Good morning and thank you for joining us today for our webcast announcing U.S. Global Investors Results for the Second Quarter of Fiscal Year 2020. I'm Holly Schoenfeldt. If you have any questions during the webcast, you can enter them in the questions area of the control panel side bar, which is normally to the right of your screen. Also, you may download a PDF of today's slides by clicking on the red handout button. The presenters for today's program are Frank Holmes, U.S. Global Investors’ CEO and Chief Investment Officer; Lisa Callicotte, Chief Financial Officer; and myself, Holly Schoenfeldt, Marketing and Public Relations Manager. During this webcast, we may make forward-looking statements about our relative business outlook. Any forward-looking statements and all other statements made during this webcast that don't pertain to historical facts are subject to risks and uncertainties that may materially affect actual results. Please refer to our press release and corresponding Form 10-Q filing for more detail on factors that could cause actual results to differ materially from any described today in forward-looking statements. Any such statements are made as of today, and U.S. Global Investors accepts no obligation to update them in the future. On Slide 4, you'll see a quick overview of U.S. Global Investors. We are an innovative investment manager with vast experience in global markets and specialized sectors. Founded as an investment club, the Company became a registered investment advisor in 1968 and has a long standing history of global investing and launching first of their kind investment product, including the first no-load gold fund. U.S. Global is well known for expertise in gold and precious metals, natural resources and emerging markets. Now let's go to Frank Holmes, CEO and CIO for an overview of the period. Frank?

Thank you Holly. Well this is going in after 30 years living in Texas and launching a China Fund, the first China opportunity fund and then the Eastern European Fund. So yes, this long experience started in gold in 1968 but in the past 30 years we have truly evolved to have an expertise on global investing. And we strive to be this go to stock for exposure to emerging markets, resource gold, and digital currencies. We are debt free, we have a strong balance sheet with a reflective cost structure and multi dividends that return equity discipline. But even with these strengths we still want to remind and thank investors for their loyalty and their long-term support, the top institutional holders, the Royce funds, the Perritt and Financial FIM Group, the Financial Investment Management Group have been steady long-term investors as active money managers and we thank them. And also for other pools of capital which is much more indexed or in case of BlackRock and Vanguard. Next please, so even with this better market which we are going to talk a bit more in the mutual fund world, we are still dealing with the growth and we are still trying to do everything we can so be innovative in this phase. So even during this period we have been able to maintain 10 years of paying a dividend and paying monthly dividend, it is a modest yield but it is higher than five year government bonds. Next please, the Board approved a repurchase of up to 2.75 million of the outstanding common stock in the open markets through December 31, 2020 and during the three months ended December 31, 2019 the company repurchased only 2000 shares of its Class A shares using approximately $3000. And that's because we…

Thank you, Frank. Good morning. Before I discuss the results of operations for the quarter I'd like to discuss the pending sale of our 65% Canadian subsidiary Galileo Global Equity Advisors. On December 30, 2019 USGI entered into a binding Letter of Intent with Galileo. Pursuant to its capital restructuring Galileo agreed to purchase all of the common shares owned by USGI for 1 million Canadian dollars. The transaction is subject to regulatory approval and other closing conditions and it is anticipated that the transaction will close on or about March 2, 2020. The result of Galileo are reflected as discontinued operations in a consolidated statement of operations. Now I'll discuss the results of operations for quarter ending December 31, 2019. Beginning on Slide 31 we reported total operating revenues of 887,000 for the quarter which is an increase of 94,000 or 12% from the 793,000 from the same quarter last year. The increase is primarily due to decreases in performance fees paid out, lower fee waivers, and higher assets under management in the USGI equity fund. Operating expenses for the current quarter were 1.4 million, a decrease of 251,000 or 15% primarily for the following reason; employee compensation and benefits decreased 155,000 or 20% mainly due to decreases in bonuses and general administrative expenses decreased 103,000 or 13% primarily due to decreases in fund expenses. We see our operating loss for the quarter ending December 31, 2019 as a loss of 511,000, but this is an improvement of 345,000 compared to the same period for the fiscal year 2019. On Slide 32 we see that other income loss for the quarter was a loss of 440,000 and this is mainly related to unrealized losses and investments as Frank has discussed. Losses from continuing operations was a loss of 926,000 which was an improvement of 2.6 million from the quarter ended December 31, 2018. Loss from discontinuing operations was 117,000 for the quarter. Net loss attributable to USGI after taxes for the quarter is $1 million and as you can see on slide 33 this is a loss of $0.06 per share. Moving to Slide 34 we see we still have a strong balance sheet which includes a high level of cash and unrestricted marketable securities that combined to make up 60% of our total assets. As you can see on page 35 we still have no long-term debt, our only long-term liabilities are lease obligations, and the company has net working capital of 10.2 million and a current ratio of eight to one. With that I'll turn it over to Holly.

