N-Q 1 c84427_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:

February 29, 2016

 


 

Schedules of Investments (Unaudited)

February 29, 2016 and February 28, 2015

 

   2016   2015 
Name of Company  Shares /
Warrants
   Value   Percent
of Net
Assets
   Shares /
Warrants
   Value   Percent
of Net
Assets
 
                               
Common Shares                              
Gold and Silver Investments                          
Gold mining, exploration, development and royalty companies               
Australia                              
Newcrest Mining Limited, (1)   1,215,000   $15,418,350    7.0%   1,315,000   $14,898,950    6.0%
Canada                              
Agnico Eagle Mines Limited   539,300    18,983,360    8.6    479,300    15,409,494    6.2 
Alacer Gold Corporation, (2)   918,200    1,837,078    0.8    918,200    1,988,589    0.8 
Alamos Gold Inc.   600,000    2,746,401    1.2    450,000    2,718,772    1.1 
Argonaut Gold Inc., (1)   430,000    520,635    0.2    430,000    714,777    0.3 
Asanko Gold Inc., (1)   975,000    1,993,909    0.9             
B2Gold Corporation, (1)   1,594,338    1,777,372    0.8    1,594,338    2,688,447    1.1 
Barrick Gold Corporation   1,375,000    19,098,750    8.6    1,400,000    18,228,000    7.4 
Belo Sun Mining Corporation, (1)   2,600,000    767,811    0.3    2,600,000    415,568    0.2 
Centerra Gold Inc.               375,000    1,831,096    0.7 
Detour Gold Corporation, (1)   450,000    7,079,734    3.2    250,000    2,415,488    1.0 
Eldorado Gold Corporation   650,000    1,950,000    0.9    650,000    3,770,000    1.5 
Franco-Nevada Corporation   185,000    11,028,977    5.0    225,000    11,860,465    4.8 
Goldcorp Inc.   932,400    13,351,968    6.0    967,400    21,263,452    8.6 
Guyana Goldfields Inc., (1)   857,300    2,753,234    1.2             
Kinross Gold Corporation, (1)   1,000,000    2,940,000    1.3    1,000,000    2,840,000    1.1 
New Gold Inc., (1)   600,000    2,034,000    0.9    600,000    2,286,000    0.9 
OceanaGold Corporation   1,054,013    2,910,305    1.3             
Primero Mining Corporation, (1)   200,000    326,000    0.1    200,000    710,000    0.3 
Romarco Minerals Inc., (1)               1,373,500    592,736    0.2 
Romarco Minerals Inc. – 144A, (1)(3)               3,000,000    1,294,654    0.5 
Semafo Inc., (1)   900,000    3,189,369    1.4             
TMAC Resources Inc. – 144A, (1)(3)   185,000    983,389    0.4             
Torex Gold Resources Inc., (1)   2,800,000    3,720,930    1.7    2,800,000    2,573,324    1.0 
Torex Gold Resources Inc. - 144A, (1)(3)   1,250,000    1,661,130    0.8    1,250,000    1,148,805    0.5 
         101,654,352    45.9         94,749,667    38.2 
Channel Islands                              
Randgold Resources Limited - ADRs   287,100    26,197,875    11.8    339,600    26,892,924    10.9 
Peru                              
Compañia de Minas Buenaventura S.A.A. - ADRs, (2)   699,000    3,648,780    1.6    799,000    9,252,420    3.7 
South Africa                              
AngloGold Ashanti Limited, (1)   898,420    11,697,428    5.3    723,420    8,152,943    3.3 
Gold Fields Limited   1,029,577    4,396,294    2.0    1,029,577    4,787,533    1.9 
Harmony Gold Mining Company Limited, (1)               400,000    984,000    0.4 
Sibanye Gold Limited   1,029,577    3,698,755    1.7    1,029,577    2,725,805    1.1 
         19,792,478    8.9         16,650,281    6.7 
United Kingdom                              
Amara Mining plc, (1)   5,000,000    834,960    0.4    5,000,000    1,235,040    0.5 
Amara Mining plc - 144A, (1)(3)   4,135,000    690,512    0.3    4,135,000    1,021,378    0.4 
         1,525,472    0.7         2,256,418    0.9 
United States                              
Newmont Mining Corporation   695,368    17,961,355    8.1    620,368    16,334,289    6.6 
Royal Gold, Inc.   210,000    9,737,700    4.4    210,000    15,141,000    6.1 
         27,699,055    12.5         31,475,289    12.7 
Total gold mining, exploration, development and royalty companies
(Cost $208,863,323 - 2016, $211,060,843 - 2015)
        195,936,362    88.5         196,175,949    79.2 
                               
Silver mining, exploration and development companies                     
Canada                              
MAG Silver Corporation, (1)   275,000    1,955,150    0.9             
Tahoe Resources Inc.   708,200    6,540,851    3.0    708,200    9,898,840    4.0 
Total silver mining, exploration and development companies
(Cost $6,759,368 - 2016, $4,751,868 - 2015)
        8,496,000    3.8         9,898,840    4.0 
Total gold and silver investments
(Cost $215,622,691 - 2016, $215,812,711 - 2015)
       $204,432,362    92.4%       $206,074,789    83.2%

 

The notes to financial statements form an integral part of these statements.

