A-Mark Precious Metals, Inc.

Good afternoon and welcome to AMARC Precious Metals Conference Call for the Fiscal Third Quarter ended March 31, 2025. My name is Kelly and I will be your operator this afternoon. Before this call, AMARC issued its results for the Fiscal Third Quarter 2025 in a press release which is available in the Investor Relations section of the company's website at .amarc.com. You can find the link to the Investor Relations section at the top of the home page. Joining us for today's call are AMARC's 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 section of AMARC's website. Now I would like to turn the call over to AMARC's CEO, Mr. Greg Roberts. The floor is yours.

Thank you Kelly and good afternoon everyone. Thank you for joining the AMARC call today. Our third quarter results demonstrate AMARC's performance during very volatile market conditions. Early quarter concerns around tariffs led to decreased market liquidity and backwardation, contributing to trading losses and higher interest expense due to increases in product financing rates. Despite these headwinds, one-time acquisition related costs of $4.6 million and a one-time remeasurement loss of $7 million on our Pinehurst Coin Exchange pre-existing equity interest, we delivered $41 million in gross profit. $5.7 million in non-GAAP adjusted net income and $1.3 million in non-GAAP EBITDA. We capitalized on the softer market conditions to execute three strategic acquisitions. Pinehurst Coin Exchange, Spectrum Group International, which closed during the quarter, and AMS Holdings LLC, which closed just after quarter end. These acquisitions have strengthened our competitive position while expanding our footprint into higher margin luxury segments. As we integrate these businesses into AMARC's infrastructure, we anticipate both immediate and long-term cost efficiencies. Our consolidations efforts will help eliminate operational redundancies while supporting increased transaction volume. Our AMARC Global Logistics Facility in Las Vegas is fully prepared for the upcoming integration phase. With our hardware upgrade now complete, we have identified numerous opportunities to drive operational efficiencies. We continue to invest in automation technology in Las Vegas, enabling us to process higher volumes while reducing operational costs. We also made significant progress with our LPM acquisition, having successfully launched both retail and wholesale trading capabilities. We are optimistic about the long-term growth opportunities in the Asian markets across wholesale and e-commerce channels, and look forward to scaling the LPM brand alongside our other portfolio assets. Looking ahead, market conditions have shown some modest improvement. With our expanded brand portfolio and substantial optimization opportunities, we remain confident in AMARC's long-term growth trajectory and our continuing ability to deliver shareholder value. Now, I will turn the call over to CFO Kathleen Simpson-Taylor, who will provide a more detailed overview of our financial performance. Following that, our President, Thor Jerdim, will discuss our key operating metrics. Finally, I will offer further insights into the strategic direction and growth initiatives driving our business. Kathleen?

