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

Golden Prospect Precious MetalsAnnouncement

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RNS Number : 4793J  Golden Prospect Precious Metals Ltd  21 May 2025

 

 

Golden Prospect Precious Metals Limited

 

Monthly Investor Report - April 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:  £68.05m
 Reference Currency:  GBP
 Ordinary Shares:     93,248,499
 Net Asset Value:     65.81p
 Mid-Market Price:    49.50p
 Net gearing:         6.3%
 Discount:            (24.78%)

 

Ordinary Share and NAV Performance(2)

 

                One Month  Three Months  One Year  Three Years  Five Years
                (%)        (%)           (%)       (%)          (%)
 NAV            4.54       22.76         58.01     15.64        48.09
 Share Price    (1.00)     19.28         53.25     5.32            33.78

 

Commentary(3)

 

Market sentiment remains extremely sensitive to news headlines regarding US
President Trump's trade policies. In this regard, April was marked by
continued high volatility following a slew of new tariffs announced early in
the month. Despite this, and a 3% strengthening of sterling versus the dollar,
the Company NAV gained 4.5% over the month. With share price rises of 34% and
11% respectively, gold producers Greatland Gold and Thor Explorations provided
the most significant positive contributions. Conscious of position sizing, the
Company took some longer-term profits on Ora Banda, which proved the main
detractor over the month with the share price slipping 9%.

 

Tariffs will likely deter investment following a period of elevated activity.
However, because industries worldwide sought to mitigate the effects of
tariffs with pre-emptive inventory building, their impact is only just
starting to feed through to fundamental economic data. Consumer purchases have
begun to slow and businesses are reassessing discretionary capex as they wait
and see where tariff levels settle. In the US, Q1 GDP dipped into contraction
following a rise in its trade deficit during March, while China's
manufacturing PMI slipped back into contraction in April. The slowdown is
filtering into global growth estimates; after downgrading US GDP growth
forecasts, from 2.1% to 1.7% for 2025, the US Fed's April commentary attested
to the risks from stagflation and rising unemployment. Subsequently the
Organisation for Economic Co-operation and Development (OECD), and belatedly
the International Monetary Fund (IMF), have also lowered global growth
forecasts for 2025 and 2026. They cited the effect of rising trade barriers,
inflation concerns and the impact of uncertainty on investment and household
spending.

 

The US administration's policies look to be inhibiting growth, straining
international relations, complicating central bank monetary policy and
undermining confidence in the President. How long these self-inflicted
pressures can persist also remains uncertain as more pain may need to show in
data in order to bring about an easing of the current hardline framework.
Furthermore, the manner in which US policies have been implemented may have
longer lasting effects, both on the speed and extent with which the new
equilibrium is restored after this jolt. Of note, the shake out has prompted a
reappraisal of risks and US treasuries are no longer seen as the "risk free"
assets they were. Such an environment will likely see central banks continue
adding gold to reserves in preference to treasuries or dollars. Meanwhile,
physically-backed ETF holdings increased nearly 1Mozs in April, indicative of
a large financial sector allocation to "safe haven" assets.

 

 

                                            Gross Leverage(4)  Commitment Leverage(5)

                                            (%)                (%)
 Golden Prospect Precious Metals Limited    110                110

 

 

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. (4) 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. (5) 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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