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Year-end numbers have Goldmoney (OTC:XAUMF) shining bright

Tony Zerucha



Precious metals financial services and technology company Goldmoney (TSE:XAU) (OTC:XAUMF) recently announced financial results for the fiscal year ending Mar. 31. Dollar totals are in Canadian funds.

Financial highlights

  • First ever IFRS annual net income of $5.7 million;
  • First ever non-IFRS adjusted net profit of $10.1 million;
  • Annual revenue of $572.4 million vs. $523.8 million in FY2017, an increase of 9.3 per cent;
  • Record quarterly revenue of $171.1 million in Mar. 31, 2018 quarter vs. $149.8 million in Dec. 31, 2017 quarter, an increase of 14 per cent over sequential quarters;
  • Precious metal revenue of $140.5 million in Q4 2018 vs. $127.5 million in Q3 2018;
  • $30.6 million of cryptocurrency revenue compared to $22.4 million in prior quarter, an increase of 36.6 per cent over sequential quarters for an organic business we built and deployed internally;
  • Fully-Reserved Precious Metal Loan Portfolio up to $19.5 million vs. $8.6 million last year, earning the group $1.2 million of interest vs. $0.3 million in the prior fiscal year;
  • $111.5 million in cash and tangible capital ($1.46 per share) at year-end fiscal 2018 vs. $58.7 million ($0.87 per share) in fiscal 2017, an increase of 90% year-over-year;
  • 68 per cent per-share year-over-year growth in gold-denominated tangible capital per share.

Goldmoney opened branches in Toronto, Ont. and in the lobby of their owned building in Saint Helier, Jersey, which is in the Channel Islands.

In the company’s recent earnings call, Goldmoney CEO and director Roy Sebag said that while it was important to manage costs, other considerations were also at play.

“I also think another important factor to note is that in our operational numbers, you can see there are significant expenses that are attributed towards either growth or non-cash accounting entries that we feel should be highlighted. In the last year, we reckon there’s around $11 million of such expenses.

“So, when we try to guide our long-term investors towards an understanding of our core operations, we want them to appreciate that if we really wanted to, we could cut expenses further. But, we choose to invest in growth because we believe we can generate some great returns for us. So, I think a great way to sum the results of 2018 are that we achieved a real monumental gain in tangible net worth, but we’ve also sown the seeds for future harvests that we think will be very valuable for us.”

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Tony Zerucha

Tony Zerucha is an alternative finance journalist with more than seven years experience in the space. The author of more than 1,000 articles, Tony was named LendIt's 2018 Journalist of the Year.

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