10-QPeriod: Q2 FY2014

SPDR GOLD TRUST Quarterly Report for Q2 Ended Mar 31, 2014

Filed May 9, 2014For Securities:GLD

Summary

SPDR Gold Trust (GLD) reported its unaudited financial results for the quarter ended March 31, 2014. The Trust experienced a net gain from operations of $663.1 million for the quarter, a significant decrease compared to $1.95 billion in the same period of the prior year. This decline is primarily attributable to a substantial unrealized gain on investment in gold of $603.3 million recorded in the current period, contrasted with a gain of $1.96 billion from gold distributed for share redemptions in the prior year's quarter. The Trust's total assets, primarily held in gold, decreased to $32.34 billion from $35.81 billion at the end of the previous fiscal year, reflecting a reduction in both the ounces of gold held and its market value. For the six-month period ended March 31, 2014, the net gain from operations was $161.5 million, a sharp drop from $2.48 billion in the corresponding period of 2013. The Trust saw a decrease in both the number of outstanding shares and the total ounces of gold held, with redemptions exceeding creations during the period. Investors should note the significant decrease in net gain per share, reflecting the reduced performance compared to the previous year. The Trust's operations are designed to track the price of gold bullion, and the financial results are heavily influenced by fluctuations in the gold market.

Financial Highlights

18 data points
Beta

Net Income

$663.10M

EPS (Diluted)

$2.48

Total Assets

$32.34B

Cash & Equivalents

$0.00

Free Cash Flow

$0.00

Financial Statements
Beta
Gross Profit$2.02M
Operating Expenses$32.84M
Operating Income-$32.84M
Net Income$663.10M
EPS (Basic)$2.48
Shares Outstanding (Basic)267.26M

Key Highlights

  • 1Net gain from operations for the quarter ended March 31, 2014, was $663.1 million, down from $1.95 billion in the prior year's quarter.
  • 2Total assets, primarily consisting of investment in gold, decreased to $32.34 billion as of March 31, 2014, from $35.81 billion as of September 30, 2013.
  • 3The Trust experienced an unrealized gain on investment in gold of $603.3 million for the quarter ended March 31, 2014.
  • 4For the six months ended March 31, 2014, net gain from operations was $161.5 million, significantly lower than $2.48 billion for the same period in 2013.
  • 5The number of outstanding shares decreased from 301.6 million at September 30, 2013, to 271.2 million at March 31, 2014, with redemptions exceeding creations.
  • 6The Trust held approximately 26.27 million ounces of gold at March 31, 2014, valued at $33.93 billion (market value).
  • 7The Trust's net gain per share for the quarter was $2.48, compared to $4.54 in the prior year's quarter.

Frequently Asked Questions

The primary driver of SPDR Gold Trust's financial performance is the price of gold bullion. The Trust's objective is for its Shares to reflect the performance of the price of gold, less the Trust's expenses. Fluctuations in the market value of gold directly impact the Trust's net asset value and, consequently, its reported gains or losses.

The significant decrease in net gain from operations in the first quarter of 2014 compared to the same period in 2013 was largely due to the nature of gains recognized. In the prior year, a substantial gain was recorded from gold distributed for share redemptions. In the current quarter, while there was an unrealized gain on the investment in gold, the realized gains from redemptions were considerably lower, and the gain from gold sold to pay expenses also decreased.

Yes, the amount of gold held by the Trust has decreased. As of March 31, 2014, the Trust held approximately 26.27 million ounces of gold, down from approximately 29.13 million ounces (excluding gold payable) as of September 30, 2013. This reduction is a result of redemptions of shares exceeding creations during the period, as well as sales of gold to cover trust expenses.

The Trust does not maintain cash balances. Expenses are paid by selling the minimum amount of gold necessary to cover these costs. Consequently, the Trust typically reports zero cash flow from operations and a zero cash balance at the end of reporting periods.