N-Q 1 c75100_nq.htm

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

FORM N-Q

QUARTERLY SCHEDULE OF PORTFOLIO HOLDINGS OF REGISTERED
MANAGEMENT INVESTMENT COMPANY

   

Investment Company Act file number

811-21650

 

 

ASA Gold and Precious Metals Limited

(Exact name of registrant as specified in charter)

     

400 S. El Camino Real, Suite 710, San Mateo, CA

 

94402-1708

(Address of principal executive offices)

 

(Zip Code)

 

JPMorgan Chase Bank, N A

3 MetroTech Center, 6th Floor

Brooklyn, NY 11245

(Name and address of agent for service)

   

Registrant’s telephone number, including area code:

(650) 376-3135

 

   

Date of fiscal year end:

November 30

 

   

Date of reporting period:

August 31, 2013

 

ASA GOLD AND PRECIOUS METALS LIMITED

CONSOLIDATED SCHEDULE OF INVESTMENTS (Unaudited)

             
AUGUST 31, 2013 AND AUGUST 31, 2012   2013     2012  
  Name of Company   Shares /
Principal
Amount		     Value     Percent
of Net
Assets		     Shares /
Principal
Amount		     Value     Percent
of Net
Assets		  
                                       
  Common Shares                                    
                                       
                                       
  Gold and Silver investments
Gold mining, exploration, development and royalty companies		                    
  Australia                                                
  CGA Mining Limited, (1)     —     $ —       0.0 %     1,343,700     $ 3,296,922       0.7 %
  Newcrest Mining Limited - ADRs     1,315,000       15,385,500       5.2       1,315,000       34,268,900       7.1  
  Silver Lake Resources Limited, (1)     1,550,000       1,351,910       0.5       1,550,000       4,751,733       1.0  
  Silver Lake Resources Limited - 144A, (1)(2)     1,750,000       1,526,350       0.5       —       —       —  
                                       
                                       
                18,263,760       6.2               42,317,555       8.8  
                                       
                                       
  Canada                                                
  Agnico-Eagle Mines Limited     429,300       12,900,465       4.4       329,300       15,911,776       3.3  
  Alacer Gold Corp., (3)     1,343,400       4,130,792       1.4       1,343,400       8,063,397       1.7  
  Argonaut Gold Inc., (1)     430,000       2,970,865       1.0       —       —       —  
  B2Gold Corp., (1)     994,338       2,642,257       0.9       —       —       —  
  Barrick Gold Corporation     1,300,000       24,895,000       8.4       1,250,000       48,150,000       10.0  
  Belo Sun Mining Corp., (1)     2,600,000       1,924,646       0.6       —       —       —  
  Centerra Gold Inc.     625,000       3,944,434       1.3       625,000       4,752,611       1.0  
  Detour Gold Corporation, (1)     250,000       2,761,697       0.9       250,000       6,286,120       1.3  
  Eldorado Gold Corporation     650,000       5,557,500       1.9       650,000       8,632,000       1.8  
  Franco-Nevada Corporation     225,000       10,238,920       3.5       225,000       11,666,329       2.4  
  Goldcorp Inc.     982,400       28,980,800       9.8       1,182,400       48,608,464       10.1  
  IAMGOLD Corporation     —       —       —       600,000       7,860,000       1.6  
  Kinross Gold Corporation     1,000,000       5,500,000       1.9       1,325,000       11,792,500       2.5  
  New Gold Inc., (1)     600,000       4,044,000       1.4       —       —       —  
  Osisko Mining Corporation, (1)     1,292,400       6,414,778       2.2       692,400       6,718,307       1.4  
  Torex Gold Resources Inc., (1)     2,100,000       3,188,763       1.1       —       —       —  
  West Kirkland Mining Inc., (1)(2)     909,091       129,414       0.0       909,091       313,384       0.1  
  West Kirkland Mining Inc., C$1.50 Warrants, 11/22/2012, (1)(2)     —       —       —       454,545       —       —  
                                       
                                       
                120,224,332       40.6               178,754,888       37.2  
                                       
                                       
  Channel Islands                                                
  Randgold Resources Limited - ADRs     419,700       32,744,994       11.0       444,700       45,790,759       9.5  
                                       
                                       
  Peru                                                
  Compañia de Minas Buenaventura S.A.A. - ADRs     909,000       11,480,670       3.9       909,000       31,505,940       6.6  
                                       
                                       
  South Africa                                                
  AngloGold Ashanti Limited     593,194       7,931,004       2.7       793,194       25,302,889       5.3  
  Gold Fields Limited     1,029,577       5,302,322       1.8       1,629,577       20,076,389       4.2  
  Harmony Gold Mining Company Limited     400,000       1,448,000       0.5       400,000       3,416,000       0.7  
  Sibanye Gold Limited, (1)     1,029,577       1,063,038       0.4       —       —       —  
                                       
