10-QPeriod: Q1 FY2010

SPDR GOLD TRUST Quarterly Report for Q1 Ended Dec 31, 2009

Filed February 5, 2010For Securities:GLD

Summary

SPDR Gold Trust (GLD) reported strong performance for the quarter ending December 31, 2009, with a net gain of $215.7 million, a significant increase from $56.8 million in the same period of the previous year. This growth was primarily driven by substantial gains on gold distributed for share redemptions, totaling $245.5 million, reflecting a robust rise in gold prices. The Trust saw a notable increase in its investment in gold, which grew to a market value of $40.2 billion from $35.0 billion, indicating significant investor demand and rising gold prices. Total assets increased to $30.1 billion, up from $28.5 billion at the end of the prior quarter. The number of outstanding shares also grew substantially, with 371.8 million shares at quarter-end compared to 358.9 million at the end of the previous quarter, signaling increased investor participation. The net asset value (NAV) per share also saw a healthy increase, indicating the trust's ability to track the performance of gold bullion effectively despite associated expenses.

Financial Highlights

17 data points
Beta

Net Income

$215.65M

EPS (Diluted)

$0.59

Total Assets

$30.11B

Cash & Equivalents

$0.00

Free Cash Flow

$0.00

Financial Statements
Beta
Gross Profit$9.94M
Operating Expenses$39.74M
Net Income$215.65M
EPS (Basic)$0.59
Shares Outstanding (Basic)365.97M

Key Highlights

  • 1Net gain for the three months ended December 31, 2009, was $215.7 million, a significant increase from $56.8 million in the prior year's comparable period.
  • 2Total gain on gold for the quarter was $255.4 million, primarily driven by $245.5 million in gains from gold distributed for share redemptions.
  • 3Investment in gold (market value) increased to $40.2 billion as of December 31, 2009, from $35.0 billion as of September 30, 2009.
  • 4Total assets grew to $30.1 billion at December 31, 2009, up from $28.5 billion at September 30, 2009.
  • 5The number of outstanding shares increased to 371.8 million at December 31, 2009, from 358.9 million at September 30, 2009.
  • 6The redemption value per redeemable share increased by 14.7% during the quarter, from $97.67 to $108.18.
  • 7The Trust generated zero net cash flow from operations, consistent with its strategy of selling gold to cover expenses to minimize non-gold assets.

Frequently Asked Questions

For the quarter ended December 31, 2009, the SPDR Gold Trust reported a net gain of $215.7 million, a substantial increase from $56.8 million in the same period of the previous year. This performance was driven by significant gains on gold distributed for share redemptions and an increase in the market value of its gold holdings.

Total assets increased to $30.1 billion at December 31, 2009, from $28.5 billion at September 30, 2009. Total liabilities remained relatively small, at $14.6 million as of December 31, 2009, indicating that the vast majority of the Trust's value is held in gold.

The Trust's gains are primarily driven by the performance of the price of gold bullion. During this quarter, a significant portion of the gain came from the appreciation of gold held and subsequently distributed for the redemption of shares, reflecting the rising gold market.

The Trust does not aim to generate operating cash flow. Instead, it strategically sells gold to cover its operational expenses (like custody, trustee, and sponsor fees). This approach minimizes the Trust's holdings of assets other than gold, resulting in zero net cash flow from operations at the end of each reporting period.