Welcome to the U.S. Global Investors' Webcast -- U.S. Global Investors Earnings Announcement for the Second Quarter 2012. Please note that the slides you see on your screen are controlled by the presenters. Also, you may print a PDF of today's slides at any time by clicking on the download presentation in the Resource section in the lower left corner of your screen. We would like to begin by introducing Ryan George, Investor Relations at U.S. Global Investors. Mr. George?

Thank you. Welcome, everyone, to our webcast announcing results for the quarter ended December 31, 2011. The presenters for today's program are Frank Holmes, U.S. Global Investors' CEO and Chief Investment Officer; Susan McGee, President and General Counsel; and Catherine Rademacher, Chief Financial Officer. 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 anything 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. If you have a question for us, you can submit it at any time during the webcast. Simply type your question in the dialogue box at the bottom of your screen and click submit. If we aren't able to answer your question during the live presentation, we will follow up with you individually. Now let's go to Frank Holmes, CEO and CIO for overview of the quarter. Frank?

Thank you, Ryan. Thank you, everyone, for participating in this morning's meeting. Let's hop over to Slide #4, the strengths. GROW, I'm going to show, continues to be the go-to-stock for exposure to emerging markets and resources, we're debt-free, we have a strong balance sheet with a reflexive cost structures. That's what's going to be important in walking you through how we've had to manage through this volatility, especially gold. Gold fell 10% in one month and I'll show you that just happened only 7% at a time and putting a position for a big rally that's taken place in January. But that in December, was a big challenge for us. But the difference is, when we go back to look at '08 compared to how we did in this past quarter on average assets, they're comparable. We did substantially better as a company, even with many headwinds and challenges. And a big part of that is having a reflexive cost structure. And the monthly dividends returned on equity discipline are important to how we think about the markets. Let's hop over the next visual, the Royce Funds, according to financials, are still our major shareholder, and then we have Financial & Investment Management, Perritt Capital Management, SunAmerica Asset Management and BlackRock Fund Advisors. The next visual is showing you our long-term performance because it does show you this tremendous volatility. But we're still very proud that over a 10-year annualized return, it's been 29%, and it appears to be a non-event for us to have tremendous peaks and valleys. The next visual is highlighting the challenges that took place in 2011. It was the worst year since 1998 for active managers. This is the year, in 1998, when Russia imploded and we had long-term capital imploding and had a…

Okay. Thank you, Frank. Good morning. I'd like to summarize our results of operations for the quarter ended December 31. And beginning with revenues on Page 20, we recorded total revenues of $5.9 million for the quarter, that's down 50.6% from the $11.9 million we reported in the comparable quarter last year, primarily for the following reasons. First, mutual funds management fees decreased $1.9 million, which was attributable to lower assets under management that Frank discussed. Average assets under management for the quarter were $2.08 billion, down 27% from $2.85 billion in the same quarter last year, primarily due to shareholder redemptions in the natural resources and emerging market funds. Secondly, mutual funds performance fees declined $1.8 billion. This was attributable to a swing in the performance-fee adjustment from positive in the comparable quarter last year to negative this quarter. Other advisory fees decreased by $910,000, primarily as a result of a decrease in offshore funds performance fees due to market depreciation of the natural resources-related holdings. Distribution fees and admin fees each declined by more than 30% due to lower assets under management and transfer agent fees also decreased by 28.5%, as a result of a decline in shareholder accounts and a number of transactions. And moving on to Page 21. As Frank mentioned, with this volatility, we have a fairly reflexive cost structure with relatively low-fixed cost. So total expenses for the quarter were $5.2 million. That's a decrease of $3.05 million or 37%, primarily for the following reasons: Employee, compensation and benefits decreased by $1.4 million or 35.6%, as a result of lower performance-based bonuses; general and administrative expenses decreased by $926,000 or 41%, due to lower consulting, marketing and conference fees; and finally, platform fees decreased by $538,000 or 35%, as a result of lower assets under management. Next, on Page 22 shows net income for the quarter of $409,000 or $0.03 per share, an 82% decrease compared to the $0.15 earnings per share reported in the comparable quarter last year. Page 23, we have -- we still have, as Frank mentioned, near record of high levels of cash. Cash in securities combined make up over 82% of our total assets compared with 77% for the same period last year. And as you can see on Page 24, to reiterate what Frank said earlier, we still have no long-term debt. We own the building. The company has net working capital of $32 million and our current ratio of 8.9:1. And with that, I'd like to turn it over to Susan McGee, our President and General Counsel.