1

Schedules of Investments (Unaudited) (continued)

February 29, 2016 and February 28, 2015

 

   2016   2015 
Name of Company  Shares / Warrants   Value   Percent of Net Assets   Shares / Warrants   Value   Percent of Net Assets 
                               
Platinum and Palladium Investments                        
Platinum and palladium mining companies                     
South Africa                              
Anglo American Platinum Limited, (1)      $    %   220,100   $7,012,398    2.8%
Impala Platinum Holdings Limited, (1)               772,400    4,750,815    1.9 
                      11,763,213    4.7 
United States                              
Stillwater Mining Co., (1)   150,000    1,258,500    0.6             
                               
Exchange traded funds                              
ETFS Palladium Trust, (1)   70,000    3,325,000    1.5    70,000    5,553,800    2.2 
ETFS Platinum Trust, (1)   22,500    2,031,525    0.9    22,500    2,592,000    1.0 
         5,356,525    2.4         8,145,800    3.3 
Total platinum and palladium investments
(Cost $9,631,700 - 2016, $8,733,391 - 2015)
        6,615,025    3.0         19,909,013    8.0 
                               
Diamond Mining, Exploration and Development Companies                   
Bermuda                              
Petra Diamonds Limited, (4)   1,000,000    1,304,625    0.6    1,000,000    2,896,169    1.2 
Canada                              
Dominion Diamond Corporation, (4)   50,000    524,500    0.2             
Stornoway Diamond Corporation – 144A, (1)(3)   7,857,200    5,452,763    2.5    7,857,200    4,395,461    1.8 
Stornoway Diamond Corporation, (1)   1,639,500    1,137,785    0.5    1,639,500    917,166    0.4 
         7,115,048    3.2         5,312,627    2.1 
Total diamond mining, exploration and development companies
(Cost $9,549,559 - 2016, $8,909,336 - 2015)
        8,419,674    3.8         8,208,796    3.3 
                               
Diversified Mineral Resources Companies                              
United Kingdom                              
Anglo American plc               200,000    3,735,996    1.5 
United States                              
Freeport-McMoRan Inc.               365,000    7,894,950    3.2 
Total diversified mineral resources companies
(Cost $0 - 2016, $12,789,287 - 2015)
                     11,630,946    4.7 
Total common shares
(Cost $234,803,950 - 2016, $246,244,725 - 2015)
        219,467,060    99.2         245,823,544    99.2 
                               
Warrants                              
Diamond Mining, Exploration and Development Companies                    
Canada                              
Stornoway Diamond Corporation, C$0.90 Warrants, 07/08/2016 – 144A, (1)(3)   3,928,600    217,530    0.1    3,928,600    313,961    0.1 
Stornoway Diamond Corporation, C$0.90 Warrants, 07/08/2016, (1)   819,750    45,390    0.0    819,750    65,512    0.0 
Total warrants
(Cost $511,408 - 2016 & 2015)
        262,921    0.1         379,473    0.1 
Total investments
(Cost $235,315,358 - 2016, $246,756,133 - 2015), (5)        219,729,981    99.3         246,203,017    99.4 
Cash, receivables, and other assets less liabilities        1,611,782    0.7         1,538,621    0.6 
Net assets       $221,341,763    100.0%       $247,741,638    100.0%
(1) Non-income producing security.
(2) Non-income producing security in 2016 only.
(3) Restricted security.
(4) Non-income producing security in 2015 only.
(5) 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 February 29, 2016 were $58,314,435 and $73,899,811, respectively, resulting in net unrealized depreciation on investments of ($15,585,376). Gross unrealized appreciation of investments and gross unrealized depreciation of investments at February 28, 2015 were $79,964,045 and $80,517,161, respectively, resulting in net unrealized depreciation on investments of ($553,116).

 

ADR - American Depository Receipt.

 

May not total due to independent rounding.

 

The notes to financial statements form an integral part of these statements.

2

Notes to Financial Statements

 

Three months ended February 29, 2016 and February 28, 2015

 

1. Organization

 

ASA Gold and Precious Metals Limited (the “Company”) is a closed-end investment company registered under the Investment Company Act of 1940, as amended (the “1940 Act”), and was organized as an exempted limited liability company under the laws of Bermuda.

