N-Q 1 c90853_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 28, 2018

 
 

ASA Gold and Precious Metals Limited

Schedules of Investments (Unaudited)

February 28, 2018 and February 28, 2017

 2018  2017
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   1,015,000   $16,737,350    7.3%   1,215,000   $20,551,725    7.8%
Perseus Mining Limited, (1)   -    -    -    7,067,700    1,700,499    0.6 
         16,737,350    7.3         22,252,224    8.4 
                               
Canada                              
Agnico Eagle Mines Limited   450,000    17,140,500    7.5    450,000    19,084,500    7.2 
Alacer Gold Corp., (1)   2,500,000    3,935,167    1.7    2,500,000    4,774,436    1.8 
Alamos Gold Inc.   875,000    4,445,570    1.9    875,000    6,322,368    2.4 
Asanko Gold Inc., (1)   -    -    -    1,825,000    4,871,241    1.8 
Atlantic Gold Corporation – 144A, (1)(2)   2,750,000    3,278,657    1.4    3,000,000    2,187,970    0.8 
B2Gold Corp., (1)   1,594,338    4,733,443    2.1    1,594,338    4,890,902    1.8 
Barrick Gold Corporation   1,125,000    12,960,000    5.7    1,125,000    20,902,500    7.9 
Belo Sun Mining Corp., (1)   2,600,000    688,849    0.3    2,600,000    1,876,692    0.7 
Detour Gold Corporation, (1)   450,000    4,102,704    1.8    450,000    5,603,008    2.1 
Eldorado Gold Corporation   1,296,570    1,374,364    0.6    650,000    1,989,000    0.8 
Franco-Nevada Corporation   160,000    11,211,096    4.9    160,000    10,298,947    3.9 
Goldcorp Inc.   932,400    11,664,324    5.1    932,400    14,871,780    5.6 
Guyana Goldfields Inc., (1)   619,500    2,404,044    1.1    1,057,300    5,381,896    2.0 
IAMGOLD Corp., (1)   290,400    1,527,504    0.7    -    -    - 
Integra Gold Corp., (1)   -    -    -    4,957,000    2,832,571    1.1 
Kinross Gold Corporation, (1)   800,000    2,864,000    1.3    800,000    2,832,000    1.1 
New Gold Inc., (1)   500,000    1,260,000    0.6    500,000    1,445,000    0.5 
OceanaGold Corporation   2,654,013    7,072,956    3.1    1,704,013    4,830,172    1.8 
Pretium Resources Inc., (1)   725,000    4,632,750    2.0    525,000    5,307,750    2.0 
Roxgold Inc., (1)   2,827,200    2,489,469    1.1    2,827,200    2,784,686    1.1 
Semafo Inc., (1)   900,000    2,398,504    1.0    900,000    2,754,135    1.0 
Tahoe Resources Inc.   708,200    3,465,671    1.5    708,200    5,995,738    2.3 
TMAC Resources Inc., (1)   26,500    181,719    0.1    26,500    291,699    0.1 
TMAC Resources Inc. – 144A, (1)(2)   185,000    1,268,604    0.6    185,000    2,036,391    0.8 
Torex Gold Resources Inc., (1)   330,000    2,571,495    1.1    280,000    5,410,526    2.0 
Torex Gold Resources Inc. - 144A, (1)(2)   130,000    1,013,013    0.4    125,000    2,415,414    0.9 
         108,684,406    47.6         141,991,322    53.6 
                               
Cayman Islands                              
Endeavour Mining Corporation, (1)   250,000    4,714,408    2.1    -    -    - 
                               
Channel Islands                              
Lydian International Limited, (1)   1,780,000    644,978    0.3    1,780,000    515,263    0.2 
Lydian International Limited – 144A, (1)(2)   12,593,775    4,563,318    2.0    6,879,300    1,991,376    0.8 
Randgold Resources Limited - ADRs   229,100    18,561,682    8.1    254,100    23,303,511    8.8 
         23,769,977    10.4         25,810,150    9.7 
                               
Peru                              
Compañia de Minas Buenaventura S.A.A. - ADRs   699,000    10,869,450    4.8    699,000    8,597,700    3.2 
                               
South Africa                              
AngloGold Ashanti Limited, (3)   898,420    8,391,243    3.7    898,420    9,900,588    3.7 
Gold Fields Limited   1,029,577    4,035,942    1.8    1,029,577    3,181,393    1.2 
Sibanye-Stillwater   1,050,168    1,021,288    0.4    1,029,577    2,087,467    0.8 
         13,448,473    5.9         15,169,449    5.7 
                               
