Gold.com (GOLD) The 14th Annual East Coast IDEAS Conference summary

Business overview and transformation

• Vertically integrated precious metals retailer with operations in wholesale, retail, logistics, storage, and lending.

• Major brands include JM Bullion (US), LPM (Hong Kong), and Silver Gold Bull (Canada), with recent expansion into Asia.

• Transitioned from wholesale to vertically integrated retail in March 2021 after acquiring JM Bullion, capturing higher margins.

• Largest partner to sovereign mints and owner of leading private mints, enabling control over product creation and distribution.

• Management and board collectively own about 25% of the company, aligning interests.

Financial performance and segment highlights

• Gross profit for nine months ended March 2024 was $130 million, down from $216 million in the prior year.

• EBITDA for fiscal 2023 reached $225 million, with $68 million for the nine months ended March 2024.

• Direct-to-consumer segment added nearly 150,000 customers in nine months, with 370,000 active customers and average order value above $2,200.

• Wholesale segment sold over 1 million ounces of gold and 70 million ounces of silver in nine months.

• Secured lending business has over $100 million outstanding, generating $8 million in interest income in nine months.

Market dynamics and growth drivers

• E-commerce now dominates precious metals retail, with rapid market consolidation over the past decade.

• Volatility and risk events (e.g., bank failures, geopolitical crises) drive retail demand and expand product premiums.

• Premiums on products like US Mint silver coins can spike during high demand, benefiting integrated retailers.

• Recent period (Q1 2024) was challenging, but April and May showed improvement.

• Global expansion continues, with a third of North American retail footprint and growing presence in Canada, UK, and Asia.