Financial Data and Key Metrics Changes - Revenues for fiscal Q2 2026 increased 136% to $6.5 billion from $2.7 billion in Q2 of the previous year, with a 69% increase excluding $2.5 billion of forward sales [11] - Net income for Q2 2026 totaled $11.6 million, or $0.46 per diluted share, compared to $6.6 million, or $0.27 per diluted share in the same year-ago quarter [19] - Adjusted net income before provision for income taxes for Q2 totaled $23.2 million, an increase of 74% compared to $13.4 million in the same year-ago quarter [19] - EBITDA for Q2 fiscal 2026 totaled $33.9 million, an increase of 109% compared to $16.2 million in the same year-ago quarter [20] Business Line Data and Key Metrics Changes - Gold sales in Q2 fiscal 2026 were 545,000 ounces, up 17% from Q2 of last year and up 24% from the prior quarter [22] - Silver sales in Q2 fiscal 2026 were 18.6 million ounces, down 15% from Q2 of last year but up 79% from the previous quarter [22] - The number of new customers in the DTC segment was 96,100 in Q2 fiscal 2026, up 47% from Q2 of last year [23] Market Data and Key Metrics Changes - Premium spreads remained tight through the end of 2025, with backwardation in the silver market contributing to trading losses [7] - The problem with backwardation in Q2 has eased, and markets are moving back towards contango, which is positive for trading [9] Company Strategy and Development Direction - The company aims to integrate and realize cost savings and synergies from recent acquisitions while expanding both domestic and geographic reach [25] - The strategic partnership with Tether is expected to enhance liquidity and provide opportunities for growth in the physical gold markets [25][77] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in navigating rapidly evolving market conditions and highlighted increased consumer demand across platforms [7] - The company anticipates a strong quarter ahead, driven by elevated consumer demand and improved premium spreads [9][37] Other Important Information - The company has declared a quarterly cash dividend of $0.20 per share, maintaining its current dividend program [21] - The acquisition of Monex Deposit Company is expected to strengthen offerings and expand customer service capabilities [7] Q&A Session Summary Question: Comparison of gold and silver performance in the December quarter - Management noted a shift back to silver, with silver now representing about 50% of total volume, and premiums for one-ounce silver products have significantly increased [32][33] Question: Impact of widening spreads on profitability - Management indicated expectations for a strong quarter, suggesting widening spreads will positively impact profitability [37] Question: Tether investment impact on profitability - Management anticipates a significant drop in interest expense and improved liquidity due to the Tether investment [44] Question: Ability to maintain product inventory amid surging demand - Management stated that having two mints allows for greater product availability compared to competitors, although some products may still face allocation issues [48] Question: Future expansion of logistics facilities - Management indicated that while there is potential for future facilities, current demand does not necessitate immediate expansion outside the U.S. [54] Question: Non-controlling items impact on GAAP earnings - Management identified Sunshine Mint's facility shutdown as a key issue affecting non-controlling items, but expects improvements moving forward [57] Question: Strategic M&A efforts in light of Tether partnership - Management confirmed that the partnership with Tether supports the ability to engage in larger transactions while continuing to grow in the physical gold markets [83]

