Why Is this Precious Metal Company Growing: A-Mark Precious Metals Inc (NASDAQ: AMRK)
A-Mark Precious Metals Inc is a precious metal trading company. It is principally engaged in the wholesale of gold, silver, platinum and palladium bullion and related products in the form of bars, wafers, coins, and grains. The company’s operating segment includes Wholesale Trading and Ancillary Services, Secured Lending and Direct Sales. It generates maximum revenue from the Wholesale Trading and Ancillary Services segment. The Wholesale Trading and Ancillary Services segment comprises of a business unit such as Industrial, Coin and Bar, Trading and Finance, Storage, Logistics, and Mint. Geographically, it derives most of the revenue from the United States.
Highlights:
- A-Mark Precious Metals, Inc. announced that it recently acquired a 31.1% interest in Sunshine Minting, Inc. (SMI), a leading manufacturer of precious metals mint products and a long-standing supplier and counterparty of A-Mark.
- Revenues for the three months ended December 31, 2020, increased 44% to $1.52 billion from $1.06 billion for the three months ended December 31, 2019, and decreased 19% from $1.87 billion for the three months ended September 30, 2020
- Gross profit for the three months ended December 31, 2020, increased 131% to $18.8 million (1.24% of revenue) from $8.1 million (0.77% of revenue) for the three months ended December 31, 2019, and decreased 48% from $36.1 million (1.94% of revenue) for the three months ended September 30, 2020
- Gold ounces sold in the three months ended December 31, 2020, increased 12% to 479,000 ounces from 428,000 ounces for the three months ended December 31, 2019 and decreased 34% from 721,000 ounces for the three months ended September 30, 2020
- Silver ounces sold in the three months ended December 31, 2020, increased 51% to 21.2 million ounces from 14.1 million ounces for the three months ended December 31, 2019, and decreased 12% from 24.2 million ounces for the three months ended September 30, 2020
1 Year Chart
Company expanded its existing credit facility from $220 million to $257.5 million. The expanded credit facility will become effective on September 2, 2020 and matures on March 26, 2021. Rabobank acted as Administrative Agent, Bookrunner and Joint Lead Arranger.
The expanded credit facility reflects the continued support from their lending partners and provides them with additional liquidity to address higher commodity prices and increased activity levels in the current environment.
Quick Look at company’s Numbers
Stock Recommendation: Looking at technical factors of the stock, quarterly numbers & increased revenue a rally can be expected in the stock.
MarketFacts gives a “Buy” rating on the stock at the closing Price of $28.90 as of March 2nd, 2021.
| CMP (USD) (2nd March 2021) | $28.90 |
| Target Price (CAD) | $45.20 |
| Recommendation | Buy |
