ASA Gold and Precious Metals Limited (the “Company”) (NYSE: ASA)
announced today that its Board of Directors (the “Board”)
authorized the purchase of up to 5% of Company stock under the
Company’s stock repurchase program. The authorization to repurchase
shares will be effective on May 1, 2024 and expire on April 30,
2025, unless terminated sooner. The timing and actual number of
shares repurchased will depend on a variety of factors. The Company
anticipates that such purchases will be made opportunistically when
shares are trading at a significant discount to the Net Asset Value
per share (“NAV”) of the Company, based on historical discount
levels and current market conditions, as determined by the Board
and its Investment Advisor. The Company will report repurchase
activity on the Company’s website at least quarterly.
The Board actively monitors the Company’s trading discount and
considers possible actions that may enhance shareholder value and
potentially decrease the discount. After recent communication with
shareholders in the context of the proxy contest with Saba Capital
Management, L.P., the Board believes a stock repurchase program is
appropriate and consistent with shareholder input regarding the
Board’s efforts to improve the Company’s trading discount while
continuing to execute its investment strategy. This initiative may
also enhance liquidity for shareholders and generate value for the
Company through share repurchases below NAV.
In a recent report endorsing the election of the current Board
members, independent proxy advisory firm Glass, Lewis & Co.
noted, "We observe that the Company's average NAV trading discount
over various short-, medium- and long-term periods has remained
fairly stable and generally within a narrow range (mostly in the
mid-teens).” The report further states, “…we see no evidence to
suggest a consistent worsening of the Company's NAV trading.”1
However, the Board recognizes that stock repurchases are meaningful
to shareholders and trusts that this initiative is responsive to
shareholders.
There is no assurance that the market price of the Company’s
shares, either absolutely or relative to NAV, will increase as a
result of any share repurchases. Under the new stock purchase
authorization, repurchases can be made from time to time using a
variety of methods, including open market purchases, all in
compliance with the rules of the Securities and Exchange Commission
(“SEC”) and other applicable legal requirements. The authorization
does not obligate the Company to acquire any particular number of
shares and may be suspended or discontinued at any time at the
Company’s discretion.
About ASA
The Company is a non-diversified, closed-end fund that seeks
long-term capital appreciation primarily through investing in
companies engaged in the exploration for, development of projects
in, or mining of precious metals and minerals.
It is a fundamental policy of the Company that at least 80% of
its total assets must be (i) invested in common shares or
securities convertible into common shares of companies engaged,
directly or indirectly, in the exploration, mining or processing of
gold, silver, platinum, diamonds or other precious minerals, (ii)
held as bullion or other direct forms of gold, silver, platinum or
other precious minerals, (iii) invested in instruments representing
interests in gold, silver, platinum or other precious minerals such
as certificates of deposit therefor, and/or (iv) invested in
securities of investment companies, including exchange traded
funds, or other securities that seek to replicate the price
movement of gold, silver or platinum bullion.
The Company employs bottom-up fundamental analysis and relies on
detailed primary research including meetings with company
executives, site visits to key operating assets, and proprietary
financial analysis in making its investment decisions.
Investors are encouraged to visit the Company’s website for
additional information, including historical and current share
prices, news releases, financial statements, tax and supplemental
information. The site may be found at www.asaltd.com, or you may
contact the Company directly at (800) 432-3378.
About Merk Investments
Investment advisory services for the Company are provided by
Merk Investments LLC (Merk), an SEC registered investment adviser.
Merk provides investment advice on liquid global markets, including
domestic and international equities, fixed income, commodities and
currencies and their respective derivative markets. For more
information on Merk, please visit www.merkinvestments.com.
Certain Tax Information
The Company is a “passive foreign investment company” for United
States federal income tax purposes. As a result, United States
shareholders holding shares in taxable accounts are encouraged to
consult their tax advisors regarding the tax consequences of their
investment in the Company’s common shares.
Forward-Looking Statements
This press release includes forward-looking statements within
the meaning of U.S. federal securities laws that are intended to be
covered by the safe harbors created thereunder. The Company’s
actual performance or results may differ from its beliefs,
expectations, estimates, goals and projections, and consequently,
investors should not rely on these forward-looking statements as
predictions of future events. Forward-looking statements are not
historical in nature and generally can be identified by words such
as “believe,” “anticipate,” “estimate,” “expect,” “intend,”
“should,” “may,” “will,” “seek,” or similar expressions or their
negative forms, or by references to strategy, plans, goals or
intentions. The absence of these words or references does not mean
that the statements are not forward-looking. The Company’s
performance or results can fluctuate from month to month depending
on a variety of factors, a number of which are beyond the Company’s
control and/or are difficult to predict, including without
limitation: the Company’s investment decisions, the performance of
the securities in its investment portfolio, economic, political,
market and financial factors, and the prices of gold, platinum and
other precious minerals that may fluctuate substantially over short
periods of time. The Company may or may not revise, correct or
update the forward-looking statements as a result of new
information, future events or otherwise.
The Company concentrates its investments in the gold and
precious minerals sector. This sector may be more volatile than
other industries and may be affected by movements in commodity
prices triggered by international monetary and political
developments. The Company is a non-diversified fund and, as such,
may invest in fewer investments than that of a diversified
portfolio. The Company may invest in smaller-sized companies that
may be more volatile and less liquid than larger more established
companies. Investments in foreign securities, especially those in
the emerging markets, may involve increased risk as well as
exposure to currency fluctuations. Shares of closed-end funds
frequently trade at a discount to net asset value. All performance
information reflects past performance and is presented on a total
return basis. Past performance is no guarantee of future results.
Current performance may differ from the performance shown.
This press release does not constitute an offer to sell or
solicitation of an offer to buy any securities.
______________________
1 Permission to use quoted material
neither sought nor obtained.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20240418819399/en/
Axel Merk Chief Operating Officer (650)
376-3135 or (800) 432-3378 info@asaltd.com
Grafico Azioni ASA Gold and Precious Me... (NYSE:ASA)
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