Golden Prospect Precious Metals (GPM)

Golden Prospect Precious Metals (GPM) focusses on the small- and mid-cap segments of the gold mining industry, managers Rob Crayfourd and Keith Watson looking to take advantage of inefficiencies and use their in-depth knowledge of the people and assets in the business to generate alpha.

The trust has delivered excellent returns in 2025, up 114% at the time of writing in NAV total return terms. Last year when we initiated coverage we highlighted that miners had failed to respond to a multi-year rally in the gold price. In 2025 they have certainly responded, and rallied hard, but Rob and Keith stress that valuations remain highly attractive. The gold price has more than doubled since the rally began in 2023, transforming the economics for the producers. Yet the miners remain on cheap forward P/Es and attractive P/NAV valuations and the sector is yet to see significant retail inflows (see Portfolio).

In 2025 the managers have been mainly taking profits in their winners and rotating back into companies that hadn’t kept up with the rally. They continue to find opportunities, particularly in the smaller and earlier stage companies, which have flown under the radar so far. However, over the summer they did use some of the profits from sales to pay down debt, which proved prudent as the market sold off sharply in October.

GPM’s discount has come in over the year, but remains attractively wide in absolute terms at 12% at the time of writing, when compared to the fully diluted NAV. There are upcoming subscription rights, which will be exercised on 01/12/2025, which are in the money and should see the trust grow, pushing down costs – which have fallen significantly this year – further. In prior rights exercise periods the run up to exercise has sometimes seen the discount widen as some holders sell to fund their rights, presenting an opportunity to new investors looking for a discount.