Financial Data and Key Metrics Changes - Revenues for fiscal Q2 2026 increased 136% to $6.5 billion from $2.7 billion in Q2 of the previous year, with a 69% increase excluding $2.5 billion of forward sales [10] - Net income for Q2 2026 totaled $11.6 million, or $0.46 per diluted share, compared to $6.6 million, or $0.27 per diluted share in the same year-ago quarter [17] - Gross profit for Q2 2026 increased 109% to $93 million, or 1.44% of revenue, from $44.8 million, or 1.63% of revenue in Q2 of last year [11] - SG&A expenses for Q2 2026 increased 132% to $59.8 million from $25.8 million in Q2 of last year [12] - EBITDA for Q2 2026 totaled $33.9 million, an increase of 109% compared to $16.2 million in the same year-ago quarter [18] Business Line Data and Key Metrics Changes - The company sold 545,000 ounces of gold in Q2 fiscal 2026, up 17% from Q2 of last year and up 24% from the prior quarter [20] - The company sold 18.6 million ounces of silver in Q2 fiscal 2026, down 15% from Q2 of last year but up 79% from last quarter [20] - The number of new customers in the DTC segment was 96,100 in Q2 fiscal 2026, up 47% from Q2 of last year [21] Market Data and Key Metrics Changes - Premium spreads remained tight through the end of 2025, with backwardation in the silver market contributing to trading losses [6] - The problem with backwardation in Q2 has eased, and the markets are moving back towards contango, which is positive for the trading business [8] Company Strategy and Development Direction - The company aims to integrate and realize cost savings and synergies from recent acquisitions while expanding both domestic and geographic reach [23] - The strategic partnership with Tether is expected to enhance liquidity and provide opportunities for growth in the physical gold markets [70] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in navigating rapidly evolving market conditions and highlighted increased consumer demand across platforms [6] - The company anticipates a strong quarter ahead, driven by elevated consumer demand and expanding premium spreads [8] Other Important Information - The company has entered into an agreement with Tether Investments for the purchase of approximately $125 million of common shares, which is expected to provide increased funding and flexibility [4] - The board of directors declared a quarterly cash dividend of $0.20 per share, payable on March 1, 2026 [18] Q&A Session Summary Question: Comparison of gold and silver performance in the December quarter - Management noted a shift back to silver, with silver now representing about 50% of total volume, and premiums for one-ounce silver products significantly higher than three months ago [29][30] Question: Impact of widening spreads on profitability - Management indicated expectations for a strong quarter due to widening spreads [34] Question: Challenges in keeping popular SKUs in inventory - Management stated that having two mints allows for greater product availability compared to competitors, although some challenges with delayed delivery remain [44][46] Question: Tether investment impact on profitability - Management expects a significant drop in interest expense and improved liquidity from the Tether investment [41] Question: Future of the Tether relationship - Management sees numerous opportunities for collaboration with Tether, including potential expansion in services and product offerings [66][70]

Market Overview - Bitcoin (BTC) has experienced a decline of 2% in the past 24 hours, currently trading at $77,100 after a previous rise of approximately 7% from lows near $74,000 [1] - Ether (ETH) is down 4.7%, trading at $2,260 [1] - The selloff in cryptocurrencies coincides with strong gains in gold and silver, indicating a rebound from previous price drops [1] Stock Performance - U.S. stocks, particularly AI-related companies, are declining, with notable drops in Nvidia (NVDA), Oracle (ORCL), Broadcom (AVGO), Micron (MU), and Microsoft (MSTR), all down by 3%-5% [2] - The largest publicly traded bitcoin holder, MicroStrategy (MSTR), is also experiencing losses, down more than 2% [2] - Coinbase (COIN) and Bullish (BLSH) are similarly down by comparable amounts [2] Company-Specific Developments - Galaxy Digital (GLXY) shares have fallen over 12% following disappointing fourth-quarter results [3] - Stablecoin issuer Circle (CRCL) has also seen a decline of 3.5% [3] - Bitcoin miners transitioning to AI infrastructure, such as TeraWulf (WULF), are seeing gains, with TeraWulf up 12% after acquiring two industrial sites that could double its power capacity to 2.8 gigawatts [4] - Cipher Mining (CIFR) shares increased by 4% after announcing plans to raise $2 billion in the junk bond market for its Black Pearl data center in Texas, which will provide 300 megawatts of capacity under a long-term lease with Amazon Web Services [4] Market Sentiment - Options flows indicate that traders are preparing for a short-lived bounce from weekend lows below $75,000, reflecting a lack of demand for upside exposure [5] - Heavy demand for near-term downside protection has led to a distortion in the options market, with short-dated volatility exceeding longer-dated contracts, a situation known as backwardation [6] - Analysts are monitoring when volatility stabilizes and the options curve normalizes back into contango as a potential signal for local lows [6]

