Monthly Investor Report - April 2025
Golden Prospect Precious Metals Limited
Monthly Investor Report - April 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
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 Facts1
|
Total Gross Assets: |
£68.05m |
|
Reference Currency: |
GBP |
|
Ordinary Shares: |
93,248,499 |
|
Net Asset Value: |
65.81p |
|
Mid-Market Price: |
49.50p |
|
Net gearing: |
6.3% |
|
Discount: |
(24.78%) |
Ordinary Share and NAV Performance2
|
|
One Month |
Three Months |
One Year |
Three Years |
Five Years |
|
|
(%) |
(%) |
(%) |
(%) |
(%) |
|
NAV |
4.54 |
22.76 |
58.01 |
15.64 |
48.09 |
|
Share Price |
(1.00) |
19.28 |
53.25 |
5.32 |
33.78 |
Commentary3
Market sentiment remains extremely sensitive to news headlines regarding US President Trump's trade policies. In this regard, April was marked by continued high volatility following a slew of new tariffs announced early in the month. Despite this, and a 3% strengthening of sterling versus the dollar, the Company NAV gained 4.5% over the month. With share price rises of 34% and 11% respectively, gold producers Greatland Gold and Thor Explorations provided the most significant positive contributions. Conscious of position sizing, the Company took some longer-term profits on Ora Banda, which proved the main detractor over the month with the share price slipping 9%.
Tariffs will likely deter investment following a period of elevated activity. However, because industries worldwide sought to mitigate the effects of tariffs with pre-emptive inventory building, their impact is only just starting to feed through to fundamental economic data. Consumer purchases have begun to slow and businesses are reassessing discretionary capex as they wait and see where tariff levels settle. In the US, Q1 GDP dipped into contraction following a rise in its trade deficit during March, while China's manufacturing PMI slipped back into contraction in April. The slowdown is filtering into global growth estimates; after downgrading US GDP growth forecasts, from 2.1% to 1.7% for 2025, the US Fed's April commentary attested to the risks from stagflation and rising unemployment. Subsequently the Organisation for Economic Co-operation and Development (OECD), and belatedly the International Monetary Fund (IMF), have also lowered global growth forecasts for 2025 and 2026. They cited the effect of rising trade barriers, inflation concerns and the impact of uncertainty on investment and household spending.
The US administration's policies look to be inhibiting growth, straining international relations, complicating central bank monetary policy and undermining confidence in the President. How long these self-inflicted pressures can persist also remains uncertain as more pain may need to show in data in order to bring about an easing of the current hardline framework. Furthermore, the manner in which US policies have been implemented may have longer lasting effects, both on the speed and extent with which the new equilibrium is restored after this jolt. Of note, the shake out has prompted a reappraisal of risks and US treasuries are no longer seen as the "risk free" assets they were. Such an environment will likely see central banks continue adding gold to reserves in preference to treasuries or dollars. Meanwhile, physically-backed ETF holdings increased nearly 1Mozs in April, indicative of a large financial sector allocation to "safe haven" assets.
|
|
Gross Leverage4 (%) |
Commitment Leverage5 (%) |
|
Golden Prospect Precious Metals Limited |
110 |
110 |
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
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. 4 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. 5 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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