Golden Prospect Precious Metals (GPM) has published interim results for the six months to 30 June 2025, reporting a significant uplift in both net asset value (NAV) and share price. Over the period, NAV rose 53.6% from 43.1p to 66.2p, peaking at 75.7p in early June, while the share price climbed 63.9% from 35.5p to 58.2p, with a high of 64.4p mid-June. This marked a clear outperformance of both the gold price – up 25.7% in dollar terms (14.7% in sterling) – and peer ETFs, with the VanEck Gold Miners ETF (GDX) up 40.2% and the VanEck Junior Gold Miners ETF (GDXJ) up 44.3% in sterling terms.
Chairman Toby Birch highlighted that gold’s strength has also been supported by central bank demand, with reserves in the metal now overtaking the euro as the second most widely held reserve asset. Around 20% of central bank reserves are now in gold, versus just 10% a decade ago. At the same time, the US dollar has slipped below 50% of global reserves for the first time since the 1990s, as de-dollarisation gathers pace. Birch noted the paradox that while central banks have been major buyers, investor interest through ETFs has remained muted, suggesting a “stealth bull market” still in its early stages.
The company’s shares also saw their discount to NAV narrow significantly during the period. Having averaged 22.7% in the first five months of the year, the discount tightened to 12.1% by the end of June, and has been as narrow as 6.2% since, reflecting stronger demand for the trust’s shares. Birch said the company’s marketing efforts, including coverage in national media and sector awards, have helped to broaden the shareholder base beyond traditional wealth managers.
Portfolio performance was supported by strong contributions from Australian producers such as Greatland Gold (+159%) and silver miners including MAG Silver (+59%) and Americas Silver (+100%). Early-stage holdings delivered a mixed picture, with some standouts such as TDG Gold (+350%). Managers also took profits in names like Ora Banda, Equinox, Robex, and MagSilver, while reinvesting into opportunities such as Polymetals (a silver project in Australia) and Tolu, an explorer in Papua New Guinea.
Gearing added 3.1% to returns over the half year, with leverage standing at 8.7% of NAV at period end, well below the 20% permitted maximum. The ongoing charges ratio fell from 2.2% in 2024 to 1.66% in the first half, helped by the rise in NAV.
The company also reminded investors of the upcoming subscription rights in November, which allow shareholders to subscribe for one new share for every five held at a price of 48p – well below the current NAV. The board hopes this will be fully taken up, adding to the trust’s scale.
On governance, long-standing director Robert King retired at the May AGM, having served since launch, while audit chair Graeme Ross stepped down for family reasons. They were replaced by Monica Tepes, an investment trust specialist, and Helen Green, a Guernsey-based accountant with extensive board experience in the resources sector.
In addition, the company reached a standstill agreement with Saba Capital, the US activist investor that has been targeting UK closed-end funds. Under the deal, which runs until the 2028 AGM, Saba has agreed not to call meetings or oppose certain board resolutions, providing stability for management.
Looking ahead, the managers remain constructive on the outlook for gold, highlighting ongoing geopolitical risks, rising US fiscal deficits, and shifting reserve allocations as supportive drivers. They argue that mining shares remain undervalued relative to their cash generation and should benefit from operational leverage if gold prices remain elevated. Birch concluded that while setbacks are inevitable, “this may be the end of the beginning” for the current bull market, with scope for mainstream investors to re-engage with the sector over the coming years.
QD comment from Matthew Read: Golden Prospect Precious Metals’ interim results underline just how powerful the leverage of mining equities can be when the gold price is on the move. A 25% gain in the gold price has translated into a NAV increase of more than 50% for the trust, comfortably outstripping the returns available from passive ETF exposure. The sharp narrowing of the discount from more than 20% to single digits almost certainly reflects this strong performance and the return of investor interest to the asset class.
The board’s standstill agreement with Saba Capital also removes a potential distraction and gives management space to focus on capturing further upside. With subscription rights coming in November at 48p – well below both the NAV and current market price – investors have an additional opportunity to benefit.
The big question is whether this is just the beginning of a new cycle for gold and the miners. The combination of central bank buying, de-dollarisation trends and concerns over US debt sustainability could provide a strong tailwind. If mainstream investors begin to re-engage with the asset class, the rerating of gold mining shares could still have some way to run.
