Evil Knievil: A golden prospect

I bought 100,000 Golden Prospect Precious Metals (LON:GPM) a couple of days ago at 28p. As readers may know, the portfolio contains some zinc and silver mining interests, but it is mainly gold. Net asset value is currently c. 32.5p. Management fees do not now contain a performance related uplift.

As far as I am aware, this small closed-end investment company, based in the Channel Islands, is unique on the LSE. Further, capitalised at just £17m, it has no institutional following even though it is professionally managed by people who know and specialise in gold mining shares. The chairman is Malcolm Byrne, whom I have known for thirty-five years.

I hazard the guess that the share price should be at a premium to NAV and expect it to go that way if the gold price gets going. It is not sensible to show a price target but, should gold go to $2,000 or more, the share price will go past 100p without blinking.