Geiger Counter Limited
Plc
Monthly Investor Report -
March
The full monthly factsheet is now
available on the Company's website and a summary can be found
below.
NCIM - Geiger Counter Ltd
- Fund Page for Geiger Counter Ltd
Enquiries:
For
the Investment Manager
CQS (UK) LLP
Craig Cleland
0207 201 5368
For
the Company Secretary and Administrator
BNP Paribas S.A., Jersey
Branch
Dean Plowman/Ann-Marie
Pereira
01534 813 967/ 01534
709198
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Fund Description
The objective of the Geiger Counter
Fund is to provide investors with the potential for capital growth
through investment primarily in the securities of companies
involved in the exploration, development and production of energy,
predominantly within the uranium industry. Up to 30% of the value
of the Company's investment portfolio may be invested in other
resource-related companies from outside the energy
sector.
Portfolio Managers
Keith Watson and Robert
Crayfourd
Key
Advantages for the Investor
· Access
to mining assets in the uranium sector
· May
benefit from embedded subscription share
· Low
correlation to major asset classes
Key
Fund Facts1
Total Gross
Assets
|
£105.6m
|
Reference
Currency
|
GBP
|
Ordinary Shares:
|
|
Net Asset Value
|
71.30p
|
Mid-Market Price
|
50.0p
|
Net gearing4
|
15.97%
|
Discount
|
(29.87%)
|
Ordinary Share and NAV Performance2
|
One
Month
|
Three
Months
|
One
Year
|
Three
Years
|
Five
Years
|
|
(%)
|
(%)
|
(%)
|
(%)
|
(%)
|
NAV
|
4.30
|
6.31
|
70.74
|
106.79
|
278.05
|
Share Price
|
(6.02)
|
(7.41)
|
35.14
|
31.58
|
162.12
|
Commentary3
After its strong run into
mid-February, the U3O8 (Uranium) price consolidated during March
with the spot price ending the month 6.6% lower at $88.25/lb.
However, uranium-related equities proved resilient and the Fund NAV
increased 4.3%, compared to a 3.3% sterling return registered by
the Solactive Uranium Pure Play Index. Since March month-end, more
widespread reporting of flooding in Kazakhstan has raised concerns
of supply disruption from the largest Uranium producing country.
However, melt waters have primarily affected river systems in the
north of the country rather than the primary uranium producing
operations located in the south. As such, potential disruption may
be more administrative, though we believe this nevertheless
highlights supply risks resulting from a such concentrated number
of producers.
Sector news remains supportive.
Notably, countries attending the Nuclear Power Summit,
organised by the International
Atomic Anergy Association, all backed plans for a wider adoption of
nuclear power as a key source of base load power. Positive comments
on the sector from the CEO of US nuclear power operator,
Constellation, formerly part of Exelon, typifies sentiment towards
Nuclear energy. The industry appears to benefit from bipartisan
political support, helpful state and federal policies, and
increased customer demand for reliable and clean energy. We believe
this provides confidence to underpin the industry's growth via
existing reactor life extensions and incremental reactor
development. Encouragingly, European producer Urenco also announced
it had commenced construction work as part of its previously
announced enrichment supply expansion plans.
Calls for a relaxation on the
uranium mining ban in Western Australia by Australia's Chamber of
Commerce could be a precursor to some progress on economic projects
that are currently prevented from being developed. Such efforts
could also be adopted by other nations, such as the US, that are
seeking to encourage much needed domestic U3O8 production and to
reduce nuclear fuel supply chain risks. This could benefit
investments, such as Laramide and IsoEnergy, which have assets in
states which currently prevent uranium mining.
The largest contributors to
performance were Canadian mine developer Nexgen and ASX-listed
Paladin, whose share prices both rose over 10% in sterling terms
over the month. Both companies provided positive updates on their
projects. IsoEnergy also announced plans to reopen its small, and
already permitted, Tony M mine in Utah during 2025. Ur-Energy
announced its first shipment of uranium from its restarted Lost
Creek project and also indicated that it would expand its fully
permitted and licensed Shirley Basin Project in Wyoming. This
helped drive a recovery in the position that had weakened
mid-month.
We believe the Fund is well placed
to grow with the up-coming issuance of embedded 1 for 5 rights, at
an issue price of 37.74p, due towards the end of April.
|
Gross
Leverage6
(%)
|
Commitment
Leverage7
(%)
|
Geiger Counter Ltd
|
116
|
116
|
CQS (UK) LLP
4th Floor, One Strand, London WC2N 5HR, United
Kingdom
T: +44 (0) 20 7201 6900 | F: +44 (0) 20 7201
1200
CQS (US), LLC
152 West 57th Street, 40th Floor, New York, NY
10019, US
T: +1 212 259 2900 | F: +1 212 259
2699
Tavistock Communications
18 St. Swithin's Lane, London EC4N
8AD
T: +44 20 7920 3150 |
geigercounter@tavistock.co.uk
Sources: 1R&H Fund Services
(Jersey) Limited, as at the last business day of the month
indicated at the top of this report. 2R&H Fund
Services Limited/DataStream, as at the last business day of the
month indicated at the top of this report, total return performance
net of fees and expenses based on bid prices. 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 legal notice at the end of this
document. 3Market data sourced from Bloomberg unless
otherwise stated. The Fund may since have exited some or all of the
positions detailed in the commentary. 4 BMO, UxC,
Company data September 2023. 5 www.eia.gov. 6CQS, as at the
last business day of the month indicated at the top of this report.
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. 7CQS, as at the last business day of the month
indicated at the top of this report. 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.