REG - Geiger Counter Ltd Geiger Counter - GCS - GCL MONTHLY FACT SHEET MARCH 2024

Geiger CounterAnnouncement

26/04/2024 14:15

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RNS Number : 2599M  Geiger Counter Ltd  26 April 2024

 

 

Geiger Counter Limited Plc

 

Monthly Investor Report - March

 

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

 

NCIM - Geiger Counter Ltd - Fund Page for Geiger Counter Ltd
(https://ncim.co.uk/geiger-counter-ltd/)

 

 

Enquiries:

 

For the Investment Manager

CQS (UK) LLP

Craig Cleland

0207 201 5368

 

For the Company Secretary and Administrator

BNP Paribas S.A., Jersey Branch

Dean Plowman/Ann-Marie Pereira

01534 813 967/ 01534 709198

 

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Fund Description

 

The objective of the Geiger Counter Fund is to provide investors with the
potential for capital growth through investment primarily in the securities of
companies involved in the exploration, development and production of energy,
predominantly within the uranium industry. Up to 30% of the value of the
Company's investment portfolio may be invested in other resource-related
companies from outside the energy sector.

 

Portfolio Managers

 

Keith Watson and Robert Crayfourd

 

 

Key Advantages for the Investor

·      Access to mining assets in the uranium sector

·      May benefit from embedded subscription share

·      Low correlation to major asset classes

 

 

Key Fund Facts(1)

 

 

 Total Gross Assets                   £105.6m
 Reference Currency                   GBP
 Ordinary Shares:
   Net Asset Value                    71.30p
   Mid-Market Price                   50.0p
 Net gearing(4)                       15.97%
 Discount                             (29.87%)

 

 

Ordinary Share and NAV Performance(2)

 

                One Month    Three Months    One Year    Three Years    Five Years
                (%)          (%)             (%)         (%)            (%)
 NAV            4.30         6.31            70.74       106.79         278.05
 Share Price    (6.02)       (7.41)          35.14       31.58          162.12

 

 

Commentary(3)

 

After its strong run into mid-February, the U3O8 (Uranium) price consolidated
during March with the spot price ending the month 6.6% lower at $88.25/lb.
However, uranium-related equities proved resilient and the Fund NAV increased
4.3%, compared to a 3.3% sterling return registered by the Solactive Uranium
Pure Play Index. Since March month-end, more widespread reporting of flooding
in Kazakhstan has raised concerns of supply disruption from the largest
Uranium producing country. However, melt waters have primarily affected river
systems in the north of the country rather than the primary uranium producing
operations located in the south. As such, potential disruption may be more
administrative, though we believe this nevertheless highlights supply risks
resulting from a such concentrated number of producers.

 

Sector news remains supportive. Notably, countries attending the Nuclear Power
Summit,

organised by the International Atomic Anergy Association, all backed plans for
a wider adoption of nuclear power as a key source of base load power. Positive
comments on the sector from the CEO of US nuclear power operator,
Constellation, formerly part of Exelon, typifies sentiment towards Nuclear
energy. The industry appears to benefit from bipartisan political support,
helpful state and federal policies, and increased customer demand for reliable
and clean energy. We believe this provides confidence to underpin the
industry's growth via existing reactor life extensions and incremental reactor
development. Encouragingly, European producer Urenco also announced it had
commenced construction work as part of its previously announced enrichment
supply expansion plans.

 

Calls for a relaxation on the uranium mining ban in Western Australia by
Australia's Chamber of Commerce could be a precursor to some progress on
economic projects that are currently prevented from being developed. Such
efforts could also be adopted by other nations, such as the US, that are
seeking to encourage much needed domestic U3O8 production and to reduce
nuclear fuel supply chain risks. This could benefit investments, such as
Laramide and IsoEnergy, which have assets in states which currently prevent
uranium mining.

 

The largest contributors to performance were Canadian mine developer Nexgen
and ASX-listed Paladin, whose share prices both rose over 10% in sterling
terms over the month. Both companies provided positive updates on their
projects. IsoEnergy also announced plans to reopen its small, and already
permitted, Tony M mine in Utah during 2025. Ur-Energy announced its first
shipment of uranium from its restarted Lost Creek project and also indicated
that it would expand its fully permitted and licensed Shirley Basin Project in
Wyoming. This helped drive a recovery in the position that had weakened
mid-month.

 

We believe the Fund is well placed to grow with the up-coming issuance of
embedded 1 for 5 rights, at an issue price of 37.74p, due towards the end of
April.

 

                       Gross Leverage(6)  Commitment Leverage(7)

                       (%)                (%)
 Geiger Counter Ltd    116                116

 

 

CQS (UK) LLP

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

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

 

CQS (US), LLC

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

T: +1 212 259 2900 | F: +1 212 259 2699

 

Tavistock Communications

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

T: +44 20 7920 3150 | geigercounter@tavistock.co.uk

 

Sources: (1)R&H Fund Services (Jersey) Limited, as at the last business
day of the month indicated at the top of this report. (2)R&H Fund Services
Limited/DataStream, as at the last business day of the month indicated at the
top of this report, total return performance net of fees and expenses based on
bid prices. 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 legal notice at the end of this
document. (3)Market data sourced from Bloomberg unless otherwise stated. The
Fund may since have exited some or all of the positions detailed in the
commentary. (4) BMO, UxC, Company data September 2023. (5) www.eia.gov
(http://www.eia.gov) . (6)CQS, as at the last business day of the month
indicated at the top of this report. 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. (7)CQS, as at the last business day of the month
indicated at the top of this report. 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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