Goldmoney Stock Price, News & Analysis

Goldmoney Inc. (OTC: XAUMF, TSX: XAU) is a company that specializes in the investment and custody of enduring real assets. According to its public disclosures, Goldmoney focuses on precious metals trading services and related activities, while also holding diversified interests in property investment and jewelry manufacturing.

Founded in 2001, Goldmoney is described in its news releases as a TSX-listed company "invested in the real economy." The company indicates that, through its subsidiaries, it offers clients access to precious metals trading along with secure custody and storage solutions. These activities position Goldmoney in a niche that combines aspects of financial services, precious metals markets, and tangible asset ownership.

Business focus and activities

Goldmoney states that it specializes in the investment and custody of enduring real assets. Its disclosures emphasize:

• Precious metals trading services provided to clients.
• Secure custody and storage solutions for those precious metals.
• Diversified interests in property investment, including activities carried out through its UK subsidiary, Goldmoney Properties Ltd.
• Jewelry manufacturing, and in some disclosures, coin retailing, as part of its operating businesses.

The company’s news releases also refer to it as one of the "leading custodians and traders of precious metals" and indicate that it owns and operates businesses in jewelry manufacturing, coin retailing, and property investment. These statements come directly from Goldmoney’s own "About" sections in its press releases.

Real asset and property investment interests

Goldmoney reports that it maintains diversified interests in property investment. For example, through its wholly owned UK subsidiary Goldmoney Properties Ltd. (GPL), the company disclosed the acquisition of a portfolio of freehold properties known as Clarendon Quarter in Oxford, United Kingdom. The portfolio includes the Clarendon Shopping Centre, adjacent high street retail units, and office accommodation. Goldmoney has also described GPL as building a portfolio of prime assets intended to deliver long-term income.

In connection with its property activities, Goldmoney has disclosed financing arrangements at the subsidiary level, including a term loan and revolving credit facility with a major financial institution, secured against its property portfolio. The company notes that these loans are non-recourse to Goldmoney Inc., highlighting a structural separation between the parent entity and certain property-level debt.

Corporate structure and jurisdiction

Goldmoney’s common shares trade on the Toronto Stock Exchange under the symbol XAU and in the United States under the symbol XAUMF. The company announced that it completed a continuance of its corporate charter into the British Virgin Islands under the BVI Business Companies Act (as revised), effective September 20, 2024. The board of directors stated that this continuance into the British Virgin Islands is intended to allow Goldmoney to more efficiently return capital to shareholders via dividends and share buybacks and to allocate and distribute capital among its subsidiaries in Canada and the United Kingdom.

Following this continuance, Goldmoney confirmed that its shares remain listed on the Toronto Stock Exchange and subject to TSX rules and policies. The company also disclosed that its shares would trade under new CUSIP and ISIN numbers as part of this process.

Capital allocation and share repurchases

Goldmoney has repeatedly announced normal course issuer bids (NCIBs) approved by the Toronto Stock Exchange. Under these programs, the company may purchase for cancellation a specified number of its common shares, representing a percentage of its public float. In its announcements, Goldmoney’s board of directors has stated that it believes the underlying value of the company may not always be reflected in the market price of its shares and that repurchasing shares under NCIBs can be an appropriate use of financial resources.

The company has disclosed that it funds these share repurchases through available cash and that purchases are made on the open market through the facilities of the TSX and alternative Canadian trading systems, in accordance with TSX rules. Goldmoney has also reported the completion of previous NCIBs, noting the number of shares repurchased and the volume-weighted average purchase prices.

Financial reporting and non-IFRS measures

Goldmoney prepares its financial statements in accordance with IFRS Accounting Standards and provides selected financial information in its news releases. The company also uses several non-IFRS financial measures, which it describes and reconciles in its management’s discussion and analysis (MD&A). Among the measures it highlights are:

• Tangible Equity or Tangible Capital, defined as total shareholder equity excluding intangibles and goodwill, which the company states is useful to demonstrate the tangible capital employed by the business.
• Non-IFRS Adjusted Net Income, defined as total comprehensive income (loss) adjusted for non-cash and non-core items, including revaluation of precious metal inventories, fair value movements, stock-based compensation, depreciation and amortization, foreign exchange fluctuations, and gains and losses on investments.

Goldmoney emphasizes that these non-IFRS measures do not have standardized meanings under IFRS and may not be comparable to similar measures used by other companies. The company states that these measures are intended to provide supplemental information, facilitate period-to-period comparisons, and offer greater transparency into metrics used by management.

Risk factors and operating environment

In its forward-looking statements and risk disclosures, Goldmoney identifies a range of factors that can affect its performance. These include its operating history and history of operating losses, future capital needs and uncertainty of additional financing, fluctuations in the market price of its common shares, and the effects of government regulation and legal and regulatory changes. The company also notes jurisdictional factors associated with international operations and foreign restrictions on its operations.

Goldmoney highlights risks related to product development and rapid technological change, dependence on technical infrastructure, protection of intellectual property, and compliance with privacy laws concerning the use and storage of personal information. It also refers to network security risks, the risk of system failure or inadequacy, and the need to manage growth. Additional risks mentioned include competition, the effectiveness of risk management and internal controls, the potential use of its services for improper or illegal purposes, and various insurance-related risks.

Given its focus on precious metals and real assets, Goldmoney also points to precious metal trading risks and the volatility of precious metals prices and public interest in precious metals investment. For its real estate activities, the company notes factors such as the global inflationary environment, interest rates, tenant performance, the suitability of surrounding infrastructure, and the ability to redevelop properties on economic terms.

Jurisdictional and governance developments

Goldmoney has reported on corporate governance matters, such as the results of its annual meeting of shareholders. In these disclosures, the company has summarized shareholder voting outcomes for director elections, auditor appointments, and approvals related to stock option and restricted share unit plans. These updates provide insight into shareholder participation levels and support for the company’s governance proposals.

The company’s move to continue into the British Virgin Islands, while maintaining its TSX listing, reflects a structural decision aimed at capital management and operational flexibility across its subsidiaries. Goldmoney has indicated that further details on such corporate changes are available in its management information circulars and regulatory filings on SEDAR+.

Position within its sector

Although industry classification data may categorize Goldmoney under software or information-related sectors, the company’s own descriptions focus on precious metals trading, secure custody and storage, jewelry manufacturing, coin retailing, and property investment. Its disclosures consistently frame Goldmoney as a business centered on enduring real assets and tangible capital rather than purely digital or software-based services.

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