REG - Golden Prospect Prec Golden Prospect-GPSS - Monthly Investor Report - April 2024

Golden Prospect Precious MetalsAnnouncement

24/05/2024 16:45

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RNS Number : 9146P  Golden Prospect Precious Metals Ltd  24 May 2024

 

 

Golden Prospect Precious Metals Limited

 

Monthly Investor Report - April 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
(https://ncim.co.uk/golden-prospect-precious-metals-ltd/)

 

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

 

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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:  £39.93m
 Reference Currency:  GBP
 Ordinary Shares:     85,503,021
 Net Asset Value:     41.65p
 Mid-Market Price:    32.30p
 Net gearing:         9.4%
 Discount:            (22.45%)

 

 

Ordinary Share and NAV Performance(2)

 

                One Month  Three Months  One Year  Three Years  Five Years
                (%)        (%)           (%)       (%)          (%)
 NAV            15.44      23.37         6.88      (29.00)      57.82
 Share Price    4.19       19.63         (5.97)    (41.70)      61.10

 

 

Commentary(3)

 

Precious metals were stronger again in April with gold and silver up 6.2% and
11.3% respectively.

 

The Fund's NAV gained 15.4% but the share price lagged, gaining 4.2% as the
discount widened. This compared to the Arca Gold BUGS index, which gained 5.5%
in sterling terms. Gold hit a new all-time high of $2,431/oz around mid-month.
Whilst silver is now displaying its historic higher beta correlation to gold,
it still remains short of its $49.51 all-time high reached in 2011.

 

The Chinese gold price has sustained a steady $20-$40/oz premium over western
pricing so continues to drive flows from the West to East. Western ETF's
remained sellers of physical gold, dropping 11.3Moz, whilst Chinese demand
remains strong, although it does look increasingly aided by retail demand.
This appears to be supported by concerns of a Renminbi devaluation and an
apparent lack of other investment options due to the regional property crisis;
Chinese investors are looking to diversify with property having previously
been a mainstay for domestic investment given tight capital controls.

 

Over the month the Fund added to existing holding Reunion following a bid from
G-Mining. We believe the combination of Reunion's development asset in Guyana
with one of the world's best gold mine building team in G-Mining, having built
multiple mines across the region, could lead to further valuation
appreciation.

 

The Fund also added Equinox Gold on discounted placing, anticipating a
re-rating as their Greenstone asset moves into production, lowering their
overall production cost per ounce.

 

Performance contributions on the month came from across the Fund, including
Emerald Resources, Fortuna Silver and Ora Banda. Emerald Resources has now
seen its acquisition of the Australian Bullseye asset go unconditional as they
exceeded 90% ownership. Fortuna Silver benefitted from stronger silver pricing
and Ora Banda's operational turnaround continues to progress.

 

In addition, the Fund reduced its position in Ecuadorian Gold/Copper project
Adventus Mining after a bid by Silvercorp.

 

                                            Gross Leverage(5)  Commitment Leverage(6)

                                            (%)                (%)
 Golden Prospect Precious Metals Limited    109                109

 

 

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 | 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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