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

Golden Prospect Precious MetalsAnnouncement

22/01/2025 14:00

For best results when printing this announcement, please click on link below:
https://newsfile.refinitiv.com/getnewsfile/v1/story?guid=urn:newsml:reuters.com:20250122:nRSV3301Ua&default-theme=true

RNS Number : 3301U  Golden Prospect Precious Metals Ltd  22 January 2025

 

 

Golden Prospect Precious Metals Limited

 

Monthly Investor Report - December 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

 

-----------------------------------------------------------------------

 

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:  £45.02m
 Reference Currency:  GBP
 Ordinary Shares:     93,248,499
 Net Asset Value:     44.33p
 Mid-Market Price:    35.50p
 Net gearing:         8.9%
 Discount:            (19.92%)

 

 

Ordinary Share and NAV Performance(2)

 

                One Month          Three Months  One Year  Three Years  Five Years
                (%)                (%)           (%)       (%)          (%)
 NAV            (9.36)             (7.24)        21.02     (16.09)      9.11
 Share Price          (8.39)       (10.69)       20.34     (16.47)      12.70

 

 

Commentary(3)

 

The Fund NAV declined 9.3% versus NYSE Gold bugs index which was down 7.0% in
December. Gold was 0.7% weaker over the month, with silver and Platinum Group
Metals "PGMs" falling more. Sticky inflationary data and President-elect
Donald Trump's expected tariff policies that are viewed as stoking inflation
added to concern on the pace of rate cuts.

 

That said, we believe Gold remains well supported as it continues to make new
all-time highs in most producer currencies such as Australian dollar. This
continues to support strong producer margins and free cash flow for the
sector. We believe this will drive further balance sheet improvements,
dividends and buybacks and should support a pickup in mergers and
acquisitions, as well as consolidation in 2025.

 

Trump's inauguration is set for January 20th, with early indications on policy
changes pointing to an increasingly volatile geopolitical back drop in our
view. Tariffs look central to his policy, with implications for global trade.
Meanwhile, outlandish claims of Canada joining the US or acquiring Greenland
from Denmark, should continue to support central bank demand for Gold. China
added Gold reserves for a second straight month in December, whilst a
weakening RMB currency should also provide support to retail demand.

 

The Company remains weighted to producers with development assets, which we
believe should provide catalysts through 2025. Within the top 10 positions,
Calibre, Ora Banda, West African Resources, Westgold and Greatland Gold all
have new mine starts or expansions over the next 12 months.

 

The Company added to its position in Collective Mining over the month,
following its large and growing gold discovery in Colombia.

 

 

                                            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.

This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact
rns@lseg.com (mailto:rns@lseg.com)
 or visit
www.rns.com (http://www.rns.com/)
.

RNS may use your IP address to confirm compliance with the terms and conditions, to analyse how you engage with the information contained in this communication, and to share such analysis on an anonymised basis with others as part of our commercial services. For further information about how RNS and the London Stock Exchange use the personal data you provide us, please see our
Privacy Policy (https://www.lseg.com/privacy-and-cookie-policy)
.   END  DOCEADFAALLSEFA