 

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 in U.S. markets, 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 February 29, 2016 and February 28, 2015, the Company held investments in restricted securities of 4.07% and 3.30% of net assets, respectively, valued in accordance with procedures approved by the Company’s Board of Directors as follows:

 

Restricted Securities
February 29, 2016
Shares/
Warrants
Cost Issuer Value
Per Unit
Value Acquisition
Date
185,000 $898,101 TMAC Resources, Inc. – 144A $5.32 $983,389 06/26/2015
4,135,000 1,008,461 Amara Mining plc – 144A 0.17 690,512 01/21/2015
7,857,200 4,641,822 Stornoway Diamond Corporation – 144A 0.69 5,452,763 07/08/2014
3,928,600 415,686 Stornoway Diamond Corporation, C$0.90 Warrants, 7/08/2016 – 144A 0.06 217,530 07/08/2014
1,250,000 1,351,000 Torex Gold Resources, Inc. – 144A 1.33 1,661,130 01/22/2014

 

Unaudited

3

Notes to Financial Statements (Continued)

 

Three months ended February 29, 2016 and February 28, 2015

 

Restricted Securities
February 28, 2015
Shares/
Warrants
Cost Issuer Value
Per Unit
Value Acquisition
Date
3,000,000 $1,202,400 Romarco Minerals, Inc. – 144A $0.43 $1,294,654 02/18/2015
4,135,000 1,008,461 Amara Mining plc – 144A 0.25 1,021,378 01/21/2015
7,857,200 4,641,822 Stornoway Diamond Corporation – 144A 0.56 4,395,461 07/08/2014
3,928,600 415,686 Stornoway Diamond Corporation, C$0.90 Warrants, 7/08/2016 – 144A 0.08 313,961 07/08/2014
1,250,000 1,351,000 Torex Gold Resources, Inc. – 144A 0.92 1,148,805 01/22/2014

 

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 February 29, 2016 and February 28, 2015 in valuing the Company’s investments at fair value:

 

Investment in Securities
Measurements at February 29, 2016
Description (1)   Level 1    Level 2    Level 3    Total 
                     
Common Shares                    
Gold and Silver Investments                    
Gold mining, exploration, development and royalty companies  $157,390,504   $38,545,858   $-   $195,936,362 
Silver mining, exploration and development companies   8,496,000    -    -    8,496,000 
Platinum and Palladium Investments                    
Platinum and palladium mining companies   1,258,500    -    -    1,258,500 
Exchange traded funds   5,356,525    -    -    5,356,525 
Diamond Mining, Exploration and Development Companies   2,966,910    5,452,763    -    8,419,674 
Total Common Shares   175,468,439    43,998,621    -    219,467,060 
                     
Warrants                    
Diamond Mining, Exploration and Development Companies   45,390    217,530    -    262,921 
Total Investments  $175,513,829   $44,216,152   $-   $219,729,981 

 

Unaudited

4

Notes to Financial Statements (Continued)

 

Three months ended February 29, 2016 and February 28, 2015

 

Transfers into and out of levels are recognized at the end of the period.   There were no transfers into and out of Levels 1, 2, and 3 at February 29, 2016.

 

(1) See schedules of investments for country classifications.
  May not total due to independent rounding.

 

Investment in Securities
Measurements at February 28, 2015
Description (1)   Level 1    Level 2    Level 3    Total 
                     
Common Shares                    
Gold and Silver Investments                    
Gold mining, exploration, development and royalty companies  $161,161,881   $35,014,068   $-   $196,175,949 
Silver mining, exploration and development companies   9,898,840    -    -    9,898,840 
Platinum and Palladium Investments                    
Platinum and palladium mining companies   11,763,213    -    -    11,763,213 
Exchange traded funds   8,145,800    -    -    8,145,800 
Diamond Mining, Exploration and Development Companies   3,813,335    4,395,461    -    8,208,796 
Diversified Mineral Resources Companies   7,894,950    3,735,996    -    11,630,946 
Total Common Shares   202,678,019    43,145,525    -    245,823,544 
                     
Warrants                    
Diamond Mining, Exploration and Development Companies   65,512    313,961    -    379,473 
Total Investments  $202,743,531   $43,459,486   $-   $246,203,017 

 

Transfers into and out of levels are recognized at the end of the period.   There were no transfers into and out of Levels 1, 2, and 3 at February 28, 2015.

 

(1) See schedules of investments for country classifications.
  May not total due to independent rounding.

 

Unaudited

5

Item 2. Controls and Procedures.

   

 

 

(a)

The registrant’s Principal Executive Officer and its Principal Financial Officer, 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: April 1, 2016

          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: April 1, 2016

       

 

By

/s/ David S. Lin

 

       
       

 

 

David S. Lin

 

 

 

Chief Financial Officer

 

 

 

(Principal Financial Officer)

 

 

Date: April 1, 2016