10-QPeriod: Q3 FY2013

ISHARES GOLD TRUST Quarterly Report for Q3 Ended Sep 30, 2013

Filed November 8, 2013For Securities:IAU

Summary

The iShares Gold Trust (IAU) 10-Q filing for the period ending September 30, 2013, reveals a substantial increase in the Trust's net asset value during the third quarter, primarily driven by a nearly 11.3% rise in the price of gold as measured by the London PM Fix. Despite this positive performance in gold prices, the Trust experienced a net decrease in its overall asset value for the first nine months of 2013, a trend attributed to a significant drop in gold prices in the earlier part of the year. The Trust's net asset value per share, while still reflecting the volatility of gold, closely tracked the movement of the commodity. Investors should note that the Trust's expenses, mainly Sponsor's fees, slightly impacted the net asset value per share's performance relative to the gold price. Shareholder activity during the period showed net redemptions, with more shares being redeemed than issued, leading to a decrease in the total number of outstanding shares. The Trust's operational structure remains focused on its objective of mirroring the price of gold, less expenses, with gold bullion as its sole asset. The filing highlights the Trust's reliance on the London PM Fix for valuation and confirms no significant changes in risk factors or legal proceedings.

Financial Highlights

14 data points
Beta

Revenue

$772.11M

Net Income

$767.32M

1.0% Net Margin

EPS (Diluted)

$2.60

Total Assets

$7.58B

Cash & Equivalents

$0.00

Free Cash Flow

$0.00

Financial Statements
Beta
Revenue$772.11M
Operating Expenses$4.79M
Net Income$767.32M
EPS (Basic)$2.60
Shares Outstanding (Basic)295.19M

Key Highlights

  • 1Net asset value of the Trust increased by 10.43% in the third quarter of 2013, reaching $7.575 billion.
  • 2The primary driver for the Q3 increase was a 11.28% rise in the London PM Fix price of gold.
  • 3For the first nine months of 2013, the Trust's net asset value decreased by 34.95% due to an earlier decline in gold prices.
  • 4Net income for the third quarter of 2013 was a substantial $767.3 million, largely due to a significant 'market value recovery' of $782.7 million.
  • 5Net income for the first nine months of 2013 was $67.0 million.
  • 6There was a net redemption of Shares during the nine-month period, with outstanding Shares decreasing from 719.55 million to 588.25 million.
  • 7The Trust's sole asset is gold bullion, creating significant concentration risk tied to gold price fluctuations.

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