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Goldmoney Inc. Reports Financial Results for Third Quarter 2022

T.XAU

Goldmoney Inc. (TSX:XAU) (US:XAUMF) (“Goldmoney” or the “Company”), a precious metal financial service and technology company, today announced financial results for the third quarter ended December 31, 2021. All amounts are expressed in Canadian dollars unless otherwise noted.

Quarterly Highlights

  • Corporate Metal Position consisting of Coins, Bullion, and Bullion Denominated Loan increased by $10.4 million, or 22% from March 31, 2021, to $58.0 million as at December 31, 2021.
  • Goldmoney.com Group Client Assets of $2.15 billion as at December 31, 2021.
  • Tangible Capital increased 2% QoQ to $127.4 million.
  • Tangible Equity per share increased $0.035 QoQ to $1.68.
  • Gold-Adjusted Tangible Equity per 100 Goldmoney Inc. Shares (Grams) of 2.26.
  • 288,300 Shares Repurchased in Q3 2022 reducing share count by 0.4% QoQ.

IFRS Consolidated Income

Statement Data

($000s, except earnings per share)

FY 2022

FY 2021

FY 2020

Q3

Q2

Q1

Q4

Q3

Q2

Q1

Q4

Revenue

67,071

69,013

94,706

139,709

97,592

243,609

173,500

164,441

Gross margin

2,478

2,845

3,977

2,453

3,401

7,566

5,981

3,232

Fee revenue

1,544

1,585

1,412

1,844

2,905

1,776

2,351

2,489

Interest income

85

100

103

211

195

217

239

374

Gross profit Excl. revaluation of precious metals inventories

4,107

4,530

5,492

4,508

6,501

9,558

8,570

6,095

Gross profit Incl. revaluation of precious metals inventories

5,763

1,661

6,167

2,146

4,917

10,421

10,615

6,999

Net income (loss)

2,620

(3,284)

951

(5,947)

4,041

7,509

6,049

(7,892)

Basic earnings (loss) per share

0.03

(0.04)

0.01

(0.08)

0.05

0.10

0.08

(0.10)

Refer to “Use of Non-IFRS Financial Measures” and “Reconciliation of Non-IFRS Financial Measures” in the MD&A

Statement from Roy Sebag, Chairman and Chief Executive Officer:

This quarter marked an important transition for Goldmoney Inc. We have significantly simplified our business model and group holdings following the path which was presented in the Annual Shareholder Letter of fiscal year 2021. With this transition, we are simplifying how we report our financial results by placing a greater emphasis on the net asset value of our group holdings rather than the quarter over quarter operating results of our subsidiaries. We are also presenting the gold adjusted metrics that we believe best measure our long-term performance. Our group continues to focus on increasing our precious metal exposure while generating a return on metal weight. Share repurchases are becoming a more important contributor as our company’s market value trades at or near our tangible equity per share. We look forward to providing a more comprehensive update to shareholders when we report our annual results on or about June 2022. I would like to thank our executive team led by Mark Olson and Paul Mennega for their achievements this quarter. I would also like to thank our clients and shareholders for their continued trust in Goldmoney Inc.

Financial Information and IFRS Standards

The selected financial information included in this release is qualified in its entirety by, and should be read together with, the Company's consolidated financial statements for the quarter ended December 31, 2021 and prepared in accordance with International Financial Reporting Standards ("IFRS") and the corresponding management's discussion and analysis, which are available under the Company's profile on SEDAR at www.sedar.com.

Investor Questions

Shareholders of Goldmoney are encouraged to submit questions to management by emailing ir@goldmoney.com.

Non-IFRS Measures

This news release contains non-IFRS financial measures; the Company believes that these measures provide investors with useful supplemental information about the financial performance of its business, enable comparison of financial results between periods where certain items may vary independent of business performance, and allow for greater transparency with respect to key metrics used by management in operating its business. Although management believes these financial measures are important in evaluating the Company's performance, they are not intended to be considered in isolation or as a substitute for, or superior to, financial information prepared and presented in accordance with IFRS. These non-IFRS financial measures do not have any standardized meaning and may not be comparable with similar measures used by other companies. For certain non-IFRS financial measures, there are no directly comparable amounts under IFRS. These non-IFRS financial measures should not be viewed as alternatives to measures of financial performance determined in accordance with IFRS. Moreover, presentation of certain of these measures is provided for year-over-year comparison purposes, and investors should be cautioned that the effect of the adjustments thereto provided herein have an actual effect on the Company's operating results.

