Frank Holmes is a Canadian-American investor, venture capitalist and philanthropist. He is CEO and chief investment officer of U.S. Global Investors, a publicly traded investment company based in San Antonio, TX, that oversees more than $4 billion in assets (Nasdaq: GROW). He is known for his expertise in gold and precious metals and launching unique investment products. Holmes also serves as executive chairman of HIVE Blockchain Technologies, the first publicly traded cryptocurrency mining company (TSX.V: ...

Company Overview - Frank Holmes is the CEO and chief investment officer of U.S. Global Investors, which manages over $4 billion in assets [1] - U.S. Global Investors is a publicly traded investment company based in San Antonio, Texas [1] - Holmes is recognized for his expertise in gold and precious metals, as well as for launching unique investment products [1] Blockchain and Cryptocurrency - Frank Holmes serves as the executive chairman of HIVE Blockchain Technologies, the first publicly traded cryptocurrency mining company [1] - HIVE Blockchain Technologies is listed on the TSX Venture Exchange under the ticker symbol HIVE [1]

Core Viewpoint - The current geopolitical tensions, particularly the U.S.-Iran conflict, have led to record oil prices and shipping rates, but these disruptions are expected to be short-lived, presenting potential investment opportunities in shipping, energy, and commodities [1][4][20]. Market Conditions - The U.S.-Iran conflict has caused crude oil prices to surge to seven-month highs and shipping rates to reach unprecedented levels, creating significant uncertainty in the markets [2][3]. - The Strait of Hormuz, a critical passage for global oil, is facing disruptions, with a quarter of the world's oil consumption passing through it, leading to increased shipping costs and operational challenges for shipping companies [6][10]. Shipping Industry - The cost of hiring supertankers has skyrocketed, with rates for transporting crude oil from the U.S. Gulf Coast to China reaching $29 million, and shipping from the Arab Gulf to India increasing from $50,000-$100,000 to $477,000 per day [7][14]. - The near-halt of transport in the Strait of Hormuz has created a windfall for shipping companies, as elevated rates are locked in regardless of the conflict's duration [14]. Energy and Commodities - Energy and commodities are expected to remain well-supported, with UBS predicting further upside for broad commodities driven by metals, alongside a geopolitical premium on oil [15]. - Goldman Sachs estimates potential oil price increases of $1 to $15 per barrel depending on the duration of the Strait closures, with strategic reserves providing some cushion [13]. Airlines - Airlines are facing short-term challenges due to rising jet fuel costs, but historical trends suggest a rebound in consumer travel demand following initial disruptions, making airlines a potential recovery trade if the conflict is brief [16]. Historical Context - Historical patterns indicate that geopolitical events often lead to temporary spikes in oil prices, with prices typically retracing once immediate threats subside [12]. - Past crises have shown that investors who maintain their positions during turbulent times often benefit in the long run, as the fundamentals of the global economy remain intact [17][20].

Core Viewpoint - U.S. Global Investors, Inc. is continuing its monthly dividend payments amid rising geopolitical tensions, positioning itself to benefit from increased demand for gold and defense spending [1][3][4]. Dividend Announcement - The Board of Directors approved a monthly dividend of $0.0075 per share starting in April 2026, with record dates on April 13, May 11, and June 15, and payment dates on April 27, May 26, and June 29 [2][8]. - Based on the closing price of $3.26 on March 11, 2026, this dividend represents an annualized yield of 2.76% [2]. Geopolitical Context - The company believes it is well-positioned due to rising geopolitical tensions, particularly following U.S. and Israeli strikes on Iran, which historically increase volatility in energy markets and demand for gold [3][4]. - CEO Frank Holmes emphasized the importance of diversification across real assets and national security themes during periods of geopolitical tension [4]. Investment Strategies - The U.S. Global Technology and Aerospace & Defense ETF (WAR) provides exposure to sectors aligned with increased global defense budgets, with world military expenditures reaching a record high of $2.7 trillion in 2024, a 9.4% increase from 2023 [5][14]. - The company's gold-focused strategies, including the U.S. Global GO GOLD and Precious Metal Miners ETF (GOAU), offer access to companies that may benefit from rising precious metals prices during uncertain times [5][6]. Economic Indicators - The U.S. is significantly expanding its military budget while its share of global trade is at its lowest since 2014, indicating a shift towards prioritizing national security spending [5]. - Global public debt is projected to reach approximately 100% of world GDP by 2028, making hard assets like gold and silver increasingly valuable [5].

