Are Goldmoney Shares (severely) Undervalued?

in gold •  last month  (edited)


Theres a reason I am using physical gold for the profile photo of this post.

Goldmoney offers a unique metric to evaluate called Return on Metal Weight (ROMW).

More on that later.

The more breaking news is the stellar results Goldmoney just announced for the quarter:

Statement from the Chief Executive Officer

“I am pleased to report to shareholders our financial results from the period ended September 30, 2019. This was our best operational quarter since becoming a publicly traded company in 2015.”


Not only did Goldmoney have record revenue for the quarter, the dividend was increased by 20% which shows extreme confidence given the value centric philosophy of Mr. Roy Sebag, CEO and founder.

A few highlights from the quarter:

Record Quarterly Revenue of $127.2 million, an increase of $57.6 million (83%) Year-over-Year (“YoY”) and $68 million (115%) Quarter-over-Quarter (“QoQ”).

Corporate Precious Metal Exposure of $20.6 million as at September 30, 2019.

Tangible Common Equity of $133.5 million compared to $130 million in Q1 2020.


This can be summarized as corporate growth combined with a pristine balance sheet and large precious metals exposure.

The growth in the precious metals balance portion of the company treasury can in part be attributed to the special ROMW model:

“The position we occupy offers significant value to our shareholders over the long-term in two ways. First, it creates a continuous global revenue source utilizing an asset-light internet-scalable business model. Second, it enables us to gain unique asymmetry to a rising precious metal price environment as we earn recurring transaction and storage fees derived from the total stock of client metal under custody.

Unlike most businesses in the current global economy, our revenue isn’t earned in dollars or cents. Goldmoney revenue is earned as a weight of precious metal each time a client buys, sells, holds, pays, earns, or spends from their account.

The Goldmoney business model provides unique exposure to a ROMW (Return on Metal Weight) financial model similar to that employed by precious metal streaming and royalty companies; however, unlike the majority of these companies, Goldmoney accumulates the precious metals it earns above its working capital requirements and its gold and silver grow with each passing day.”


This increasing ROMW is like a liquid gold snowball at the top of a hill that gets larger and larger as it rolls downhill and picks up speed, increasing shareholders gram per share every day.

Currently Goldmoney shares (XAU: CAN, XAUMF: US) are being valued very close to straight book value of the company.

It is my opinion that company growth, leverage to a rising gold price, and balance sheet optionality ( potential acquisitions, strategic partnerships ect) are being completely ignored.

I’m not the only one that thinks this... check out this statement from Roy Sebag:

“The Board also intends to complete further share purchases this quarter under our Normal Course Issuer Bid program after considering the current share price and discount to intrinsic value which exists in the market subject to regulatory approval.”

It looks like we may some share buy backs in the near future, which means there is even more to like about this story.


Check out the Goldmoney Investor presentation and decide for yourself:

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Investor Presentation:

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Jewelry Worth It’s Weight in Gold:

Menē crafts 24 karat gold and platinum investment jewelry™ that is transparently sold by gram weight. By combining innovative technology with timeless design, Menē restores the ancient tradition of jewelry as a store of enduring value.

I am on a personal mission to spread the word about Goldmoney and Menē through any means necessary. Goldmoney\Mene allows individuals to empower themselves by protecting their savings by owning small or large amounts gold previously inaccessible to regular people like you and me.

The above references an opinion and is for information purposes only. It is not intended to be investment advice. Seek a duly licensed professional for investment advice.

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