Core Insights - The article emphasizes the importance of understanding the differences in commodity investment strategies, as funds labeled under "broad commodities" can behave very differently based on their sector allocation, risk management, and futures curve navigation [2][16]. Group 1: Fund Strategies - The WisdomTree Enhanced Commodity Strategy Fund (GCC) employs an active strategy that focuses on minimizing contango and maximizing backwardation, with a diversified approach across approximately 26 contracts and up to 5% bitcoin exposure [3]. - The Invesco Optimum Yield Diversified Commodity Strategy No K-1 ETF (PDBC) follows a rules-based methodology that allocates commodities based on market liquidity and global production metrics, selecting futures contracts with the highest implied roll yield [4]. - The First Trust Global Tactical Commodity Strategy Fund (FTGC) utilizes a long-only, actively managed strategy that forecasts volatility and correlations to construct a portfolio targeting a consistent risk profile [5]. Group 2: Performance Analysis - Recent performance indicates that GCC's higher allocation to metals has led to better outcomes compared to peers, particularly during a period when energy commodities lagged [8][13]. - The article highlights that performance differences among commodity strategies are largely driven by sector exposure rather than timing, with metals outperforming energy in the current market environment [12][14]. - Over longer time horizons, while returns may converge, differences in strategy management of sector exposure and volatility persist, indicating that short-term regime shifts can significantly impact performance [12][18]. Group 3: Investment Philosophy - GCC and FTGC represent active management strategies that prioritize risk-aware portfolio design, contrasting with PDBC's fully rules-based approach that follows predefined schedules and constraints [6][10]. - The article stresses that not all broad commodity strategies are equal, and understanding the underlying sector exposures is crucial for investors seeking real asset exposure [16][17]. - A flexible, actively managed approach like GCC allows for evolving sector exposures, enhancing the likelihood of capturing emerging trends in commodities [18].

Core Viewpoint - Crude oil prices have fallen to their lowest levels since early 2021 due to a significant supply glut and progress in peace talks regarding the Russia-Ukraine conflict [1][2]. Group 1: Price Movements - Brent crude futures dropped over 2.8% to below $58.86, while West Texas Intermediate (WTI) futures fell by 3.1% to below $55 [1]. - Both Brent and WTI are projected to experience yearly losses exceeding 20% as the market faces an "extraordinary oversupply" [2][3]. Group 2: Supply Dynamics - OPEC+ has increased production significantly, adding 2.9 million barrels per day from April to December, as Saudi Arabia aims to regain market share [4]. - The International Energy Agency forecasts that the oil glut could reach 3.8 million barrels per day by 2026, despite OPEC's recent decision to maintain production rates [5]. Group 3: Market Conditions - Crude tankers are currently holding over 1 billion barrels at sea, indicating difficulties in finding buyers for the oil [5]. - The market has entered a contango state, where future prices are higher than current spot prices, reflecting increased storage and financing costs [6]. Group 4: Refined Products Impact - The price pressure is also affecting refined products, with crack spreads tightening as prices for derivatives like jet fuel, gasoline, and diesel have decreased [7].

Core Viewpoint - Crude oil prices have fallen to their lowest levels since early 2021 due to a significant supply glut and progress in peace talks regarding the Russia-Ukraine conflict [1][2] Group 1: Price Movements - Brent crude futures dropped over 2.8% to below $58.86, while West Texas Intermediate (WTI) futures fell by 3.1% to below $55 [1] - Both Brent and WTI are projected to experience yearly losses exceeding 20% as the market faces an "extraordinary oversupply" [2][3] Group 2: Supply Dynamics - OPEC+ has increased production significantly, adding 2.9 million barrels per day between April and December, as Saudi Arabia aims to regain market share [4][3] - The International Energy Agency forecasts an oil glut of 3.8 million barrels per day by 2026, despite OPEC's recent decision to maintain production rates [5] Group 3: Market Conditions - Crude tankers at sea are currently holding over 1 billion barrels, indicating difficulties for sellers in finding buyers [5] - The market has entered a contango state, where future prices are higher than current spot prices, reflecting increased storage and financing costs [6] Group 4: Refined Products Impact - The price pressure is also affecting refined products, with crack spreads tightening as prices for derivatives like jet fuel, gasoline, and diesel have decreased [7]