Thank you, Greg, and good afternoon, everyone. Our revenues for fiscal Q3 2025 increased 15% to $3 billion from $2.6 billion in the same year-ago quarter. Excluding an increase of $155.8 million of forward sales, our revenues increased $242.7 million or 18%, 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 19% and 13% of the consolidated revenue in the fiscal third quarters of 2025 and 2024, respectively. JMB's revenue represented 10% of the consolidated revenue for the fiscal third quarter of 2025, compared with 12% for the prior year fiscal third quarter. For the nine-month period, our revenues increased 18% to $8.5 billion from $7.2 billion in the same year-ago period. Excluding an increase of $540.5 million of forward sales, our revenues increased $752 million or 18.3%, 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 19% and 14% of the consolidated revenue for the nine months ended March 31, 2025, and 2024, respectively. Revenue contributed by JMB represented 11% of the consolidated revenues for the nine months ended March 31, 2025, compared with 13% in the same year-ago period. Gross profit for fiscal Q3 2025 increased 18% to $41 million or .36% of revenue from $34.8 million or .33% of revenue in Q3 of last year. The increase in gross profits was due to higher gross profits earned from the DTC segment, partially offset by lower gross profits earned from the wholesale sales and ancillary services segment. Gross profit contributed by the DTC segment represented 61% and 52% of the consolidated gross profit in the fiscal third quarters of 2025 and 2024, respectively. Gross profit contributed by JMB represented 40% of the consolidated gross profit in Q3 2025 compared to 45% in Q3 of last year. For the nine-month period, gross profit decreased 1% to $129.3 million or .53% of revenue from $130.3 million or .82% 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 DTC segment. Gross profit contributed by the DTC segment represented 57% of the consolidated gross profit for the nine months ended March 31, 2025 compared to 47% in the same year-ago period. Gross profit contributed by JMB represented 38% and 40% of the consolidated gross profit for the nine months ended March 31, 2025 and 2024, respectively. SG&A expenses for fiscal Q3 2025 increased 46% to $33.4 million from $22.9 million in the same year-ago quarter. The change was primarily due to an increase in consulting and professional fees of $4.4 million, including an increase in one-time acquisition costs of $2.4 million, an increase in compensation expense, including performance-based accruals of $3.4 million, higher advertising costs of $1.5 million, and an increase in facilities expense of $0.7 million. Selling general and administrative expenses also include $8.7 million of expenses incurred by LPM, Tinehurst, SGB, and SGI, which were not included in the same year-ago period as they were not yet consolidated subsidiaries for the full period. For the nine-month period, SG&A expenses increased 28% to $85.8 million from $67.1 million in the same year-ago period. The change was primarily due to an increase in compensation expense, including performance-based accruals of $6.5 million, an increase in consulting and professional fees of $5.9 million, including an increase in one-time acquisition costs of $2.6 million, an increase in advertising costs of $3.2 million, an increase in facilities expense of $1.5 million, an increase in information technology costs of $0.4 million, and an increase in insurance costs of $0.2 million. Selling general and administrative expenses for the nine months ended March 31, 2025, include $19.2 million of expenses incurred by LPM, Tinehurst, SGB, and SGI, which were not included in the same year-ago period as they were not yet consolidated subsidiaries for the full period. Depreciation and amortization expense for fiscal Q3 2025 increased 69% to $5 million from $2.9 million in the same year-ago quarter. The change was primarily due to an increase in amortization expense of $2.4 million related to the intangible assets acquired through our acquisitions of LPM, Tinehurst, and SGI, and our acquisition of a controlling interest in SGB. This was partially offset by a decrease in JMB intangible asset amortization of $0.6 million. For the nine-month period, depreciation and amortization expense increased 68% to $14.3 million from $8.6 million in the same year-ago period. The change was primarily due to an increase in amortization expense of $6.8 million related to intangible assets acquired through our acquisitions of LPM, Tinehurst, and SGI, and our acquisition of a controlling interest in SGB. This was partially offset by a decrease in JMB intangible asset amortization of $1.7 million. Interest income for fiscal Q3 2025 increased slightly .6% to $6.7 million from $6.7 million in the same year-ago quarter. The aggregate increase in interest income was due to an increase in other finance product income of $0.4 million and a decrease in interest income earned by the secured lending segment of $0.4 million. For the nine-month period, interest income increased 8% to $20.6 million from $19.1 million in the same year-ago period. The aggregate increase in interest income was due to an increase in other finance product income of $1.7 million and a decrease in interest income earned by our secured lending segment of $0.2 million. Interest expense for fiscal Q3 2025 increased 31% to $13 million from $9.9 million in the same year-ago quarter. The increase in interest expense was primarily due to an increase of $2 million related to product financing arrangements and $0.9 million from liabilities on borrowed metals. For the Q3 2025, the aggregate increase in interest income was $33.3 million from $29.9 million in the same year-ago period. The increase in interest expense was primarily due to an increase of $2.9 million related to product financing arrangements, an increase of $1.6 million from liabilities on borrowed metals, and an increase of $1.3 million associated with our trading credit facility due to increased borrowings as well as an increase in the weighted average effective interest rate. 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. Losses from equity method investments in Q3 of fiscal 2025 of $0.2 million remained consistent with the same year-ago quarter. For the nine-month period, earnings from equity method investments decreased 163% to a loss of $2.1 million from earnings of $3.3 million in the same year-ago period. The decrease was due to decreased earnings of our equity method investees. Net loss attributable to the company for the third quarter of fiscal 2025 totaled $8.5 million, or $0.36 loss per diluted share, compared to net income of $5 million, or $0.21 per diluted share in Q3 of last year. For the nine-month period, net income attributable to the company totaled $7 million, or $0.29 per diluted share, compared to net income of $37.6 million, or $1.56 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 costs, amortization, depreciation, remeasurement gains or losses, and contingent consideration for value adjustments for Q3 fiscal 2025 totaled $5.7 million, a decrease of $5.9 million, or 51% compared to $11.6 million in the same year-ago quarter. The decrease was primarily due to lower net income before provision for income taxes of $16.4 million, the contingent consideration for value adjustment of $1 million, partially offset by higher acquisition costs, $2.4 million, higher amortization of acquired intangibles of $1.8 million, and the one-time remeasurement loss on our pre-existing equity interest in Hearst of $7 million. Adjusted net income before provision for income taxes for the nine-month period totaled $33.9 million, a decrease of $26.2 million, or 44%, compared to $60.1 million in the same year-ago period. The decrease was primarily due to lower net income before provision for income taxes of $40.6 million, contingent consideration for value adjustment of $1.1 million, and this was partially offset by higher amortization of acquired intangibles of $5.1 million, higher acquisition costs of $2.6 million, and the one-time remeasurement loss on our pre-existing equity interest in Pinehurst of $7 million. EBITDA, a non-GAAP liquidity measure for Q3, totaled $1.3 million, a decrease of $11.3 million, or 90%, compared to $12.6 million in the same year-ago quarter. The decrease was primarily due to lower net income of $14 million, partially offset by the exclusion of higher interest expense of $3 million. EBITDA, for the nine-month period, totaled $35.3 million, a decrease of $32.9 million, or 48%, compared to $68.2 million in the same year-ago period. The decrease was primarily due to lower net income of $32.4 million. Turning to our balance sheet. At quarter end, we had $114.3 million of cash, compared to $48.6 million at the end of fiscal year 2024. Our tangible net worth, excluding non-controlling interest, at the end of the quarter was $315.7 million, up from $306.0 million at the end of the prior fiscal year. During the quarter, we amended our credit facility and now have a revolving kit limit of $467 million. 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 April. It is expected that the next quarterly dividend will be paid in August 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?

