower consulting and professional fees of $2.5 million. Depreciation and amortization expense for fiscal Q3 2023 decreased 56% to $3.3 million from $7.5 million in Q3 of last year. The decrease was primarily due to a $4.3 million decrease in amortization of acquired intangibles related to JMB. For the nine-month period, depreciation and amortization expense decreased 59%. to $9.8 million from $24.1 million in the same year-ago period. The decrease was primarily due to a $14.4 million decrease in amortization of acquired intangibles related to JMV. Interest income for fiscal Q3 2023 increased 14% to $6.1 million from $5.3 million in Q3 of last year. The aggregate increase in interest income was primarily due to higher other finance product income, partially offset by lower interest income earned by our secured lending segment. For the nine-month period, interest income increased 0.3% to $16.2 million from $16.1 million in the same year-ago period. The aggregate increase in interest income was primarily due to an increase in other finance product income partially offset by lower interest income earned by our secured lending segment. Interest expense for fiscal Q3 2023 increased 70% to $9.2 million from $5.4 million in Q3 of last year. The increase in interest expense was primarily driven by $3.1 million associated with our trading credit facility and the AMCF notes, including amortization of debt issuance costs and $0.9 million related to product financing arrangements, partially offset by a decrease of $0.3 million of loan servicing fees. For the nine-month period, interest expense increased 39% to $22.6 million from $16.3 million in the same year-ago period. The increase was primarily driven by $4.9 million associated with our trading credit facility and the AMCF notes, including amortization of debt issuance costs, $1.8 million related to product financing arrangements, and $0.4 million in interest associated with liabilities on borrowed metals, partially offset by a decrease of $0.7 million of loan servicing fees. Earnings losses from equity method investments in Q3 2023 decreased 104% to a loss of $0.1 million, compared to earnings of $1.6 million in the same year-ago quarter. The net decrease was primarily due to lower earnings of our equity method investees. For the nine-month period, earnings from equity method investments increased 69% to $7.3 million from $4.3 million in the same year-ago period. The net increase of $3 million was primarily due to our additional 40% ownership interest in SilverGoldBull, which was acquired in June 2022. Net income attributable to the company for the third quarter of fiscal 2023 totaled $35.9 million, or $1.46 per diluted share. This compares to net income attributable to the company of $37.4 million, or $1.53 per diluted share, in Q3 of last year, adjusted for the effect of the two-for-one stock split in the form of a stock dividend in June 2022. For the nine-month period, net income attributable to the company totaled $114.5 million or $4.64 per diluted share, which compares to net income attributable to the company of $95.2 million or $3.92 per diluted share in the same year-ago period, adjusted for the effect of the two-for-one stock split in the form of a stock dividend that occurred in June 2022. Adjusted net income before provision for income taxes, a non-GAAP financial performance measure which excludes acquisition expenses, amortization, and depreciation for Q3 fiscal 2023 totaled $49.2 million, a decrease of 10% compared to $54.3 million in the same year-ago quarter. Adjusted net income before provision for income taxes for the nine-month period totaled $156.9 million, a 9% increase from $144.4 million in the same year-ago period. EBITDA, a non-GAAP liquidity measure for Q3 fiscal 2023, totaled $52.3 million, a 2% decrease compared to $53.6 million in Q3 fiscal 2022. Dividends for the nine-month period totaled $163.1 million, a 14% increase compared to $143.7 million in the same year-ago period. Now turning to our balance sheet. At quarter end, we had $78.1 million of cash compared to $37.8 million at the end of fiscal year 2022. Our tangible net worth at the end of the quarter was $396.9 million, up from $321.6 million at the end of the prior fiscal year. Finally, as we announced in a prior press release, AMARC's Board of Directors reaffirmed its previously announced regular quarterly cash dividend policy of 20 cents per common share, which the company paid in April. It is expected that the next quarterly dividend will be declared and paid in July 2023. The declaration of regular cash dividends in the future, including the next quarter, is subject to the determination each quarter by the Board of Directors based on a number of factors, including the company's financial performance, available cash resources, cash requirements, and alternative uses of cash and applicable bank covenant. 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?