10-QPeriod: Q3 FY2017

SPDR GOLD TRUST Quarterly Report for Q3 Ended Jun 30, 2017

Filed August 4, 2017For Securities:GLD

Summary

The SPDR Gold Trust (GLD) reported its quarterly results for the period ending June 30, 2017. The Trust's net assets saw a significant decrease, falling to $34.04 billion from $40.29 billion at the start of the fiscal year. This decline is primarily attributed to a substantial unrealized depreciation in the value of its gold holdings during the nine-month period, amounting to $2.51 billion. Concurrently, the Trust experienced net redemptions of shares, with the value of redeemed shares exceeding the value of newly created shares by $3.41 billion. Despite the decrease in net assets and a negative net income per share of ($0.47) for the quarter, the Trust's operational structure remains consistent. Expenses, primarily consisting of sponsor fees, are covered by selling small amounts of gold, leading to the Trust typically having zero cash balance. The Trust continues to track the price of gold bullion, with its investment in gold valued at $34.10 billion at quarter-end, reflecting a cost basis of $34.12 billion.

Financial Highlights

10 data points
Beta

Net Income

-$133.94M

EPS (Diluted)

$-0.47

Total Assets

$34.10B

Cash & Equivalents

$0.00

Free Cash Flow

$0.00

Financial Statements
Beta
Operating Expenses$34.33M
Net Income-$133.94M
EPS (Basic)$-0.47
Shares Outstanding (Basic)287.57M

Key Highlights

  • 1Net Assets decreased by approximately $6.25 billion from September 30, 2016, to $34.04 billion as of June 30, 2017.
  • 2The Trust reported a net income loss of ($133.94 million) for the three months ended June 30, 2017, compared to a net income of $2.32 billion for the same period in 2016.
  • 3For the nine months ended June 30, 2017, the Trust experienced a net investment loss of ($102.09 million) and a significant net realized and unrealized loss on its gold investment of ($2.74 billion).
  • 4Shareholders experienced a net realized and unrealized loss of ($0.25) per share for the quarter ended June 30, 2017, contributing to a negative total return of (0.31)% at Net Asset Value.
  • 5During the nine months ended June 30, 2017, redemptions of Shares exceeded creations by $3.41 billion in value, indicating a net outflow of capital from the Trust.
  • 6The Trust held approximately 27.45 million ounces of gold valued at $34.10 billion (cost: $34.12 billion) at June 30, 2017.
  • 7The Trust's primary expense is the sponsor fee, which accrues daily at 0.40% of the daily Net Asset Value, and is paid by selling gold.

Frequently Asked Questions

The primary factor contributing to the decrease in the Trust's Net Assets is the significant unrealized depreciation in the value of its gold holdings during the nine-month period ended June 30, 2017, which amounted to approximately $2.51 billion. Additionally, net redemptions of shares, where the value of redeemed shares exceeded newly created shares, also contributed to the decline.

The Trust covers its expenses, such as the sponsor fee, by selling small amounts of its gold holdings. The Trustee endeavors to sell only the minimum amount of gold necessary to cover these expenses, which results in the Trust typically maintaining a zero cash balance at the end of each reporting period.

For the three months ended June 30, 2017, the Trust reported a net loss of ($133.94 million) and a net loss per share of ($0.47). This is a significant shift from the same period in the prior year (ended June 30, 2016), when the Trust reported a net income of $2.32 billion and a net income per share of $8.06. The total return at Net Asset Value for the quarter was negative at (0.31)%.

The Net Asset Value (NAV) of the SPDR Gold Trust is calculated by valuing the Trust's gold holdings based on the LBMA Gold Price PM (or the next most recent LBMA Gold Price if unavailable) on each day the NYSE Arca is open. From the total value of gold and other assets, all accrued expenses, including sponsor fees and liabilities, are subtracted. The resulting figure is the Trust's NAV. The NAV per Share is then determined by dividing the total NAV by the number of Shares outstanding.