GPSS Golden Prospect Precious Metals Limited

Golden Prospect Precious Metals Limited

Monthly Investor Report - December 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 

Ordinary Share and NAV Performance² 

Commentary³ 

The Fund NAV declined 9.3% versus NYSE Gold bugs index which was down 7.0% in December. Gold was 0.7% weaker over the month, with silver and Platinum Group Metals "PGMs" falling more. Sticky inflationary data and President-elect Donald Trump's expected tariff policies that are viewed as stoking inflation added to concern on the pace of rate cuts.

That said, we believe Gold remains well supported as it continues to make new all-time highs in most producer currencies such as Australian dollar. This continues to support strong producer margins and free cash flow for the sector. We believe this will drive further balance sheet improvements, dividends and buybacks and should support a pickup in mergers and acquisitions, as well as consolidation in 2025.

Trump's inauguration is set for January 20th, with early indications on policy changes pointing to an increasingly volatile geopolitical back drop in our view. Tariffs look central to his policy, with implications for global trade. Meanwhile, outlandish claims of Canada joining the US or acquiring Greenland from Denmark, should continue to support central bank demand for Gold. China added Gold reserves for a second straight month in December, whilst a weakening RMB currency should also provide support to retail demand.

The Company remains weighted to producers with development assets, which we believe should provide catalysts through 2025. Within the top 10 positions, Calibre, Ora Banda, West African Resources, Westgold and Greatland Gold all have new mine starts or expansions over the next 12 months.

The Company added to its position in Collective Mining over the month, following its large and growing gold discovery in Colombia.

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.