                                       
                15,744,364       5.3               48,795,278       10.2  
                                       
                                       
  United States                                                
  Newmont Mining Corporation     620,368       19,709,091       6.6       520,368       26,372,250       5.5  
  Royal Gold, Inc.     210,000       12,186,300       4.1       210,000       18,484,200       3.8  
                                       
                                       
                31,895,391       10.8               44,856,450       9.3  
                                       
                                       
  Total gold mining, exploration, development and royalty companies
(Cost $222,713,991 - 2013, $213,781,308 - 2012)		             230,353,511       77.7               392,020,870       81.6  
                                       
                                       
  Silver mining, exploration and development companies                                                
  Canada                                                
  Tahoe Resources Inc., (1)     913,500       16,298,567       5.5       923,200       16,810,982       3.5  
                                       
                                       
  Total silver mining, exploration and development companies
(Cost $6,621,104 - 2013, $6,709,422 - 2012)		             16,298,567       5.5               16,810,982       3.5  
                                       
                                       
  Total gold and silver investments
(Cost $229,335,095 - 2013, $220,490,730 - 2012)		             246,652,078       83.2               408,831,852       85.1  
                                       
                                       

UNAUDITED

1

ASA GOLD AND PRECIOUS METALS LIMITED
CONSOLIDATED SCHEDULE OF INVESTMENTS (Unaudited) (continued)

             
AUGUST 31, 2013 AND AUGUST 31, 2012   2013     2012  
  Name of Company   Shares /
Principal
Amount		     Value     Percent
of Net
Assets		     Shares /
Principal
Amount		     Value     Percent
of Net
Assets		  
                                       
                                       
  Platinum and Palladium investments
Platinum and Palladium mining companies		                    
  South Africa                                                
  Anglo American Platinum Limited, (1)     220,100     $ 8,773,040       3.0 %     345,100     $ 17,211,452       3.6 %
  Impala Platinum Holdings Limited     772,400       8,528,040       2.9       1,322,400       20,938,000       4.4  
                                       
                                       
                17,301,080       5.8               38,149,452       7.9  
                                       
                                       
  Exchange traded funds                                                
  ETFS Palladium Trust, (1)     70,000       4,929,400       1.7       40,000       2,469,600       0.5  
  ETFS Platinum Trust, (1)     22,500       3,343,950       1.1       10,000       1,515,200       0.3  
                                       
                                       
                8,273,350       2.8               3,984,800       0.8  
                                       
                                       
  Total platinum and palladium investments
(Cost $8,733,391 - 2013, $5,801,107 - 2012)		             25,574,430       8.6               42,134,252       8.8  
                                       
                                       
  Diamond mining, exploration and development companies                                                
  Canada                                                
  Stornoway Diamond Corporation, (1)     1,639,500       809,092       0.3       1,639,500       1,163,591       0.2  
                                       
                                       
  Total diamond mining, exploration and development companies
(Cost $3,928,898 - 2013 & 2012)		             809,092       0.3               1,163,591       0.2  
                                       
                                       
  Diversified mineral resources companies                                                
  Canada                                                
  NovaCopper Inc., (1)     205,861       391,136       0.1       205,861       508,477       0.1  
                                       
                                       
  United Kingdom                                                
  Anglo American plc     200,000       4,584,237       1.5       414,800       11,517,855       2.4  
                                       
                                       
  United States                                                
  Freeport-McMoRan Copper & Gold Inc.     550,000       16,621,000       5.6       300,000       10,833,000       2.3  
                                       
                                       
  Total diversified mineral resources companies
(Cost $19,991,927 - 2013, $12,356,213 - 2012)		             21,596,373       7.3               22,859,332       4.8  
                                       
                                       
  Total common shares
(Cost $261,989,311 - 2013, $242,576,948 - 2012)		             294,631,973       99.4               474,989,027       98.9  
                                       
                                       
  Total investments
(Cost $261,989,311 - 2013, $242,890,333 - 2012), (4)		             294,631,973       99.4               474,989,027       98.9  
  Cash, receivables, and other assets less liabilities             1,772,103       0.6               5,334,127       1.1  
                                       
                                       
  Net assets           $ 296,404,076       100.0 %           $ 480,323,154       100.0 %
                                       
                                       

 

  (1) Non-income producing security.
     
  (2) Restricted security.
     
  (3) Non-income producing security 2012 only.
     