Thank you, Catherine. Good morning. And I'd like to highlight for you some key points this morning. One of our values here at U.S. Global is to be performance- and results-oriented. Since 2000, 6 of our 13 funds have received a total of 29 accolades from Lipper. This is a testament to the performance results our funds have posted over the past decade. The long-term performance of several of our funds was recently recognized by major publications, Barron's and The Wall Street Journal. Three of our emerging markets and natural resources-oriented funds ranked among the top 20 funds in the entire mutual fund and exchange traded fund universe for the 10-year period as of December 31, 2011, according to The Wall Street Journal's latest mutual funds quarterly report. Two funds ranked in the top 10, the World Precious Minerals Fund and the Golden Precious Metals Fund, ranking fifth and seventh, respectively, and the Global Resources Fund ranked 16th. Moving to the next slide, our U.S. Global Investors portfolio management team continued to be sought out by national media for their thought leadership and insight on natural resources and emerging markets. Frank and the team conducted over 200 interviews and appeared on national television nearly 60x during the 2011 calendar year. In addition, the funds were recommended over 600x by financial news letter writers. The growing influence of Frank's blog, Frank Talk, is also worth noting. The blog had over 200 updates in 2011 and attracted roughly 10,000 readers each week. The Frank Talk blog is also mass-syndicated to 58 content partner sites that have a combined monthly reach of approximately 25 million visitors. The proliferation of the blog and the high volume of interviews has led the company to nearly 7,000 online mentions during the year. Since 2006, our average number of online mentions per month has increased by more than 300%. And lastly, I'd like to give you an update on the company's sales and marketing activity. This week, members of our team are attending the National TD Ameritrade Conference in Orlando, Florida. Next week, Frank will be speaking at a Cambridge House Event in California and meeting with some key RIAs in the area. Frank will also be appearing on a panel at the Bloomberg Portfolio Manager Mash-up later in the month in New York. You can see from the slide that our calendar is quite full between now and in the end of the quarter. And now, I'd like to turn it back over to Frank, who will lead us through our analysis of why global markets are poised for a rebound in 2012. Frank?

Thank you, Susan. West Coast Asset Management wrote a book I have been recently reading on entrepreneurial investing, and I thought it was interesting in some comments that style boxes are arbitrarily limit opportunity, and there's a pattern we're seeing as active money managers to have more flexibility to go anywhere to make money rather than getting pushed into a style box. However, small caps in a risk-on, risk-off scenario last year take it on the chin. Whereas, in a rising market where risk is being accepted and you're seeing interest rates falling, then all of a sudden, small-cap stocks have outperformed. At U.S. Global, I agree with them. We're entrepreneurial investors and we're focused on being opportunistic for our portfolios. And having a personal involvement and a personal commitment, because 50% of the bonuses that the portfolio team receive go into the funds. And the other part as I thought was interesting is entrepreneurs excel at proving the conventional wisdom wrong. We won many educational market awards for explaining why gold would rise to $1,000 and then beyond define what was conventional wisdom, and also we'd characterize that half of this running goal is in the Love Trade. It's not just the fear of death, but has to do with rising GDP per capita in emerging markets where there's a high correlations, where there's a natural affinity for gold. And we also are big believers of, we like to call, the great American Dream Trade. That's where emerging markets -- those countries are truly embracing the American Dream. You're seeing and witnessing a tremendous growth, with less leverage, less debt. You go to Africa and it's amazing to see a non-debt society growing at 7%. And you go to Asia, and you could still see spectacular growth. In a…

Thank you, Frank. [Operator Instructions] One of the first questions we have today is, Frank, you highlighted that the company has paid consistent dividends for 55 straight months. Do you see any changes to the company's dividend program going forward?

Yes, that's a decision -- that decision finally -- as the legal process comes from the board to make that determination. But based on our cash flow, based on our cash in the bank and based on our assets, I don't think, as I mentioned earlier, that our situation is as severe and how we've weathered this storm is much better than 2008 and 2009. But still, that final decision, Susan, comes to the board to make that determination. But I feel comfortable based on facts and circumstances that we have today.

And that's approved on a quarterly basis, correct?

Correct, Susan?

Yes.

The next question is also for Frank. One of the key developments we had in 2011 was the underperformance of gold miners versus the price of gold bouillon. What factors are you looking for this year for gold miners in order to close that gap with gold?

It has to do with this risk-on, risk-off trade that takes place. When the risk -- when there's basically a risk-off trade, all equities get sold. From big gap, mid cap, small cap, those stocks get characterized along with Starbucks. It's bizarre but they all get lumped together and this is -- a capitulation taking place that we're seeing many of these gold stocks at P/E ratios that are like the crash of 2008. And the price of gold is higher in 2008. So you're seeing great, great results from many of these companies. And they're showing up and increasing their dividends. That's another key factor, and Newmont coming in with the policy to tie dividends to the price of gold. And I think that we will still see that to continue that these gold stocks, they will go through. If you remember your trigonometry, the cosine and sine waves, one crossing above the other, we've seen this between bullion and gold stocks over the past 20 years. But this is sort of one of the larger ones of a difference that we saw, in particular, the small-cap gold stocks. But we think that we're due for this big substantial rebound.

That looks like that's all the questions we have for today. Thank you, Susan; thank you, Catherine; and thank you, Frank, for your participation. And thank you everyone for tuning in today. There will be a replay of this presentation available on our website, www.usfunds.com, later in the week. Thank you.

Thank you, everyone. Thank you, Ryan.

Thank you. And thank you, ladies and gentlemen. This concludes today's teleconference. Thank you for participating. You may now disconnect.