United States                              
Newmont Mining Corporation   570,368    21,788,058    9.5    570,368    19,529,400    7.4 
Royal Gold, Inc.   190,000    15,346,300    6.7    190,000    12,549,500    4.7 
         37,134,358    16.3         32,078,900    12.1 
                               
Total gold mining, exploration, development and royalty companies
(Cost $200,774,981 - 2018, $203,124,227 - 2017)		        215,358,422    94.3         245,899,746    92.8 
                               
Silver mining, exploration and development
companies
Canada                              
MAG Silver Corp., (1)   325,000    3,398,660    1.5    275,000    3,949,248    1.5 
                               
Total silver mining, exploration and development companies
(Cost $2,541,688 - 2018, $2,007,500 - 2017)		        3,398,660    1.5         3,949,248    1.5 
                               
Total gold and silver investments
(Cost $203,316,669 - 2018, $205,131,727 - 2017)		       $218,757,081    95.8%       $249,848,994    94.3%
                               
The notes to financial statements form an integral part of these statements.
1

ASA Gold and Precious Metals Limited

Schedules of Investments (Unaudited) (Continued)

February 28, 2018 and February 28, 2017

   2018  2017
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
United States                              
Stillwater Mining Company, (1)   -   $-    -%   200,000   $3,412,000    1.3%
                               
Total platinum and palladium investments
(Cost $0 - 2017, $2,339,990 - 2017)		        -    -         3,412,000    1.3 
                               
Diamond Mining, Exploration and
Development Companies
Bermuda                              
Petra Diamonds Limited, (1)   1,000,000    846,897    0.4    1,000,000    1,699,980    0.6 
                               
Canada                              
Stornoway Diamond Corporation, (1)   1,389,500    649,653    0.3    1,389,500    908,921    0.3 
Stornoway Diamond Corporation – 144A, (1)(2)   9,698,550    4,534,505    2.0    9,698,550    6,344,164    2.4 
         5,184,158    2.3         7,253,085    2.7 
                               
Total diamond mining, exploration and development companies
(Cost $10,222,660 - 2018, $10,222,660 - 2017)		        6,031,055    2.6         8,953,065    3.4 
                               
Total common shares
(Cost $213,539,329 - 2018, $217,694,377 - 2017)		        224,788,137    98.4         262,214,059    99.0 
                               
Warrants                              
Gold and Silver Investments
Gold mining, exploration, development and
royalty companies
Channel Islands                              
Lydian International Limited, C$0.36 Warrants, 11/27/2017, (1)   -    -    -    585,000    35,188    0.0 
Lydian International Limited, C$0.36 Warrants, 11/27/2017 – 144A, (1)(2)   -    -    -    5,159,475    310,344    0.1 
         -    -         345,532    0.1 
                               
Total gold mining, exploration, development and royalty companies
(Cost $0 - 2017, $260,780 - 2017)		        -    -         345,532    0.1 
Total warrants
(Cost $0 - 2017, $260,780 - 2017)		        -    -         345,532    0.1 
                               
Total investments (Cost $213,539,329 - 2018, $217,955,157 - 2017), (4)        224,788,137    98.4         262,559,591    99.1 
Cash, receivables, and other assets less liabilities        3,641,017    1.6         2,296,047    0.9 
Net assets       $ 228,429,154    100.0%       $ 264,855,638    100.0%

 

  (1) Non-income producing security.
  (2) Restricted security.
  (3) Non-income producing security in 2017 only.
  (4) Cost of investments shown approximates adjusted basis 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 28, 2018 were $71,361,910 and $60,113,103, respectively, resulting in net unrealized appreciation on investments of $11,248,807. Gross unrealized appreciation of investments and gross unrealized depreciation of investments at February 28, 2017 were $82,565,383 and $37,960,948, respectively, resulting in net unrealized appreciation on investments of $44,604,434.

 

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 (Unaudited)

 

Three months ended February 28, 2018 and February 28, 2017

 

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. Investment objective and strategy

 

The Company is a non-diversified, closed-end, internally managed fund that seeks long-term capital appreciation primarily through investing in companies engaged in the exploration for, development of projects or mining of precious metals and minerals.

 

It is a fundamental policy of the Company that at least 80% of its total assets must be (i) invested in common shares or securities convertible into common shares of companies engaged, directly or indirectly, in the exploration, mining or processing of gold, silver, platinum, diamonds or other precious minerals, (ii) held as bullion or other direct forms of gold, silver, platinum or other precious minerals, (iii) invested in instruments representing interests in gold, silver, platinum or other precious minerals such as certificates of deposit therefor, and/or (iv) invested in securities of investment companies, including exchange traded funds, or other securities that seek to replicate the price movement of gold, silver or platinum bullion.

 

The Company employs bottom-up fundamental analysis and relies on detailed primary research including meetings with company executives, site visits to key operating assets, and proprietary financial analysis in making its investment decisions.

