GAMCO Natural Resources, Gold & Income Trust Increases Monthly Distribution 33%

Rhea-AI Summary

GAMCO Natural Resources, Gold & Income Trust (NYSE:GNT) has announced a 33% increase in its monthly cash distribution, raising it from $0.03 to $0.04 per share starting October 2024. The Board of Trustees authorized this increase, with distributions set for October, November, and December 2024. David Schachter, Vice President of the Fund, expressed appreciation for the Board's confidence in him, receiving the honorary title of 'Discount Doctor'.

The Fund may distribute in excess of its earnings, and 2024 distributions are expected to primarily constitute a return of capital for tax purposes. The Board will continue to monitor the distribution level, considering the Fund's net asset value and market conditions. Shareholders are cautioned not to draw conclusions about the Fund's performance from the distribution amount, as it may include short-term gains from option premiums that won't be taxable in 2024 due to capital loss carryforwards.

Positive

• 33% increase in monthly cash distribution from $0.03 to $0.04 per share
• Distributions set for October, November, and December 2024
• Potential for distributions in excess of earnings

Negative

• Distributions in 2024 expected to primarily constitute return of capital
• Fund's income may fluctuate, affecting distribution stability
• Potential for share value to decrease, leading to investor losses

RYE, N.Y., Aug. 23, 2024 (GLOBE NEWSWIRE) -- The Board of Trustees of GAMCO Natural Resources, Gold & Income Trust (NYSE:GNT) (the “Fund”) authorized a 33% increase in the monthly cash distribution to $0.04 per share from $0.03 per share beginning in October 2024.

Distribution Month	Record Date	Payable Date	Distribution Per Share
October	October 17, 2024	October 24, 2024	$0.04
November	November 14, 2024	November 21, 2024	$0.04
December	December 13, 2024	December 20, 2024	$0.04

“I am pleased the Board of Trustees has voted to increase the distribution and I appreciate the confidence the Board of Trustees has placed in me by awarding me the honorary title of ‘Discount Doctor’,” said David Schachter, Vice President of the Fund.

Based on current dynamics, the Fund may make distributions in excess of the Fund’s earnings. It is currently expected that distributions to common shareholders in 2024 will primarily constitute a return of capital for tax purposes.

Each quarter, the Board of Trustees reviews the amount of any potential distribution from the income, realized capital gain, or capital available. The Board of Trustees will continue to monitor the Fund’s distribution level, taking into consideration the Fund’s net asset value and the financial market environment. The distribution rate should not be considered the dividend yield or total return on an investment in the Fund.

Because the Fund’s current monthly distributions are subject to modification by the Board of Trustees at any time and the Fund’s income will fluctuate, there can be no assurance that the Fund will pay distributions at a particular rate or frequency.   Shareholders should not draw any conclusions about the Fund’s investment performance from the amount of the current distribution.

Short-term capital gains, qualified dividend income, ordinary income, and return of capital, if any, will be allocated on a pro-rata basis to all distributions to common shareholders for the year. There are no capital loss carryforwards for book purposes. Therefore the Fund, on a book basis, may be distributing short term gains generated from option premiums that will not be taxable in 2024 because of the capital loss carryforwards available on a tax basis. The estimated components of each distribution are updated and provided to shareholders of record in a notice accompanying the distribution and are available on our website (www.gabelli.com). The final determination of the sources of all distributions in 2024 will be made after year end and can vary from the monthly estimates. Shareholders should not draw any conclusions about the Fund’s investment performance from the amount of the current distribution. All individual shareholders with taxable accounts will receive written notification regarding the components and tax treatment for all 2024 distributions in early 2025 via Form 1099-DIV.

Investors should carefully consider the investment objectives, risks, charges, and expenses of the Fund before investing. For more information regarding the Fund’s distribution policy and other information about the Fund, call:

David Schachter
(914) 921-5057

The Fund’s NAV per share will fluctuate with changes in the market value of the Fund’s portfolio securities. Stocks are subject to market, economic, and business risks that cause their prices to fluctuate. Investors acquire shares of the Fund on a securities exchange at market value, which fluctuates according to the dynamics of supply and demand. When Fund shares are sold, they may be worth more or less than their original cost. Consequently, you can lose money by investing in the Fund.

Covered Call and Other Option Transaction Risks. There are several risks associated with writing covered calls and entering into other types of option transactions. For example, there are significant differences between the securities and options markets that could result in an imperfect correlation between these markets, resulting in a given transaction not achieving its objectives. In addition, a decision as to whether, when, and how to use covered call options involves the exercise of skill and judgment, and even a well-conceived transaction may be unsuccessful because of market behavior or unexpected events. As the writer of a covered call option, the Fund forgoes, during the option’s life, the opportunity to profit from increases in the market value of the security covering the call option above the exercise price of the call option, but has retained the risk of loss should the price of the underlying security decline.

About The GAMCO Natural Resources, Gold & Income Trust
The GAMCO Natural Resources, Gold & Income Trust is a diversified, closed-end management investment company with $143 million in total net assets whose primary investment objective is to provide a high level of current income. The Fund invests primarily in equity securities of gold and natural resources companies and intends to earn income primarily through a strategy of writing (selling) primarily covered call options on equity securities in its portfolio. The Fund is managed by Gabelli Funds, LLC, a subsidiary of GAMCO Investors, Inc. (OTCQX: GAMI).

NYSE – GNT
CUSIP – 36465E101

GAMCO NATURAL RESOURCES, GOLD & INCOME TRUST
Investor Relations Contact:
David Schachter
(914) 921-5057
dschachter@gabelli.com

FAQ

What is the new monthly distribution amount for GAMCO Natural Resources, Gold & Income Trust (GNT)?

The new monthly distribution amount for GAMCO Natural Resources, Gold & Income Trust (GNT) is $0.04 per share, effective from October 2024.

When will the increased distribution for GNT begin?

The increased distribution for GNT will begin in October 2024, with the first payment on October 24, 2024, for shareholders of record as of October 17, 2024.

How much has GNT's monthly distribution increased?

GNT's monthly distribution has increased by 33%, from $0.03 per share to $0.04 per share.

What is the tax implication of GNT's 2024 distributions?

GNT's distributions in 2024 are expected to primarily constitute a return of capital for tax purposes, based on current projections.