Reading through the Interim Accounts to June 2026 for Golden Prospect Precious Metals (GPM), I am left wondering about its costs. In particular, the cost of a) the share buy-back, b) the cost of selling assets to fund the share buy-back and c) the cost of bringing in a dividend policy funded by selling the company’s investments.
I am at last meaningfully in the black on my Golden Prospect Precious Metals (GPM) shares. The stock is now 101.5p, the NAV announced on Friday was 110.6p (110.19p adjusted for the shares to be issued in December. But given how gold and gold shares raced ahead on Friday, I’d expect the NAV announced today to be at least 115p.
Golden Prospect (GPM) announced a series of changes yesterday: a new manager, a dividend policy, confirmed its 20% leverage limit, reduced fees and the intention to move to the main market. It is all positive, sort of, but I have a few niggles nonetheless. Having sold out at well above the current share price, is Golden now a buy?
Fully listed Golden Prospect (GPM) has announced an EGM to seek approval to buy back another 15% of its shares. If approved and fully used it would see the company holding up to around 40% of its own shares. But where is the money coming from?
I suggested at the weekend that fully-listed Golden Prospect
(GPM) might be worth switching out of temporarily. My view on that has hardened
sharply, for what I see is gross irresponsibility and huge unnecessary risks
being taken as well as slap-handed shareholder mis-communication.
On the one hand, it has been pleasing to see fully-listed
Golden Prospect (GPM) stock showing resilience to the current corrective market
forces in the precious metals space but the more I think about it, the less
reassuring it is to me. Let me explain.
Shares in fully-listed Gold and other precious metals investor
Golden Prospect (GPM) currently sit at 105p in the middle. The shares have been
very resilient to the more general correction going on in the precious metals
market: whilst over the past month Gold has fallen from $4,700 to the current
$4,388 and GDXJ (the “junior” Gold-mining ETF) has fallen 8%, shares in Golden
Prospect are marginally up. This, however, is not the whole story….
Shares in Golden Prospect (GPM) are well up on my purchase price, at 109p, and part of me is itching to sell on the basis that the management team seem to be batshit crazy. But part of me hangs on as gold is again starting to rumble and I reckon the NAV is set to go a lot higher. I am genuinely torn here.
Golden Prospect (GPM) , where I am a loyal shareholder continues its share buyback with new purchases every day. Yesterday it bought back 400,789 shares at an average price of 105.27p.
Fully-listed investor in Gold and precious metals miners
(and would-be miners) Golden Prospect (GPM) announced a third buy-back of its
shares yesterday, this time for 75,000 shares at 101.7p a pop. I think this is
really good news for shareholders.
am quite happy holding my shares in Golden Prospect (GPM) . The company has announced the buyback of another 75,000 today at less than 93p. As long as it is buying at a whopping discount to NAV and to the bonus issue price ( 103p) in December it is acting sensibly. The shares are now 103p but the fully diluted NAV is 125.56p
The fully diluted NAV per share yesterday was 120.82p. Shares in Golden Prospect Precious metals (GPM) are today just 94.5p. What am I, as a loyal shareholder, missing here? The discount is 21.8%
Last week started with news that the portfolio managers of
fully-listed Golden Prospect (GPM) had tendered resignations. Golden Prospect responded
by serving protective notice of termination with their employer, Manulife, but
that notice cannot come into effect for 12 months whilst the managers can waltz
off after just three months, leaving a potential management black hole for
investors to consider. So what to do?
Shares in fully-listed Golden Prospect (GPM) fell on Friday, perhaps a bit unexpectedly, by 3.7%. By comparison, the US version of the Gold-mining ETFs were ahead by up to 2.8%. And the last stated NAV of Golden, released on Friday (as of Thursday night) was up. So what is going on?