 

3. 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 28, 2018 and February 28, 2017, the Company held investments in restricted securities of 6.42% and 5.77% of net assets, respectively, valued in accordance with procedures approved by the Company’s Board of Directors as follows:

3

Notes to Financial Statements (Continued)

 

Three months ended February 28, 2018 and February 28, 2017

 

Restricted Securities
February 28, 2018
Shares/
Warrants		   Cost   Issuer   Value
Per Unit		   Value   Acquisition
Date
5,000    $51,131   Torex Gold Resources, Inc. – 144A    $7.79   $38,962   01/31/2018
5,714,475   1,869,119   Lydian International Limited. – 144A   0.36   2,070,623   11/21/2017
1,841,350   1,490,038   Stornoway Diamond Corporation – 144A   0.47   860,913   06/21/2016
6,879,300   1,269,275   Lydian International Limited. – 144A   0.36   2,492,694   05/26/2016
2,750,000   1,285,447   Atlantic Gold Corporation – 144A   1.19   3,278,657   05/09/2016
185,000   898,101   TMAC Resources, Inc. – 144A   6.86   1,268,604   06/26/2015
7,857,200   4,641,822   Stornoway Diamond Corporation – 144A   0.47   3,673,592   07/08/2014
125,000    1,351,000   Torex Gold Resources, Inc. – 144A    7.79   974,051   01/22/2014

 

Restricted Securities
February 28, 2017
Shares/
Warrants		   Cost   Issuer   Value
Per Unit		   Value   Acquisition
Date
1,841,350   $1,490,038   Stornoway Diamond Corporation – 144A   $0.65   $1,204,492   06/21/2016
6,879,300   1,269,275   Lydian International Limited. – 144A   0.29   1,991,376   05/26/2016
5,159,475   234,540   Lydian International Limited, C$0.36 Warrants, 11/27/2017 – 144A   0.06   310,344   05/26/2016
3,000,000   1,402,306   Atlantic Gold Corporation – 144A   0.73   2,187,970   05/09/2016
185,000   898,101   TMAC Resources, Inc. – 144A   11.01   2,036,391   06/26/2015
7,857,200    4,641,822   Stornoway Diamond Corporation – 144A    0.65    5,139,672   07/08/2014
125,000    1,351,000   Torex Gold Resources, Inc. – 144A   19.32    2,415,414   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.

4

Notes to Financial Statements (Continued)

 

Three months ended February 28, 2018 and February 28, 2017

 

The following is a summary of the inputs used as of February 28, 2018 and February 28, 2017 in valuing the Company’s investments at fair value:

 

Investment in Securities
Measurements at February 28, 2018
Description (1)  Level 1   Level 2   Level 3   Total 
                     
Common Shares                    
Gold and Silver Investments                    
Gold mining, exploration, development and royalty companies  $175,049,007   $40,309,415   $-   $215,358,422 
Silver mining, exploration and development companies   3,398,660    -    -    3,398,660 
Diamond Mining, Exploration and Development Companies   1,496,550    4,534,505    -    6,031,055 
Total Investments  $179,944,217   $44,843,920   $-   $224,788,137 

 

Transfers into and out of levels are recognized at the end of the period. During the three months ended February 28, 2018, there were no transfers into and out of Levels 1, 2, and 3.

 

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

 

Investment in Securities
Measurements at February 28, 2017
Description (1)  Level 1   Level 2   Level 3   Total 
                     
Common Shares                    
Gold and Silver Investments                    
Gold mining, exploration, development and royalty companies  $201,547,421   $44,352,324   $-   $245,899,746 
Silver mining, exploration and development companies   3,949,248    -    -    3,949,248 
Platinum and Palladium Investments                    
Platinum and palladium mining companies   3,412,000    -    -    3,412,000 
Diamond Mining, Exploration and Development Companies   2,608,901    6,344,164    -    8,953,065 
Total Common Shares   211,517,570    50,696,489    -    262,214,059 
                     
Warrants                    
Gold mining, exploration, development and royalty companies   35,188    310,344    -    345,532 
Total Investments  $211,552,758   $51,006,883   $-   $262,559,591 
                     

Transfers into and out of levels are recognized at the end of the period. During the three months ended February 28, 2017, there were no transfers into and out of Levels 1, 2, and 3.

 

(1) See schedules of investments for country classifications.
   
  May not total due to independent rounding.
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: March 26, 2018

          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: March 26, 2018

       

 

By

/s/ David S. Lin

 
       
       

 

 

David S. Lin

 

 

 

Chief Financial Officer

 

 

 

(Principal Financial Officer)

 

 

Date: March 26, 2018