Streamex Corp. (STEX) Earnings Call Transcript & Summary

[Audio Gap] Vice President of Investor Relations at Alliance Advisors IR, and I'm extremely pleased to moderate this webinar on behalf of Streamex Corp., NASDAQ ticker STEX. Joining us today is Henry McPhie, CEO and Co-Founder of Streamex. Henry is a mining engineer and previous founder of companies in the crypto and blockchain space, including Lynx Web 3 Solutions, a blockchain incubation and software development firm and FCC, a Solana-based digital art project that quickly rose to become the third largest in the world at the time of its launch. Henry also co-founded Streamex alongside Co-Founder, Morgan Lekstrom. Today, in addition, we have Mitch Williams, CIO of StreameX. Mitch was a former fintech analyst at Credit Suisse and sole Portfolio Manager at OppenheimerFunds Flagship Value Fund. Prior to that, Mitch was a Senior Managing Director and Global Head of Public Markets at Wafra Inc. Henry and Mitch will discuss recent company milestones and key growth highlights and provide some color on what's ahead for 2026. Throughout the presentation, you are welcome to submit your questions via the question-and-answer function on your screen. We'll address as many as we can after the presentation concludes. And here's some housekeeping items. Before we begin, I'd like to remind everyone that certain statements made during today's presentation may contain forward-looking information as defined under applicable securities laws. These statements could include estimates, projections, goals, forecasts or assumptions based on current expectations and are not reflective of historical facts. It's important to note that such forward-looking statements represent the company's beliefs regarding future events, plans or objectives. These are inherently uncertain and subject to various risks and uncertainties that could cause actual results or performance to differ materially. With that, I'll turn it over to Henry McPhie to kick us off.

Hello, everyone. My name is Henry McPhie. I am the Co-Founder and CEO of Streamex, and I welcome you to our December 2025 corporate update. In this update, we'll be going over a number of topics, primarily the milestones over the last 6 months, the GLDY launch, some token valuation and revenue metrics as well as the long-term road map into 2026 and beyond. I'll stop here to let you guys read the disclaimers. Moving on to the mission statement of Streamex, it's simple, to unlock the full potential of commodity assets through tokenization. In 2025 and over the last 6 months, I'm very happy that the team has been able to execute on a number of institutional partnerships and acquiring an institutional asset, primarily the Monetary Metals partnership that allowed us to get an exclusive 3-year partnership for yield-bearing products, offering up to a 4% annualized yield, really driving our GLDY asset, a Letter of Intent with Simplify Asset Management to integrate GLDY into ETF structures and co-develop tokenized exchange-traded products partnered with Chainlink as our Official Oracle Provider for GLDY, Proof of Reserves, CCIP and Price Feeds. Our recent partnership with the Solana Policy Institute to be able to advance the regulated trading of on-chain real-world assets and recently, our acquisition of a 9.9% stake in Empress Royalty Corp., strengthening our exposure to royalties, streaming assets and really aligning with our growth into the tokenized royalties and streaming space. We managed to build an exceptional team of advisors and people within the company, primarily Frank Giustra, Founder of Wheaton Precious Metals, GoldCorp, Lionsgate Films; Sean Roosen, the founder of the Osisko Group with Osisko Mining and Osisko Gold Royalties; Mitch Williams, our Chief Investment Officer, formerly at Oppenheimer and Wafra, as well as our Strategic Advisors, Mat August, Trevor Bacon, and Kellen Grenier, all helping us bring the Streamex mission forward. We are also very lucky to be able to bring Kevin Gopaul, the former Global Head of ETFs, CIO and Canadian CEO of BMO Global Asset Management, really excelling our GLDY interests into traditional ETFs and then also Michael Frisch, who joined us as our General Counsel, who was formerly with the CFTC. Getting into GLDY, I am very excited to talk about this. GLDY itself is a disruptive stablecoin asset that gives investors the ability to get spot price gold exposure with an up to 4% yield on top of that. One GLDY is equal to one troy ounce of physical gold bullion and is directly backed by that ounce. The yield itself is generated through our partnership with Monetary Metals and really -- and gives us the ability to give that up to 4% yield through gold leasing. And it gives the ability for investors to get, one, spot gold price exposure with the yield on top of it. The eligibility for us to design this asset to be held by ETFs really gives them the ability to forgo the options and carry costs that come with traditional gold yielding products while also giving them the ability to pass on a yield with the tracking of spot gold price to their holders. The token itself is tradable upon issuance and provides a very unique tax structure as a security asset, not a commodity. And so with that, GLDY itself has been met very positively from the market since we launched the presale back in November, and I'm excited to be able to talk about how that's going. As you know, we started our presale for GLDY November 10, 2025, with $100 million headline price, our headline issuance. In this issuance, we have the ability in near-term scalable capacity up to $300 million. And I'm very excited to announce that with this since November, the nonbinding indications of interest have exceeded $100 million. Streamex is committing a minimum of $5 million towards GLDY and are waiving the tokenization fee for this launch allocation, and we expect closing of this asset with full secondary trading live early 2026, Q1 2026. The value proposition of GLDY and a major driver on why we've been seeing so much interest into this asset is twofold. One, traditionally gold itself is an asset that costs you money to hold, whether that's through ETFs and having to pay the management fee within those ETFs or through the storage fees that you traditionally get with physical gold bullion. Unlike those assets, GLDY no longer costs you money to hold. Now you get paid to own gold. The ETF market itself is over $400 billion in size, and this asset really is a much better asset to hold than a traditional ETF. If you look at the chart on the right, you'll see the difference in appreciation and press investor returns between GLDY or owning GLD, for example. The returns themselves, as you can see, over a 5-year period, provide almost a 25% increase in returns because of the yield component and compounding of that. And because the yield is paid in additional ounces of gold bullion, you are long gold throughout the whole process. And so moving on, I will let Mitch Williams and introduce him to discuss some valuation metrics on lifetime value of a token, NPV and revenue milestones for Streamex.

