Strategic Tuck-In Acquisition Expected to Increase A-Mark’s Total Minting Capacity to 100MM Ounces Annually Over the Long Term
EL SEGUNDO, Calif., Oct. 14, 2024 (GLOBE NEWSWIRE) -- A-Mark Precious Metals, Inc. (Nasdaq: AMRK) (A-Mark), a leading fully integrated precious metals platform, today announced that its wholly owned subsidiary Silver Towne Mint, operated through AM&ST Associates, LLC, has acquired substantially all of the assets of Regency Mint Manufacturing, LLC (Regency Mint), for $2 million. Regency Mint, a 25-year old family-owned and operated business located in Orem, Utah, is an ISO 9001:2015 certified mint that sells primarily to distributors and retailers of precious metals.
With the acquisition, Silver Towne Mint acquired all of Regency Mint’s minting equipment, which is expected to be moved shortly to the Silver Towne Mint’s facility in Winchester, Indiana, as well as its entire customer list. Among the immediate benefits of the acquisition to Silver Towne Mint include additional capacity for proof-quality coins and rounds and breakable rounds, along with new extrusion equipment that will enable faster and more efficient production of fractional products.
The equipment from Regency Mint is expected to eventually increase Silver Towne Mint’s capacity of struck products from 30 million to more than 50 million ounces per year. Combined with large-format bars, the total minting capacity in the long term should exceed 100 million ounces per year. Some of the acquired equipment will be placed in storage until more facility space is created to fully utilize the new machinery.
“This acquisition marks another significant step forward, enhancing our minting capacity and expanding our customer base,” said A-Mark CEO Greg Roberts. “Regency Mint’s state-of-the-art equipment will not only improve our production processes but also substantially increase our output capabilities. We’re excited to welcome Regency Mint’s customers and serve them through our newly enhanced operations, offering an even broader range of services and products.”
Regency Mint CEO Josh Tanner added: “After 25 years of producing bullion and custom rounds as a family-owned and operated business, we are confident in our decision to entrust our long-standing relationships with over 2,000 customers into the care of A-Mark and Silver Towne Mint, who we believe demonstrate Regency Mint’s same core values of integrity, exceptional customer service and product excellence. Our customers should benefit greatly from the expanded services and products available through A-Mark’s vertically integrated business.”
About A-Mark Precious Metals Founded in 1965, A-Mark Precious Metals, Inc. is a leading fully integrated precious metals platform that offers an array of gold, silver, platinum, palladium, and copper bullion, numismatic coins, and related products to wholesale and retail customers via a portfolio of channels. The company conducts its operations through three complementary segments: Wholesale Sales & Ancillary Services, Direct-to-Consumer, and Secured Lending. The company’s global customer base spans sovereign and private mints, manufacturers and fabricators, refiners, dealers, financial institutions, industrial users, investors, collectors, e-commerce customers, and other retail customers.
A-Mark’s Wholesale Sales & Ancillary Services segment distributes and purchases precious metal products from sovereign and private mints. As a U.S. Mint-authorized purchaser of gold, silver, and platinum coins since 1986, A-Mark purchases bullion products directly from the U.S. Mint for sale to customers. A-Mark also has longstanding distributorships with other sovereign mints, including Australia, Austria, Canada, China, Mexico, South Africa, and the United Kingdom. The company sells more than 200 different products to e-commerce retailers, coin and bullion dealers, financial institutions, brokerages, and collectors. In addition, A-Mark sells precious metal products to industrial users, including metal refiners, manufacturers, and electronic fabricators.
Located in the heart of Hong Kong’s Central Financial District, A-Mark’s consolidated subsidiary, LPM Group Limited (LPM), is one of Asia’s largest precious metals dealers. LPM offers a wide selection of products to its wholesale customers, through its showroom and 24/7 online trading platform, including recently released silver coins, gold bullion, certified coins, and the latest collectible numismatic issues.
Through its A-M Global Logistics subsidiary, A-Mark provides its customers with a range of complementary services, including managed storage options for precious metals as well as receiving, handling, inventorying, processing, packaging, and shipping of precious metals and coins on a secure basis. A-Mark’s mint operations, which are conducted through its wholly owned subsidiary Silver Towne Mint, enable the company to offer customers a wide range of proprietary coin and bar offerings and, during periods of market volatility when the availability of silver bullion from sovereign mints is often product constrained, preferred product access.
A-Mark’s Direct-to-Consumer segment operates as an omni-channel retailer of precious metals, providing access to a multitude of products through its wholly owned subsidiaries, JM Bullion and Goldline. JMB owns and operates numerous websites targeting specific niches within the precious metals retail market, including JMBullion.com, ProvidentMetals.com, Silver.com, CyberMetals.com, GoldPrice.org, SilverPrice.org, BGASC.com, BullionMax.com, and Gold.com. Goldline markets precious metals directly to the investor community through various channels, including television, radio, and telephonic sales efforts. A-Mark is the majority owner of Silver Gold Bull, a leading online precious metals retailer in Canada, and also holds minority ownership interests in three additional direct-to-consumer brands.
The company operates its Secured Lending segment through its wholly owned subsidiary, Collateral Finance Corporation (CFC). Founded in 2005, CFC is a California licensed finance lender that originates and acquires loans secured by bullion and numismatic coins. Its customers include coin and precious metal dealers, investors, and collectors.
A-Mark is headquartered in El Segundo, CA and has additional offices and facilities in the neighboring Los Angeles area as well as in Dallas, TX, Las Vegas, NV, Winchester, IN, Vienna, Austria, and Hong Kong. For more information, visit www.amark.com.
A-Mark periodically provides information for investors on its corporate website, www.amark.com, and its investor relations website, ir.amark.com. This includes press releases and other information about financial performance, reports filed or furnished with the SEC, information on corporate governance, and investor presentations.
Important Cautions Regarding Forward-Looking Statements Statements in this press release that relate to future plans, objectives, expectations, performance, events and the like are "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995 and the Securities Exchange Act of 1934. These include statements regarding the anticipated benefits to A-Mark and its affiliates of the transactions. Future events, risks and uncertainties, individually or in the aggregate, could cause actual results or circumstances to differ materially from those expressed or implied in these statements. Factors that could cause actual results to differ include the following: Adverse facts and circumstances regarding the acquired assets that are discovered following the closing; greater than anticipated post-closing costs and management resources required to integrate the acquired assets; and the strategic, business, economic, financial, political and governmental risks and other risk factors affecting the businesses of the company and the industries in which it operates, as described in in the company’s public filings with the Securities and Exchange Commission.
Company Contact: Steve Reiner, Executive Vice President, Capital Markets & Investor Relations A-Mark Precious Metals, Inc. 1-310-587-1410 sreiner@amark.com
Investor Relations Contacts: Matt Glover and Greg Bradbury Gateway Group, Inc. 1-949-574-3860 AMRK@gateway-grp.com
