REG - Golden Prospect Prec Golden Prospect-GPSS - Monthly Investor Report - February 2025

Golden Prospect Precious MetalsAnnouncement

28/03/2025 07:15

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RNS Number : 5643C  Golden Prospect Precious Metals Ltd  28 March 2025

 

 

Golden Prospect Precious Metals Limited

 

Monthly Investor Report - February 2025

 

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
(https://ncim.co.uk/golden-prospect-precious-metals-ltd/)

 

Enquiries:

 

For the Investment Manager

Manulife | CQS Investment Management

Craig Cleland

0207 201 5368

 

For the Company Secretary and Administrator

Apex Fund and Corporate Services (Guernsey) Limited

James Taylor

0203 530 3600

 

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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 Facts(1)

 

 Total Gross Assets:  £54.35m
 Reference Currency:  GBP
 Ordinary Shares:     93,248,499
 Net Asset Value:     53.87p
 Mid-Market Price:    41.00p
 Net gearing:         5.9%
 Discount:            (23.89%)

 

Ordinary Share and NAV Performance(2)

 

                One Month  Three Months  One Year  Three Years  Five Years
                (%)        (%)           (%)       (%)          (%)
 NAV            0.48       10.14         73.38     2.75         45.36
 Share Price    (1.20)     5.81          70.12     (5.86)          41.87

 

Commentary(3)

 

The escalation in the US-led application of trade tariffs, as Canada and
Mexico implemented retaliatory measures, weighed on broader investor sentiment
over the month. Equity markets reacted negatively to the proposals, which are
seen as exacerbating uncertainty and deterring corporate investment, whilst
also acting as a drag on growth by raising goods prices in the US. Whilst the
effects have been reflected in the widening regional price premiums paid for
steel and aluminium in the US, the disruption also affected the price of
copper in the US. The country imports significant quantities of copper and the
risk of tariffs being applied prompted COMEX futures to open up a 10% premium
to London Metal Exchange (LME) benchmark price. The threat of tariffs also
affected gold, where US prices have traded at a premium to London Bullion
Market prices as the US draws in physical inventory.

 

Despite the backdrop of increasing stagflation risks, gold prices ended
February with a modest 2.1% gain, having reached a new all-time high of
$2,956/oz intra-month. US Treasury rates also trended lower, prompted by
worsening economic signals, with resultant dollar softness providing some
support to the gold price. However, precious metal mining stocks pulled back
into month-end, consolidating from their strong prior month gains. We believe
tariff-led uncertainty remains a supportive consideration for investor
diversification and further allocation into defensive assets such as gold.
This is evident with a sharp pick-up in the pace of buying by
physically-backed ETFs which added over 2Mozs (a rise of approximately 2.5%).
The World Gold Council (WGC) also confirmed that the recent increase in ETF
demand more than offset the decline in retail demand as jewellery buyers
adjust to higher prices. Notably, the WGC also confirmed that Central Bank
demand for gold exceeded 1,000t for the third consecutive year, with Q4
marking a higher run rate at 333t.

 

Precious metal equities continued to track the gold price. Having risen to
record highs early in the month, the Company's NAV gained 12% at one stage
intra-month before moving lower in the latter half of the month. As a result
of the month-end consolidation and additional drag from a 1.5% strengthening
in sterling-dollar exchange rate, the NAV ended February with a modest 0.5%
decline. Mining equities have not reflected the operational leverage to the
strong gold price momentum and in our opinion continue to look attractively
valued, trading at some of the lowest earnings multiples on record at the
current spot price. Overall trading activity for the Company was minimal, with
the portfolio's position in Westgold reduced slightly early in the month.

 

                                            Gross Leverage(5)  Commitment Leverage(6)

                                            (%)                (%)
 Golden Prospect Precious Metals Limited    107                107

 

 

Manulife | CQS Investment Management

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

T: +44 (0) 20 7201 6900 | F: +44 (0) 20 7201 1200

 

Tavistock Communications

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

T: +44 20 7920 3150 | goldenprospect@tavistock.co.uk
(mailto:goldenprospect@tavistock.co.uk)

 

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.

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