Thank you, Henry. Excited to be here today, and I think we've got some really good messages to deliver. The early days of tokenization were really about the technology and Streamex does have great tech. But one of the things that is different for us now is really a focus on the underlying asset to that technology. And that's what Henry was talking about with these differentiated products that give you both commodity exposure plus a yield. That differentiation gives Streamex the right to earn attractive economics in the marketplace on a sustained basis. So our fees for the token will include recurring lease fees where Streamex captures a portion of that, recurring transfer fees related to trading of tokens and onetime tokenization fees. If you take these fee streams and project them out over 30 years and then discount that back to today, you get what's called a net present value. And for us, that's a lifetime value of a token. So with very minimal capital allocation, when Streamex sells a token and let's say, gold was $4,000 an ounce, the token should be priced around $4,000, the net present value to Streamex shareholders is about $1,500. And if the token trades more actively, there's upside to that number. We think this is a really important metric. We're very excited about it. And I think one of the important things to understand is it gives us a lot of room on customer acquisition cost to really acquire customers and grow the fund quickly. So the prior slide was about economics on a unit basis, right, per token. This is the same methodology but at the fund level. So if you had a fund that held $1 billion worth of tokens, the net present value to Streamex shareholders on the revenue basis, it is about $400 million of revenue. And so if you can see it scaling up to $5 billion, the net present value of the revenue to Streamex shareholders is about $2 billion. And again, the assumptions for this are listed on the right, but it's a net present value calculation, and I think it just shows the power of the model. So the prior two slides were for net present value. We know investors are very interested in the revenue potential for Streamex and its products. And while GLDY is just our first product of many that we're going to be launching, we think it alone has really attractive economics relative to the company. So if you had just a $1 billion fund and you took the lease fees, the transfer fees and the tokenization fees, you would get revenue of approximately $20 million with relatively modest trading levels. And if you had a $5 billion fund, revenue would be over $100 million. In this case, we estimate around $130 million. So now I'll turn it back over to Henry.