Group 1 - The AI defense supercycle has begun, driven by increased military spending and corporate investment in AI technologies [1][3] - The Pentagon's demand for unrestricted access to Anthropic's AI technology highlights the growing importance of AI in defense and national security [4][6] - Companies involved in cybersecurity, semiconductors, and data center infrastructure are expected to experience significant growth due to the AI supercycle [1][3] Group 2 - There is a consensus among industry experts that AI is no longer a speculative investment but represents a major capital expenditure supercycle [2][3] - The Pentagon's aggressive AI mandate indicates a strategic shift towards integrating AI into military operations [7]

Company Overview - U.S. Global Investors is an innovative investment manager with extensive experience in global markets and specialized sectors [4] - The company employs a quantamental strategy to create thematic smart beta 2.0 products [4] - Founded as an investment club, U.S. Global Investors became a registered investment adviser in 1968 and has a history of launching first-of-their-kind investment products, including the first no-load gold fund [4] - The company specializes in thematic investing, particularly in gold and precious metals, natural resources, airlines, and luxury goods [4]

Financial Data and Key Metrics Changes - The average assets under management increased from $1.26 billion to approximately $1.7 billion as of the current date, indicating a positive trend in asset growth [21] - Quarterly EBITDA per share improved from negative last year to $0.04 per share in December, reflecting a recovery in earnings [21][23] - The company reported a shareholder yield of 9.89%, which is significantly higher than the current yields of 10-year and 5-year government bonds at 4.18% and 3.73% respectively [20] Business Line Data and Key Metrics Changes - The company has seen record ETF inflows, hitting nearly $1.5 trillion in 2025, which outpaced traditional stock fund flows [9] - The company’s ETFs have a revenue calculation at 60 basis points, while actively managed funds have higher fees, impacting revenue during the recent gold rally [7][10] - The company has been actively buying back stock, reducing shares outstanding by approximately 10% over the past 18 months [14][18] Market Data and Key Metrics Changes - The volatility of gold stocks remains high, exhibiting 2 times the volatility of the S&P 500, with a 10-day volatility of 6% [3][4] - The airline ETF, which is the company's largest, also shows significant volatility, influenced by oil market fluctuations [4] - The investment industry has seen strong fund flows into ETFs despite negative news, indicating resilience in the market [7] Company Strategy and Development Direction - The company aims to enhance shareholder value through a dual strategy of dividends and stock buybacks, while maintaining a lean operational structure [14][18] - The focus is on developing thematic Smart Beta 2.0 products, which require rigorous backtesting and aim to capture market trends effectively [12][29] - The company is exploring M&A opportunities to acquire fund assets, particularly in the ETF space, which has lower redemption rates compared to mutual funds [16][17] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the gold market, suggesting that gold could reach $13,000 per ounce over the next 5 to 10 years based on current debt levels [39] - The company believes it is well-positioned to benefit from increasing demand for gold and gold stocks, as more asset allocators are recognizing the value of gold in diversified portfolios [44][47] - The management highlighted the importance of geopolitical factors and monetary policies in driving gold prices, indicating a bullish outlook for the asset class [35][61] Other Important Information - The company has maintained a consistent monthly dividend since 2000, which is a rarity among publicly traded companies [20] - The company’s stock buyback program has been strategically executed during periods of stock price decline, enhancing shareholder value [18] - The management emphasized the importance of maintaining a strong balance sheet with cash and investments to capitalize on future growth opportunities [28] Q&A Session Summary Question: What is the company's outlook on gold prices? - Management believes gold could reach $13,000 per ounce based on current U.S. debt levels and global economic conditions, indicating a strong bullish sentiment for gold [39] Question: How does the company plan to enhance shareholder value? - The company is focused on a dual strategy of paying dividends and executing stock buybacks, while also exploring M&A opportunities to grow its asset base [14][16] Question: What are the key factors driving the company's ETF growth? - The growth in ETFs is attributed to strong fund flows, lower redemption rates compared to mutual funds, and increasing acceptance of actively managed ETFs in the market [6][7]

U.S. Global Investors October 31, 2025 - December 31, 2025 Second Quarter 2026 Results Webcast WWW.USFUNDS.COM Forward-Looking Statements Frank Holmes CEO and Clo Lisa Callicotte CFO Holly Schoenfeldt Director of Marketing Today's Presenters WWW.USFUNDS.COM & SEAETF vative Investment 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 a ...

Financial Performance - Total assets under management (AUM) reached approximately $1.5 billion, a 12% increase from the prior quarter and 5% higher year-over-year[2] - Operating revenue increased by $259,000, or 11.5%, compared to the prior quarter, totaling $2.51 million[16] - The company's income before taxes was $535,000, a significant improvement from a loss of $116,000 in the same quarter last year[2] - The effective tax rate for the quarter was elevated due to a tax expense of approximately $1.3 million related to HIVE convertible securities[3] - The company had net working capital of approximately $36.7 million and $25.2 million in cash and cash equivalents as of December 31, 2025[14] Shareholder Returns - The company's shareholder yield as of December 31, 2025, was 9.89%, more than double the yield on five-year and ten-year Treasury bonds[4] - A monthly dividend of $0.0075 per share was approved by the Board, starting January 2026[4] - The company repurchased 262,195 shares during the three-month period ended December 31, 2025[5] Market Trends - Gold demand exceeded 5,000 metric tons in 2025, with an annual value of approximately $555 billion, up 45% year-over-year[9] - Goldman Sachs raised its year-end 2026 gold forecast to $5,400 per ounce, citing continued demand from central banks[13]

Core Insights - The total assets managed by the American Global Investors Company at the end of the quarter amount to approximately $1.5 billion [1] Company Overview - American Global Investors Company has reported managing total assets of around $1.5 billion as of the quarter's end [1]