A-Mark Precious Metals, Inc.

Good afternoon and welcome to AMARC Precious Metals conference call for the fiscal second quarter ended December 31, 2024. My name is John and I will be your operator this afternoon. Before this call, AMARC issued its results for the fiscal second 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 Jerdrum, 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 forward-looking statements made by management during this call. I would like to remind everyone that this call is being recorded, and I will... It will be made available for a replay via a link available in the investor relations section of AMARC's website. Now, I would like to turn the call over to AMARC's CEO, Mr. Greg Roberts. Sir, please proceed.

Thank you, John, and good afternoon, everyone. I appreciate you taking the time to join us today. Our second quarter results continue to reflect the strength of our fully integrated platform, even in slower market conditions, elevated precious metal prices, and subdued demand. During the quarter, AMARC delivered earnings of 27 cents per diluted share and made $16.2 million in non-GAAP EBITDA. We also made significant progress this quarter in our strategic plans for AMARC's long-term success. We are nearing completion of our facility expansion and logistic initiatives at AMARC Global Logistics in Las Vegas. We continue to execute our plans to advance our reach in Asia and our now established DTC presence in Singapore. We also continue to explore various M&A opportunities, and as announced earlier this week, AMARC entered into a definitive agreement to acquire Spectrum Group International, the parent of Stacks Bowers Galleries, one of the largest rare coin, currency, and bullion dealers, and a leading wholesaler and retail dealer specializing in numismatic and bullion products. The proposed acquisition will expand our presence into the premium collectible markets and the adjacent higher margin luxury markets. I'm truly excited for the cross-selling opportunities and synergies that Stacks will bring to the AMART platform. I will now turn it over to our CFO, Kathleen Simpson-Taylor, who will provide an overview of our financial performance. Then our president, Thor Jerdrum, will discuss key operating metrics. I will then provide further insights into our business and growth strategy and take questions. Kathleen?

