The Gabelli Global Gold, Natural Resources & Income Trust

Transcription

1 The Gabelli Global Gold, Natural Resources & Income Trust To Our Shareholders, Third Quarter Report September 30, 2006 The Gabelli Global Gold, Natural Resources & Income Trust s (the Fund ) net asset value ( NAV ) declined (4.60)% in the third quarter of 2006, compared to gains of 4.38% and 3.91% for the Chicago Board Options Exchange S&P 500 BuyWrite Index and the Lehman Brothers Government/Corporate Bond Index, respectively and losses of (10.23)% and (5.28)% for the Philadelphia Gold & Silver Index and the AMEX Energy Select Sector Index, respectively. The Fund s market price, adjusted for distributions, was up 2.16% during the third quarter. On September 30, 2006, the Fund s market price closed at $22.30 on the American Stock Exchange, representing a premium of 2.15% to its NAV of $21.83 at the end of the quarter. Enclosed is the investment portfolio as of September 30, Comparative Results Average Annual Returns through September 30, 2006 (a) Since Year to Inception Quarter Date 1 Year (3/31/05) Gabelli Global Gold, Natural Resources & Income Trust NAV Return (b) (4.60)% 4.97% 10.83% 17.86% Investment Return (c) CBOE S&P 500 BuyWrite Index Philadelphia Gold and Silver Index (10.23) AMEX Energy Select Sector Index (5.28) Lehman Brothers Gov t/corporate Bond Index (a) Returns represent past performance and do not guarantee future results. Investment returns and the principal value of an investment will fluctuate. When shares are sold, they may be worth more or less than their original cost. Current performance may be lower or higher than the performance data presented. Visit for performance information as of the most recent month end. Performance returns for periods less than one year are not annualized. Investors should carefully consider the investment objectives, risks, charges, and expenses of the Fund before investing. The CBOE S&P 500 Buy/Write Index is an unmanaged benchmark index designed to reflect the return on a portfolio that consists of a long position in the stocks in the S&P 500 index and a short position in an S&P 500 ( SPX ) call option. The Philadelphia Gold & Silver Index is an unmanaged indicator of stock market performance of large North American gold and silver companies, while the AMEX Energy Select Sector Index is an unmanaged indicator of stock market performance of large U.S. companies involved in the development or production of energy products. The Lehman Government/Corporate Bond Index is an unmanaged market value weighted index that tracks the total return performance of fixed rate, publicly placed, dollar denominated obligations. Dividends and interest income is considered reinvested. (b) Total returns and average annual returns reflect changes in NAV and reinvestment of distributions at NAV on the exdividend date, and are net of expenses. Since inception return based on an initial NAV of $ (c) Total returns and average annual returns reflect changes in closing market values on the American Stock Exchange and reinvestment of distributions. Since inception return based on an initial offering price of $ We have separated the portfolio manager s commentary from the financial statements and investment portfolio due to corporate governance regulations stipulated by the SarbanesOxley Act of We have done this to ensure that the content of the portfolio manager s commentary is unrestricted. The financial statements and investment portfolio are mailed separately from the commentary. Both the commentary and the financial statements, including the portfolio of investments, will be available on our website at

