Golden Prospect Precious... Share Discussion Threads

[wolstencroft] 06/7/2011 22:17

(edit to 1.5%) 1.5% p.a. plus an outperformance fee and high water mark (so the performance fee is only charged if the NAV is 8% higher than the NAV at the end of the year before).

I guess they take the fee on the basis that they are a very active fund and trade regularly (not only has Wong told me this but I have heard from third parties that they are very active traders in all their portfolios). I'm not completely happy with the fee but the NAV performance speaks for itself.

All taken off NAV on a daily basis.

[chrisis33] 06/7/2011 22:15

wolstencroft - you sound knowledgeable ... do you know how the charges are applied?? Thinking about adding here tomorrow. Forgive my ignorance, i should know this stuff.

[wolstencroft] 06/7/2011 22:11

See
page 6

"
For investment trusts in the Morningstar Commodities and Natural Resources sector, there is a wide range
of current and average discounts. Over one year Golden Prospect has traded at an average 7.5% discount
although there have been periods where the discount has widened (22.2% max, 1.2% min). Today, Golden
Prospect is trading at a 10.0% discount"


This current discount is absurdly wide: I think gold-bugs go for the individual stocks and most don't even look for a fund unless its blackrock gold and general.

This is a fantastic fund even with highish charges. Investers will just have to be patient - just imagine if NAV rises 20% and the discount narrows to 7.5% - that a 1.39 share price (1.25 plus 20% less 7.5%). Conversely on the downside, its pretty rare for discounts to get much wider than this.

[mozy123] 06/7/2011 22:10

also chris, they seem to release RNS Nav values quite randomly, is there a criteria for releasing an RNS here? Ie if the fund gains or loses 3% since last update? We have had 2 this week, so far but only 1 last week and week before!

[mozy123] 06/7/2011 21:55

Hi chris, yes i cant disagree, maybe one of us can email the company and see if they can give us the average discount to nav the fund trades at over its history.

May add a few more again, it does look compelling value.

[chrisis33] 06/7/2011 21:30

One last observation, when the share price hit 105.5p a few days ago, the reported NAV was just under 116p. The share price here reacts to buys/sells I guess, like any other.

[chrisis33] 06/7/2011 21:20

Need to bear in mind that the NAV RNSs are a few days outdated. The latest one announced on 5th July is NAV on 1st July at over 119p. Since then, GPM's largest holdings are mostly up, and PM miners in general are up quite strongly. SLW for example appears to be up some 15% or so over the last 5 days. FRES on the other hand has been quite flat.

I think this is an easy holding to cut when looking for an investment, but the discount is pretty large, I agree. And it should be growing.

Anyone know where the share price tends to track versus it's NAV in terms of a % discount?

[mozy123] 06/7/2011 21:11

Chris, the discount to Nav is getting on the large side again. Something up here or just off the radar to gold bugs?

[chrisis33] 06/7/2011 20:49

Semafo not doing too badly either

[chrisis33] 06/7/2011 20:47

Largest holding, Silver Wheaton, is up over 5% today.

[mozy123] 05/7/2011 20:16

119.17 NAV! HUI up tonight and gold and silver strong in the "weak months" hoping to get some more of this at 08:00:01 tomorrow :)

[mozy123] 04/7/2011 15:43

118.17 Nav! Discount widening again.

[kickstart] 30/6/2011 12:24

Yes Chris, we may be at a turning point for miners after the falls.I particularly like silver as it had a substantial fall from the highs.I expect to see silver back to 42/3 area soon.

[chrisis33] 30/6/2011 11:37

I bought yesterday for the same reasons ... plus miners seem to have generally risen a bit. SLW for example up about 3% or so yesterday.

[kickstart] 30/6/2011 10:42

Just bought 15k at 99.35 (not showing yet). Thats a 16 1/2% discount to latest nav. Looks good to me.

[mozy123] 29/6/2011 13:16

Waiting to see the HUI index at open! Could be another easy 10% here

[mozy123] 29/6/2011 09:15

Nav at 115, gold up and most miners up today as well. Top up oportunity imo. No advice intended.

[mozy123] 28/6/2011 13:12

NAV per share 115.95! back to a 15%+ discount.

The words Dirt Cheap spring to mind.

[bamboo2] 23/6/2011 08:22

mozy123, you were right!
i'm out of gpm now, as i think there could be more market uncertainty to come. good luck all holders.
ps still no reply to my email.

[mozy123] 21/6/2011 19:49

SEMAFO up 15% at the mo in canada. HUI up, This could add a few % tomorrow.

[bamboo2] 08/6/2011 19:51

Gold Stocks Continue to Diverge From Gold June 8, 2011

[bamboo2] 06/6/2011 20:23

Result of Annual General Meeting

Golden Prospect Precious Metals Limited (the "Company") announces that the Annual General Meeting of the Company was held at 11:00 a.m. on Friday 3 June 2011, where all resolutions were passed unanimously as set out in the notice of the Meeting dated 27 April 2011.

[fordtin] 06/6/2011 09:50

I can't think of any reason why there would be a prolonged fall in the share price other than a prolonged fall in the share prices of companies in the portfolio. For that to happen it would probably mean a prolonged fall in the gold price, which doesn't seem to be very likely considering the rate at which the UK, USA and Eurozone are increasing the production capacity of their printing presses.
If you have time, have a look at the chart for AHT, nothing to do with gold mining but it is relevant in that it was buying it's own shares through a prolonged period of depressed share price.

It's worth taking the time to listen to this interview imo;

[bamboo2] 06/6/2011 09:26

just checked where i sent my original mail, it was to ncim. you would have thought a company so close to gpm could have either returned it as undelivered or forwarded it on to legis.

i suppose we should get the agm result soon.

fordtin, agree with your points above, should be all good while the share price is stable or rising. still a little concerned over how the buybacks could pan out in the event of a prolonged fall [for any reason] in the share price.

[fordtin] 04/6/2011 17:20

Bamboo - there are several good things about share buy backs imo.

The foremost is particularly relevant for investment companies like GPM in that buying back at a discount to NAV increases the NAV per share, and the benefits can be easily calculated. I'm sure most people who hold AIM shares are aware of the dreaded dilution, well buybacks are the reverse of dilution. I suppose it could be described as concentration.

Buybacks can provide a market for people who want to sell there shares during quiet trading periods and reduce the likelihood of MM's dragging the share price down at an alarming rate because they don't want to be stuck holding any shares when there are no buyers around.


Buybacks can deter shorters because they never know when the company is going to soak up any loose shares and may lead to to occasional short squeezes if the shortsellers can't find stock to return to the lender when they want to close their shorts.

I'm particularly in favour of 'arms length' buybacks during close periods because that seems to be the time when shorters feel safe from buybacks and director purchases.