Thank you very much, Mitch. And so building off those revenue NPV numbers as well as the lifetime value of a token allows us to look at our strategic road map to be able to create assets that provide value for both investors as well as Streamex. And so getting into this road map, to start, I want to touch on our cash position as well as strong financial capital foundation. This cash and gold on balance sheet that we have right now allows us to go into 2026 with a very strong capital foundation and the ability to scale GLDY as well as future real asset tokenization initiatives and then execute on our long-term and strategic road map with financial flexibility. We currently have just over $11 million worth of gold on our balance sheet. We will be expanding this primarily through GLDY and allocating assets into GLDY, allowing us to both seed liquidity, increase market transport as well as giving the ability for us to grow the GLDY issuance itself. Looking into 2026 and beyond, the assets that we're most excited about is, one, growing GLDY and continuing to grow GLDY, and that is our primary focus. With that, now that we've created the infrastructure and built all the infrastructure for GLDY, it allows us to scale into additional assets much quicker than this initial launch. And so the natural progression will be silver with yield and giving the ability to get access to a spot silver asset providing a yield similar to the way GLDY is done, which is obviously a very large market TAM, then royalties and streams and the ability to tokenize individual royalties and streams as well as a fund of royalties and streams that give investors access direct exposure to the gold output that they put out, then expanding into '26, copper with yield, oil and gas with yield. And so the thing to note here that is important is any commodity asset that has a working capital requirement, we have the ability to create yield-bearing instruments of them. The disruption and high growth drivers that come with this, as discussed, especially within the ETF and traditional markets is the ability to give investors spot price exposure with no contango roll risk and carry cost with a yield on top of that proves to be very beneficial for both the ETFs as well as the investors themselves. It provides a superior working capital solution to the users and working capital industries in which these assets originate, for example, jewelers with GLDY and then creates very attractive economics for Streamex while continuing to deliver value-added products to the investors that are holding the assets. The opportunity and growth is really tied together by our tokenization opportunity and how we see it. The goal of Streamex really is to use tokenization to create disruptive and value-added structured products for the commodity space in industries that have working capital requirements. Like I said, this delivers high return for Streamex shareholders while also tapping into a massive market potential. Overall, I really appreciate everyone coming to the presentation today, and I appreciate everyone's support throughout this whole time. I'm extremely proud of everything that our team has accomplished over the last 6 months, and I'm extremely excited for everything to come into 2026 and beyond. The near-term catalysts with the GLDY launch, our planned growth initiatives into next year really set up Streamex to be in a very good position going into 2026, and we are extremely excited to be able to bring this on. I will continue to build and build with you, and I will now move on to the Q&A.

So I see that we have a couple questions in the chat here coming in. And so I will touch on them and hand a couple over to Mitch as well. First one, how do I buy GLDY? Great question. And so the easiest way for you to get exposure and to purchase GLDY is to go right now directly to the Streamex website. You can register your indication of interest, and then we'll be able to get in touch with our team to be able to facilitate any transactions that you'd wish to make. When GLD goes live in Q1 of 2026, you'll be able to buy GLDY directly within the Streamex platform. And then you'll also be able to trade the asset directly within our partner ATSs that we'll be announcing in the short future. GLDY itself, I think, has the ability to expand both within an institutional and a retail sense. And so institutional, the asset itself is initially for credit investors. But then on the ETF side of things, we have the ability to expand that drastically into the retail space through those traditional avenues. The next question. So how is the launch looking? So we touched on that a little bit in the presentation. But what I can say is the launch so far has been very positive and the interest that we have been getting in the GLDY asset has been immense, both from traditional ETFs and those partners that we've announced as well as additional ones. And then also in the large asset manager and retail broker book. And so something important to know with GLDY is the asset itself will have a CUSIP. And so it can be held by traditional retail custodians and everything. And so with that it opens up a lot of capital for us to be able to attract. And the reason that we wanted to make this a more institutional asset to start is because it actually gives us a larger sort of pool of capital to tap into initially. And so with ETFs as well as the accredited and retail investors, like I said, we have significantly more than $100 million in these initial indications of interest and are excited to be able to grow that and announce the sort of final numbers as we get into Q1 of '26. Next one, Mitch, I think this is a question for you. How risky is the gold leasing? How is it done? And how does Monetary Metals operate in that sense?

Thanks, Henry. I think that's a great question because people see a yield and they say, listen, you don't get something for nothing, right? So what's -- how is this really run? I think the first thing to understand about leases is they are lease agreements, not credit agreements. So the fund or the tokenization fund retains title to the gold at all times. And the gold is put out on lease, which gives a lessee right to physical possession and alteration of form. So in the example of a jeweler, they can take the gold and turn it into a gold chain. But if there is ever a credit event to the jeweler, our partner, Monetary Metals can go and get the gold under the lease terms. It's not part of a creditor's committee. The second part is the gold is insured. So in the case of an example of a jeweler, they have what's called Jewelers' Block Insurance. And then there's a verification firm that verifies the gold throughout its time at the jeweler. They also do an insurance wrapper analysis and acquire what's known as GAAP coverage. So there's insurance against mysterious loss, there's assurance against bad acts by management. So the gold is really protected. So while you're always going to have some level of counterparty risk, people have been working on safety and security of gold for a very long time. So there's tons of institutional knowledge on this, and we feel very confident that the leases are put with very respectable and reliable counterparties and that the leases are safe.