2 THE GABELLI GLOBAL GOLD, NATURAL RESOURCES & INCOME TRUST SCHEDULE OF INVESTMENTS September 30, 2006 (Unaudited) Market Shares COMMON STOCKS 95.4% Diversified Industrial 0.5% 28,400 Greif Inc., Cl. B $ 2,094,216 Energy and Energy Services 38.2% 148,000 BJ Services Co ,459,240 71,000 BP plc, ADR ,656,180 20,000 Chesapeake Energy Corp ,600 64,600 Chevron Corp ,189,956 65,000 ConocoPhillips (d) ,869, ,000 Devon Energy Corp. (d) ,283,050 55,000 Diamond Offshore Drilling Inc ,980, ,300 Exxon Mobil Corp. (d) ,998, ,600 GlobalSantaFe Corp ,378, ,000 Halliburton Co. (d) ,027, ,000 Imperial Oil Ltd ,352,270 75,000 James River Coal Co ,250 55,000 Marathon Oil Corp ,229, ,000 Murphy Oil Corp. (d) ,273, ,000 Nabors Industries Ltd ,570, ,000 Noble Corp. (d) ,343,400 40,000 Oceaneering International Inc ,232, ,000 Petroleo Brasileiro SA, ADR ,383, ,000 Rowan Companies Inc ,744, ,000 Royal Dutch Shell plc, Cl. A ,793, ,000 Saipem SpA ,912, ,000 Sasol Ltd., ADR ,782, ,000 Statoil ASA, ADR ,382, ,000 Suncor Energy Inc ,366,500 60,000 Tesoro Corp ,478,800 81,800 Total SA, ADR ,393,892 65,000 Transocean Inc ,759, ,000 Valero Energy Corp. (d) ,404, ,000 Weatherford International Ltd ,926, ,000 Williams Companies Inc ,652, ,500 XTO Energy Inc. (d) ,351, ,546,618 Metals and Mining 56.7% 471,900 AgnicoEagle Mines Ltd. (d) ,690, ,000 Anglo American plc ,226, ,000 AngloGold Ashanti Ltd., ADR ,793,200 90,000 Arch Coal Inc ,601, ,800 Barrick Gold Corp. (d) ,885, ,000 BHP Billiton Ltd., ADR ,788, ,000 Birch Mountain Resources Ltd ,000 35,000 Cameco Corp ,279, ,140 Compania de Minas Buenaventura SA, ADR ,189, ,000 Eldorado Gold Corp ,735, ,000 FreeportMcMoRan Copper & Gold Inc., Cl. B (d) ,232, ,600 Glamis Gold Ltd ,903, ,000 Gold Fields Ltd ,471,334 2 Market Shares 740,700 Gold Fields Ltd., ADR (d) $ 13,214, ,500 Goldcorp Inc. (d) ,021, ,800 Golden Star Resources Ltd , ,200 Harmony Gold Mining Co. Ltd., ADR 9,674,226 25,341 Highland Gold Mining Ltd , ,500 IAMGOLD Corp ,895,661 28,500 Impala Platinum Holdings Ltd ,701,974 70,000 Inco Ltd ,338, ,800 Ivanhoe Mines Ltd., New York ,775,128 98,000 Ivanhoe Mines Ltd., Toronto ,103 70,000 Jubilee Mines NL , ,814 Kingsgate Consolidated Ltd ,183,006 1,081,100 Kinross Gold Corp. (d) ,535,372 1,900,000 Lihir Gold Ltd ,092,448 40,000 Lonmin plc ,916, ,000 Meridian Gold Inc ,211, ,000 Newcrest Mining Ltd ,223, ,400 Newmont Mining Corp. (d) ,936,850 60,000 Peabody Energy Corp ,206, ,000 Phelps Dodge Corp. (d) ,705, ,200 Randgold Resources Ltd., ADR ,604,552 29,692 Rio Tinto plc, ADR ,630,494 28,400 Teck Cominco Ltd., Cl. B ,778, ,214 Xstrata plc ,372, ,178,188 Specialty Chemicals 0.0% 600 The Dow Chemical Co ,388 TOTAL COMMON STOCKS ,842,410 Principal Amount U.S. GOVERNMENT OBLIGATIONS 4.6% $18,776,000 U.S. Treasury Bills, 4.635% to 5.116%, 10/19/06 to 03/08/07 (d) ,574,336 Number of Expiration Date/ Contracts Exercise Price PUT OPTIONS PURCHASED 0.0% Energy and Energy Services 0.0% 750 James River Coal Co.... Mar. 07/ ,750 TOTAL INVESTMENTS 100.0% (Cost $371,494,501) $404,630,496 Aggregate book cost $371,494,501 Gross unrealized appreciation $ 46,044,782 Gross unrealized depreciation (12,908,787) Net unrealized appreciation (depreciation) $ 33,135,995

3 THE GABELLI GLOBAL GOLD, NATURAL RESOURCES & INCOME TRUST SCHEDULE OF INVESTMENTS (Continued) September 30, 2006 (Unaudited) Market Shares COMMON STOCKS SOLD SHORT (0.6)% Diversified Industrial (0.6)% (28,400) Greif Inc., Cl. A $ (2,275,124) TOTAL COMMON STOCKS SOLD SHORT (Total Proceeds $2,008,780) $ (2,275,124) Number of Expiration Date/ Contracts Exercise Price OPTION CONTRACTS WRITTEN (2.9)% Call Options Written (2.9)% 1,300 AgnicoEagle Mines Ltd. Nov. 06/30 $ 416, AgnicoEagle Mines Ltd. Nov. 06/35 101,545 2,536 AgnicoEagle Mines Ltd. Nov. 06/40 139, Anglo American plc(b).. Dec. 