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, 2014

 


 
ASA Gold and Precious Metals Limited
Consolidated Schedule of Investments (Unaudited)
August 31, 2014 and August 31, 2013
   2014   2013 
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                              
Newcrest Mining Limited, (1)(2)   1,315,000   $13,860,100    4.5%   1,315,000   $15,385,500    5.2%
Silver Lake Resources Limited, (3)   3,300,000    1,371,579    0.4    1,550,000    1,351,910    0.5 
Silver Lake Resources Limited - 144A, (3)(4)   -    -    -    1,750,000    1,526,350    0.5 
         15,231,679    4.9         18,263,760    6.2 
                               
Canada                              
Agnico Eagle Mines Limited   429,300    16,433,604    5.3    429,300    12,900,465    4.4 
Alacer Gold Corp.   918,200    2,084,708    0.7    1,343,400    4,130,792    1.4 
Argonaut Gold Inc., (3)   430,000    1,758,893    0.6    430,000    2,970,865    1.0 
B2Gold Corp., (3)   1,594,338    4,103,453    1.3    994,338    2,642,257    0.9 
Barrick Gold Corporation   1,400,000    25,746,000    8.3    1,300,000    24,895,000    8.4 
Belo Sun Mining Corp., (3)   2,600,000    597,481    0.2    2,600,000    1,924,646    0.6 
Centerra Gold Inc.   625,000    3,768,729    1.2    625,000    3,944,434    1.3 
Detour Gold Corporation, (3)   250,000    3,145,969    1.0    250,000    2,761,697    0.9 
Eldorado Gold Corporation   650,000    5,382,000    1.7    650,000    5,557,500    1.9 
Franco-Nevada Corporation   225,000    12,669,823    4.1    225,000    10,238,920    3.5 
Goldcorp Inc.   967,400    27,154,918    8.8    982,400    28,980,800    9.8 
Kinross Gold Corporation, (1)   1,000,000    3,940,000    1.3    1,000,000    5,500,000    1.9 
New Gold Inc., (3)   600,000    3,894,000    1.3    600,000    4,044,000    1.4 
Primero Mining Corp, (3)   200,000    1,362,000    0.4    -    -    - 
Osisko Mining Corporation, (3)   -    -    -    1,292,400    6,414,778    2.2 
Torex Gold Resources Inc., (3)   2,150,000    3,498,024    1.1    2,100,000    3,188,763    1.1 
Torex Gold Resources Inc. - 144A, (3)(4)   1,250,000    2,033,735    0.7    -    -    - 
West Kirkland Mining Inc., (3)(4)   -    -    -    909,091    129,414    0.0 
         117,573,337    38.1         120,224,332    40.6 
                               
Channel Islands                              
Randgold Resources Limited - ADRs   382,200    32,162,130    10.4    419,700    32,744,994    11.0 
                               
Peru                              
Compañia de Minas Buenaventura S.A.A. - ADRs   799,000    11,633,440    3.8    909,000    11,480,670    3.9 
                               
South Africa                              
AngloGold Ashanti Limited, (1)   593,194    10,191,073    3.3    593,194    7,931,004    2.7 
Gold Fields Limited   1,029,577    4,983,153    1.6    1,029,577    5,302,322    1.8 
Harmony Gold Mining Company Limited, (1)   400,000    1,216,000    0.4    400,000    1,448,000    0.5 
Sibanye Gold Limited, (5)   1,029,577    2,416,932    0.8    1,029,577    1,063,038    0.4 
         18,807,158    6.1         15,744,364    5.3 
                               
United Kingdom                              
Amara Mining plc, (3)   5,000,000    2,033,255    0.7    -    -    - 
                               
United States                              
Newmont Mining Corporation   620,368    16,805,769    5.4    620,368    19,709,091    6.6 
Royal Gold, Inc.   210,000    16,327,500    5.3    210,000    12,186,300    4.1 
         33,133,269    10.7         31,895,391    10.8 
                               
Total gold mining, exploration, development and royalty companies
(Cost $213,002,439 - 2014, $222,713,991 - 2013)
        230,574,268    74.7         230,353,511    77.7 
                               
Silver mining, exploration and development companies                              
Canada                              
Tahoe Resources Inc., (3)   708,200    18,123,254    5.9    913,500    16,298,567    5.5 
                               
Total silver mining, exploration and development companies
(Cost $4,751,868 - 2014, $6,621,104 - 2013)
        18,123,254    5.9         16,298,567    5.5 
                               
Total gold and silver investments
(Cost $217,754,307 - 2014, $229,335,095 - 2013)
       $248,697,522    80.6%       $246,652,078    83.2%

 

UNAUDITED

1
ASA Gold and Precious Metals Limited 
Consolidated Schedule of Investments (Unaudited) (continued) 
August 31, 2014 and August 31, 2013  2014   2013 
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, (3)   220,100   $9,143,063    3.0%   220,100   $8,773,040    3.0%
Impala Platinum Holdings Limited   772,400    6,969,681    2.3    772,400    8,528,040    2.9 
         16,112,744    5.2         17,301,080    5.8 
                               