Nailed it. And then the next question, Mitch, what I think is also for yourself is how big can GLDY get? How do you see the market developing? And in the other assets, how does that work in terms of growth?

Yes. Those are great questions and clearly things that management team is focused on. So we have very close communications with our partner, again, Monetary Metals. So when we talk about capacity figures, those are figures that we've arrived at in collaboration with our partner. And so we have a high level of confidence in those figures. So we think up to $300 million near term, we think up to $1 billion over 12 months. And we think as we get into year 2, we've had expressions of confidence that they can do $3 billion in leasing if need be. And there could be upside to those numbers, but those are the numbers as they stand today. And I think those would be really exciting numbers for the company to achieve. In terms of the other assets, I think the first point to understand is what Henry mentioned, which is you get paid for solving problems in marketplace. And for companies that use commodities as working capital, they've always got an issue of how to finance that working capital and how to deal with price volatility. And we're really matching up natural counterparties at Streamex using tokenization as a key disruptive technology. And that means you have people who want to be long a commodity, who in vol terms want to be long that volatility. So if you own a gold ETF, you're deciding you want to be long the gold volatility while paying to do it. In our structure, you get paid to be long that volatility. And the provider on the other side, the company needs working capital finance is more than happy to pay a modest amount of money to have someone else take on that volatility. So if you think about any commodity space where there's working capital, there's a huge opportunity for tokenization and for Streamex.

Amazing. And then the next question I see is, is GLDY going to be available in fractionals like other stablecoins? That is a great question. And so the answer to that is yes, GLDY itself can actually be fractionalized down to 9 decimal places. And so you do have the ability to own fractional GLDY. With that, that is sort of the beauty of tokenization is the ability to take a 1-ounce increment, for example. So GLDY itself is valued at 1 ounce of physical gold bullion. With that, you can own half of GLDY. So 0.5 GLDY, which would equal 0.5 ounces. You can transfer that around. And with that, it gives the ability for us to have truly a liquid market in terms of GLDY without having to worry about people transacting in 1-ounce increments. Also with that, something important to note is on the yield component. The yield itself is paid out as dividends essentially as additional GLDY. And so if you're earning, say, an up to 4% yield on your GLDY and you own, say, 90 GLDY, so 90 ounces, you'll be able to get your distribution in fractional amounts, so say, 1.41 GLDY. And so that's something that tokenization allows us to do and what makes it very interesting. I see another question here. Discuss the progress you've made on the ETF issuers like Simplify, what needs to be done from here to go from LOI to finalize agreement? And so what I can say on that is with ETF issuers like Simplify as well as other ETFs that we've been in contact with, LOI is definitely the first part in getting the asset issued into the ETFs. And I can say that we have started that process and are very actually far down the line within that process of bringing GLDY to be held within ETFs. We expect finalized agreements upon launch and so Q1 2026 to be able to say, hey, we've actually created this ETF, whether it's a 100% weighted GLDY ETF, so an ETF that holds 100% allocation within GLDY, giving direct spot price gold exposure with the up to 4% yield attached to it or other ETFs that have actually been talking about a partial weighting of GLDY. And so say, 20% or 30% GLDY weighting. And so I think something important to note with that is the major interest that we've seen from ETF partners is one on the 100% weighted, but two on the, say, 20% or 30% weighted is transitioning their futures and options portfolios within the ETFs actually into GLDY because of the benefits that we said that it provides. And so for example, instead of having to worry about the roll risk and contango issues with options and futures contracts, they have the ability to get the direct spot price exposure with the yield attached to it, which is why we've seen these ETFs be very interested in this asset. Next question, and Mitch, this will be for you as well. On new asset tokenization, does your current agreement with Monetary Metal allow for Silver yield asset? Or would that need to be a separately negotiated agreement? And are the terms expected to be similar?

So we published the terms of the agreement and the agreement covers precious metals. So silver would be covered in that agreement.