Thanks Kathleen. Looking at our key operating metrics for the third quarter of fiscal 2025, we sold 432,000 ounces of gold in Q3 fiscal 2025, which was down 3% from Q3 of the previous year and down 7% from the prior quarter. For the nine-month period, we sold 1.3 million ounces of gold, which was down 7% from the same year-ago period. We sold 15.7 million ounces of silver in Q3 fiscal 2025, which was down 39% from Q3 of the previous year and down 28% from the last quarter. For the nine-month period, we sold 58.0 million ounces of silver, which was down 30% from the same year-ago period. The number of new customers in the DTC segment, which is defined as those who registered or set up a new account or made a purchase for the first time during the period, was 899,600 in Q3 fiscal 2025, which is up ,489% from Q3 of last year and increased ,276% for the prior quarter. For the three-month period into March 31, 2025, approximately 84% and 9% of the new customers were attributable to the acquisitions of Pinehurst and SGI respectively. For the nine-month period, the number of new customers in the DTC segment was ,020,300, which is up 588% from 148,200 new customers in the same year-ago period. For the nine-month period into March 31, 2025, approximately 74% and 8% of the new customers were attributable to the acquisitions of Pinehurst and SGI respectively. The total number of customers in the DTC segment at the end of the third quarter was approximately 4.1 million, a 64% increase from the prior year. The -over-year growth was driven by organic expansion of our customer base and the acquisitions of Pinehurst, SGI, and the acquisition of a non-controlling interest in SGB. The DTC segment average order value, which represents the average dollar amount of products orders excluding accumulation program orders delivered to DTC segment customers during Q3 fiscal 2025, was $3,084, which was up 45% from Q3 fiscal 2024 and a 3% decrease for the prior quarter. For the nine-month period, the DTC average order value was $3,080, which is up 37% from the same year-ago period. For the fiscal third quarter, our inventory turn ratio was 2.4, a 4% increase from 2.3 in Q3 of the previous year, and a 9% increase from 2.2 in the prior quarter. For the nine-month period, the inventory turn ratio was 6.9, a 1% increase from 6.8 in the same year-ago period. Finally, the number of secured loans at the end of March totaled 491, a 27% decrease from March 31, 2024, and a 5% decrease from the end of December. The value of the loan portfolio as of March 31, 2025 was $86.5 million, a 25% decrease from the prior year period, and a 12% decrease from December 31, 2024. That concludes my prepared remarks. I'll now turn it over to Greg for closing remarks. Greg?