Exchange traded funds                              
ETFS Palladium Trust, (3)   70,000    6,167,000    2.0    70,000    4,929,400    1.7 
ETFS Platinum Trust, (3)   22,500    3,113,325    1.0    22,500    3,343,950    1.1 
         9,280,325    3.0         8,273,350    2.8 
Total platinum and palladium investments
(Cost $8,733,391 - 2014 & 2013)
        25,393,069    8.2         25,574,430    8.6 
                               
Diamond Mining, Exploration and Development Companies                              
Bermuda                              
 Petra Diamonds Limited, (3)   1,000,000    2,964,403    1.0    -    -    - 
                               
Canada                              
Stornoway Diamond Corporation – 144A, (3)(4)   7,857,200    4,622,308    1.5    -    -    - 
Stornoway Diamond Corporation, (3)   1,639,500    964,500    0.3    1,639,500    809,092    0.3 
Stornoway Diamond Corporation, C$0.90 Warrants, 07/08/2016 – 144A, (3)(4)   3,928,600    415,285    0.1    -    -    - 
Stornoway Diamond Corporation, C$0.90 Warrants, 07/08/2016, (3)   819,750    86,654    0.0    -    -    - 
         6,088,747    1.9         809,092    0.3 
                               
Total diamond mining, exploration and development companies
(Cost $9,420,744 - 2014, $3,928,898 - 2013)
        9,053,150    2.9         809,092    0.3 
                               
Diamond Mineral Resources Companies                              
                               
Canada                              
NovaCopper Inc., (3)   -    -    -    205,861    391,136    0.1 
                               
United Kingdom                              
Anglo American plc   200,000    5,078,988    1.6    200,000    4,584,237    1.5 
                               
United States                              
Freeport-McMoRan Inc.   450,000    16,366,500    5.3    550,000    16,621,000    5.6 
Total diversified mineral resources companies
(Cost $15,847,231 - 2014, $19,991,927 - 2013)
        21,445,488    7.0         21,596,373    7.3 
                               
Total common shares
(Cost $251,755,673 - 2014, $261,989,311 - 2013)
        304,589,229    98.7         294,631,973    99.4 
                               
Total investments (Cost $251,755,673 - 2014, $261,989,311 - 2013), (6)        304,589,229    98.7         294,631,973    99.4 
Cash, receivables, and other assets less liabilities        3,979,750    1.3         1,772,103    0.6 
 Net assets       $308,568,979    100.0%       $296,404,076    100.0%

 

  (1) Non-income producing security in 2014 only.
  (2) Newcrest Mining Limited ADR’s at 2013.
  (3) Non-income producing security.
  (4) Restricted security.
  (5) Non-income producing security 2013 only.
  (6) 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, 2014 were $114,107,838 and $61,274,282, respectively, resulting in net unrealized appreciation on investments of $52,833,556.  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.

 

ADR - American Depository Receipt

 

May not total 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, 2014 and August 31, 2013

 

1. Organization

 

These consolidated financial statements include ASA Gold and Precious Metals Limited (the “Company”), and its former wholly owned subsidiary, ASA Gold and Precious Metals Advisers, LLC (the “Adviser”). The Company is a closed-end investment management 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. The Company’s former subsidiary, ASA Gold and Precious Metals Advisers LLC, was discontinued on September 23, 2013 as an investment adviser in the state of California and as a limited liability corporation under the laws of the state 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 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 August 31, 2014 and August 31, 2013, the Company held investments in restricted securities of 2.29% and 0.56% of net assets, respectively, valued in accordance with procedures approved by the Company’s Board of Directors as follows:

 

Restricted Securities

August 31, 2014

Shares  Cost  Issuer  Value Per Unit   Value  Acquisition Date
7,857,200  $4,641,822  Stornoway Diamond Corp – 144A  $0.59  $4,622,307  07/08/2014
                   
3,928,600   415,686  Stornoway Diamond Corp, C$0.90 Warrants, 7/08/2016 – 144A   0.11   415,285  07/08/2014
                   
1,250,000   1,351,000  Torex Gold Resources, Inc. – 144A   1.63   2,033,735  01/22/2014

 

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

 

UNAUDITED

3

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, 2014 and August 31, 2013 in valuing the Company’s investments at fair value:

 

Investment in Securities

Measurements at August 31, 2014

Description (1)  Level 1   Level 2   Level 3   Total 
                     
Common Shares                    
Gold and silver investments  $213,996,529   $34,700,992   $-   $248,697,522 
Platinum and palladium investments   25,393,069    -    -    25,393,069 
Diamond mining, exploration and development companies   4,015,558    5,037,593    -    9,053,150 
Diversified mineral resources companies   16,366,500    5,078,988    -    21,445,488 
Total  $259,771,656   $44,817,573   $-   $304,589,229 

 

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 August 31, 2014.

 

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

 

Investment in Securities

Measurements at August 31, 2013

Description (1)  Level 1   Level 2   Level 3   Total 
                     
Common Shares                    
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 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 August 31, 2013.

 

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

 

UNAUDITED

4

Item 2. Controls and Procedures.

   

 

 

(a)

The registrant’s President and Chief Executive Officer and its Controller, 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: October 1, 2014

          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: October 1, 2014

       

 

By

/s/ David S. Lin

 

 

 


 

 

 

David S. Lin

 

 

 

Controller

 

 

 

(Principal Financial Officer)

 


Date: October 1, 2014