Investment Manager, Dividend Policy & Main Market

Golden Prospect Precious Metals Ltd

10 July 2026

 

NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION IN WHOLE OR IN PART, DIRECTLY OR INDIRECTLY IN, INTO OR FROM ANY JURISDICTION WHERE TO DO SO WOULD CONSTITUTE A VIOLATION OF THE RELEVANT LAWS OR REGULATIONS OF THAT JURISDICTION

THIS ANNOUNCEMENT CONTAINS INSIDE INFORMATION

FOR IMMEDIATE RELEASE

10 July 2026

Golden Prospect Precious Metals Limited
(the "Company" or "GPM")

Appointment of new Investment Manager, New Enhanced Dividend Policy and Intention to move to Main Market

HIGHLIGHTS

·    Heads of Terms agreed to appoint Baker Steel Capital Managers LLP as Investment Manager and AIFM, expected to commence Q3 2026

·    Mark Burridge and Trevor Steel will lead the portfolio management, bringing a track record of strong outperformance

·    The Company's strategy will remain focused on smaller cap gold and precious metals mining listed equities

·    Improved terms compared with current management arrangements:

o  Reduced management fees

o  Waived management fees for the remainder of the current manager's notice period and contribution to other costs

o  Shorter notice period following a minimum term

·    Introduction of an enhanced dividend policy targeting c. 6% p.a. paid quarterly at a rate of 1.5% of the preceding quarter-end NAV per share

·    The Board is considering a move to the Main Market of the London Stock Exchange

EXECUTIVE SUMMARY

Heads of terms agreed for the Appointment of Baker Steel as Investment Manager

Following the resignation of the Company's portfolio managers in March 2026 and the Board's subsequent review of options, the Company announces that Heads of Terms have been agreed for the appointment of Baker Steel Capital Managers LLP ("Baker Steel") as the Company's Investment Manager and AIFM ("the Appointment"). The Appointment is expected to commence during the third quarter of 2026.

Continued focus on smaller companies

There will be no change to the Company's investment objective and the portfolio will remain focused on smaller capitalisation gold and precious metals mining listed equities.

Specialist fund manager with track record of strong outperformance

Baker Steel, established in 2001 and based in London and Perth, Western Australia, is a leading independent metals and mining specialist fund manager with c. £1.7 billion under management. Mark Burridge and Trevor Steel will lead the portfolio management, supported by a well-resourced investment team. They have a very strong track record investing in gold and precious metal mining stocks, significantly outperforming over 1, 3, 5 and 10 years.

Baker Steel Precious Metals Strategy track record vs the MSCI ACWI Select Gold Miners Index, GBP %

	SVS Baker Steel Gold & Precious Metals Fund B Class	MSCI ACWI Select Gold Miners Index
1 year	+69.2%	+53.0%
3 year	+214.2%	+165.0%
5 year	+187.8%	+139.8%
10 year	+335.6%*	+179.3%

Source: Bloomberg. Data as of 30 June 2026.

*Based on D GBP Class of Baker Steel Global Funds SICAV Precious Metals Fund as the B Share Class inception is shorter than 10 years.

Value-driven research-intensive approach

Baker Steel employs a value-driven investment approach with a strong focus on risk management, combining disciplined bottom-up stock selection and top-down asset allocation. The team has deep expertise in mining and has developed proprietary value, risk and ESG research tools which, together with extensive company engagement and site visits, support a robust blend of quantitative and qualitative analysis.

Strong marketing & distribution capabilities, aligned through the cycle

Baker Steel is a well-known name in the natural resources sector and has strong marketing and distribution capabilities in the UK and across Europe, which will benefit the Company. Furthermore, as Baker Steel operates exclusively in the natural resources sector, it should be better aligned with the Company throughout the cycle.

A differentiated offering which fits very well within the Baker Steel fund range

The Company's smaller cap, higher risk/reward, tactically-geared, income-paying strategy is complementary to the current Baker Steel fund offering which includes two mainstream, liquid, non-dividend paying OEICs and an investment trust which invests in private companies in the diversified mining sector. The value and growth opportunities in smaller cap mining equities typically come with higher risk and lower liquidity, making these companies not appropriate for significant inclusion in mainstream gold funds such as the SVS Baker Steel Gold & Precious Metals Fund.

Improved terms

The key terms of Baker Steel's appointment are set out below and represent an improvement on the Company's current arrangements with CQS (UK) LLP ("CQS Manulife").