06/ ,085 1,050 AngloGold Ashanti Ltd., ADR Oct. 06/45 10, AngloGold Ashanti Ltd., ADR Oct. 06/55 2, AngloGold Ashanti Ltd., ADR Jan. 07/45 36, Arch Coal Inc Jan. 07/45 22, Barrick Gold Corp Oct. 06/30 87,500 1,400 Barrick Gold Corp Oct. 06/ ,000 1,318 Barrick Gold Corp Jan. 07/ , BHP Billiton Ltd., ADR.. Nov. 06/40 90, BHP Billiton Ltd., ADR.. Nov. 06/50 1,875 1,480 BJ Services Co Oct. 06/30 192, BP plc, ADR Oct. 06/75 3, Cameco Corp Dec. 06/40 56, Chesapeake Energy Corp. Oct. 06/ , Chevron Corp Dec. 06/65 114, Chevron Corp Dec. 06/70 12, ConocoPhillips Oct. 06/65 2, ConocoPhillips Nov. 06/70 7, Devon Energy Corp..... Oct. 06/65 40, Devon Energy Corp..... Oct. 06/70 10, Devon Energy Corp..... Jan. 07/70 73, Devon Energy Corp..... Jan. 07/80 66, Diamond Offshore Drilling Inc Oct. 06/70 135, Diamond Offshore Drilling Inc Dec. 06/80 66, Exxon Mobil Corp Oct. 06/ , Exxon Mobil Corp Oct. 06/ , Exxon Mobil Corp Jan. 07/65 294,000 2,860 FreeportMcMoRan Copper & Gold Inc., Cl. B.... Nov. 06/60 314, Glamis Gold Ltd Oct. 06/35 245,000 2,250 Glamis Gold Ltd Nov. 06/40 613,125 3 Number of Expiration Date/ Market Contracts Exercise Price 776 Glamis Gold Ltd Nov. 06/45 $ 83, GlobalSantaFe Corp..... Oct. 06/45 269, GlobalSantaFe Corp..... Nov. 06/50 68, GlobalSantaFe Corp..... Jan. 07/ ,750 3,100 Gold Fields Ltd., ADR.. Oct. 06/20 77,500 2,850 Gold Fields Ltd., ADR.. Oct. 06/ ,250 1,500 Gold Fields Ltd., ADR.. Oct. 06/25 7,500 1,000 Gold Fields Ltd., ADR.. Nov. 06/ , Gold Fields Ltd., ADR.. Jan. 07/20 46,410 1,090 Goldcorp Inc Oct. 06/30 10,900 1,235 Goldcorp Inc Nov. 06/ , Goldcorp Inc Jan. 07/25 149,500 1,858 Golden Star Resources Ltd Jan. 07/5 27,870 1,000 Halliburton Co Oct. 06/ , Halliburton Co Oct. 06/30 16,450 1,000 Halliburton Co Jan. 07/ ,000 4,000 Harmony Gold Mining Co. Ltd., ADR Nov. 06/ ,000 3,482 Harmony Gold Mining Co. Ltd., ADR Nov. 06/15 121,870 3,425 IAMGOLD Corp.(a).... Nov. 06/12 26,046 1,000 Imperial Oil Ltd.(a)..... Oct. 06/48 6, Inco Ltd Jan. 07/80 31, Ivanhoe Mines Ltd Dec. 06/5 116,000 7,808 Ivanhoe Mines Ltd Dec. 06/ ,680 9,040 Kinross Gold Corp Nov. 06/ ,200 1,000 Kinross Gold Corp Nov. 06/15 35, Kinross Gold Corp Feb. 07/ , Kinross Gold Corp Feb. 07/15 25,745 1,900 Lihir Gold Ltd.(c) Feb. 07/ , Marathon Oil Corp Oct. 06/75 166, Marathon Oil Corp Oct. 06/85 3,000 2,096 Meridian Gold Inc Oct. 06/30 20,960 2,414 Meridian Gold Inc Jan. 07/30 307, Murphy Oil Corp Oct. 06/50 12,150 1,330 Murphy Oil Corp Oct. 06/55 6, Murphy Oil Corp Oct. 06/ Nabors Industries Ltd.... Dec. 06/35 9,000 1,000 Nabors Industries Ltd.... Dec. 06/ ,000 1,000 Newmont Mining Corp... Oct. 06/ ,000 1,250 Newmont Mining Corp... Dec. 06/ ,000 1,244 Newmont Mining Corp... Dec. 06/50 80, Noble Corp Oct. 06/65 123, Noble Corp Oct. 06/70 32, Oceaneering International Inc Oct. 06/ , Oceaneering International Inc Oct. 06/45 2, Peabody Energy Corp.... Dec. 06/40 135, Petroleo Brasileiro SA, ADR Oct. 06/95 10,000

4 THE GABELLI GLOBAL GOLD, NATURAL RESOURCES & INCOME TRUST SCHEDULE OF INVESTMENTS (Continued) September 30, 2006 (Unaudited) Number of Expiration Date/ Market Contracts Exercise Price OPTION CONTRACTS WRITTEN (Continued) Call Options Written (Continued) 500 Petroleo Brasileiro SA, ADR Jan. 07/95 $ 110, Phelps Dodge Corp Oct. 06/100 7, Phelps Dodge Corp Oct. 06/120 1, Phelps Dodge Corp Jan. 07/100 42, Phelps Dodge Corp Jan. 07/120 11,000 1,500 Randgold Resources Ltd., ADR Oct. 06/25 7,500 2,915 Randgold Resources Ltd., ADR Dec. 06/ ,225 2,267 Randgold Resources Ltd., ADR Mar. 07/25 289, Rio Tinto plc, ADR..... Jan. 07/210 43,500 1,100 Rowan Companies Inc... Oct. 06/35 11, Rowan Companies Inc... Oct. 06/40 2, Royal Dutch Shell plc, Cl. A(b) Oct. 06/ , ,000 Saipem SpA Dec. 06/ ,062 1,000 Sasol