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

Golden Prospect Precious MetalsAnnouncement

24/09/2025 15:15

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RNS Number : 6803A  Golden Prospect Precious Metals Ltd  24 September 2025

 

 

Golden Prospect Precious Metals Limited

 

Monthly Investor Report - August 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:  £82.0m
 Reference Currency:  GBP
 Ordinary Shares:     93,248,499
 Net Asset Value:     79.83p
 Mid-Market Price:    66.00p
 Net gearing:         9.7%
 Discount:            (17.32%)

 

Ordinary Share and NAV Performance(2)

 

                One Month  Three Months  One Year  Three Years       Five Years
                (%)        (%)           (%)       (%)               (%)
 NAV            23.31      12.99         74.61     94.71             15.60
 Share Price    22.68      29.41         83.33           91.30          2.48

 

Commentary(3)

 

Gold and Silver gained 4.8% and 8.2% respectively in August, which led to a
23.3% gain for Golden Prospect NAV. This compared to sterling returns of 8.9%
for the NYSE Arca Gold Bugs index and 22% for the GDX and GDXJ ETFs. We are
encouraged that the miners now appear to be providing the operating leverage
to the underlying commodity had been absent in the year-to-date.

We have previously discussed Central Bank demand being the primary driver of
gold's price move and we expect demand from this segment to continue in the
current global environment given concerns around fiscal spending, together
with geopolitical and trade related uncertainties. In addition, we also
anticipate greater participation from the financial sector as evidenced by the
recent steady additions to global physical backed gold ETF's. We believe the
global economic backdrop continues to provide further tail wind drivers for
gold, despite the sector having repeatedly made new all-time highs through
2025.

Generalist investor exposure to the gold sector remains at historically low
levels, with physical gold ETF's having a current value of $300bn, equivalent
to just 0.1% of "global assets".3 We believe this level of portfolio insurance
is inadequate in the current environment.

Notwithstanding the substantial downgrades to historic US jobs data over the
last fiscal year, employment data remains soft while core inflation remains
stubbornly sticky as US tariff impacts continue to feed through to broader
pricing. This suggests an economic backdrop of "stagflation" (stagnating
growth and inflation) which is normally the most positive environment for gold
and silver. Tasked with balancing the need to lower interest rates in order to
defend broader employment and also to control inflation, the Federal Reserve
Bank also faces challenges to its independence by the Trump administration,
adding a further dimension to potential risks around longer-term confidence in
dollar assets.

We also note that, while precious metal mining equities have also stopped
seeing fund outflows, they have as yet seen little material capital inflows.
This suggests we may be at the earlier stages of the end of the investment
cycle rather than the late stages. Broader generalist funds are yet to make
meaningful allocations into related mining equities. This is despite the
sector looking attractively valued on both an absolute basis and relative to
multiples in many other sectors.

Within the portfolio we have seen divergent moves in underlying stocks, which
has provided opportunity to trim some of our winners and add to the laggards.
In bull markets it is often the junior end of the sector that sees outsized
gains, in part due to the operational leverage that and attractive valuations
they offer. The extreme bearish sentiment evident across the junior mining
sector in general, and especially in the precious metal names, has left junior
names trading at relative discounts. Whilst we remain weighted to producers,
we are using this opportunity to rotate into some late-stage development names
where we see better risk / reward. Over the month, the Company added to
Polymetals, an Australian silver/zinc mine that has just restarted with some
early high grade silver zones in the mine. It also added a new position in
Larvotto Resources, a high-grade gold/antimony mine in Australia with a low
capex restart in Q2 2026.

The Company saw notable gains from across the portfolio, with the largest
sterling gains from Equinox +41%, Collective +41% , Thor +51%, Ora Banda +31%.

 

 

                                            Gross Leverage(5)  Commitment Leverage(6)

                                            (%)                (%)
 Golden Prospect Precious Metals Limited    111                111

 

 

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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