1.   Reduction in management fees

·    Management fees will be charged at a lower rate than under current arrangements (as shown below) and also applied to the average of market capitalisation and net assets (capped at net assets) vs net assets currently

Annual management fee	New arrangements	Current arrangements
Charged on	The average of market capitalisation and net assets, capped at net assets	Net assets
Rate	0.9% up to £250 million 0.8% over £250 million	1.25% up to £20 million 1.00% over £20 million

·    Based on net asset values and market capitalisations over the six months to 30 June 2026 (being the latest practicable date before this announcement), the new management fee arrangement would have been equivalent to 0.82% of net assets per annum (vs 1.04% under the current arrangement) representing a 0.22% of NAV p.a. saving and equivalent to a 21.3% reduction in management fees.

·    Furthermore, the Board believes that the new fee arrangements are among the most competitive fees in the natural resources investment company sector.

2.   Management fees waived for the remainder of the CQS Manulife notice period

Baker Steel has agreed to waive its management fees for the remainder of the current manager's notice period, which runs to 8 March 2027, such that shareholders do not incur two layers of management fees.

3.   Contribution to other costs

Baker Steel will contribute an amount to be agreed towards the reasonable costs incurred, and to be incurred, by the Company in connection with the change of investment manager and, if it proceeds, the proposed move of the Company's listing to the Main Market of the London Stock Exchange. The contribution will be in the form of further fee waivers.

4.   Shorter notice period

The Appointment is subject to a notice period of six months (compared to 12 months under the current management arrangements) and will have an initial minimum term equal to the period fees are waived plus 18 months.

Introduction of c. 6% p.a. enhanced dividend policy

As part of the Board's discount control management strategy, the Board will introduce an enhanced dividend policy to work alongside buybacks.

The policy will target an annual dividend of c. 6% to be paid quarterly at a rate of 1.5% of the preceding quarter-end NAV per share[1]. Dividends may be funded using capital reserves as necessary (subject to applicable solvency tests), so there will be no yield requirement placed on the investment strategy.

The Board believes that introducing an attractive regular dividend can help broaden the Company's appeal to a wider range of investors and support demand for the shares. In combination with share buybacks, which help to reduce the supply of shares in the market, the Board believes this combined approach has the potential to reduce the discount over time.

Furthermore, dividends are a way of returning capital at NAV to all shareholders, giving them the opportunity to reinvest at a time when the shares are trading at a discount.

It is expected that the first dividend under the new policy will be announced in July 2026 and will be based on the NAV per Share as at 30 June 2026. Further announcements will be made in due course.

Move to Main Market

The Board is considering making applications to the Financial Conduct Authority and the London Stock Exchange for the Company's ordinary shares to be admitted to the closed-ended investment funds category of the Official List and to trading on the Main Market ("the Admission") and cancelling the Company's listing from The International Stock Exchange.

The Board believes the Admission has the potential to enhance the Company's profile with investors and it will lessen restrictions on the quantum of share issuance and reduce the cost of tap issues. The Company anticipates that it will be eligible for inclusion in the FTSE UK Index Series, including the FTSE All-Share Index, subject to FTSE Russell's index eligibility criteria and review timetable.

If the Company does proceed with an application for Admission, this is expected to occur following the commencement of Baker Steel's appointment and prior to the period in November 2026 when shareholders are able to exercise their subscription rights under the Company's articles. This would mean that the Company would no longer be subject to the maximum £5 million issuance limit which currently applies. A further announcement will be made in due course.

Monica Tepes, Chair of GPM said:

"Following a thorough review, we are delighted to welcome Baker Steel as the Company's new investment manager. Baker Steel is a leading independent metals and mining specialist fund manager with a long-term track record of strong outperformance in gold and precious metals mining investing. The Company will benefit from its well-resourced investment team, deep multi-cycle sector knowledge and proprietary research tools, as well as its strong in-house marketing and distribution capabilities.

As the Company is approaching its 20^th anniversary, we believe the appointment, in conjunction with a reduction in fees, the introduction of a quarterly dividend policy of c. 6% p.a. and a possible move of the Company's listing to the Main Market of the London Stock Exchange will strengthen its competitiveness and put it in a strong position to deliver attractive returns for its shareholders."

Mark Burridge and Trevor Steel, Managing Partners and Fund Managers at Baker Steel said:

"We are honoured to have been appointed as investment manager of Golden Prospect Precious Metals Ltd. The Company has a strong heritage in the precious metals sector, and we look forward to applying our disciplined, value-driven investment approach to deliver long-term value for shareholders.

We intend to work closely with the Board, drawing on our specialist expertise in precious metals mining to capitalise on what we believe is a compelling opportunity in the smaller cap end of the sector. Gold continues to attract demand as a strategic asset underpinned by structurally constrained supply, while mining equities remain attractively valued relative to broader equity markets and are under-owned by investors."