Thank you, Greg, and good afternoon, everyone. Our revenues for fiscal Q2 2025 increased 32% to $2.742 billion from $2.079 billion in Q2 of last year. Excluding an increase of $167.3 million of forward sales, our revenues increased $496.2 million or 38%, which was due to an increase in gold ounces sold and higher average selling prices of gold and silver, partially offset by a decrease in silver ounces sold. The DTC segment contributed 21% and 18% of the consolidated revenue in the fiscal second quarters of 2025 and 2024, respectively. JMB's revenue represented 11%, of the consolidated revenue for the fiscal second quarter of 2025 compared with 16% in Q2 of last year. For the six-month period, our revenues increased 20% to $5.457 billion from $4.563 billion in the same year-ago period. Excluding an increase of $384.7 million of forward sales, our revenues increased $509.3 million, or 18%, which was due to higher average selling prices of gold and silver partially offset by a decrease in both gold and silver ounces sold. The DTC segment contributed 19% and 15% of the consolidated revenue for the six months ended December 31st, 2024 and 2023 respectively. Revenue contributed by JMB represented 11% of the consolidated revenue for the six months ended December 31st, 2024, compared with 14% in the same year-ago period. Gross profit for fiscal Q2 2025 decreased 3% to $44.8 million or 1.63% of revenue from $46 million or 2.22% of revenue in Q2 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 DTC segment. Gross profit contributed by the DTC segment represented 56% and 48% of the consolidated gross profit in fiscal Q2 2025 and 2024, respectively. Gross profit contributed by JMB represented 38% of the consolidated gross profit in fiscal Q2 2025 compared to 41% in Q2 of last year. For the six-month period, gross profit decreased 8% to $88.2 million or 1.62% of revenue from $95.4 million or 2.09% of revenue in the same year-ago period. 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 DGC segment. Gross profit contributed by the DGC segment represented 55% and 45% of the consolidated gross profit for the six-month period ended December 31st, 2024 and 2023, respectively. Gross profit contributed by JMV represented 37% and 38% of the consolidated gross profit for the six months ended December 31, 2024 and 2023, respectively. SG&A expenses for fiscal Q2 2025 increased 15% to $25.8 million from $22.4 million in Q2 of last year, The change was primarily due to an increase in consulting and professional fees of $1.3 million, higher advertising costs of $0.9 million, an increase in compensation expense including performance-based accruals of $0.6 million, and an increase in facilities expense of $0.4 million. SG&A expenses for the three months ended December 31, 2024 include $5.2 million of expenses incurred by LPM and SGB, which were not included in our prior year Q2 results as they were not yet consolidated subsidiaries. For the six-month period, SG&A expenses increased 18% to $52.4 million from $44.2 million in the same year-ago period. The change was primarily due to an increase in compensation expense, including performance-based rules of $3.1 million, an increase in advertising costs of $1.6 million, an increase in consulting and professional fees of $1.5 million, and an increase in facilities expense of $0.8 million. Also, an increase in insurance costs of $0.3 million and information technology costs of $0.2 million. SG&A expenses for the six months ended December 31, 2024 include $10.5 million of expenses incurred by LPM and SGB, which were not included in their prior year-to-date Q2 results as they were not yet consolidated subsidiaries. Depreciation and amortization expense for fiscal Q2 2025 increased 65% to $4.6 million from $2.8 million in the same year-ago quarter. The change was primarily due to an increase in amortization expense of $2.2 million relating 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. For the six-month period, Depreciation and amortization expense increased 67% to $9.3 million from $5.6 million in the same year-ago period. The change was primarily due to an increase in amortization expense of $4.4 million relating to intangible assets acquired through our acquisition of LPM and our acquisition of a controlling interest in SGB partially offset by a decrease in J&P intangible asset amortization of $1 million. Interest income for fiscal Q2 2025 increased 8% to $6.8 million from $6.3 million in Q2 of last year. The aggregate increase in interest income was due to an increase in other finance product income of $0.6 million, partially offset by a decrease in interest income earned by our secured lending segment of $0.1 million. For the six-month period, interest income increased 12%, to $13.9 million from $12.4 million in the same year-ago period. The aggregate increase in interest income was due to an increase in other finance product income of $1.2 million and an increase in interest income earned by a secured lending segment of $0.2 million. Interest expense for fiscal Q2 2025 increased 2% to $10.4 million from $10.2 million in Q2 of last fiscal year. The increase in interest expense was primarily due to an increase of $0.6 million associated with our trading credit facility due to increased borrowing, an increase of $0.5 million from liabilities on borrowed metals, an increase of $0.2 million related to product financing arrangements, partially offset by a decrease of $1.1 million related to the AMCF notes, including amortization of debt issuance costs due to their repayment in December 2023. For the six-month period, interest expense increased 2% to $20.4 million from $20 million in the same year-ago period. The increase in interest expense was primarily due to an increase of $1.3 million associated with our trading credit facility due to increased borrowing, as well as an increase in the weighted average effective interest rate, an increase of $0.9 million related to product financing arrangements, and an increase of $0.7 million from liabilities on borrowed metals. This was partially offset by a decrease of $2.5 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 Q2 2025 decreased 410% to a loss of $2.4 million from earnings of $0.8 million in the same year-ago quarter. For the six-month period, earnings from equity method investments decreased 153% to a loss of $1.8 million from earnings of $3.5 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 2025 totaled $6.6 million, or $0.27 per diluted share. This compares to net income attributable to the company of $13.8 million, or $0.57 per diluted share, in Q2 of last year. For the six-month period, net income attributable to the company totals $15.5 million, or $0.65 per diluted share, which compares to net income attributable to the company of $32.6 million, or $1.34 per diluted share, in the same year-ago period. 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 Q2 2025, totaled $13.4 million, a decrease of 38% compared to $21.7 million in the same year-ago quarter. Adjusted net income before provision for income taxes for the six-month period totaled $28.1 million, a 42% decrease from $48.5 million in the same year-ago period. EBITDA, a non-GAAP liquidity measure for Q2 fiscal 2025, totaled $16.2 million, a 35% decrease compared to $25.1 million in Q2 fiscal 2024. If it's off for the six month period, total 34 million, a 39% decrease compared to 55.5 million in the same year ago period. Turning to our balance sheet. At quarter end, we had 37.8 million of cash compared to 48.6 million at the end of fiscal year 2024. Our tangible net worth in excluding non-controlling interest at the end of the quarter was $318.7 million up from $306 million at the end of the prior fiscal year. Last week, we amended our trading credit facility to increase our revolving commitment to $457 million from $422.5 million. We also returned capital to shareholders through the repurchase of $5.1 million of common stock during the quarter. AMAR'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 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?