  (4) Cost of investments shown approximates cost for U.S. federal income tax purposes, determined in accordance with U.S. federal income tax principles. Gross unrealized appreciation of investments and gross unrealized depreciation of investments at August 31, 2013 were $100,534,008 and $67,891,346, respectively, resulting in net unrealized appreciation on investments of $32,642,663. Gross unrealized appreciation of investments and gross unrealized depreciation of investments at August 31, 2012 were $263,569,419 and $31,157,340, respectively, resulting in net unrealized appreciation on investments of $232,412,079.
     
  ADR - American Depository Receipt
     
  Percentage totals may not equal 100% due to independent rounding.
     
  The notes to consolidated financial statements form an integral part of these statements.

UNAUDITED

2

Notes to consolidated financial statements (Unaudited)

Nine months ended August 31, 2013 and 2012

1. Organization These consolidated financial statements include ASA Gold and Precious Metals Limited (the “Company”), and its wholly owned subsidiary, ASA Gold and Precious Metals Advisers, LLC. The Company is a closed-end management investment company registered under the Investment Company Act of 1940, as amended, and was organized as an exempted limited liability company under the laws of Bermuda. ASA Gold and Precious Metals Advisers, LLC is registered as an investment adviser with the state of California and is organized under the laws of Delaware.

2. Summary of significant accounting policies

The following is a summary of the significant accounting policies:

A. Security valuation

The net asset value of the Company generally is determined as of the close of regular trading on the New York Stock Exchange (the “NYSE”) or the Toronto Stock Exchange (the “TSX”), whichever is later, on the date for which the valuation is being made (the “Valuation Time”). Portfolio securities listed on U.S. and foreign stock exchanges generally are valued at the last reported sale price as of the Valuation Time on the exchange on which the securities are primarily traded, or the last reported bid price if a sale price is not available. Securities traded over the counter are valued at the last reported sale price or the last reported bid price if a sale price is not available. Securities listed on foreign stock exchanges may be fair valued based on significant events that have occurred subsequent to the close of the foreign markets.

Securities for which current market quotations are not readily available are valued at their fair value as determined in good faith by, or in accordance with procedures approved by, the Company’s Board of Directors. If a security is valued at a “fair value”, that value may be different from the last quoted price for the security. Various factors may be reviewed in order to make a good faith determination of a security’s fair value. These factors include, but are not limited to, the nature of the security; relevant financial or business developments of the issuer; actively traded similar or related securities; conversion rights on the security; and changes in overall market conditions.

Where the Company holds securities listed on foreign stock exchanges and American Depository Receipts (“ADRs”) representing these securities are actively traded on the NYSE, the securities normally are fair valued based on the last reported sales price of the ADRs.

The difference between cost and market value is reflected separately as net unrealized appreciation (depreciation) on investments. The net realized gain or loss from the sale of securities is determined for accounting purposes on the identified cost basis.

B. Restricted securities

At August 31, 2013 and August 31, 2012, the Company held investments in restricted securities of 0.6% and 0.1% of net assets, respectively, valued in accordance with procedures approved by the Company’s Board of Directors as follows:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Restricted Securities
August 31, 2013
 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Shares

 

Cost

 

 

Issuer

 

Value
Per Unit

 

Value

 

 

Acquisition Date

 

 

1,750,000

 

$

1,338,426

 

 

Silver Lake Resources Limited – 144A

 

$

0.87

 

$

1,526,350

 

 

08/27/2013

 

 

909,091

 

$

1,008,370

 

 

West Kirkland Mining Inc.

 

$

0.14

 

$

129,414

 

 

11/22/2011

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

August 31, 2012
 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Shares/
Warrants

 

Cost

 

 

Issuer

 

Value
Per Unit

 

Value

 

 

Acquisition Date

 

 

909,091

 

$

1,008,370

 

 

West Kirkland Mining Inc.

 

$

0.34

 

$

313,384

 

 

11/22/2011

 

 

454,545

 

$

0

 

 

West Kirkland Mining Inc.,

 

$

0.00

 

$

0

 

 

11/22/2011

 

 

 

 

 

 

 

 

C$1.50 Warrants, 11/22/2012

 

 

 

 

 

 

 

 

 

 

UNAUDITED

3

Notes to consolidated financial statements (continued)

Nine months ended August 31, 2013 and 2012

C. Fair value measurement

In accordance with U.S. GAAP, fair value is defined as the price that the Company would receive to sell an investment or pay to transfer a liability in a timely transaction with an independent buyer in the principal market, or in the absence of a principal market the most advantageous market for the investment or liability. U.S. GAAP establishes a three-tier hierarchy to distinguish between (1) inputs that reflect the assumptions market participants would use in pricing an asset or liability developed based on market data obtained from sources independent of the reporting entity (observable inputs) and (2) inputs that reflect the reporting entity’s own assumptions about the assumptions market participants would use in pricing an asset or liability developed based on the best information available in the circumstances (unobservable inputs) and to establish classification of fair value measurements for disclosure purposes. Various inputs are used in determining the value of the Company’s investments. The inputs are summarized in the three broad levels listed below.