BACKGROUND TO THE APPOINTMENT

The Appointment follows the resignations of Keith Watson and Robert Crayfourd, the Company's portfolio managers, from CQS Manulife, the Company's incumbent investment manager, as announced on 9 March 2026, and the Board's subsequent review of alternative management arrangements announced on 26 March 2026.

The Board conducted a review of a number of proposals, including from CQS Manulife and Tufton Investment Management (the new employer of Keith Watson and Robert Crayfourd), alongside consultations with a number of the Company's institutional shareholders. Following this process, the Board determined that the appointment of Baker Steel is in the best interest of shareholders.

Diana Racanelli and Craig Bethune, senior natural resources portfolio managers at Manulife Canada will continue to manage the portfolio in the interim, as was announced on 19 May 2026.

ABOUT BAKER STEEL

Baker Steel Capital Managers LLP is an independently owned metals and mining specialist fund manager investing globally in public and private markets. Established in 2001, it had approx. £1.7bn in assets under management as of 30 June 2026. 

The firm is well resourced with a 10-strong investment team based in London and Perth, Western Australia, and has a long track record of strong outperformance investing in gold and precious metals mining listed equities.

The firm also has experience of managing investment trusts as Manager of Baker Steel Resources Trust Limited (ticker: BSRT), which invests in diversified private mining companies.

Furthermore, a strong in-house marketing and distribution capability across the UK and European markets supports the firm's products across its target markets, helping to build and sustain demand.

The portfolio managers

Mark Burridge and Trevor Steel will lead the Company's portfolio management. They are both geologists by training, with multi-cycle investment experience in the mining sector. They are supported by a team of analysts with backgrounds ranging from geology and engineering, to economics and social sciences.

Mark Burridge, Managing Partner, CEO and Fund Manager

Mark joined Baker Steel in 2017. He holds a degree in Mining Geology from Imperial College London and is a CFA Charterholder. He has over 30 years' experience in the international metals and mining industry, including geological, financial and executive roles.

Trevor Steel, CIO and Fund Manager

Trevor co-founded Baker Steel in 2001. He holds a degree in Geology from Imperial College London and is a CFA Charterholder. Prior to founding Baker Steel, he worked at Mercury Asset Management (now Blackrock) on the award-winning natural resources team as a senior portfolio manager.

Gold and precious metals strategy track record

Mark and Trevor have a strong long-term track record managing gold and precious metals listed equities - the c.£1bn Baker Steel Gold and Precious Metals strategy, has strongly outperformed its benchmark over 1, 3, 5 and 10 years, as shown below.

Baker Steel Precious Metals Strategy track record vs the MSCI ACWI Select Gold Miners Index, GBP %

	SVS Baker Steel Gold & Precious Metals Fund B Class	MSCI ACWI Select Gold Miners Index
1 year	+69.2%	+53.0%
3 year	+214.2%	+165.0%
5 year	+187.8%	+139.8%
10 year	+335.6%*	+179.3%

Source: Bloomberg. Data as of 30 June 2026.

*Based on D GBP Class of Baker Steel Global Funds SICAV Precious Metals Fund as the B Share Class inception is shorter than 10 years.

While the aforementioned strategy, given its large size, invests primarily in larger cap stocks, the team covers the entire gold and precious metals mining universe. A significant majority of the Company's portfolio is covered by the Baker Steel evaluation database and there is substantial commonality between the names in the GPM portfolio and current and previous investments of Baker Steel funds.

The Baker Steel investment approach

Baker Steel follows a value-driven investment approach with a strong emphasis on risk management.

The investment process is actively managed and disciplined, combining rigorous bottom-up equity research with top-down asset allocation. The team's technical expertise in mining and related disciplines provides a distinct competitive edge, as do the firm's proprietary research tools across value, risk and ESG analysis.

This is supplemented by the investment team's regular company engagement through hundreds of meetings annually, as well as site visits undertaken globally which support the firm's well-established blend of quantitative and qualitative investment decision-making.

As a firm, Baker Steel is well positioned to manage the addition of the Company to its product range. Not only is there a high level of overlap between the Company's holdings and Baker Steel's existing investment research universe, but the firm has strategically grown the Investment team from 5 to 10 personnel over the last few years, substantially increasing research capacity.

Portfolio changes and transition period

There will be no changes to the Company's investment objective and the portfolio will remain focused on smaller capitalisation gold and precious metals mining listed equities. The new portfolio managers will apply their investment process to this investment universe and will build and manage a portfolio of companies where they believe significant value creation can be unlocked by successful exploration, development and M&A activity. They will also have the option to further enhance returns through the use of tactical gearing. The Company's maximum gearing permitted is 20% of net assets. 

MEET THE NEW MANAGERS

The Company will arrange an online presentation from the new managers over the coming months. The webcast will be open to all investors, institutional and retail. The new managers will introduce themselves, present their investment philosophy and process, their approach to managing the Company's portfolio and their market views. There will also be the opportunity to ask questions of the managers and of the Board. A further announcement will be made in due course.

