A-Mark Precious Metals, Inc. reported significant financial developments in its quarterly filing for the period ending September 30, 2024. The company achieved revenues of $2,715.1 million, marking a 9.3% increase from $2,484.6 million in the same quarter of 2023. This growth was primarily driven by higher average selling prices for gold and silver, despite a decrease in the volume of ounces sold. Gold ounces sold fell by 19.6% to 398,000 ounces, while silver ounces sold decreased by 32.7% to 20,449,000 ounces. Average selling prices for gold and silver rose by 26.5% and 24.5%, respectively.

Gross profit for the quarter was $43.4 million, down 12.1% from $49.4 million in the prior year, resulting in a gross margin percentage decline to 1.6% from 2.0%. The Direct-to-Consumer segment, which includes subsidiaries like JM Bullion and Goldline, contributed significantly to the overall gross profit, increasing its share to 37.1% from 35.6% year-over-year.

Net income for the quarter was $8.4 million, a substantial decrease from $19.0 million in the same period last year. The decline in profitability was attributed to increased selling, general, and administrative expenses, which rose by 21.8% to $26.6 million, and higher depreciation and amortization costs, which increased by 68.7% to $4.7 million.

The company’s total assets increased to $2,029.0 million from $1,827.8 million as of June 30, 2024, while total liabilities rose to $1,364.3 million from $1,165.9 million. Current assets also saw an uptick, reaching $1,645.5 million, driven by a notable increase in receivables and inventories.

Strategically, A-Mark completed the acquisition of LPM, a major precious metals dealer in Asia, in February 2024, enhancing its global reach. The company also increased its ownership in Silver Gold Bull, Inc. to 55.4% in June 2024, further solidifying its position in the direct-to-consumer market.

Cash flows from operating activities showed a significant outflow of $127.5 million, compared to $44.3 million in the previous year, primarily due to changes in working capital. In contrast, cash flows from financing activities increased to $110.3 million, reflecting higher net borrowings.

Overall, A-Mark's performance in the latest quarter reflects a complex interplay of increased revenues and costs, alongside strategic acquisitions aimed at bolstering its market position in the precious metals sector.