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

Golden Prospect Precious MetalsAnnouncement

20/06/2025 07:00

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RNS Number : 6364N  Golden Prospect Precious Metals Ltd  20 June 2025

 

 

Golden Prospect Precious Metals Limited

 

Monthly Investor Report - May 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:  £71.5m
 Reference Currency:  GBP
 Ordinary Shares:     93,248,499
 Net Asset Value:     70.65p
 Mid-Market Price:    51.00p
 Net gearing:         8.8%
 Discount:            (27.81%)

 

Ordinary Share and NAV Performance(2)

 

                One Month  Three Months  One Year  Three Years         Five Years
                (%)        (%)           (%)       (%)                 (%)
 NAV            7.35       31.15         57.84     33.48               33.38
 Share Price    3.03       24.39         43.66            21.43           13.08

 

Commentary(3)

 

It was a positive month for Company performance. The Fund NAV gained 7.4%
despite a drag from continued strengthening of British sterling against the US
dollar. This compared to a more muted sterling return of +0.7% and +1.8%
registered by the Arca Gold Bugs Index and Philadelphia Gold and Silver Index
respectively.

 

An easing of fears around US trade war following the introduction of a 90-day
tariff reprieve initially led to a sell-off in gold. However the metal price
subsequently recovered as investor focus switched to concerns over the
sustainability of US debt as the Trump administration announced the "Big
Beautiful Bill" aimed at lowering taxes and increasing spending. The rise in
US treasury yields did little to arrest US dollar softness with gold prices
ending May unchanged. Escalating geopolitical tensions in the Middle East is
also proving supportive for the gold sector, although the situation remains
volatile and difficult to predict, especially in light of US/Iranian
negotiations.

 

Although the US stepped back from the extremely aggressive rhetoric on trade
tariffs, uncertainty remains elevated and US treasury yields remain stubbornly
high. The US debt sustainability concerns has reinforced the rise in US
treasuries yields adding to support for gold's role as a risk-free reserve
asset among central banks. This was supported by the People's Bank of China's
seventh straight month of gold additions, adding 60k oz in May, taking it to
73.8Moz. This represents 7% of their reserves, versus the global average of
15%.

 

Official sector demand, along with that for bar and coin from emerging
markets, remain the primary drivers to the gold price. However, increasing
concerns on owning the US dollar and treasury assets could drive gold inflows
from financial market participants, who have hitherto largely ignored the
sector. While the gold price ended the month unchanged, related equities
performed well with producers Emerald Resource, Ora Banda and West African
Resources all rising between 15-15% during the month.

 

We believe precious metal miners still offer the most compelling risk-reward
profile in the resources sector given the historically low valuations and as
stronger gold prices start to feed through to earnings

 

                                            Gross Leverage(5)  Commitment Leverage(6)

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

 

 

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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