Cadence Opportunities Fund returned a gross performance of +6.4% in August, outperforming the All Ordinaries Accumulation Index by +3.2% for the month. The top contributors to performance during August were West African Resources, Equinox Gold, New Gold, Kingsgate Consolidated, Many Peaks Minerals, Pantoro, Turaco Gold and Eroad. The largest detractors from performance were Clarity Pharmaceuticals, James Hardie Industries and QBE Insurance Group.
In multiple past webcasts we have discussed that the AUD gold price had been rising, and that because gold mining companies are leveraged to the gold price their share prices should have outperformed gold price movements. At that point they had underperformed, and this continued for most of 2024. We have recently seen gold company share prices “catch up” to the gold price. This continued in August with the All Ordinaries Gold Index up 20% while the Australian dollar gold price was up 3%. With the exception of Eroad, the top contributors listed above are all gold mining companies.
Equinox Gold and New Gold both performed particularly well in August with share price rises of over 40%. Equinox Gold is on track for first gold at its Valentine mine in Canada this quarter, which is expected to produce 180,000 ounces of gold per year when operating at capacity. New Gold recently reported record quarterly free cash flow which was driven by a higher gold price and record production at its Rainy River mine.
Fully Franked Year-End Dividend
On 21 August 2025, the Company announced a 7.0 cents per share fully franked final dividend, an increase of 0.5 cents on the interim dividend, bringing the full year dividend to 13.5 cents per share fully franked. This fully franked full year dividend equated to a 7.8% yield or an 11.1% gross yield (grossed up for franking credits) based on the share price of $1.73 per share on the day of the announcement. Importantly this equated to a 6.7% dividend yield or a 9.5% gross yield (grossed up for franking credits) based on the pre-tax NTA of $2.03 on the day of the announcement, due to the Company shares trading at a discount to NTA. After paying this dividend the Company still has around 14.5 cents per share of profits reserves to pay future dividends.
The Ex-Date for the dividend is the 15 October 2025. The payment date for the dividend is the 31 October 2025.
The dividend re-investment plan (DRP) will be in operation for this final dividend. We would encourage shareholders to participate in the DRP as an efficient mechanism to add to existing holdings in the fund. The DRP will be priced at the weighted average share price over the relevant DRP pricing period. The Company will continue to buy-back the shares it issues under the DRP when the CDO share price is trading at a discount to the Pre-Tax NTA.
If you are not registered for the DRP and you would like to participate, please contact Boardroom on 1300737760.
Year-End Webcast
To watch CDO’s Year-End Webcast please click here. In this year-end webcast, Karl Siegling first provides an update on the Company’s full year results, the 7.0c fully franked final dividend, the current composition of the portfolio and the Company’s discount to NTA. He then discusses price earnings expansion before looking into the company’s investments in the gold sector. He then discusses the following four investments in some detail, Endeavor Mining (EDV CN), Amplitude Energy (AEL AU), Motorcycle Holdings (MTO AU) and Guzman Y Gomez (GYG AU) before closing with the outlook for the rest of the year.
Discount to NTA
For the first 8 months of this calendar year, after adjusting for dividends, CDO’s Pre-tax NTA has increased 13.5%. CDO is trading at a pre-tax NTA discount of around 16%. The current portfolio can be purchased for 84 cents in the dollar. The Company has been buying back its own stock at a discount to NTA in the CDO on-market buy-back program. All CDO Directors added to their CDO shareholdings at a discount to NTA by participating in the last DRP.
Fund NTA
Fund Performance
Historic Portfolio Exposure
Portfolio Sector Analysis
Portfolio Market Capitalisation Analysis
Franked Dividends Declared
After paying the 7.0c final dividend the company will have around 14.5 cents per share of profits reserves to pay future dividends.
News
To view all previous Cadence webcasts and interviews please visit the Media Section of the website.
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