Mr. Roy Sebag reports

GOLDMONEY INC. REPORTS FINANCIAL RESULTS FOR FIRST QUARTER OF FISCAL 2024 FOR THE PERIOD ENDING IN JUNE 30, 2023

Goldmoney Inc. has released financial results for the financial quarter ended June 30, 2023.

Financial highlights:

• Group tangible capital of $143.5-million, an increase of $1.3-million, or 1 per cent, quarter over quarter and an increase of $13.9-million, or 10.7 per cent, year over year;
• Group tangible capital per share increased to $10.30 from $10.15, or 1.5 per cent, quarter over quarter and an increase of $1.68 per share, or 19.5 per cent, year over year;
• Group precious metal position consisting of coins, bullion and bullion-denominated loan of $23.3-million, representing 21 per cent of tangible capital exclusive of the Mene Inc. shareholding;
• Gold-adjusted tangible capital per Goldmoney share of 0.126 gram, an increase of 4 per cent quarter over quarter, or 7.2 per cent year over year;
• Repurchased a total of 127,760 shares at an average purchase price of $9.45 during the quarter, reducing the share count by 0.9 per cent;
• Quarterly operating income of $6.65-million, an increase of 8 per cent;
• Net income of $2.6-million, an increase of 158 per cent year over year;
• Basic and diluted earnings per share of 18 cents, an increase of 163 per cent year over year;
• Goldmoney.com group client assets of $2.1-billion as at June 30, 2023;
• Mene reported results for the quarter ended March 31, 2023, generating $7.2-million in revenue and $1.8-million gross profit.

Statement from Roy Sebag, chief executive officer of Goldmoney

"Goldmoney Inc. has embarked on a new phase as a listed company, owning a diversified group of businesses interests that are tethered to the real economy. I encourage shareholders to carefully review our financial reports this quarter as they now provide the clearest picture of the current state and health of our company. With the launch of Goldmoney Properties, our income statement now breaks out our sources of revenue by division, grouping precious metals operations and all their associated costs under one line item. The figure shown as total operating income reflects the net cash provided by our operational businesses over the quarter. Below that line, in the expenses section, are two cash expense line items: general and administrative, which reflects the costs of being a public company, our C-suite salaries and bonuses, and technology and development costs. The other items are non-cash expenses such as depreciation and amortization, stock-based compensation, and impairment of goodwill and intangibles. Below this line, we now disclose all of the balance sheet fair-value movements from precious metals to investment property to FX [foreign exchange] movements.

"I believe this improved financial reporting format will assist shareholders in appreciating the distinction between our operating activities and the marked-to-market movements of certain assets on our balance sheet. I emphasized this distinction in the June 13, 2023, shareholder letter. While both activities are incorporated into the computation of our net income, these are in some sense two different activities in which we partake. The operational cash flow is recurring and has become increasingly predictable while the balance sheet movements reflect patient investments we make with permanent capital. With that being said, I remain convinced that the single-best metric for measuring our success over the long run is tangible book value per share, which is why we will continue leading with this metric. Ultimately, it is this metric which reflects both our balance sheet and operational activity in relation to the latest quantity of shares outstanding, which have been decreasing over the past few years.

"In the June 30 quarter, Goldmoney Inc. produced net operating income of $4.2-million excluding the non-cash expenses. Since the quarter ended Dec. 31, 2021, the company has produced positive net operating income in all of the seven quarterly periods when excluding goodwill impairment writedowns.

"Our financial results for June 30, 2023, validate our decision to diversify into new income streams within the real economy. Had we held on to our precious metals position from March 31, 2023, we would have missed an opportunity to compound our tangible book value per share (excluding the Mene position) by nearly 2 per cent in the quarter. By contrast, we would have seen this metric drop by 2 to 3 per cent based on our estimates.

"As the quarterly data show, our liquidity position remains exceptional, even after acquiring our first investment property in an all-cash transaction. We have circa $50-million of excess liquidity and no debt as of June 30. As regards the precious metals position, it stood at 21 per cent of our tangible capital excluding the Mene position. This reflects the lower end of our target and we feel comfortable with this level of precious metal holdings given the strength of our operational precious metal businesses.