Level 1 – unadjusted quoted prices in active markets for identical investments

Level 2 – other significant observable inputs (including quoted prices for similar investments, interest rates, credit risk, etc.)

Level 3 – significant unobservable inputs (including the Company’s own assumptions in determining the fair value of investments)

The inputs or methodology used for valuing securities are not necessarily an indication of the risk associated with investing in those securities.

The following is a summary of the inputs used as of August 31, 2013 and August 31, 2012 in valuing the Company’s investments at fair value:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Investments in Securities
Measurements at August 31, 2013
 

Description (1)

 

 

Level 1

 

 

Level 2

 

 

Level 3

 

 

Total

 

 

 

    

 

    

 

    

 

    

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Common Shares and Warrants

 

 

 

 

 

 

 

 

 

 

 

 

 

Gold and silver investments

 

$

229,251,950

 

$

17,400,128

 

$

—

 

$

246,652,078

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Platinum and palladium investments

 

 

25,574,430

 

 

—

 

 

—

 

 

25,574,430

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Diamond mining, exploration and development companies

 

 

809,092

 

 

—

 

 

—

 

 

809,092

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Diversified mineral resources companies

 

 

17,012,136

 

 

4,584,237

 

 

—

 

 

21,596,373

 

 

 

    

 

    

 

    

 

    

 

Total

 

$

272,647,608

 

$

21,984,365

 

$

—

 

$

294,631,973

 

Transfers in and out of levels are recognized at the end of the period. There were no transfers in and out of Levels 1, 2, & 3 at August 31, 2013.

(1) See consolidated schedules of investments for country classifications.

UNAUDITED

4


Notes to consolidated financial statements (continued)

Nine months ended August 31, 2013 and 2012

 

Investments in Securities

Measurements at August 31, 2012
 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Description (1)

 

 

Level 1

 

 

Level 2

 

 

Level 3

 

 

Total

 

 

 

    

 

    

 

    

 

    

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Common Shares and Warrants

 

 

 

 

 

 

 

 

 

 

 

 

 

Gold and silver investments

 

$

359,723,190

 

$

49,108,662

 

$

—

 

$

408,831,852

 

 

Platinum and palladium investments

 

 

42,134,252

 

 

—

 

 

—

 

 

42,134,252

 

 

Diamond mining, exploration and development companies

 

 

1,163,591

 

 

—

 

 

—

 

 

1,163,591

 

 

Diversified mineral resources companies

 

 

11,341,477

 

 

11,517,855

 

 

—

 

 

22,859,332

 

 

 

    

 

    

 

    

 

    

 

Total

 

$

414,362,510

 

$

60,626,517

 

$

—

 

$

474,989,027

 

(1) See consolidated schedules of investments for country classifications.

UNAUDITED

5

Item 2. Controls and Procedures.

   

 

 

(a)

The registrant’s President and Chief Executive Officer and its Chief Financial Officer and Treasurer, have concluded that the registrant’s disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940 (the “Act”)) are effective, based on their evaluation of these controls and procedures as of a date within 90 days prior to the filing date of this report.

 

 

(b)

There were no changes in the registrant’s internal control over financial reporting (as defined in Rule 30a-3(d) under the Act) that occurred during the registrant’s most recent fiscal quarter that have materially affected, or are reasonably likely to materially affect, the registrant’s internal control over financial reporting.

Item 3. Exhibits.

     

 

 

The certifications required by Rule 30a-2(a) under the Act are attached hereto.

SIGNATURES

          Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

       

 

 

ASA Gold and Precious Metals Limited

 

 

 

 

By

/s/ David J. Christensen

 

 

 

 

 

 

David J. Christensen

 

 

 

President and Chief Executive Officer

 

 

 

(Principal Executive Officer)

 

Date: September 20, 2013

          Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the date indicated.

       

 

By

/s/ David J. Christensen

 

 

 

 

 

 

David J. Christensen

 

 

 

President and Chief Executive Officer

 

 

 

(Principal Executive Officer)

 

Date: September 20, 2013

       

 

By

/s/ Rodney D. Yee

 

 

 

 

 

 

Rodney D. Yee

 

 

 

Chief Financial Officer and Treasurer

 

 

 

(Principal Financial Officer)

 

Date: September 20, 2013