Cadence Opportunities Fund returned a positive gross performance of 6.8% in September, outperforming the All Ordinaries Accumulation Index by 7.3% for the month. The Company has had a strong start to the year being up 14.3% for the first quarter, outperforming the All Ordinaries Accumulation Index by 9%. The top contributors to performance during September were Endeavour Mining, Equinox Gold, New Gold, Pantoro, Kingsgate Consolidated, Robex Resources, Clarity Pharmaceuticals and Samsung Electronics. The largest detractors from performance were Motorcycle Holdings, Turaco Gold and Myer Holdings.
The two-year gold price uptrend continued in September, and our top six contributors listed above are all gold mining companies. In multiple past webcasts we have discussed that because gold mining companies are leveraged to the gold price their share prices should outperform gold price movements. We saw this occur in September with the Australian dollar gold price up by 11%, while our top six performing gold mining companies rose between 15% and 34%.
Pantoro Gold and Kingsgate Consolidated both performed particularly well in September with share price rises of 31% and 34% respectively. During September, Pantoro conducted a North American roadshow where it reiterated its medium-term growth strategy to increase production from 85,000 ounces in 2025 to over 200,000 ounces per year. Kingsgate continues to ramp up production at its Chatree gold mine, achieving over 20,000 ounces per quarter for the last two quarters, and targeting 85,000 to 95,000 ounces for FY26.
Fully Franked Year-End Dividend
In 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 22.5 cents per share of profits reserves to pay future dividends.
The Ex-Date for the dividend is 15 October 2025. The payment date for the dividend is 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.
Discount to NTA
CDO is trading at a pre-tax NTA discount of around 12%. The current portfolio can be purchased for 88 cents on the dollar. CDO shares purchased before 15 October 2025 (i.e. the ex-date) will be entitled to receive the year-end dividend.
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.
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.
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 22.5 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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