ASA Gold and Precious Metals Limited Announces Distribution Declaration

Rhea-AI Summary

ASA Gold and Precious Metals (NYSE: ASA) has declared a distribution of $0.02 per common share, payable on November 20, 2024, to shareholders of record as of November 13, 2024. This represents a $0.01 increase compared to last year, doubling the rate paid semi-annually since November 2018. The Company, a non-diversified, closed-end fund, has maintained uninterrupted distributions since 1959.

ASA focuses on long-term capital appreciation through investments in precious metals and minerals companies. At least 80% of its total assets are invested in related securities, bullion, or instruments. The Company employs bottom-up fundamental analysis and detailed primary research in its investment decisions. Merk Investments provides investment advisory services for ASA.

Investors should note that ASA is classified as a "passive foreign investment company" for U.S. federal income tax purposes, and shareholders with taxable accounts are advised to consult their tax advisors.

Positive

• Doubled semi-annual distribution rate to $0.02 per share
• Uninterrupted distribution history since 1959
• Focused investment strategy in precious metals and minerals sector
• Employs detailed primary research and fundamental analysis for investment decisions

Negative

• None.

Insights

Financial Analyst

ASA Gold and Precious Metals 's announcement of a $0.02 per share distribution represents a significant development for investors. This 100% increase from the previous year's rate demonstrates the company's strong financial position and commitment to shareholder returns. The continuation of uninterrupted distributions since 1959 underscores ASA's stability and reliability as an investment vehicle in the precious metals sector.

The company's focused investment strategy, with at least 80% of assets in precious metals-related securities or physical metals, offers investors concentrated exposure to this sector. This approach can be beneficial during periods of economic uncertainty or inflation, as precious metals often serve as a hedge. However, it also exposes investors to higher volatility and sector-specific risks.

Investors should note ASA's status as a passive foreign investment company, which has important tax implications for U.S. shareholders. This complexity may require additional consideration and potentially professional advice for tax planning purposes.

10/03/2024 - 09:28 AM

PORTLAND, Maine--(BUSINESS WIRE)-- ASA Gold and Precious Metals Limited (the “Company”) (NYSE: ASA) declared a distribution of $0.02 per common share of the Company. The distribution is payable on November 20, 2024 to shareholders of record as of the close of business on November 13, 2024. Consistent with the Company’s semi-annual distribution in May 2024, this distribution represents a $0.01 per common share increase as compared to last year, doubling the rate per share that has been paid on a semi-annual basis since November 2018. The Company has paid periodic distributions on an uninterrupted basis since 1959.

The Company is a non-diversified, closed-end fund that seeks long-term capital appreciation primarily through investing in companies engaged in the exploration for, development of projects in, or mining of precious metals and minerals.

It is a fundamental policy of the Company that at least 80% of its total assets must be (i) invested in common shares or securities convertible into common shares of companies engaged, directly or indirectly, in the exploration, mining or processing of gold, silver, platinum, diamonds or other precious minerals, (ii) held as bullion or other direct forms of gold, silver, platinum or other precious minerals, (iii) invested in instruments representing interests in gold, silver, platinum or other precious minerals such as certificates of deposit therefor, and/or (iv) invested in securities of investment companies, including exchange traded funds, or other securities that seek to replicate the price movement of gold, silver or platinum bullion.

The Company employs bottom-up fundamental analysis and relies on detailed primary research including meetings with company executives, site visits to key operating assets, and proprietary financial analysis in making its investment decisions.

Investors are encouraged to visit the Company’s website for additional information, including historical and current share prices, news releases, financial statements, tax and supplemental information. The site may be found at www.asaltd.com, or you may contact the Company directly at (800) 432-3378.

Investment advisory services for the Company are provided by Merk Investments LLC (Merk), an SEC registered investment adviser. Merk provides investment advice on liquid global markets, including domestic and international equities, fixed income, commodities and currencies and their respective derivative markets.

Certain Tax Information

The Company is a “passive foreign investment company” for United States federal income tax purposes. As a result, United States shareholders holding shares in taxable accounts are encouraged to consult their tax advisors regarding the tax consequences of their investment in the Company’s common shares.

View source version on businesswire.com: https://www.businesswire.com/news/home/20241003306923/en/

Axel Merk

Chief Operating Officer

(650) 376-3135 or (800) 432-3378

info@asaltd.com

Source: ASA Gold and Precious Metals Limited

FAQ

What is the new distribution amount for ASA Gold and Precious Metals (NYSE: ASA)?

ASA Gold and Precious Metals (NYSE: ASA) has declared a distribution of $0.02 per common share, payable on November 20, 2024.

How much has ASA's distribution increased compared to last year?

ASA's distribution has increased by $0.01 per common share compared to last year, doubling the rate that has been paid semi-annually since November 2018.

What is the investment focus of ASA Gold and Precious Metals ?

ASA Gold and Precious Metals focuses on long-term capital appreciation through investing in companies engaged in the exploration, development, and mining of precious metals and minerals.

How long has ASA Gold and Precious Metals (NYSE: ASA) been paying distributions?

ASA Gold and Precious Metals has been paying periodic distributions on an uninterrupted basis since 1959.