Core Insights - Crude oil prices have fallen to levels not seen since early 2021 due to a supply glut and progress in peace talks regarding the Russia-Ukraine conflict [1][7] Price Movements - Brent crude futures dropped by 2.2% to below $59.30, while West Texas Intermediate (WTI) crude fell by 2.4% to below $55.50, marking the lowest prices since February 2021 [2] - Dubai crude oil and US Gulf Coast barrels have entered contango, indicating increased downward pressure on the oil market [3] Market Dynamics - Crack spreads have tightened as prices for crude derivatives like jet fuel and gasoline have decreased, impacting overall pricing [4] - Both Brent and WTI crude are projected to experience yearly losses exceeding 20% due to oversupply, with OPEC+ increasing production significantly [5] Future Projections - Analysts from JPMorgan Chase and Goldman Sachs predict Brent prices could fall into the $50s by 2026, with potential drops into the $40s or $30s if OPEC+ does not cut production [6]

Group 1: RBA's Hawkish Shift and Economic Indicators - The Reserve Bank of Australia (RBA) is adopting a more hawkish outlook due to recent economic data, with inflation figures exceeding forecasts and remaining above the RBA's target band [2][3] - Australia's latest inflation data shows a headline CPI increase to an annual rate of 3.8% and a trimmed mean of 3.3%, indicating "uncomfortably hot" inflation, particularly in housing and services [2] - October's household spending data revealed a 1.3% increase, the strongest monthly rise since January 2024, suggesting robust consumer activity and altering the narrative on Australia's economic caution [3] Group 2: Market Reactions and Expectations - Swaps markets are fully pricing in a 25 basis point increase in the RBA cash rate to 3.85% by November of next year, reflecting heightened expectations for rate hikes [3] - The AUD/USD currency pair has shown a bullish bias in response to these developments, indicating potential upside as it approaches resistance levels [3] Group 3: Oil Market Dynamics - The global oil market is experiencing a trend of narrowing backwardation, particularly in WTI crude futures, suggesting ample near-term supply [6][7] - WTI crude futures for November delivery settled with a 47 cent premium over the May 2026 contract, marking the narrowest spread since January of the previous year [6] - Analysts attribute this narrowing to increased supply from OPEC+ and seasonal refinery maintenance in the U.S., which is impacting demand for immediate barrels [7] Group 4: Uber's Investment in Japan - A report from Nikkei indicates that Uber plans to invest $2 billion in Japan over a five-year period, although specific details regarding the investment focus or timeline are not available [9] - Historically, SoftBank Group Corp. has had significant dealings with Uber, including substantial investments, and recently announced a joint venture with OpenAI in Japan [9]

Core Insights - The benchmark diesel price has decreased after a four-week increase, with the Department of Energy/Energy Information Administration reporting a decline of 3.7 cents per gallon to $3.831/g [1] - The diesel price surge relative to crude was attributed to sanctions against major Russian oil companies and tight global inventories [4] Price Movements - The average weekly retail diesel price fell from $3.868/g to $3.831/g, marking a decline after a previous increase of 24.8 cents [1] - The spread between ultra low sulfur diesel (ULSD) and crude benchmark Brent has narrowed from $1.1561 cents/g to 89.73 cents/g [2] Market Dynamics - The recent high spread of approximately $1.15/g was the highest since September 2023, indicating significant market volatility [3] - The market has shifted from a focus on sanctions to discussions of a peace plan in the Russia-Ukraine conflict, which may influence future price movements [5] Inventory and Contract Structures - The spread between first and second month ULSD contracts has begun to narrow, suggesting a potential increase in inventories [5] - The market has been in a backwardation structure, where front month prices are higher than subsequent months due to tight inventories [6] Spread Fluctuations - The spread fluctuated significantly, moving from negative 7.64 cents/g to negative 4.22 cents/g over several days, indicating changing market conditions [7]