Amazing. Amazing. And then next question, do we have competitors? And if so, what is our relative advantage? So that's a great question. And I'll touch on this. And so I think the competitors that you will see in the tokenized gold space, primarily PAG, [Streamex] and Tether, I think something important to note is those are just spot gold assets. And so with GLDY as well as the other assets that we're looking to create, we have, I think, a pretty unique sort of standpoint from our point of view. And we've taken a different approach to the "competitors" that are out there. The ability for us to look at the working capital requirement industries and then provide yield-bearing tokens on them, I think is a very unique value proposition for Streamex and also gives us the ability to expand into a more institutional sense and nature in that. And that's why, for example, with GLDY and the other assets we create, we want them to be held by ETFs. And so I think that the approach that Streamex is taking on a much more institutional sense with a larger asset to capital than just a retail base gives us the ability to expand quite quickly, especially through our ETF partnerships and through the different avenues that the asset can trade and be bought. And so how we think about it is sort of like that. And so the ability for us to really expand into that is definitely different than the "competitors" out there. I think if you look at the industry as a whole right now, there are very few tokenization companies and very few sort of technology companies focused in the crypto and tokenization space actually public. And so that gives us both a unique advantage and a standpoint of us being able to really act on this first-mover advantage that we have and then there be able to expand. There are some great companies out there, if you look at Circle, if you look at Figure Markets. And so our ability to earn the yield off the stablecoin assets that we create mirrors those, but I think with an additional growth path, especially within the commodities industry, and we are very well positioned in that sense. The next question is, can you explain how your model generates revenue without huge capital requirements? Like the old GE capital model should expand return on equity, which drives stock price longer term. So Mitch, I'll let you touch on sort of how we're able to generate revenue without a large capital requirement. I think that's very important to note.

Yes. Thank you, Henry. Well, look, the capital intensity in this model is borne by the token holders, right? So while we may buy tokens and hold them on our balance sheet, it's likely we would sell those in the secondary market over time. So really, the capital requirement on our part is just for the capital required to run the company and have the fund infrastructure in place. So it's really a fraction of the assets in the fund. And I think what you see over time here is tremendous operating leverage, right? So you have operating leverage from asset size. And then I think the thing that people often don't quite understand yet is because the tokens have the potential to earn transfer fees, size of issuance is a good indicator of liquidity in markets typically, right? So a small bond issuance usually trades less than a large bond issuance. So as the GLDY outstanding tokens increase, we actually think trading is likely to increase. And again, that's not something that requires capital on our part. So that's where you get the really high incremental returns on capital for Streamex.

Amazing. And then I think the last question that we'll go through is when will Streamex begin to sell more than $100 million presale. Will this happen when full trading is launched hopefully Q1? So I'll touch on this, and I'll let Mitch follow up. And so the way that GLDY is designed and the fund structure that is designed in is it is an open-ended fund. And so we can daily contributions into the fund. The $100 million was really a goal for us to be able to meet to be able to have a significant issuance size out there and outstanding as we continue to grow as Streamex and grow the issuance of GLDY. And so as we said in the presentation, the indications of interest right now exceed that $100 million benchmark. And so being able to expand into that is very easy for us. And so with this $300 million in near-term capacity, we'll be able to continuously grow and issue GLDY. It's not $100 million raise and then we're done. We want to be able to hit this $100 million number and then continue to grow and expand to that $1 billion by end of 2026, which is what we've been sort of aiming for. Mitch, I'll let you follow up on that, if you have anything.

No, Henry, I think you covered it. I think that it's scalable and we can take contributions on an ongoing basis. I will say that we are providing an incentive on the $100 million launch because we will waive the tokenization fee for initial investors, so there is some incentive for investors to come in early. But again, as partners get flows in and need more tokens, we can mint those tokens as needed.

Amazing. And so I think this wraps up our presentation today. I really appreciate everyone attending. I really appreciate all the amazing questions. Hopefully, this gave you more clarity on Streamex, our path to growth, the GLDY launch as well as other things that we've been discussing for quite some time. And we're very excited to be able to grow, like I said, into 2026. The near-term catalysts and our long-term road map, I think, complement each other very well, and we will continue to execute on our vision and the plan as we continue to go into 2026 and beyond. Thank you very much. And if you have any questions, feel free to reach out to management or our IR team where the e-mail is attached and in the presentation there, and we'll be more than happy to follow up with you. Thank you very much.