U.S. Global Investors, Inc.

Good morning and thank you for joining us today for our webcast announcing U.S. Global Investors results for fiscal year 2019. I'm Holly Schoenfeldt. If you have any questions during the webcast, you can enter them in the questions area of the control panel sidebar, which is normally to the right of your screen. Also, you may download a PDF of today's slides by clicking on the red handout button. The presenters for today's program are Frank Holmes, U.S. Global Investors CEO and Chief Investment Officer, Lisa Callicotte, Chief Financial Officer, and myself, Holly Schoenfeldt, Marketing and Public Relations Manager. During this webcast, we may make forward-looking statements about our relative business outlook. Any forward-looking statements and all other statements made during this webcast that don't pertain to historical facts are subject to risk Thank you for joining us. We are an innovative investment manager with vast experience in global markets and specialized sectors founded as an investment club. The company became a registered investment advisor in 1968 and has a long-standing history of global investing and launching first-of-their-kind investment products, including the first no-load gold fund. U.S. Global is well-known for expertise in gold and precious metals, natural resources, and emerging markets. and now let's go to Frank Holmes, CEO and CIO for an overview of the period. Frank?

Thank you, Holly. When you look at the volatility of gross stock, the two factors that drives that in the 30 years that appears a history of the company are fund flows are very significant. The direction of the gold has a big impact and now it's become also our investments. which we'll talk about that, and Lisa Callicotte, our CFO, will explain how some accounting changes have created volatility in our revenues and our cash flow or income statements, how it sort of flows through. And this event has also taken place for other companies. But it's really the direction of gold has been significant, fund flows is the real underpinning, and those investments. And so in that context, we strive to be that go-to stock for exposure to emerging market resources. And gold, no doubt, and digital currencies. We're debt-free. We have a strong balance sheet with a reflexive cost structure and monthly dividend return on equity discipline. We've been through very, very challenging times. Next slide, please. In this whole industry, and I'm going to comment on that, the mutual fund industry as a whole, But I want to take this moment during this presentation to thank the Royce Funds, Parrot, and other people that have been shareholders in and maintained in our company. In particular, the other people that are in the mutual fund world, they've also experienced these sort of challenges. On the next slide, please. So we've consistently paid a dividend for 10 years. Our yield is modest. will continue to work on everything we can do to improve our revenue and our cash flow to maintain this discipline of being able to pay a dividend. Next, please. The board approved the repurchase of up to $2.75 million of outstanding common stock in the open market through calendar year 2019. During the fiscal year 2019, the company repurchased 20,575 shares of Class A using Next, please. So the balance sheet has no debt. As you can see, the assets, how they've come up and gone down. But I guess the big part there is that it's been a trend down, our cash, and funding the business and looking for acquisitions and also looking for investments and looking for a pivot change in this mutual fund world. And that's one reason why we want to launch some ETFs, which I'll comment on. But it's been a real challenge. And so we have to be really conscientious. And that's why I'm going to comment on some of the cost savings we've been doing in trying to maintain that cash position and rebuild it. Next, please. So earnings per share of the quarterly fourth quarter end June 30th. It just shows you the volatility. It basically, due to cryptocurrencies, had a big impact. And it's also the accounting. So in the old days, we used to make investments and they would be on a balance sheet until we sold them. And today, everything goes basically mark to market. and I think that that's just something that's increased the volatility and I think we're going to let Lisa talk more about those accounting changes in a few minutes.

Next, please.