Golden Prospect Precious
Metals Limited
Monthly Investor Report -
June 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
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
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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 Facts1
|
Total Gross Assets:
|
£39.78m
|
|
Reference Currency:
|
GBP
|
|
Ordinary Shares:
|
85,503,021
|
|
Net Asset Value:
|
42.04p
|
|
Mid-Market Price:
|
32.75p
|
|
Net gearing:
|
10.7%
|
|
Discount:
|
(22.10%)
|
Ordinary Share and NAV
Performance2
|
|
One Month
|
Three
Months
|
One Year
|
Three Years
|
Five Years
|
|
|
(%)
|
(%)
|
(%)
|
(%)
|
(%)
|
|
NAV
|
(6.08)
|
16.52
|
18.49
|
(23.91)
|
28.44
|
|
Share Price
|
(7.75)
|
5.65
|
19.70
|
(34.63)
|
28.43
|
Commentary3
Gold held flat on the month,
maintaining May gains at around the $2,400/oz level, close to
all-time highs. Mining and Silver stocks were softer, with Silver
falling 4% following strong gains through March, April and
May.
The strong gold price year-to-date
was initially driven by robust Chinese retail demand but has
continued to trade at a premium, drawing imports from the West
despite the Central Bank of China reporting a pause in additions
through May and June.
Western demand started to pick up
through June. A key indicator of this is physical ETF holdings
which, after steady selling for two years, are now showing some
additions. They added 243k oz in June, a 0.3% increase, and have
continued to add through July. Global inflation expectations have
continued to soften, with the US & UK CPI dropping to 2.7% and
2.0% respectively, supporting rate cuts before year-end. While the
link between rates and gold has broken down over the last 18
months, it should still be supportive when cuts start.
Gold miners have continued to lag
the gold price, trading at some of the most discounted levels that
have been seen on earnings multiple and NAV's. This could be put
down to the sector's prior cost inflation issues that have
compressed producer margins despite gold strength, especially
during the Covid period. These cost pressures are now easing and in
some cases reversing, which should support improved cash generation
for producers, given the higher gold price through the second
quarter.
With Chinese demand resilient,
Western demand recovering and the combination of the gold price at
all-time highs yet the miners close to all-time lows on price to
NAV multiples, we believe the risk-reward profile is
attractive.
For the Company, we bought Robex
Resources via a placement with a full warrant over the month. We
believe Robex has an attractive gold development mine in Guinea
with a new strong mine-building team that, in our opinion, offers
significant scope to rerate.
|
|
Gross
Leverage5
(%)
|
Commitment
Leverage6
(%)
|
|
Golden Prospect Precious Metals
Limited
|
111
|
111
|
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
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.