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

Golden Prospect Precious MetalsAnnouncement

22/08/2025 11:45

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RNS Number : 4570W  Golden Prospect Precious Metals Ltd  22 August 2025

 

 

Golden Prospect Precious Metals Limited

 

Monthly Investor Report - July 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:  £71.1m
 Reference Currency:  GBP
 Ordinary Shares:     93,248,499
 Net Asset Value:     64.74p
 Mid-Market Price:    53.80p
 Net gearing:         11.1%
 Discount:            (16.90%)

 

Ordinary Share and NAV Performance(2)

 

                One Month  Three Months  One Year  Three Years         Five Years
                (%)        (%)           (%)       (%)                 (%)
 NAV            (5.78)     (1.63)        50.07     48.38               (9.59)
 Share Price    (7.56)     8.69          60.60            46.39           (23.14)

 

Commentary(3)

 

This July remained another month of US trade policy-led macroeconomics. Once
US President Trump had passed his 'One Big Beautiful Bill' (OBBB) the
administration's focus returned to negotiating tariffs to be applied on
trading partners. This was in order to help generate tax income from foreign
goods and cushion the government's borrowing requirement, with a 15% tariff
being applied to most imports from the EU. Nevertheless, US debt continues to
increase at an alarming pace. The deficit is estimated to be running at
approximately $1.8Trn/ yr, highlighting potential risks to the sustainability
of the growing US debt burden, which is currently estimated at $36.5 Trn. This
issue is amplified by the FED's balancing act to set interest rates to manage
inflationary pressures verusus a slowdown in US employment markets as the
impact of tariffs feeds through to the economy.

 

While applying tariffs on imports into the US is a politically palatable way
of effectively imposing taxes on the US consumers, ahead of mid-term elections
next year, it is estimated that incremental taxes raised will fall well short
of the current budget deficit. The cost of borrowing remains uncomfortably
high, whilst Trump has also already flagged his desire for rates to return to
1% from the current 4.8% on the US 30yr treasuries, with Trump seeking to
replace US Fed Chair Jerome Powell. This negatively impacts the FED's
perceived independence, a crucial prop to the dollar's status as a global
reserve currency. Whilst

he may succeed to pressure rates lower, inflation remains stubbornly high and
this risk exacerbating stagflation (stagnating growth and high inflation)
pressures, which is a positive backdrop to gold. We note generalists remain
broadly underweight precious metals and would anticipate a rotation back in
the sector given the protective properties against this backdrop and strong
sector earnings

 

Material growth or a significant reduction in the cost of borrowing to offset
deficit spending is needed to address the growing concerns around US, and
indeed global, debt sustainability. With global growth remaining pressured
amid inflationary trade policies, Real assets, such as commodities but
particularly gold and related precious metal mining equities, should benefit.
Having yet to exhibit operational gearing, we believe precious metal mining
equity valuations are extremely attractive, providing a strong reason for
ownership in our opinion.

 

Indeed, the sector continues to show strong free cash flow, driving a
strengthening of balance sheets. This could support further M&A, which
could become a more important investment theme. This month the Company rotated
into some earlier stage projects that may attract interest from consolidators
in the sector. Positions in Tolu Minerals, Polymetals, and TDG were increased.
Against this, profits were taken on the positions in Greatland Gold and Antipa
Minerals. Greatland's operational update indicated a larger-than-expected
capex programme with more aggressive spending plans pushing out future free
cash flow. This came despite plans to extend Telfer Mine production, enhancing
the overall project NPV.

 

Not helped by sterling's near 4% strengthening against the dollar, the Fund
NAV declined 5.8% over the month. This compared to a 1.5% sterling decline
registered by the GDXJ equity ETF and a 5% positive sterling return registered
by the Gold Bugs Index. Greatland Gold acted as a drag to performance with the
share price ending the month around 26% lower following its disappointing
update, but remains one of the Company's strongest contributors year-to-date.
Colombian explorer Collective Mining also pulled

back after its strong recent performance with the share price slipping around
17%. Positive contributions from Equinox Gold, Americas Gold & Silver and
Silvr Mountain Resources helped partially offset these.

 

 

 

 

                                            Gross Leverage(5)  Commitment Leverage(6)

                                            (%)                (%)
 Golden Prospect Precious Metals Limited    114                114

 

 

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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