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Precious Metals and Mining Trust T.MMP.UN

Alternate Symbol(s):  PMMTF

Precious Metals and Mining Trust (the Trust) is a Canada-based investment trust. The Trust's investment objectives are to provide unitholders with long-term capital appreciation and monthly cash distributions. The Trust's assets allocation includes Canadian equity, international equity, cash and equivalents, United States equity and other. The Trust invests in various sectors, including gold and precious metals, metals and mining, chemicals and gases, forestry and paper, and others. CI Investments Inc. is the manager, portfolio adviser and trustee of the Trust.


TSX:MMP.UN - Post by User

Comment by Tadon Feb 13, 2020 11:19am
103 Views
Post# 30686034

RE:RE:MMP.un looking like a buy now

RE:RE:MMP.un looking like a buy now

mouserman wrote: MMP.un continues to struggle even with the higher gold and silver prices of late.... not sure when  or if the market will  see MMP.un as a good precious metals hedge, when you can buy an ETF that doesnt carry the risk of poorly managed, wannabe precious metals miners.
MMP.un has some good names, but some real losers as well.



This fund continually trades below net asset value, pretty consistently about $0.10 per unit below NAV, as in yesterday's closing NAV was posted as $1.6473 yet unit price closed at $1.54

Not overly concerned personally, with the monthly distributions over the past 5 years and some decent long term swing trading profits, I'm confortable with holding a significant %age of my portfolio in this fund. 

I am a bit disappointed in the overall market reaction to gold and silver prices and the lack of a corresponding increase in the share prices of most junior and mid tier producers in the past 6 months. 


MMP.UN's Net Asset Value got hit a little again yesterday with Pretium getting knocked down on YE 2019 results.  You're right, this fund definitely has some good names, as well as some distressed situations like TMAC and Guyana Goldfields being a couple of their larger losers, at least for the time being. 



A couple Interesting moves by the MMP.UN fund managers, they manage four separate funds holding significant positions in Guyana Goldfields. 


There was an Alternative Monthly Report filing on Guyana Goldfield's SEDAR.COM page for January 10, 2020 regarding CI Investments increasing their holdings of Guyana Goldfileds:
 
 
"3.1 State the designation and the net increase or decrease in the number or principal amount of securities, and in the eligible institutional investor's securityholding percentage in the class of securities, since the last report filed by the eligible institutional investor under Part 4 or the early warning requirements.
 
Based on the current capitalization of the Shares, the securityholding in the Reporting Issuer was approximately 13.30% of the outstanding Shares. This represents an increase of 4,662,757 in the number of Shares and 2.61% in the eligible institutional investor’s securityholding percentage in the Shares, since the last report filed by the Investment Manager on April 10, 2019.
 
3.2 State the designation and number or principal amount of securities and the eligible institutional investor's securityholding percentage in the class of securities at the end of the month for which the report is made.
 
As of December 31, 2019, the Investment Manager was a holder of 23,211,457 Shares. Based on the current capitalization of the Reporting Issuer, the securityholding in the Reporting Issuer was approximately 13.30%. The Investment Manager has control or direction over such securities but such securities are owned by accounts managed by the Investment Manager."


Not sure how they allocated these additional GUY shares into the four mentioned funds. We won't see that for another month or so yet. But it appears they're averaging down on GUY.

I've bought a decent position of 100,000 shares in GUY in the mid $0.60's back in January. I think this could be a big turnaround story of 2020. 


As far as TMAC Resources is concerned, that company has initiated a strategic review process and quite possibly has put itself up for sale. With the grades at Hope Bay comparable to Kirkland Lake's Fosterville Mine in Australia, someone will take TMAC out, or place a significant investment in the company if gold prices continue hovering well over $1500, all depends what type of premium, if any, to current share price TMAC might command ?? 

Apparently, a number of institutions are not placing much faith in TMAC, including the Sentry fund managers who have been selling shares of TMAC from a couple of the tunds they run under the Sentry banner ....

https://www.morningstar.ca/ca/report/stocks/ownership.aspx?t=0P0001J4FC&lang=en-CA


There has definitely been a significant change in the make up of the MMP.UN fund over the course of the past 5 months. For the sake of transparency, it would be nice if the fund gave unit holders a monthly up date on the top 25 holdings in the fund, they already have a page for it ....: 

https://ci.com/en/documents/static/Fund_Profiles/Alternative_Investments/8794/PreciousMetalsandMiningTrust_Monthly_profile.pdf

..... however all we see is a blank page where the holdings have been posted. I do recall seeing a complete monthly update statement in the past. Would be helpful to know what the fund managers are doing, wouldn't it ? 

Will also be intersting to see what the fund did with their shares of Detour Gold in the Kirkland Lake takeover, and if the fund has taken some profits from the significant run in K92 Mining share price in the past 6 months as well. 


GLTA



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