Monthly Investor Report - October 2024

Golden Prospect Precious Metals Ltd

22 November 2024

 

 

Golden Prospect Precious Metals Limited

Monthly Investor Report - October 2024

The full monthly factsheet is now available on the Company's website and a summary can be found below. 

NCIM - Golden Prospect Precious Metals Ltd - Fund Page

Enquiries: 

For the Investment Manager 

CQS (UK) LLP 

Craig Cleland 

0207 201 5368 

For the Company Secretary and Administrator 

Apex Administration (Guernsey) Limited

James Taylor

0203 530 3600

----------------------------------------------------------------------- 

Fund Description 

The objective of the Golden Prospect Precious Metals Fund is to provide investors with capital growth from a group of companies in the precious metals sector.

Portfolio Managers 

Keith Watson and Robert Crayfourd.

Key Advantages for the Investor 

·    Access to under-researched mid and smaller companies in the precious metals sector

·    Potential inflation protection from precious metals assets

·    Low correlation to major asset classes 

Key Fund Facts¹ 

Total Gross Assets:	£51.96m
Reference Currency:	GBP
Ordinary Shares:	85,503,021
Net Asset Value:	54.24p
Mid-Market Price:	44.00p
Net gearing:	13.4%
Discount:	(18.88%)

Ordinary Share and NAV Performance² 

	One Month	Three Months	One Year	Three Years	Five Years
	(%)	(%)	(%)	(%)	(%)
NAV	13.50	25.73	68.92	(2.59)	43.26
Share Price	10.69	31.34	67.62	(4.76)	51.20

Commentary³ 

The Company's NAV gained 13.5% versus the NYSE Gold BUGS' gain of 4.7% in sterling.

Gold continued to reach new all-time highs, with silver following but still short of all-time highs. Precious metal miners lagged in this move as the sector's largest miner, Newmont, disappointed the markets after reporting increased costs. The positions in the Fund have not seen these cost pressure increases, supporting the relative outperformance.

We believe the junior market remains meaningfully discounted versus larger peers, which, given the sector's record free cash generation, could catalyse an increase in M&A activity as larger producers look to grow or replace reserves.

Although initial expectations of the outcome of the US election were 50/50, October saw a notable shift to market expectations of a Trump win despite polls looking more balanced. Trump was considered more favourable for precious metals among the two candidates, as both would have increased US debt. Trump is more likely to use Tariffs and trade protection on other countries, which should continue to see Central Banks looking to diversify out of US Treasuries, with gold as a potential beneficiary.

Please note that the annual reminder for subscription rights was published on 29th October. At 35.94p per subscription right, shareholders have a one-for-five right to buy new shares at this price.

	Gross Leverage5 (%)	Commitment Leverage6 (%)
Golden Prospect Precious Metals Limited	112	112

CQS (UK) LLP

4th Floor, One Strand, London WC2N 5HR, United Kingdom

T: [phone] | F: [phone]

CQS (US), LLC

152 West 57th Street, 40th Floor, New York, NY 10019, US

T: [phone] | F: [phone]

Tavistock Communications

18 St. Swithin's Lane, London EC4N 8AD

T: [phone] | [e-mail]

Sources: ^1,2 CQS as at the last business day of the month indicated at the top of this report. Performance is net of fees and expenses. New City Investment Managers took over the investment management function on 15 September 2008. These include historic returns and past performance is not a reliable indicator of future results. The value of investments can go down as well as up. Please read the Important Information section at the end of this document. ³ All market data is sourced from Bloomberg unless otherwise stated. The Fund may since have exited some / all the positions detailed in the commentary. ⁵ For methodology details see Article 4(3) of Directive 2011/61/EU (AIFMD) and Articles 6, 7, 9 and 10 of Delegated Regulation 231/2013. ⁶ For methodology details see Article 4(3) of Directive 2011/61/EU (AIFMD) and Articles 6, 8, 9, 10 and 11 of Delegated Regulation 231/2013.

 

END