Tangible Capital is a non-IFRS measure. This figure excludes from total shareholder equity (i) intangibles, and (ii) goodwill, and is useful to demonstrate the tangible capital employed by the business.

Gross profit excluding gain/loss on revaluation of inventories is a non-IFRS measure, calculated as gross profit less gain/(loss) on revaluation of precious metals. The closest comparable IFRS financial measure is gross profit. Fluctuations in the value of its precious metal inventories caused by fluctuations in market prices are included in gross profit. Management believes that excluding such fluctuations more clearly illustrates the Company’s business operations.

Non-IFRS Adjusted Gain (Loss) is a non-IFRS measure, defined as total comprehensive income (loss) adjusted for non-cash and non-core items which include, but is not limited to, revaluation of precious metal inventories, stock-based compensation, depreciation and amortization, foreign exchange fluctuations and gains and losses on investments.

For a full reconciliation of non-IFRS financial measures used herein to their nearest IFRS equivalents, please see the section entitled "Reconciliation of Non-IFRS Financial Measures" in the Company's MD&A for the quarter ended December 31, 2021.

About Goldmoney Inc.

Goldmoney Inc. (TSX: XAU) is a precious metal focused global business. Through its ownership of various operating subsidiaries, the company is engaged in precious metal sales to its clients, including arranging delivery and storage of precious metals for its clients, coin retailing, and lending. Goldmoney clients located in over 150 countries hold approximately $2.15 billion in precious metal assets. The company’s operating subsidiaries include: Goldmoney.com, SchiffGold.com and Totenpass. In addition to the Company’s principal business segments, the Company holds a significant interest in Mene Inc., which crafts pure 24-karat gold and platinum investment jewelry that is sold by gram weight. Through these businesses and other investment activities, Goldmoney gains long-term exposure to precious metals. For more information about Goldmoney, visit goldmoney.com.

Forward-Looking Statements

This news release contains or refers to certain forward-looking information. Forward-looking information can often be identified by forward-looking words such as “anticipate”, “believe”, “expect”, “plan”, “intend”, “estimate”, “may”, “potential” and “will” or similar words suggesting future outcomes, or other expectations, beliefs, plans, objectives, assumptions, intentions or statements about future events or performance. All information other than information regarding historical fact, which addresses activities, events or developments that the Goldmoney Inc. believes, expects or anticipates will or may occur in the future, is forward-looking information. Forward-looking information does not constitute historical fact but reflects the current expectations the Company regarding future results or events based on information that is currently available. By their nature, forward-looking statements involve numerous assumptions, known and unknown risks and uncertainties, both general and specific, that contribute to the possibility that the predictions, forecasts, projections and other forward-looking information will not occur. Such forward-looking information in this release speak only as of the date hereof.

Forward-looking information in this release includes, but is not limited to, statements with respect to: service times for transactions on the Goldmoney network; growth of the Company’s business, expected results of operations, and the market for the Company’s products and services and competitive conditions. This forward-looking information is based on reasonable assumptions and estimates of management of the Company at the time it was made, and involves known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Company to be materially different from any future results, performance or achievements expressed or implied by such forward-looking information. Such factors include, among others: the Company’s operating history; history of operating losses; future capital needs and uncertainty of additional financing; fluctuations in the market price of the Company’s common shares; the effect of government regulation and compliance on the Company and the industry; legal and regulatory change and uncertainty; jurisdictional factors associated with international operations; foreign restrictions on the Company’s operations; product development and rapid technological change; dependence on technical infrastructure; protection of intellectual property; use and storage of personal information and compliance with privacy laws; network security risks; risk of system failure or inadequacy; the Company’s ability to manage rapid growth; competition; the ability to identify opportunities for growth internally and through acquisitions and strategic relationships on terms which are economic or at all; effectiveness of the Company’s risk management and internal controls; use of the Company’s services for improper or illegal purposes; uninsured and underinsured losses; theft & risk of physical harm to personnel; precious metal trading risks; and volatility of precious metals prices & public interest in precious metals investment; and those risks set out in the Company’s most recently filed annual information form, available on SEDAR. Although the Company has attempted to identify important factors that could cause actual results to differ materially, there may be other factors that cause results not to be as anticipated, estimated or intended. There can be no assurance that such statements will prove to be accurate as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking information. The Company undertakes no obligation to update or revise any forward-looking information, except as required by law.