Ltd., ADR Oct. 06/40 5,000 1,000 Statoil ASA, ADR Oct. 06/30 5, Suncor Energy Inc Oct. 06/65 633, Suncor Energy Inc Oct. 06/85 2, Suncor Energy Inc Dec. 06/90 16, Tesoro Corp Oct. 06/65 12, Tesoro Corp Nov. 06/75 4,500 6 The Dow Chemical Co... Oct. 06/35 2, Total SA, ADR Nov. 06/60 283, Total SA, ADR Nov. 06/70 26, Transocean Inc Nov. 06/85 26, Transocean Inc Jan. 07/75 145,000 1,050 Valero Energy Corp..... Oct. 06/55 57, Weatherford International Ltd Oct. 06/35 355,000 1,400 Weatherford International Ltd Jan. 07/50 147, Williams Companies Inc... Oct. 06/20 362, Williams Companies Inc... Oct. 06/ ,000 1,000 XTO Energy Inc Oct. 06/50 5, XTO Energy Inc Nov. 06/45 28, XTO Energy Inc Nov. 06/50 17,500 TOTAL CALL OPTIONS WRITTEN (Premiums received $17,402,716).. $ 11,687,478 Aggregate book cost $ 19,411,496 Gross unrealized appreciation $ 7,531,483 Gross unrealized depreciation (2,082,589) Net unrealized appreciation (depreciation) $ 5,448,894 Equity Swaps Unrealized Notional Equity Security Interest Rate/ Termination Appreciation/ Amount Received Equity Security Paid Date (Depreciation) $1,838,006 Market Value 3 Month LIBOR 08/06/07 $34,221 1,874,467 Appreciation plus 45 bps plus 08/06/07 (300) on MMX Market Value Mineraco e Depreciation on Metalicos SA MMX Mineraco e Metalicos SA Net Unrealized Appreciation $33,921 (a) Exercise price denoted in Canadian dollars. (b) Exercise price denoted in British pounds. (c) Exercise price denoted in Australian dollars. (d) Securities, or a portion thereof, with a value of $105,065,349 is pledged as collateral for short sales and options written. Nonincome producing security. Represents annualized yield at date of purchase. ADR American Depository Receipt * Portfolio securities are valued at the last quoted sale price or closing values. If these are unavailable, then the average of the closing bid and asked prices is used. If there is no asked price, the security is valued at the closing bid price on that day. Debt instruments are valued at the average of the closing bid and asked prices. If the security matures in 60 days or less and is not credit impaired, it is valued at amortized cost. All securities and assets for which market quotations are not readily available or any security that the Board determines does not reflect its fair market value are valued in good faith under procedures established by the Board. % of Market Market GEOGRAPHIC DIVERSIFICATION Long Positions North America Value 61.9% Value $250,651,962 Europe ,970,809 Latin America ,551,854 South Africa ,637,172 Asia/Pacific ,818, % $404,630,496 Short Positions 4 North America (2.5)% $ (10,101,455) Latin America (0.3) (1,390,068) Europe (0.3) (1,132,192) South Africa (0.3) (1,006,280) Asia/Pacific (0.1) (332,607) (3.5)% $ (13,962,602)

5 Enrollment in the Plan AUTOMATIC DIVIDEND REINVESTMENT AND VOLUNTARY CASH PURCHASE PLANS It is the policy of The Gabelli Global Gold, Natural Resources & Income Trust ( Fund ) to automatically reinvest dividends payable to common shareholders. As a registered shareholder you automatically become a participant in the Fund s Automatic Dividend Reinvestment Plan (the Plan ). The Plan authorizes the Fund to issue common shares to participants upon an income dividend or a capital gains distribution regardless of whether the shares are trading at a discount or a premium to net asset value. All distributions to shareholders whose shares are registered in their own names will be automatically reinvested pursuant to the Plan in additional shares of the Fund. Plan participants may send their share certificates to American Stock Transfer ( AST ) to be held in their dividend reinvestment account. Registered shareholders wishing to receive their distribution