Financial Data and Key Metrics Changes - In the third quarter of 2025, the company reported a profit of $40.3 million, or $0.18 per share, with an adjusted profit of $42.5 million, or $0.19 per share. This adjusted profit decreased by $37.8 million compared to the previous quarter, primarily due to a decline in time charter earnings from $283 million to $248 million [4][5] - Ship operating expenses increased by $3.1 million from the previous quarter, attributed to a decrease in supply rate and costs related to a change in ship management for seven LR2 tankers [5] - The company has strong liquidity with $819 million in cash and cash equivalents as of September 30, 2025, and no meaningful debt maturities until 2030 [6][7] Business Line Data and Key Metrics Changes - The company achieved $83,300 per day on VLCC fleet, $60,600 per day on Suezmax fleet, and $42,200 per day on LR2/Aframax fleet for the third quarter of 2025, showing significant increases compared to the previous year [3] - The average cash-based breakeven rates for the next 12 months are estimated at approximately $26,000 per day for VLCCs, $23,300 for Suezmax tankers, and $23,600 for LR2 tankers [8] Market Data and Key Metrics Changes - Oil in transit has reached record highs, with year-on-year increases in export volumes, particularly from the Americas and the Atlantic Basin [10] - The company noted logistical challenges around the trade of sanctioned export oil, which has been amplified by sanctions on companies like Lukoil and Rosneft [11] - The demand for compliant crudes, especially in the Middle East, has increased, leading to higher crude price levels [12] Company Strategy and Development Direction - The company is focused on maintaining a strong balance sheet while generating cash flow, with a strategy that emphasizes efficient fleet management and capitalizing on market opportunities [6][20] - The management highlighted a shift back to a VLCC-centric trade pattern, driven by positive export numbers from Brazil, Guyana, and Canada [12][20] - The company is cautious about expanding its fleet due to the current market dynamics and is considering focusing on VLCCs for future growth [55] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the tanker market, citing high utilization rates, strong oil exports, and limited growth in the compliant tanker fleet [20] - The company anticipates a prolonged period of tight physical shipping markets, with key fundamentals supporting continued demand [66] - Management acknowledged the volatility of the market but indicated that current conditions suggest a strong outlook for Q1 2026 [66] Other Important Information - The company has converted existing credit facilities into revolving reducing credit facilities, allowing for greater financial flexibility [7] - The average age of the fleet is seven years, consisting entirely of ECO vessels, with 56% fitted with scrubbers [7] Q&A Session Summary Question: Will the company focus on deleveraging the balance sheet while maintaining dividends? - Management indicated that they are different from peers and prefer not to operate with low loan-to-value ratios, focusing instead on generating cash quickly without aggressive debt reduction [24][25] Question: How do older ships become less efficient without being scrapped? - Management explained that older ships face high insurance costs and limited trading options, making them less efficient in the compliant oil market, which could lead to a wall of scrapping in the future [26][30] Question: What is the outlook for the dark fleet and its impact on the market? - Management noted an increase in vessels sitting idle and discussed potential solutions for recycling sanctioned vessels, indicating that the dark fleet's dynamics are complex and evolving [34][36] Question: How does the current market environment affect vessel demand? - Management highlighted that the current contango in oil pricing could extend trade lanes, positively impacting vessel demand, although they noted that floating storage is not currently a commercial strategy [41][62] Question: What is the outlook for Q1 2026 compared to Q4 2025? - Management expressed confidence that Q1 2026 could sustain strong rates due to favorable market conditions and key drivers that were not present in Q4 of the previous year [66]