Monthly Investor Report - March 2026

Golden Prospect Precious Metals Limited

Monthly Investor Report - March 2026

The full monthly factsheet is now available on the Company's website and a summary can be found below. 

NCIM - Golden Prospect Precious Metals Ltd - Fund Page

Enquiries: 

For the Investment Manager 

Manulife | CQS Investment Management

Craig Cleland 

0207 201 5368 

For the Company Secretary and Administrator 

Apex Fund and Corporate Services (Guernsey) Limited

James Taylor

0203 530 3600

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Fund Description 

The objective of the Golden Prospect Precious Metals Fund is to provide investors with capital growth from a group of companies in the precious metals sector.

Portfolio Managers 

Keith Watson and Robert Crayfourd.

Key Advantages for the Investor 

· Access to under-researched mid and smaller companies in the precious metals sector

· Potential inflation protection from precious metals assets

· Low correlation to major asset classes 

Key Fund Facts1 

Ordinary Share and NAV Performance2 

Commentary3 

The trust fell 22.7% over the month, compared with a 21.7% decline for the VanEck Junior Gold Miners ETF in sterling terms. What may have appeared counterintuitive was that, despite heightened geopolitical tensions in Iran, gold and precious metals sold off sharply. This was driven primarily by rising inflation concerns linked to higher energy prices, which lifted interest‑rate expectations and weighed on gold. In addition, substantial speculative positioning built earlier in the year left precious metals vulnerable to a near‑term correction.

We continue to believe the longer‑term drivers for gold remain intact, including sustained central‑bank demand and its role in protecting wealth from inflation and currency debasement. While the current market focus is on inflation and rates, this could shift toward concerns about slowing growth alongside elevated inflation, a backdrop that has historically been supportive of precious metals.

Gold declined 11.6% from $5,279 to $4,668/oz during the month. Despite this pullback, pricing remains attractive for producers, with first‑quarter 2026 gold prices averaging $4,865/oz versus a fourth‑quarter 2025 average of $4,148/oz, supporting continued margin expansion and strong earnings momentum. Physical gold ETFs saw net outflows, with holdings declining by 3.0%, while broader precious‑metal mining ETFs also experienced outflows, adding further pressure to mining equities. This correction follows a period of exceptionally strong performance across the sector.

A key near‑term consideration for the sector is the impact of higher oil prices on operating costs, following recent disruption to energy supply routes. Oil prices rose 43.8% over the month to $104.0/bbl, likely adding to cost inflation pressures, particularly for larger, remote, lower‑grade operations, partially offsetting the margin benefit from higher gold prices. However, the sector's current margin profile remains robust, with higher gold prices more than offsetting increased energy costs in most cases. Nonetheless, given sensitivity around cost inflation following the post‑COVID period, the portfolio has maintained relatively low gearing and remains focused on assets less exposed to energy‑price volatility.

Whilst the US is claiming a military success in Iran, it is hard to see which objectives have been achieved. The Iranian regime remains very much in place despite the death of Ayatollah Khamenei, with the hardline IRGC military faction appearing to have taken the lead. The removal of their enriched uranium, which was a prior stated objective, remains buried deep in a mountain at Isafhan, following prior US/Israeli attacks, and Iranian resistance has proven very effective through its non-centralised use of drones and missile launch sites. The key outcome for commodity markets is the closure of the Strait of Hormuz and with it the loss of ~13M bbls per day of oil flow, a 20% loss of global LNG and a loss of other key inputs into fertiliser or acid used in the recovery of metals like copper. This will create inflationary impulses over the coming months, reducing the likelihood of rate cuts, but may also have negative implications for the global economy, which we believe should be supportive of precious metals' defensive properties.

Higher inflation may not be the only consequence of war with Iran. Higher energy prices are already impacting economic growth in regions reliant on energy

imports while the Federal Reserve has admitted is difficult to quantify the full impact on the US economy. This may require a more balanced approach to

central bank interest rate policy than the hawkish response currently discounted by markets.

Toward the end of the month, following the sell off, the Company added to Greatland Gold and Westgold Resources, both of which operate producing gold

assets in Australia

Manulife | CQS Investment Management

4th Floor, One Strand, London WC2N 5HR, United Kingdom

T: +44 (0) 20 7201 6900 | F: +44 (0) 20 7201 1200

Tavistock Communications

18 St. Swithin's Lane, London EC4N 8AD

T: +44 20 7920 3150 | [email protected]

Sources: 1,2 CQS as at the last business day of the month indicated at the top of this report. Performance is net of fees and expenses. New City Investment Managers took over the investment management function on 15 September 2008. These include historic returns and past performance is not a reliable indicator of future results. The value of investments can go down as well as up. Please read the Important Information section at the end of this document. 3 All market data is sourced from Bloomberg unless otherwise stated. The Fund may since have exited some / all the positions detailed in the commentary. 5 For methodology details see Article 4(3) of Directive 2011/61/EU (AIFMD) and Articles 6, 7, 9 and 10 of Delegated Regulation 231/2013. 6 For methodology details see Article 4(3) of Directive 2011/61/EU (AIFMD) and Articles 6, 8, 9, 10 and 11 of Delegated Regulation 231/2013.