Financial Data and Key Metrics Changes - Assets under management (AUM) increased by $5 billion in Q2 2025 to $40 billion, a 14% increase from $35.1 billion as of March 31, 2025, and a 27% increase from $31.5 billion as of December 31, 2024 [5][6] - Net income for the quarter was $13.5 million, up 1% from $13.4 million in the same period last year, while year-to-date net income was $25.5 million, up 2% from $24.9 million [7][8] - Adjusted EBITDA for the quarter was $25.5 million, up 14% from $22.4 million year-over-year, and year-to-date adjusted EBITDA was $47.4 million, up 12% from $42.1 million [9][10] Business Line Data and Key Metrics Changes - The physical trust product suite achieved an AUM of $31 billion as of August 1, marking an all-time high, driven by market appreciation and net flows [11][12] - The managed equity segment reported $61 million in net redemptions during the quarter, with a year-to-date total of $81 million [17][18] - Private strategies AUM was $2.1 billion, slightly down from March 31, 2025, reflecting a net decrease in investments [20] Market Data and Key Metrics Changes - The metals market is experiencing upward pressure on prices due to geopolitical tensions and resource nationalism, with gold reaching a twelve-year high and platinum at its highest level in ten years [21][22] - The physical silver trust captured over 100% of net flows among US-listed peers since the beginning of 2021, significantly increasing market share [13] Company Strategy and Development Direction - The company is focused on capitalizing on the growing interest in multiple metals and has launched two new precious metals ETFs, which have seen strong early results [5][6] - The company aims to grow its market share with new ETFs and is exploring additional active ETF launches before the end of 2025 [19] Management's Comments on Operating Environment and Future Outlook - Management noted the extreme volatility in markets and expects continued fluctuations, emphasizing a cautious approach to predictions [4][5] - The company is well-positioned to create value for clients and shareholders amid a changing global trade and inventory system for metals [21][22] Other Important Information - The company has seen a strong recovery in AUM for its ETFs, rebounding to $3 billion since market lows in early April [10][12] - The uranium trust completed two capital raises, accumulating an additional 2 million pounds of uranium, bringing the total stockpile to 68.4 million pounds [13][14] Q&A Session Summary Question: How does the company determine market value changes in private strategies? - The company uses pull to par accounting for loans, which is amortized cost, and believes it is a reasonable proxy for market value [24][25] Question: What is the outlook for the uranium market? - There is a disconnect between the physical uranium market and energy policy support for nuclear energy, but utilities are expected to return to the market soon [28][30] Question: What needs to happen for the copper trust to narrow its discount to NAV? - The company is applying for a dual listing to provide more flexible redemption options, which could help close the discount [35][36] Question: What are the incremental margins as AUM rises? - As the exchange-listed product segment grows, the company expects adjusted EBITDA margins to increase, potentially approaching 80% [39][41] Question: What is the outlook for carried interest and performance fees? - Performance fees are typically calculated at year-end, making it difficult to model them on a long-term basis [50][51] Question: Is there consideration for a special dividend? - The company is focused on maintaining a high payout on earnings and may consider special dividends based on performance fees [61][62] Question: Would the company consider an ETF tracking the nuclear fuel cycle? - The company is open to new ideas but aims to focus on its core strengths in metals and mining [64][66]