A-Mark Precious Metals, Inc.

Good afternoon, and welcome to AMARC Precious Metals conference call for the fiscal first quarter ended September 30th, 2024. My name is Matthew, and I'll be your operator this afternoon. Before this call, AMARC issued its results for the fiscal first quarter 2025 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 for today's call are AMARC CEO Greg Roberts, President Thor Gerdrum, and CFO Kathleen Simpson-Taylor. Following their remarks, we'll open the call for 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'd 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 AMARC's website. Now I'd like to turn the call over to AMARC CEO, Mr. Greg Roberts. Sir, please proceed.

Thank you, Matthew, and good afternoon, everyone. Our first quarter results reflect the continued strength of our fully integrated platform to deliver profitable results, even during slower market conditions. Despite facing a less favorable macroeconomic environment, including elevated precious metal prices and softened levels of demand, we delivered 37 cents per diluted share and generated almost $18 million in non-GAAP EBITDA. During the quarter, we amended our trading credit facility, extending its maturity to September 2026, providing us with the liquidity for our future capital needs. We also advanced our AMART global logistics facility expansion and logistics automation initiatives, which are expected to be completed in the next few months. We anticipate these measures will increase operational capacity and produce efficiencies and long-term cost savings. We have also continued to make substantial progress towards establishing a trading office and DTC presence in Singapore and broadening our reach into the surrounding region. Finally, as previously announced, Silvertown Mint recently acquired all the assets of Regency Mint Manufacturing, including its minting equipment and its customer list, further enhancing our minting capability and expanding our customer base. We believe these initiatives position AMARC for future success as we continue to grow and expand our business. Now I will turn the call over to our CFO, Kathleen Simpson-Taylor, who will provide a more detailed overview of our financial performance. Then our President, Thor Jerdrum, will discuss our key operating metrics. Finally, I will provide further insights into our business and growth strategy. Kathleen?

Thank you, Greg, and good afternoon, everyone. Our revenues for fiscal Q1 2025 increased 9% to $2.72 billion from $2.48 billion in Q1 of last year. Excluding an increase of $217.4 million of forward sales, our revenues increased $13.1 million, or 0.9%, which was due to higher average selling prices of gold and silver partially offset by a decrease in gold and silver ounces sold. The DTC segment contributed 18% and 13% of the consolidated revenue in fiscal Q1 2025 and fiscal Q1 2024, respectively. Revenue contributed by JMB represented 11% of the consolidated revenues for fiscal Q1 of 2025 compared to 12% in Q1 of last year. Gross profit for fiscal Q1 2025 decreased 12% to $43.4 million or 1.6% of revenue from $49.4 million or 1.99% of revenue in Q1 of last year. The decrease in gross profit was due to lower gross profits earned from the wholesale sales and ancillary services segment, partially offset by an increase in gross profits earned by the direct consumer segment. Gross profit contributed by the direct consumer segment represented 54% of the consolidated gross profit in fiscal Q1 2025 compared to 43% in the same year-ago period. Gross profit contributed by JMB represented 37% of the consolidated gross profit in fiscal Q1 2025 compared to 36% in Q1 of last year. SG&A expenses for fiscal Q1 2025 increased 22% to $26.6 million from $21.8 million in Q1 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 $0.7 million, an increase in consulting and professional fees of $0.2 million, an increase in information technology costs of $0.2 million, and an increase in insurance costs of $0.2 million. SG&A expenses for the three months ended September 30, 2024 include $5.3 million of expenses incurred by LPM and SGB, our recently consolidated subsidiaries, which were not included in our prior year Q1 results. Depreciation and amortization expense for fiscal Q1 2025 increased 69% to $4.7 million from $2.8 million in Q1 of last year. The increase was primarily due to an increase in amortization expense of $2.2 million related to intangible assets acquired through our acquisition of LPM and our acquisition of a controlling interest in SGB. This was partially offset by a decrease in JMB intangible asset amortization of $0.5 million. Interest income for fiscal Q1 2025 increased 16% to $7.1 million from $6.1 million in Q1 of last year. The increase in interest income was primarily due to an increase in other finance product income of $0.6 million and an increase in interest income earned by our secured lending segment of $0.3 million. Interest expense for fiscal Q1 2025 increased 2% to $10 million from $9.8 million in Q1 of last fiscal year. The increase in interest expense was primarily due to an increase of $0.7 million associated with our trading credit facility due to increased borrowings as well as an increase in interest rates, and an increase of $0.7 million related to product financing arrangements. This was partially offset by a decrease of $1.4 million related to the AMCF notes, including amortization of debt issuance costs, due to their repayment in December 2023. Earnings from equity method investments in fiscal Q1 2025 decreased 79% to $0.6 million from $2.7 million in the same year-ago quarter. The decrease was due to decreased earnings of our equity method investees. Net income attributable to the company for the first quarter of fiscal 2025 totaled $9 million, or $0.37 per diluted share. This compares to net income attributable to the company of $18.8 million, or 77 cents per diluted share, in Q1 of last year. Adjusted net income before provision for income taxes, a non-GAAP financial measure which excludes depreciation, amortization, acquisition costs, and contingent consideration fair value adjustments for fiscal Q1 2025, totaled $14.8 million, a decrease of 45% compared to $26.8 million in the same year-ago quarter. EBITDA, a non-GAAP liquidity measure for fiscal Q1 2025, totaled $17.8 million, a 41% decrease compared to $30.4 million in Q1 of last year. Turning to our balance sheet. At quarter end, we had $46.9 million of cash compared to $48.6 million at June 30, 2024. Our tangible net worth excluding non-controlling interest at the end of the quarter was $313.3 million, up from $306 million at June 30, 2024. As Greg mentioned, we executed an extension of our primary credit facility, which provides $422.5 million in committed lines now through September 2026, providing the company with stable, long-term access to capital for the business. This facility, in conjunction with our repo lines and lease facilities, provides the company with a diversified portfolio of liquidity tools going forward. AMARC's Board of Directors has continued to maintain the company's regular quarterly cash dividend program of 20 cents per common share. The most recent quarterly cash dividend was paid in October. It is expected that the next quarterly dividend will be paid in January 2025. 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?