Thank you, Thor and Kathleen. We are focused on integrating our recent acquisitions and driving efficiencies throughout the businesses to close out the fiscal year. We are excited about the new markets that we have entered and will be operating in. Our commitment to generating stockholder value remains firm, and we are confident AMARC's diversified and driven business model. That concludes my prepared remarks. Operator?

Thank you. The floor is now open for questions. If you have any questions or comments, please press star one on your phone at this time. We ask that while posing your question, you please pick up your handset if listening on a speakerphone to provide optimum sound quality. Please hold just a few moments while we poll for any questions. Your first question is coming from Andrew Scott with Roth Capital Partners. Please pose your question. Your line is live.

Hey, good afternoon. Thank you for taking my questions. First one for me here, in April, kind of golden and silver prices saw a little bit of volatility. So can you just kind of talk about what you've seen in the market tier quarter to date?

Oh, yeah. We saw, you know, post April 2nd, we saw an increased level of activity. We, you know, we were happy to see that based on, you know, what we went through the quarter, through the quarter we just described. But yes, in the first couple of weeks of April, we were very active and, you know, believe the business is operating very efficiently. Things have slowed down a little bit the last week or two. But, you know, all in all, April was a very solid month for us.

Great here. Thank you for the call. Our second one for me, and then I'll jump back in the queue, kind of a tangent from the core business. But recently, you guys have gotten more into the collectible space. Can you just kind of talk about the progress you've seen there and the outlook on the business?

Sure. You know, as we have, as we've communicated, we closed the SGI deal, as well as the Pinehurst deal within the quarter, our Q3. We've done a good job, in my opinion, of integrating the businesses and the businesses are operating as we would I think the market has been active in the collectible space, particularly at the Stacks Bowers division. They had some very impressive auctions with great demands in April. And, you know, I think the overall market for the collectibles, although, you know, historically has been driven a bit by precious metal prices, happy with the demand and the execution at the collectible side of things.

Perfect. Well, it's great to hear and I'll jump back in the queue.

Sure. Your next question is coming from Thomas Forte with Maxim Group. Please pose your question. Your line is live.

Great. So first off, for Kathleen, I wanted to offer her congratulations and best wishes. And then, Greg, I had two questions and then also I want to get back in the queue as well. I have a lot of questions.

So

can you explain how backwardation impacted your results? And when was the last time A-mark experienced backwardation?

Sure. The last time that backwardation was material and affected us was right after the COVID. And, you know, there were some similarities to what happened then versus what happened to us through most of February and March and part of January. In general, and throughout most of, you know, as we've been reporting and as we've been a public company, the company carries a very large short position, which hedges our inventory. So if you look at our balance sheet and you look at the rising cost of spot price of metal, that increases our carrying cost, A, through borrowings on our dollar lines. But as it relates to the difference between contango and backwardation, as we moved into the tariff uncertainty and as we moved closer to April 2nd, there was a significant fear that precious metals and bullion would be subject to tariffs. That caused a disruption in the normal contango market where as your short metal, as you go out on the curve, you're going to get paid to be short. The difference in backwardation is that you're paying to be short. And it's a flip. So, you know, from what we normally earn in contango, so it is a part of our trading revenue and our gross profit. And, you know, it did disrupt our, you know, our GP in that area fairly significantly in February and March. At the same time, we create liquidity through leases and through repo. And the rates on those borrowing facilities also increased. So we saw an increased level of borrowing. On April 2nd, when the administration became more specific on what was going to be tariffed and what wasn't, there was an exemption for precious metals and bullion. And since then, the markets have gone back to a much more normal and historic level. Now, it takes a little while for backwardation to go back to contango. But as we are rolling our positions today, as we roll them out and we roll out to the future, we're gaining contango again. And we're actually seeing contango back to a level that, you know, was pre-Trump, pre-tariff, a pre-tariff world. So, you know, it was a negative and it was a big headwind on the business in mostly February and March. But what we're seeing today is a much more normalized situation.

And

if there's anything there I wasn't clear enough on or you need more clarification, you know, let me know. It's a fairly, you know, it's a bit of a complex situation and, you know, there's a lot to digest there.

Yep. So that was very helpful. Let me ask my second question. Then let me get back in the queue for some more. So at a high level, how should we think about AMARC's earnings power in a period of macroeconomic uncertainty but a one-way trade in gold?

