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

Golden Prospect Precious MetalsAnnouncement

24/02/2025 07:00

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RNS Number : 0912Y  Golden Prospect Precious Metals Ltd  24 February 2025

 

 

Golden Prospect Precious Metals Limited

 

Monthly Investor Report - January 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

CQS (UK) LLP

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:  £53.89m
 Reference Currency:  GBP
 Ordinary Shares:     93,248,499
 Net Asset Value:     53.61p
 Mid-Market Price:    41.50p
 Net gearing:         7.5%
 Discount:            (22.59%)

 

 

Ordinary Share and NAV Performance(2)

 

                One Month  Three Months  One Year  Three Years  Five Years
                (%)        (%)           (%)       (%)          (%)
 NAV            20.93      (1.16)        58.80     12.82        28.65
 Share Price    16.90      (5.68)        53.70     2.47         32.17

 

 

Commentary(3)

 

 Notwithstanding the tariffs imposed on goods imported from Mexico, Canada
and China, President Trump's use of geopolitics as a negotiating tool extended
to talk of increasing US influence over Greenland and the Panama Canal. This
added to broader market uncertainty that benefitted the precious metal sector.
"Safe haven" assets benefitted from the increased global uncertainty and,
after retracing into the year-end, gold's upward momentum returned with the
price ending the month up 6.6% at $2,798/oz.

 

The outlook for "stagflationary" pressures, with sluggish economic growth
combining with stubbornly high inflation, has worsened as US trade tariffs are
introduced. This comes against a backdrop of elevated and rising government
indebtedness, all of which means gold remains well supported.

 

The Company's NAV rose 20.9% during the month. This compared to sterling
returns of 14.0% registered by the GDXJ equity ETF and Arca Gold Bugs Index
and 12.3% for the Philadelphia Gold and Silver Index. Notable performance
contributions were made by Emerald Resources, whose share price rose of over
33% following strong operational performance. Explorer TDG Resources also made
a robust contribution with the share price more than quadrupling after a
positive resource update, a strategic investment by gold producer Skeena
Resources and strong drill results reported by Amarc at the group's adjacent
deposit.

 

With regards to physical trading, Swiss exports of gold to the US in December
were ~20x higher year-on-year (rising from 3.3t to 64.2t). This represented
the highest monthly gold flow from Switzerland to the US since March 2022 in
the wake of the start of the Russian invasion of Ukraine. Elsewhere, demand
for gold has seen the minimum waiting time to load gold out of the Bank of
England rising from just a few days to up to four weeks according to Reuters.
Meanwhile People's Bank of China data showed that the country continued to
expand gold reserves with the addition of 10t of gold in December. This was
its second consecutive monthly purchase, lifting official gold holdings to
2,280t, representing 5.5% of its total foreign exchange reserves.

 

The more volatile silver price ended January up over 10%. The Silver
Institute's most recent market update indicates that the global silver market
is expected to remain in a sizeable deficit of 149 Moz in 2025. However, this
represents a 19% decline from the estimated prior year deficit of 200Moz.
Demand is projected to hit a new record high of 1.20Bn ozs in 2025, with
industrial production demand growth of +3% year-on-year. This is more than
offsetting a weaker jewellery market which is projected to fall -6% over the
year, with an expected sharp fall in Indian jewellery demand. On the supply
side, total global silver availability for 2025 is forecast to grow by 3% to
an 11-year high of 1.05bn ozs, with recycling supply contributing 200 Moz to
this figure.

 

Elsewhere, Russian metal producer Nornickel, which produces around 40% of
global palladium and a lesser 10% of global platinum, announced that its lower
full-year nickel production was accompanied by a reduction in palladium
output. Palladium Q4 output was down 10% year-on-year to 606koz, while
platinum output fell 11% to 146koz. The Q4 trend compared to overall 2024
palladium/platinum production of 2.76Moz/667koz respectively (+3%/+0.5%
year-on-year). This contributed to a robust performance by platinum-group
metals (PGMs) with palladium and platinum prices ending January up 11% and 8%
respectively.

 

 

                                            Gross Leverage(5)  Commitment Leverage(6)

                                            (%)                (%)
 Golden Prospect Precious Metals Limited    107                107

 

 

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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