The Timeless Precious Metal Fund will attempt to achieve capital growth through the following investment policy:

Transcription

1 Timeless Precious Metal: Investment Philosophy The Timeless Precious Metal Fund will attempt to achieve capital growth through the following investment policy: Purchase and sale of equity in listed companies producing precious metals which have, at the same time, the potential to replace reserves and to add to reserves Purchase and sale of equity in listed precious metals companies that have the potential to become producing companies and that have considerable exploration potential. Purchase and sale of equity in listed Companies that explore for precious metals. Performance in % % CHANGE PRICE FEB MONTHS 1 MONTH YEAR 2017 THE TIMELESS PRECIOUS METAL FUND (EUR) % -0.25% 5.24% THE TIMELESS PRECIOUS METAL FUND (USD) % -1.40% 5.73% GOLD % 3.37% 7.10% SILVER % 4.44% 15.19% GOLD & SILVER INDEX - PHILADELPHIA (XAU) % -7.96% 7.10% AMEX GOLD BUGS INDEX (HUI) % -5.58% 7.44% MV JUNIOR GOLD MINERS TR INDEX % -3.17% 14.16% Manager Report The price of gold gained 7.1% since the start of the year. The NAV of the Fund increased by 5.2% also. The NAV is an indicative price as the largest position of the Fund is not traded pending the outcome of our negotiations with a potential Russian buyer of our investment in CAMAR. Page 1

2 The price of silver, being more volatile than gold, has started to outperform the price of gold, having moved up 15% versus 7% for gold since the start of the year.. The AMEX Gold BUGS Index which consists of 15 of the largest and most widely held public gold production companies, has increased by 14% since the start of the year. - Yet, when the market will turn, the potential gains for gold and silver stocks could be phenomenal, we wrote many times in the past. Page 2

3 Dwindling Supply London-based Metals Focus says output from existing mines will drop roughly 10% in the five years to And it may fall by a third in the 10 years to 2025, according to Bloomberg calculations. Page 3

4 Top Five Gold Holdings CENTRAL ASIAN MINERALS AND RESOURCES 24.6% ROMIOS GOLD RES 7.2% TELSON RESOURCES 5.5% GOLDEN GOLIATH RESOURCES 2.8% BLACKHAM RESOURCES 2.1% Top Silver Holdings AVINO SILVER 1.4% SILVER WHEATON 1.2% SILVER LAKE RESOURCES 1.0% Country Weightings by Incorporation Country Weightings by Operation 29% 36% 47% 1% 12% 6% 9% 4% 26% 3% 24% Canada UK Cash/Bonds USA Australia Canada Mexico Others USA Tajikistan Cash Page 4

5 Central Asian Minerals & Resources (CAMAR) This holding is the largest in the Fund. A Russian consortium has signed a Memorandum of Understanding with the intention to acquire 51% of the outstanding shares of CAMAR. CAMAR owns 49% of the JV Aprelevka in Tajikistan. Meetings are being schedules for February 2017 to work out the technical aspects in order to arrive at a formal agreement. The mining licence areas in Tajikistan are surrounded by world class gold deposits in the prolific Tien Shan Gold Belt with Multi-million ounce gold exploration potential based on extensive Soviet drilling with an expected initial reserve increase of 1 to 2 million ounces of gold over the established resource as per CPR Presently producing 15,000 ounces of gold annually plus silver. Planned operation to support gold production in the range of k ounces per annum Large license areas (6 licenses for exploration and production) with extensive Soviet exploration but very minor post-soviet work CAMAR has established a relationship over many years with the Tajikistan Government and State Agencies Economic model includes the cash flow generated from the planned gold production to further fund an extensive drill program on all licences Gold prices could be boosted by China's plan to establish a $16bn ( 10bn) fund to stockpile the precious metal as part of a scheme known as the Silk Road initiative aimed at boosting trade. State endorsed media in China has reported that the new fund Shandong Gold Group and Shaanxi Gold Group will each take stakes of 35pc and 25pc respectively in the new fund alongside other investors. The new entity, which may include an exchange traded fund for gold and investments in miners of the precious metal, aims to raise the $16bn in three tranches, according to the report. The license area of Central Asian Minerals & Resources lies across the Silk Road. Chinese interest for the region that holds several world-class deposits should intensify. The JV is the second largest gold producer of the country. With effect as from the 17 th April 2015, the Board of Directors of the Fund decided to temporarily suspend subscriptions and redemptions in order to safeguard investors interest while negotiations with different potential partners continue. Please note that Central Asian Minerals & Resources and the Loan to Gulf International Minerals are not compliant with the Prospectus as they presently exceed the allowed limit of 10% to be invested in one company because of adverse market forces. Page 5

6 Fund Facts Bloomberg Code TLPREME MV Minimum Subscription: EUR Subscription and Redemption: weekly (Tuesday 4 pm CET) Issue commission: max. 6.5%, min 1% (degressive based on subscription amount) Administrations Fee: 0.125% p.a., Min. EUR 16'000 Management Fee: 1.8% p.a. Performance Fee: 18% p.a. ('high-watermark') Regulatory Authority Malta Financial Services Authority (MFSA) German Tax Transparency yes ISIN : MT Swiss Security N / WKN: / A0B8N9 Investment Manager: Timeless Asset Management Ltd, Malta Currency: (Euro) Domicile: MALTA (EU) License: July 16, 2004 Size (February 2017) Million Custodian Bank: Bank of Valletta, Malta Administration Company: Valletta Fund Services, Malta Auditors: PriceWaterhouseCoopers, Malta Boa d of Directors of the Timeless Precious Metal Fund Peter Zihlmann, Director of Timeless Asset Management Ltd, Malta Adrian John Galea, Director Timeless Asset Management Ltd, 6, Third Floor, Suite 1, Market Street, Floriana FRN 1082, Malta Phone or (Peter Zihlmann) Peter Zihlmann, Fund Manager Dr. Simon Grima, Head of Insurance Department University of Malta Peter Zihlmann, Director of Timeless Asset Management Ltd, Malta Victor R. Dario, Independent IC Member, Zurich, Switzerland Dr. Simon Grima, Head of Insurance Department University of Malta CDF Advocates 25/23 Vincenti Buildings, Strait Street, Valletta VLT 1432 Malta. This report has been issued by Timeless Asset Management Ltd, which is licensed and regulated by the Malta Financial Services Authority to provide investment services in Malta. This annual report is only handed out to third parties upon their explicit request. Any investments in the The Timeless Precious Metal Fund should be based on the full details provided in the prospectus of the fund, which is available on the web site: Any past performance mentioned in this document should not be taken as guidance to future performance. Furthermore, any forecast of performance should not be taken as a reliable indicator of actual future performance. The value of the investment may go up as well as down. This document is intended for information purposes only and none of its contents should be taken as financial advice. Although to the best knowledge of Timeless Asset Management Ltd, the above information is correct, the company or its employees cannot guarantee that the above information is accurate and cannot accept any liability whatsoever due to decisions taken fully or partly based on the information provided. Page 6