Thank you Lisa. Alright, as you can see on Slide 38 a majority of our mutual fund assets are in emerging markets and natural resources while 31% are in domestic equities and fixed income and then as for distribution more than three quarters of assets come from retail investors with 18% coming from institutional investors. Our sales and marketing efforts have continued to focus on our mutual funds including those concentrated on gold, natural resources, and emerging markets as well as our ETF. The company and our funds continue to receive an invaluable amount of viral publicity gained through media interviews. Frank Holmes often shares his insights with financial news outlets like the Fox Business, Bloomberg Radio, and Kicker News just to name a few. We continue to receive recommendations by influential financial newsletter writers as well along with sharing and syndication of our award winning original content by third party publishers. The newsletters have loyal followings and received millions of visitors every month. Frank Holmes' CEO blog Frank Talks continues to grow in popularity as well. His commentary is often featured by prominent publications including Forbes, Seeking Alpha, Kitco, and Equities.com each with millions of monthly visitors. Kitco News, the biggest gold website in the world with an audience of over 30 million monthly visitors in partnership with the Street continues to feature the Gold Game Film Show with Frank Holmes gold market analysis. Since the show's beginning 177 episodes have aired. At quarter end we also like to look at the most visited spring talks blog post published over the past year and on this slide you can see that the most visited articles in 2019 are as follows; number one, hard truths and resource investing according to Bob Moriarty; number two, This AI Company is the future…

And I do have a few questions to begin with. The first one is for you Frank and it says how is the Coronavirus impacting investments in some of your global funds or your airline ETF?

Well I would say the Coronavirus is more negative than SARS because flights were canceled and it had a bigger impact in particular out of Asia and the Asia Airlines. Yes, the U.S. had canceled flights for their airlines but I don't think it has as a significant impact as was so forecasted. We did see the Jets ETF sell off on the sentiment of it coming off but it's still in the U.S. It's a very strong economy. Employment numbers, when we just recently came out and now we see that PMIs have turned positive on the most recent numbers which remains if they hold above 50 and continue to grow is very positive and constructive. And I would say that the airline industry is probably extremely undervalued. And when Coronavirus -- the solution to this horrible tragic disease is that they find a solution to it that the airlines will probably have this massive move on the upside as Asia turns the corner on it. China is doing everything now to control it. And so I think it'll resolve itself.

Great. Thank you for that. I also have a question for Lisa that said how will the Galileo transaction affect the USGI financials?

So after the transaction is complete USGI will no longer consolidate the Galileo assets and liabilities on our balance sheet and we won't be including that 65% of Galileo's income or loss in our income statement. So when we're looking at the March 31, 2020 financials there won't be any discontinued assets or liabilities listed on the balance sheet and in the statements of operations for the three and nine months it will only include our portion of income or loss through the transaction date. So after that date we will no longer be recognizing any portion of Galileo's gain or loss in our income statement.

Okay, thank you Lisa. Frank I have another question for you.

