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ASA Limited Reports Financial Results for the Three Months Ended February 28, 2010
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SAN MATEO, Calif.--(BUSINESS WIRE)--ASA Limited (NYSE:ASA), a closed-end fund specializing in gold and other
precious mineral investments worldwide, today reported financial results
for the three months ended February 28, 2010. Total return for the first
quarter was a negative 12.1% based on ASA’s net asset value per share
and a negative 9.7% based on its share price. During the same period,
the FTSE Gold Mines Index return was a negative 13.5%.
ASA President and Chief Executive Officer David Christensen said, “We
had an exceptional fiscal year during 2009, the lower performance in the
first quarter of fiscal 2010 is not surprising given the 5.7% decline in
the gold price during this period. After peaking at over $1,200 per
ounce during the first week of December 2009, the gold price has tended
to consolidate in a narrow range of $1,050 to $1,150 per ounce. The
combination of investor concerns over government spending, the global
recession and concerns of rising inflation have continued to support the
gold price, whilst relatively low levels of jewelry consumption and an
announcement regarding sales of gold by the IMF have acted as
suppressants. We continue to believe the long-term direction of the gold
price will be determined by the supply/demand fundamentals, which look
positive. We continue to focus our efforts on identifying those
companies with the strongest management, growth potential and lowest
operating costs, and actively adjust our portfolio to changes in market
conditions.”
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Three Months Ended February 28
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2010
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2009
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Amount
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Per Share
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Amount
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Per Share
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Net assets
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$510,174,083
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$78.73
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$384,344,081
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$53.38
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Net investment income (loss)(1)
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($466,334)
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($.07)
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($669,670)
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($.09)
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Shares outstanding
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6,480,000
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7,200,000
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(1) Excludes the following items:
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Net realized gain from investments
(including realized (loss)
on
investments from foreign currency
transactions)
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$9,115,234
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$1.41
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$1,316,897
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$.18
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Other net realized gain (loss)
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---
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---
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($2,628)
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---
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Net increase (decrease) in
unrealized appreciation on
investments
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($78,830,148)
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($12.17)
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$42,605,159
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$5.92
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During the first quarter of ASA’s 2010 fiscal year, ASA had a net
investment loss of $0.07 per share versus a loss of $0.09 per share
during the same period of 2009. The slight improvement is due to an
improvement in dividend income and a reduction in operating costs during
the first quarter of 2010 as compared to the first quarter of 2009.
Investors are encouraged to visit ASA’s website for additional
information, including historical and current stock and metals prices,
news releases, financial statements and supplemental information. The
site may be found at www.asaltd.com
or you may contact ASA directly at (800) 432-3378.
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Certain Tax Information
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ASA Limited 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 common shares of ASA Limited.
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Forward-Looking Statements
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Certain statements in this press release are “forward-looking
statements” within the meaning of U.S. federal securities laws and
are intended to be covered by the safe harbors created thereby. By
their nature, all forward-looking statements involve risks,
uncertainties and other factors which may cause actual results,
performance or achievements of management’s plans to be materially
different from those contemplated by the forward-looking statements.
Such factors include, but are not limited to, the performance of
companies whose securities comprise the Company’s portfolio; the
conditions in the United States, South African, and other
international securities and foreign exchange markets; the prices of
gold, platinum and other precious minerals, which in turn, are
affected by a variety of global, economic, financial and political
factors and may fluctuate substantially over short periods of time;
and changes in tax law.
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