NEXT STEPS

Further announcements will follow in due course with regards to:

·    The enhanced dividend policy - amount of the first dividend and timetable

·    The Appointment - signing of the Investment Management Agreement and start date

·    The Baker Steel online presentation - date and access details

·    Main Market move - application to the FCA and the London Stock Exchange

Enquiries
Golden Prospect Precious Metals Limited Monica Tepes, Chair	Via Company Secretary: [e-mail]
Broker: Cavendish Capital Markets Limited Robert Peel (Corporate Finance) Daniel Balabanoff / Pauline Tribe (Sales)	[phone] [phone]
Company Secretary: Apex Fund and Corporate Services (Guernsey) Limited James Taylor	[phone] [e-mail]
PR: Tavistock Jos Simson / Gareth Tredway / Eliza Logan	[phone]

 Notes to editors

 About Golden Prospect Precious Metals

Golden Prospect Precious Metals Limited is a closed-ended investment company incorporated with limited liability in Guernsey on 16 October 2006. The Company's investment objective is to provide Shareholders with capital growth from a portfolio of smaller companies involved in the gold and precious metals mining sector. For the latest factsheet and other information, click here.

 About Baker Steel Capital Managers LLP

Baker Steel Capital Managers LLP is an independently owned specialist investment manager founded in 2001, focused on natural resources, mining, gold and precious metals equities. The firm employs a value-driven, actively managed investment approach combining bottom-up stock selection, technical sector expertise and rigorous risk management. Baker Steel manages assets on behalf of professional investors, wealth managers and financial institutions from offices in London and Perth, Western Australia. The firm is authorised and regulated by the UK Financial Conduct Authority. For website click here.

  This announcement contains information that is inside information for the purposes of Article 7 of the UK version of Regulation (EU) No. 596/2014 which is part of UK law by virtue of the European Union (Withdrawal) Act 2018, as amended (the Market Abuse Regulation). The person responsible for arranging for the release of this announcement on behalf of Golden Prospect Precious Metals Limited is James Taylor of Apex Fund and Corporate Services (Guernsey) Limited. Upon the publication of this announcement, this information is considered to be in the public domain.

 Important information

 The information in this announcement is for background purposes only and does not purport to be full or complete. The material contained in this announcement is given as at the date of its publication (unless otherwise marked) and is subject to updating, revision and amendment. In particular, any terms referred to herein may be subject to revision and amendment.

Nothing in this announcement shall form the basis of or constitute any offer or invitation to sell or issue, or any solicitation of any offer to purchase or subscribe for any shares or any other securities nor shall it (or any part of it) or the fact of its distribution, form the basis of, or be relied on in connection with, any contract therefor.  None of the Company's shareholders or prospective investors should base any financial decision on this announcement. 

Nothing contained herein constitutes or should be construed as (i) investment, tax, financial, accounting or legal advice (ii) a representation that any investment or strategy is suitable or appropriate to individual circumstances or (iii) a personal recommendation.

The distribution of this announcement in or from certain jurisdictions may be restricted or prohibited by the laws of certain jurisdictions. Recipients of this announcement are required to inform themselves of, and comply with, all restrictions or prohibitions in such jurisdictions. Any failure to comply with applicable requirements may constitute a violation of the laws and/or regulations of such jurisdictions.

 The information contained in this announcement contains certain 'forward-looking statement' with respect to the Company's expectations relating to the future financial condition, performance, results, strategy and objectives of the Company. For example, statements containing words such as 'may', 'will', 'should', 'continue', 'aims', 'estimates', 'projects', 'believes', 'intends', 'expects', 'plans', 'pursues', 'seeks', 'targets' and 'anticipates', and words of similar meaning or the negative thereof, may be forward-looking. By their nature, all forward-looking statements involve risk and uncertainty because they are based on information available at the time they are made, including current expectations and assumptions, and relate to future events and circumstances which may be or are beyond the Company's control, including among other things statements regarding the expected benefits of the Appointment and the Admission.

 The Company's actual future financial condition, performance and results may differ materially from the plans, goals, strategy and expectations set forth in the forward-looking statements and undue reliance should not be placed on forward-looking statements. Except to the extent otherwise required by applicable law, neither the Company nor Baker Steel is under any obligation to update any of the forward-looking statements contained in this announcement or any other forward-looking statements they may respectively make. Past performance is not an indicator of future results and unless expressly stated otherwise, no statement contained or referred to in this announcement is intended to be a profit forecast, estimate or projection of the Company's future results.

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[1] This is a target and not a forecast. There can be no assurance that any such dividend will be payable.

 

END