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

Golden Prospect Precious MetalsAnnouncement

17/04/2025 09:30

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RNS Number : 4545F  Golden Prospect Precious Metals Ltd  17 April 2025

 

 

Golden Prospect Precious Metals Limited

 

Monthly Investor Report - March 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:  £61.35m
 Reference Currency:  GBP
 Ordinary Shares:     93,248,499
 Net Asset Value:     62.95p
 Mid-Market Price:    50.00p
 Net gearing:         4.0%
 Discount:            (20.57%)

 

Ordinary Share and NAV Performance(2)

 

                One Month  Three Months  One Year  Three Years  Five Years
                (%)        (%)           (%)       (%)          (%)
 NAV            16.86      42.00         74.47     7.09         110.25
 Share Price    21.95      40.85         61.29     4.17            92.31

 

Commentary(3)

 

The Company's NAV gained 16.9% in March.

 

Gold and Silver gained 9.3% and 9.4% to $3,123/oz & $34.09/oz
respectively. The miners have begun to show some of the operating leverage one
would normally expect, with NYSE gold bugs gaining 12.5% (in GBP), but they
still trade at a notable valuation discount to average historic earnings
multiples.

 

The geopolitical backdrop remains supportive, with the US-led trade war via
tariffs increasingly pointing to "stagflation" (stagnating growth and
inflation), which historically has been the best backdrop for precious metal
pricing. This is less favourable for broader markets, which adds to the appeal
of the "insurance" properties of precious metals as an asset class. Whilst we
do not believe conflicts are currently a strong driver of gold price, it is
worth noting that March also saw a lower chance of a Russian/Ukrainian
ceasefire, a return to Israeli/Hamas fighting and an escalation of tensions
with Iran.

 

General flows into the miners are still limited as indicated by equity ETF
shares on issue declining into this stronger gold price market. This is an
important driver of share valuations as resource specialists are already
broadly favourable to the miners. It's new capital into resource funds, ETF's
and the miners directly that is required for the miners to catch up to the
underlying gold price moves.

 

Physical gold ETF's are now seeing additions, with March witnessing an
increase of 2.5Moz (2.9%), similar levels to February. This is an important
driver of gold balances, as financial market participants have had little
impact on the rise in the gold price so far; Central Banks along with retail
bar and coin are the main drivers of demand.

 

Miners Q1 reporting will begin to feed through in April and should show robust
returns given the stronger commodity price. Discussions we have had with
mining groups continue to point to limited cost inflation pressures so we
believe should result in improved margins and positive guidance outlooks.

 

West African Resources, Greatland Gold, Ora Banda and Collective all provided
robust returns for the month but gains were seen across most of the holdings.
The only position that notably lagged was Emerald Resources following a minor
operational disruption. We have since added to the position as the company
will likely proceed with developing two new mines.

 

Over the month, the Company took more profits on Ora Banda following good
performance and its position sizing remained large. We added to Greatland
Gold, believing the proposed Australian listing will be a key catalyst late in
Q2 25.

 

Sterling gained 2.7% over the month providing a performance headwind, given
the Company does not hedge the currency and most assets are foreign
denominated.

 

                                            Gross Leverage(5)  Commitment Leverage(6)

                                            (%)                (%)
 Golden Prospect Precious Metals Limited    105                105

 

 

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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