Yeah, I mean, it's interesting. We talk about this all the time. If you go back historically with AMARC, we make most of our money in a very active silver market. So in general, premiums and margins for us are higher on silver than in gold. You know, what we've seen the last six or eight months as gold continues to hit new highs, you know, almost every month it seems like, we did see the company and the earnings power perform very well in a gold dominated market and in market conditions where really over the last 12 months, silver has been left behind. And as you just look at the ratio between silver and gold, it's trading at really unprecedented numbers for any extended period of time. You're up over 100x between silver and gold. So it's clear that the precious metals markets right now are very dominated by gold and we believe they're very dominated by central banks and institutional buying. And the smaller precious metals buyer historically has bought silver up to this time, we haven't seen anything to indicate that there's a level of FOMO or frothiness that is trickling down to the silver buyer. I will say, as we saw silver and gold a few weeks ago make a new time high, an all-time high in gold and a recent high in silver, we did see our DTC customers become a bit more active and actually in communications with customers, we did hear a bit of anxiety and a little bit of fear of being left behind. So we're going to have to see how that plays out. But it is fairly uncharted. With gold at $3,500 an ounce, I just believe there's a little bit of frozen behavior right now as to is gold going to $5,000, is gold going back to $2,500. We're just not sure on that. And I think in general, the retail purchaser of fabricated precious metals right now is also kind of looking for more direction there. On the positive side, we've seen some really volatile days over the last three weeks where you've had $100 swings in gold within a day and $1.50 in silver. So there is certainly uncertainty. And I think as equities became a bit shaky in early April, we realized what we would expect from our customer base is there is a move to safety and there is a move to precious metals as a place to go if you're pulling out of equity investments. So we saw a lot of good things. Still have not seen enough demand to really affect premiums to the upside. And we'll see how that plays out through the rest of this quarter.

Thank you. I'm going to get back in the queue. That was very helpful. Thanks, Greg. Thank you.

Your next question is coming from Greg Gibbis with Northland Securities. Please pose your question. Your line is live.

Hey, good afternoon, Greg, Thorne, Kathleen. Thanks for taking the questions. We've seen AMARC capitalize on the software conditions completing those three acquisitions in the quarter. I wanted to ask what your maybe current stance on acquisitions is and whether your M&A focus has shifted at all following the acquisitions you closed in the quarter.

As we've said before, I want to be very active in acquisitions when the markets are slow. Generally, I have found historically that things aren't really for sale at a price I want to pay when we're at the top. Things become available and for sale at the right price when things are not going great or when markets are slow. I feel very good and confident about the acquisitions we've closed. There are still a number of things we're looking at. And I believe we are properly positioned that if an opportunity presents itself at what we think is the best use of capital, we will continue to deploy capital in acquisitions. I'm particularly encouraged by what these acquisitions have done positively to our balance sheet, which we'll be putting out with our 10Q, as well as the 4 million retail customers in the DTC segment that we reported today. Just very large numbers and through acquisitions, we've been able to add to that customer base. And I'm very confident that when the markets do become more favorable and we get to a situation where we have tailwinds instead of headwinds, the customer base is going to significantly outperform a lower number of customers that we had two or three years ago. I continue to view acquisitions as a great way, combined with our organic marketing and new customer growth, to add to the customer base that will really propel AMARC to a new place.

Got it. Very helpful, Greg. And a couple of my other questions have been answered, but if I could follow up on how things have trended post-liberation day, you mentioned a very active first few weeks of April. Are you still seeing more favorable elevated customer activity relative to the and not that we have a near-term baseline, but like kind of maybe normalized demand in a way? Or it would be helpful if you could kind of characterize like how things have trended post those first few weeks?

