A-Mark Precious Metals, Inc. (NASDAQ:AMRK) Q4 2023 Earnings Call Transcript

And that is a very quick turnaround, and that has significantly increased our ability to turn our product there. On the Sunshine Mint side, they continue to expand. They’ve added a second melt line that’s up and running right now that they invested in. They’ve invested in some — some automated robotic striking machines, which is, from what I see when I look at them is just an incredible new addition to the Sunshine Mint line of production machines. So, it’s not just capacity, although we like to add capacity. It’s making sure we add capacity in the right product that we need as well as trying to stay ahead of the curve on machines and production assets that we think we’re going to need a year or two from now.

Greg Gibas: Perfect. Very helpful. And relating to your comments, I think you said that you did see a little bit more activity in August relative to maybe the low point in July. And wondering if you could comment on maybe what the drivers are there? Is it purely just because July is maybe the seasonally slowest? What kind of drove maybe a recovery? And I guess along those lines, if there are any dynamics for the foreseeable future that — maybe new product launches or releases that you expect to impact demand or premium that are worth mentioning?

Greg Roberts: Yes. I mean I think as I mentioned before, I think it has a little bit to do with this — what the U.S. Mint and their ability to deliver a few more coins. Now I’m not exactly sure whether their production numbers have changed all that much. I think they may have intentionally held some coins back and decided to release some coins. But whenever you see a change in the supply-demand dynamics as it relates to the U.S. Mint, it’s going to have some effects, either very positive as kind of a follow-on to the U.S. Mint product or it can have a little bit of a negative as it relates to premiums if Silver Eagles just become a bit more available. And I think it’s important to note that the Silver Eagle continues worldwide and dominated in the U.S. to be the product of choice for one-ounce silver products.

And I think that drives a lot of choice in what products customers decide to buy. If they can’t get enough Silver Eagles or if the Silver Eagle premiums just become too high, it’s going to drive up the premiums on some of the other sovereigns and some of our private mint products. Vice versa, if the Silver Eagle premiums are lower, the Silver Eagle is a likely candidate for purchase because that’s the most popular coin. So I think any change in those dynamics of the supply/demand in Silver Eagles is going to have effect on the overall market for the reasons described. I will say that as I have mentioned in the last few weeks, we’ve really been able to test the market, specifically on Silver Eagles. And we’re very — we have a very positive outlook as it relates to throughout the end of this year and our ability to maybe pick up our demand a little bit and take some of those coins that are on the market right now.

So it’s been good for us. And like I said, I think the last couple of weeks of August, it’s not a quarter, it’s not a month, it’s not a year. But I will say that we have seemingly handled this change in some of the dynamics very, very well. And I believe that we have continued to gain market share, and I believe we’re keeping our market share that we have. So these are positives in my mind. The dynamics of how the market works, I gave you a fairly general answer. There’s a lot more specifics that can go into it and that, we could have a discussion for an hour on that. But I think my response in general is what you need to hear.

Greg Gibas: Yes. Great. Very helpful, Greg.

Operator: [Operator Instructions] The next question comes from David Bastian with Kingdom Capital Advisors. Please proceed, David.