10-QPeriod: Q3 FY2014

SPDR GOLD TRUST Quarterly Report for Q3 Ended Jun 30, 2014

Filed August 8, 2014For Securities:GLD

Summary

SPDR Gold Trust (GLD) reported its quarterly results for the period ending June 29, 2014. The Trust's primary asset is gold bullion, and its performance is directly tied to the price of gold. During this period, the Trust experienced a decrease in its total assets and investment in gold compared to the prior year, reflecting a decline in gold prices. The financial statements indicate a net gain from operations, primarily driven by gains on gold distributed for share redemptions, although this gain was significantly lower than the same period in the prior year. Expenses remain a component of the Trust's operations, with custody, trustee, and sponsor fees contributing to the overall cost structure. The Trust did not hold any cash balances at the end of the period, as gold is sold to cover expenses, reinforcing its nature as a passive gold holding vehicle.

Financial Highlights

18 data points
Beta

Net Income

$67.95M

EPS (Diluted)

$0.26

Total Assets

$31.34B

Cash & Equivalents

$0.00

Free Cash Flow

$0.00

Financial Statements
Beta
Gross Profit$1.57M
Operating Expenses$32.61M
Operating Income-$32.61M
Net Income$67.95M
EPS (Basic)$0.26
Shares Outstanding (Basic)263.35M

Key Highlights

  • 1Total Assets decreased to $31.34 billion as of June 30, 2014, from $35.81 billion as of September 30, 2013, primarily due to a decrease in the value of 'Investment in Gold'.
  • 2The 'Investment in Gold' at cost decreased to $31.10 billion from $35.81 billion year-over-year, reflecting lower gold prices.
  • 3Net gain from operations for the nine months ended June 30, 2014, was $229.5 million, a substantial decrease from $3.44 billion in the same period of the prior year.
  • 4The Trust experienced significant outflows in share redemptions, with $8.95 billion worth of gold distributed for redemptions in the nine months ended June 30, 2014, compared to $22.44 billion in the prior year.
  • 5The number of outstanding shares decreased to 264,000,000 as of June 30, 2014, from 301,600,000 as of September 30, 2013.
  • 6The Trust held 25,239,039 ounces of gold as of June 30, 2014, valued at approximately $33.19 billion.
  • 7The Trust had no cash balance at period end, as gold is sold to cover operational expenses.

Frequently Asked Questions

The Trust's total assets decreased to $31.34 billion as of June 30, 2014, down from $35.81 billion as of September 30, 2013. This decline was primarily driven by a decrease in the value of its 'Investment in Gold,' which fell from $35.81 billion to $31.10 billion (at cost) over the same period, reflecting the lower market price of gold.

The Trust reported a net gain from operations of $229.5 million for the nine months ended June 30, 2014. This represents a significant decrease from the $3.44 billion net gain reported for the same period in 2013. The primary driver of this reduction was a substantially lower gain on gold distributed for share redemptions, alongside a decrease in gains from gold sold to pay expenses.

The SPDR Gold Trust operates without holding any cash balances. To manage expenses, the Trust's Trustee sells gold as needed to cover operational costs such as custody, trustee, and sponsor fees. This ensures that the Trust's assets remain primarily in gold bullion, minimizing exposure to non-gold assets.

The Trust experienced a net outflow of shares. In the nine months ended June 30, 2014, there were redemptions of gold valued at $8.95 billion, while creations amounted to $4.17 billion. This resulted in a decrease in the number of outstanding shares from 301.6 million to 264 million, and a reduction in the 'Redeemable Shares' liability from $38.62 billion to $33.42 billion.