Yeah, I mean, I think we are, you know, we are definitely seeing elevated interest throughout April. It's a little early to talk about May, but throughout April, we definitely saw elevated interest across all of our different businesses, both the our normal trading business, our DTC business, and our newly acquired businesses. So, you know, we saw elevated activity, you know, well, you know, impressive above what we saw in our Q3 that we're reporting here. I will say there does seem to be a bit more of a correlation right now in our businesses as it relates to what, you know, the stock market and equities are doing. Certainly throughout the last week of March and the first couple weeks of April, there was just tremendous volatility and tremendous uncertainty as it relates to what's really going on out there in the world right now. And, you know, it's clear that, you know, from looking at other companies, earnings calls, you know, over the last couple weeks, there just continues to be CEOs that are very uncertain and pulling guidance. And there's just a lot of uncertainty. But there is a, at the moment, we're seeing a direct correlation that days where the stock market is down two or three percent, there's, you know, a direct correlation to positive results at the A-mark level. And vice versa, when you see the stock market up three percent, you know, we're seeing things slow down. So at least at the moment, you know, that seems to be what we're following. And, you know, I think we're very well positioned in either scenario. But I just, you know, continue to see uncertainty out there outside of, you know, our business. But as I said before, I'm very encouraged. It doesn't take a whole lot for us to see when all 12 cylinders are firing, albeit a very small sample size that we're talking about. But the businesses, you know, we definitely saw them perform.

Great to hear. Thank you. I'll pass it on.

Once again, if you do have any questions or if you have any follow-up questions, please press star one at this time to enter the queue. Your next follow-up question is coming from Thomas Forte with Maxim Group. Please pose your question. Your line is live.

Great. So I have three. I apologize if that's too many. No, you go right ahead, Tom. Okay. Thank you, Greg. So one of the things that seems to happen in a period of elevated gold prices is that long-time gold owners sell their own inventory. Do you have any visibility on that being exhausted? And then how does that impact your earnings power when you have a lot of existing holders selling into the market?

Well, it's just a supply and demand equation. You know, the more long-term holders of precious metals that sell back into the market, it's going to create, you know, supply situations that are different than when you have, you know, the reverse of that. And I think I've discussed this a bit before. When you have a number of retail customers bringing metal back into the market, you're going to have less new material being made. So for every ounce of silver that there's demand for that comes back into the marketplace through a buyback or through customer liquidation or a long-term holder selling, that's one less, you know, new silver round that we make at Silver Town or new gold bar that we make at Sunshine. So it does affect throughout. And then it also stunts our trading division on a wholesale level because a lot of our wholesale customers are buying back material and they don't need to buy new material from AMARC. So that is a metric that I look at every week and I view it in the, through the lens of what percentage are we buying back from wholesale and retail customers versus new sales to new customers. And when you have an elevated percentage there where the percentage, you know, is elevated and you're going to have headwinds and you're going to have, you know, less perform, you know, lower performance, which is, you know, this is probably the third or fourth quarter that we've been talking about this. And we've been talking about it since, you know, we talked when gold hit an all-time high at 2,700 and we had elevated, you know, elevated liquidations when gold hit that spot price. Since then we've continued all the way up to 34, 3,500 where, you know, where you have people liquidating and taking profits, whether they've been holding material for 20 years or whether they've been holding material since gold was at 2,700, you're going to have a percentage of people that are going to liquidate and they're going to take advantage of these prices. You know, I will say that, you know, what I did see in the first week or so of April where we had some elevated demand and we had higher numbers as I've discussed, we did see the liquidations and the wholesale buys that we were making go down as a percentage of new sales. So, you know, it is fairly, you know, it is the numbers and the metrics and the analytics, you know, are fairly consistent with what happens. You know, and then, you know, two weeks ago or a week ago we saw a new high spot price and we did see some elevated liquidations and sellbacks. So, you know, that's what we're seeing and just, you know, operating within the environment and trying to execute as well as we can.

Great. All right. So then two more. So, I'm very impressed by the improvements you've made to your Las Vegas facility or are in the process of making. Does that translate into higher volumes and slightly better margins? How should we think about the financial impact of those improvements?

I mean, we're not, you know, fully operational there yet, but certainly, you know, we believe that the automation that we've created in the facility that is, you know, very, very impressive and it allows us to bring in more third party shippers and other third party inventories into the facility and allows us to ship, sort, pick and pack just, you know, a much higher percentage. I think, you know, when this is all said and done, we likely will be able to, you know, do 50 to 75% more packages a week without adding more employees. So, I think this is, you know, part of my long term goal and strategy and it's something that Thor and Brian Ekalina have been working on for quite some time and I'm just very, very pleased that we took the leap three years ago or four years ago when we first, you know, we went to SpaceX and we saw these machines and we saw what they could do and that demonstration, I'm just very pleased that, you know, we weren't afraid to do it and we went ahead and, you know, got in the queue to get these machines and they're very impressive what they can do. So, you know, that's certainly going to help us and as it relates to integrating our acquisitions and looking for ways to make our subsidiaries inventory more efficient or inventory light, whether it be an asset or pioneers or stacks, being able to have more demand out of AMARC's inventory and have it all in Las Vegas where it can be, you know, accessed is going to create synergies and create efficiencies and hopefully, you know, have a positive effect on our SG&A.