in cash must submit this request in writing to: The Gabelli Global Gold, Natural Resources & Income Trust c/o American Stock Transfer th Avenue Brooklyn, NY Shareholders requesting this cash election must include the shareholder s name and address as they appear on the share certificate. Shareholders with additional questions regarding the Plan or requesting a copy of the terms of the Plan may contact AST at (888) If your shares are held in the name of a broker, bank, or nominee, you should contact such institution. If such institution is not participating in the Plan, your account will be credited with a cash dividend. In order to participate in the Plan through such institution, it may be necessary for you to have your shares taken out of street name and reregistered in your own name. Once registered in your own name your distributions will be automatically reinvested. Certain brokers participate in the Plan. Shareholders holding shares in street name at participating institutions will have dividends automatically reinvested. Shareholders wishing a cash dividend at such institution must contact their broker to make this change. The number of common shares distributed to participants in the Plan in lieu of cash dividends is determined in the following manner. Under the Plan, whenever the market price of the Fund s common shares is equal to or exceeds net asset value at the time shares are valued for purposes of determining the number of shares equivalent to the cash dividends or capital gains distribution, participants are issued common shares valued at the greater of (i) the net asset value as most recently determined or (ii) 95% of the then current market price of the Fund s common shares. The valuation date is the dividend or distribution payment date or, if that date is not an American Stock Exchange ( ASE ) trading day, the next trading day. If the net asset value of the common shares at the time of valuation exceeds the market price of the common shares, participants will receive common shares from the Fund valued at market price. If the Fund should declare a dividend or capital gains distribution payable only in cash, AST will buy common shares in the open market, or on the ASE, or elsewhere, for the participants accounts, except that AST will endeavor to terminate purchases in the open market and cause the Fund to issue shares at net asset value if, following the commencement of such purchases, the market value of the common shares exceeds the then current net asset value. The automatic reinvestment of dividends and capital gains distributions will not relieve participants of any income tax which may be payable on such distributions. A participant in the Plan will be treated for Federal income tax purposes as having received, on a dividend payment date, a dividend or distribution in an amount equal to the cash the participant could have received instead of shares. 5

6 Voluntary Cash Purchase Plan The Voluntary Cash Purchase Plan is yet another vehicle for our shareholders to increase their investment in the Fund. In order to participate in the Voluntary Cash Purchase Plan, shareholders must have their shares registered in their own name. Participants in the Voluntary Cash Purchase Plan have the option of making additional cash payments to AST for investments in the Fund s common shares at the then current market price. Shareholders may send an amount from $250 to $10,000. AST will use these funds to purchase shares in the open market on or about the 1st and 15th of each month. AST will charge each shareholder who participates a pro rata share of the brokerage commissions. Brokerage charges for such purchases are expected to be less than the usual brokerage charge