Goldmoney: The Only Publicly Traded Gold Bank

EXECUTIVE SUMMARY

RESEARCH_Goldmoney.pdf

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Investment Thesis

• Goldmoney is the only publicly listed full reserve gold custodian bank in the world allowing customers to open allocated deposit accounts fully backed by gold. Using a DCF valuation model, the target share price ranges between $2.9 to $16.2 (CAD) based on varying scenarios surrounding the future prices of gold.

• The CEO Roy Sebag has a volatile track record of changing the business strategy frequently indicating the firm’s struggle with finding a clear, focused long term strategy. In the latest shareholder letter published, he disclosed for the first time several clear objectives focused on improving core operations which it has achieved these past years including improving its pricing strategy and cost efficiencies.

• In the bull case involving a monetary reset, Goldmoney is estimated to achieve $43B (CAD) in top line sales 10 years from now, which would be roughly slightly less than half the size of JP Morgan’s $115B (USD) top line at present.