Okay, last one. I apologize if this has elements being a comment and a question. So, one of the wonderful things in my opinion about your business model is the improvements you make over time that position you to capture incremental profits in the next favorable environment. Off the top of my head, I couldn't name all the M&A you've done since that last trading environment, but it feels like to me that you're, it's almost like a coiled spring that when the time comes, the earnings will be very big. So, that's the statement part. The question part then is what are your current thoughts on buybacks given where shares are trading? You know,

as I've said before and just to, I guess, respond to your comment, as I've said for quite some time now, the goals are to have higher highs and higher lows within similar environments and I believe that is what we're doing here. I mean, I do, I am very impressed by our balance sheet, our number of DTC customers, you know, our ability to sell $3 billion in a quarter, albeit at lower margins, which, you know, we realize the margins are low right now, but hitting that $3 billion mark or a $12 billion run rate is going to position us if margins increase that, you know, that we're going to see tremendous performance. There's no doubt about that. So, I agree with your comment and I think that is our, you know, that is what I am trying to build here. That's what we're trying to accomplish and take advantage of things in good markets as well as bad markets. As it relates to our stock buybacks, I'm going to go back to what I always say. We look at, you know, four or five different things that we look at every day when we're talking about capital deployment. We're looking at, you know, inventory reduction. We're looking at affecting our interest, our interest expense. We look at dividends. We look at stock buybacks and we look at acquisitions and, you know, those are, I'm very consistent on that. That's what we do. You know, we feel good at the moment in digesting the acquisitions that we have, we've closed on. I think there's still work to be done on integration and making sure we recognize the efficiencies that we have projected. As I said earlier, there's still a number of opportunities that we're looking at that as it relates to M&A that we think would be the right use of capital as it relates to return on equity or return on investment. And I think, you know, we're always looking at, you know, at stock buybacks if, you know, we believe that is the best use of our capital. So I'm not precluding anything, but I think that we see great opportunity with the market being slow, as I've said before, that we believe that, you know, acquisitions, new client, new clients that come with acquisitions, new DTC customers that come, you know, we believe that is a very good long-term, you know, use or deployment of capital. So I think, you know, we're flexible and open to everything. But, you know, you got to keep, you got to stay flexible and we're always looking at this.

Thank you, Greg, for taking all my questions. I appreciate it.

At this time, this does conclude our question and answer session. I'd now like to turn the call back over to Mr. Roberts for his closing remarks.

Great. Thank you. Again, thanks everybody for being on the call. Thank you for being long-term followers and shareholders. We continue to be positive at AMARC about what we're accomplishing, where we've been, where we're going. And again, very, you know, we are committed to this, creating shareholder value, and we're going to continue on the mission here. So thank you very much for being on the call.

Before we conclude today's call, I would like to provide AMARC'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 AMARC's future plans, objectives, expectations, performance, events, and the like are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 and the Security Exchange Act of 1934. These include statements regarding expectations with respect to the dividend declarations, the amount of timing of any future dividends, future macroeconomic conditions, and a demand for precious metals products, and the company's ability to effectively respond to changing economic conditions. 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 transaction with AMS holdings, the failure of the parties to agree on definitive transaction documents, the failure of the parties to complete the contemplated transactions within the currently expected timeline or at all, the failure to obtain necessary third-party consents or approvals, and the greater than anticipated costs incurred to consummate the transactions. Other factors that could possibly cause actual results to differ include the failure to execute the company's growth strategy, including the inability to identify suitable or 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 in the markets, potential adverse effects of the current problems in the national and global supply change, increased competition for the company's 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 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 Silver Town Mint, the failure of our investee companies to maintain or address the preferences of their consumer bases, general risks of doing business in the commodity markets, and the strategic business economic, financial, political, and and other risk factors described in the company's public filings with the Securities and Exchange Commission. The company undertakes no obligation to publicly update or reverse 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. A Mark's earnings call. You may now disconnect.