"I would like to reiterate to our shareholders that we are under no illusion about the relative security of precious metals versus property or fiat currency. Precious metals are always going to be safer in terms of liquidity and counterparty risk. However, as I discussed in the shareholder letter, we have reached a point in the growth of our company where diversification is necessary, and we feel confident in our liquidity position as well as our operational cash flow prospects to assume a durational risk with property. While these assets are indeed less liquid than precious metals, we have sufficient liquidity and operational earnings such that we are neither in a position where we need to sell nor do we have plans or interests in selling our property assets. Finally, and perhaps most importantly, the properties we acquire are expected to return the cash expended on acquisition to our balance sheet within 10 years.

"It should also be noted that Mene repaid $2.15-million of its precious-metal-backed loan during the quarter. This is owing to Mene's financial strength and the current transition in strategy, which will require less of an inventory of working capital to realize. We anticipate that Mene is on track to repay more of its precious metal loan, which will move the value from loans receivable to precious metal holdings. In any event, shareholders should rest assured that the Mene loan is repayable on demand in the sense that we see this metal as liquidity that can be used if we should require it.

"With nearly $50-million of excess liquidity plus the strength of our operational businesses, which, given the new income stream from Goldmoney Properties, appear to be producing around $4-million of additional cash per annum, it should be noted that we are responsibly exploring further acquisitions of investment property.

"We are also working on the potential opportunity for joint ventures with our HNWI [high-net-worth individual] clients and shareholders to acquire assets where Goldmoney Properties would earn a performance fee above our equity contribution. To that end, this new direction has been receiving resounding support from shareholders, both large and small. By my estimation, the ratio of positive versus negative feedback we have received was 9:1. I have not been able to respond to all of you, but please know that I do receive your letters and am grateful for your feedback. We are truly fortunate at Goldmoney Inc. not only for our exceptional team but also for our loyal clients and supportive shareholders.

"As regards to share buybacks, we will continue to be aggressive in repurchasing and canceling our shares so long as: (i) our operational businesses keep producing cash flows; (ii) we compound our capital per share at rates that meet or exceed our estimation of long-run inflation; and, finally, so long as: (iii) our shares trade at a moderate to significant discount to tangible book value. Such was the case after this quarter-end date, and I am pleased to report that, subsequent to the June 30 quarter, Goldmoney Inc. repurchased a further 124,200 shares reducing our shares outstanding to 13,808,000 at the time of this press release. This reflects a 2-per-cent reduction in our shares outstanding since March 31. We have now repurchased and cancelled 2,009,475 shares since 2020 for a total of $18,128,307, or 13 per cent of our outstanding shares from June 30, 2020.

"We are seeing some interesting opportunities with Schiff Gold, our precious metals coin dealer. One of the benefits of our new reporting structure is that shareholders can now see the variable costs of Schiff Gold separately from Goldmoney.com. We think there is an opportunity to grow Schiff Gold as well as reduce some of the operating costs, thereby increasing its profitability. We have been working on a relaunch of the Schiff Gold website as well as other opportunities to expand our reach beyond North America.

"In closing, we believe our core precious metals operations will continue producing returns on capital and compounding our tangible book value per share. In environments where precious metals do well, we will do better, but in environments where they do poorly, we will do worse. This is why growing Goldmoney Properties is important as we believe it is perfectly possible to nourish our property investment income stream to an inflation-adjusted $10-million per annum by 2025 with our current balance sheet structure, moderate leverage and projected operating cash flows.

"Of course, time does not stop in 2025. It is merely a milestone with potential further growth ensuing from higher cash flows. So, this is the plan we have in mind and shareholders now have the full picture. We aspire to maintain our earnings power at the level reached when precious metals markets were roaring. We want to have this be the baseline of our earnings power so that, if and when they roar again, we will set new earnings records and compound our capital at even higher rates. In my humble opinion, Goldmoney Inc. shares are not reflecting any of this future potential."

Financial information and IFRS (international financial reporting 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 and fiscal year ended March 31, 2023, and prepared in accordance with international financial reporting standards (IFRS) and the corresponding management discussion and analysis, which are available under the company's profile on SEDAR+.

About Goldmoney Inc.

Founded in 2001, Goldmoney is Toronto Stock Exchange listed company invested in the real economy. The leading custodian and trader of precious metals, Goldmoney also owns and operates businesses in jewellery manufacturing, coin retailing and property investment.

We seek Safe Harbor.