I would just like to add you know that we put up about a million dollars, how many years ago was it Lisa, nine years ago, approximately… [Multiple Speakers]

I'm sorry. Yeah we started talking about nine years ago and I think we've helped that business do as best we can from our ideas for the company but really the company had $300 million of pension fund assets and it just shocked us that the pension fund took the money and redeemed it. That was a good performance for them and they put it into 30 year zeros, the government bonds. I mean I just don't have any idea why someone would do that. When you turn around and see governments like Switzerland printing money and buying stocks and they're the largest top five shareholders of Apple and you're seeing Japan floating money and buying stocks etcetera that a pension fund would buy government bonds. But these -- that really changed the revenue cost structure and the funds themselves are experiencing the same sort of virus that the mutual funds have in America. And the viruses is this regulatory costs and tax disadvantages of mutual funds. They are just so much more expensive and ETFs are more attractive and so funds are going into that direction. So I think that it was a good move, because when we look at it it's almost a net trades when we take a look at money going in, money coming back. Is that correct Lisa.

Approximately yes.

Yeah. Whereas most mutual funds during that period big funds from Franklin or whatever that are public experience also the redemptions. So I think that we exited in a timely way and we'll reassess how we want to be able to be in Canada. It is certainly important because 60% of all mining finance in the world is in Toronto. So it's important to be here, to get information that's too late by the time you read the newspaper or Bloomberg. Next please.

Okay, thank you Frank. Yes, so there is another question for you Frank that says how do you see the recent resurgence in HIVE impacting GROW this year?

Well I think it's pretty simple. So luckily we have I believe it's 10 million shares, Lisa.

Yes.

That the advice that GROW has. So those 10 million shares have gone from $1 million valuation to $4.7 million valuation so far this quarter. And I think that that was sort of the difficulty that we have but that's just the reality is that that asset class is going to go mark-to-market every quarter. And so that will show up. So anyone doing the calculation it's easy for them to make that determination.

Okay, great. And we have time for one more here Frank. It says overall what global catalysts do you see potentially moving GROW in 2020?

Well, I think as our gold funds are doing well and I think the GOAU it's just smarter and it just surprises me that it is not $0.5 billion fund, ETF and $0.5 billion it would throw off $3 million of revenue and from an operating business of just the asset, the investment advisory business we would be profitable, very profitable from that. And so the goal is to get that to that strategic asset class that people recommend if they're going to go into gold ETF, gold equity ETF. So it's the first choice because it's just more intelligent [ph] how it operates. And so I think that's sort of a wakeup call to platforms and positions would be a big catalyst. Gold's running back to 1900. I think it's just inevitable, it is going to happen because of monetary policy decision makers around the world and fiscal policy. There's no constraint of fiscal policy. There's no initiatives to really lower regulations and taxation. But to try to use cheap money, printed money to stimulate economic growth, and that just makes real assets like gold do well. And then I think when we add on top of that the crypto space is also a part of those alternative asset classes. And then when we look at gold's spot, AI, gold spot been able to -- the scientist behind gold spot have done a remarkable job of companies like [indiscernible] have announced gold discoveries because of their AI approach. And I think that their AI approach could be what fracking has done to the oil industry. In the U.S. this could be so helpful for the gold mining industry. So I look back at those two investments, it could be very strategic to us in the next year or two years and I'm very happy both HIVE blockchain has been a big sacrifice of time and money. But this is a company that is a leader, it's about 3% of the world's Ethereum production. All these other countries, when they talk about coming up with their own coins, they talk about the backbone of Ethereum. So they're going to be launching other currency coins or etc. They're going to -- it's going to be have something to do with Ethereum. All the ICOs use it so I think that's what they call STOs, they call it ICOs. These are new types of digital security, think of stocks all of a sudden going digital and having that backbone so often Ethereum is the platform and we are the principal players in Ethereum. So I think that HIVE could be a big catalyst in growth for when regulations come out as that are more stable around the world regarding digital money then I think we're going to just continue to see an adoption process. So that is where I see the growth defined [ph]. Thank you.

Wonderful. Thanks Frank. And thank you all for your questions today. This concludes U.S. Global Investors Webcast for the second quarter of fiscal year 2020. This presentation will be available on our website usfunds.com. Thank you all for your participation today.