for such transactions. It is suggested that any voluntary cash payments be sent to American Stock Transfer, th Avenue, Brooklyn, NY such that AST receives such payments approximately 10 days before the investment date. Funds not received at least five days before the investment date shall be held for investment until the next purchase date. A payment may be withdrawn without charge if notice is received by AST at least 48 hours before such payment is to be invested. Shareholders wishing to liquidate shares held at AST must do so in writing or by telephone. Please submit your request to the above mentioned address or telephone number. Include in your request your name, address and account number. The cost to liquidate shares is $1.00 per transaction as well as the brokerage commission incurred. Brokerage charges are expected to be less than the usual brokerage charge for such transactions. For more information regarding the Dividend Reinvestment Plan and Voluntary Cash Purchase Plan, brochures are available by calling (914) or by writing directly to the Fund. The Fund reserves the right to amend or terminate the Plan as applied to any voluntary cash payments made and any dividend or distribution paid subsequent to written notice of the change sent to the members of the Plan at least 90 days before the record date for such dividend or distribution. The Plan also may be amended or terminated by AST on at least 90 days written notice to participants in the Plan. 6

7 TRUSTEES AND OFFICERS THE GABELLI GLOBAL GOLD, NATURAL RESOURCES & INCOME TRUST One Corporate Center, Rye, NY Trustees Anthony J. Colavita AttorneyatLaw, Anthony J. Colavita, P.C. James P. Conn Former Chief Investment Officer, Financial Security Assurance Holdings Ltd. Mario d Urso Chairman, Mittel Capital Markets SpA Vincent D. Enright Former Senior Vice President & Chief Financial Officer, KeySpan Energy Corp. Frank J. Fahrenkopf, Jr. President & Chief Executive Officer, American Gaming Association Michael J. Melarkey AttorneyatLaw, Avansino, Melarkey, Knobel & Mulligan Salvatore M. Salibello Certified Public Accountant, Salibello & Broder, LLP Anthonie C. van Ekris Chairman, BALMAC International, Inc. Salvatore J. Zizza Chairman, Hallmark Electrical Supplies Corp. Officers Bruce N. Alpert President Carter W. Austin Vice President Peter D. Goldstein Chief Compliance Officer Molly A.F. Marion Vice President and Ombudsman James E. McKee Secretary Agnes Mullady Treasurer Investment Adviser Gabelli Funds, LLC One Corporate Center Rye, New York Custodian Mellon Trust of New England, N.A. Counsel Skadden, Arps, Slate, Meagher & Flom LLP Transfer Agent and Registrar American Stock Transfer and Trust Company Stock Exchange Listing Common Amex Symbol: GGN Shares Outstanding: 17,885,587 The Net Asset Value appears in the Publicly Traded Funds column, under the heading Specialized Equity Funds, in Sunday s The New York Times and in Monday s The Wall Street Journal. It is also listed in Barron s Mutual Funds/Closed End Funds section under the heading Specialized Equity Funds. The Net Asset Value may be obtained each day by calling (914) For general information about the Gabelli Funds, call 800GABELLI ( ), fax us at , visit Gabelli Funds Internet homepage at: or us at: closedend@gabelli.com Notice is hereby given in accordance with Section 23(c) of the Investment Company Act of 1940, as amended, that the Fund may, from time to time, purchase its common shares in the open market when the Fund s shares are trading at a discount of 7.5% or more from the net asset value of the shares.

8 THE GABELLI GLOBAL GOLD, NATURAL RESOURCES & INCOME TRUST One Corporate Center Rye, NY (914) Third Quarter Report September 30, 2006 GGN 3Q/2006