Monthly Investor Report - August 2025

Golden Prospect Precious Metals Limited

Monthly Investor Report - August 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 

Ordinary Share and NAV Performance² 

Commentary³ 

Gold and Silver gained 4.8% and 8.2% respectively in August, which led to a 23.3% gain for Golden Prospect NAV. This compared to sterling returns of 8.9% for the NYSE Arca Gold Bugs index and 22% for the GDX and GDXJ ETFs. We are encouraged that the miners now appear to be providing the operating leverage to the underlying commodity had been absent in the year-to-date.

We have previously discussed Central Bank demand being the primary driver of gold's price move and we expect demand from this segment to continue in the current global environment given concerns around fiscal spending, together with geopolitical and trade related uncertainties. In addition, we also anticipate greater participation from the financial sector as evidenced by the recent steady additions to global physical backed gold ETF's. We believe the global economic backdrop continues to provide further tail wind drivers for gold, despite the sector having repeatedly made new all-time highs through 2025.

Generalist investor exposure to the gold sector remains at historically low levels, with physical gold ETF's having a current value of $300bn, equivalent to just 0.1% of "global assets".3 We believe this level of portfolio insurance is inadequate in the current environment.

Notwithstanding the substantial downgrades to historic US jobs data over the last fiscal year, employment data remains soft while core inflation remains stubbornly sticky as US tariff impacts continue to feed through to broader pricing. This suggests an economic backdrop of "stagflation" (stagnating growth and inflation) which is normally the most positive environment for gold and silver. Tasked with balancing the need to lower interest rates in order to defend broader employment and also to control inflation, the Federal Reserve Bank also faces challenges to its independence by the Trump administration, adding a further dimension to potential risks around longer-term confidence in dollar assets.

We also note that, while precious metal mining equities have also stopped seeing fund outflows, they have as yet seen little material capital inflows. This suggests we may be at the earlier stages of the end of the investment cycle rather than the late stages. Broader generalist funds are yet to make meaningful allocations into related mining equities. This is despite the sector looking attractively valued on both an absolute basis and relative to multiples in many other sectors.

Within the portfolio we have seen divergent moves in underlying stocks, which has provided opportunity to trim some of our winners and add to the laggards. In bull markets it is often the junior end of the sector that sees outsized gains, in part due to the operational leverage that and attractive valuations they offer. The extreme bearish sentiment evident across the junior mining sector in general, and especially in the precious metal names, has left junior names trading at relative discounts. Whilst we remain weighted to producers, we are using this opportunity to rotate into some late-stage development names where we see better risk / reward. Over the month, the Company added to Polymetals, an Australian silver/zinc mine that has just restarted with some early high grade silver zones in the mine. It also added a new position in Larvotto Resources, a high-grade gold/antimony mine in Australia with a low capex restart in Q2 2026.

The Company saw notable gains from across the portfolio, with the largest sterling gains from Equinox +41%, Collective +41% , Thor +51%, Ora Banda +31%.

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 | [email protected]

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.