09:45 Thu 17 Dec 2020
Geiger Counter Ltd - Annual Financial Report
GEIGER COUNTER LIMITED
(THE "COMPANY")
RELEASE OF REPORT AND FINANCIAL STATEMENTS
The Directors announce the release of the Annual Report and Financial Statements for the year ended
http://www.rns-pdf.londonstockexchange.com/rns/0543J_1-2020-12-17.pdf
CHAIRMAN'S STATEMENT - FOR THE YEAR ENDED
This has been a tumultuous year for your Company with the dramatic impact of the Covid-19 Pandemic causing a very steep decline in the underlying net asset value during the six-month period from
Since the end of
In the second half of the Company's financial year to
The end result of all this volatility has been that for the year under review to
Your Board was pleased to see that the ordinary shares traded at a premium to their underlying net asset value for significant periods throughout the last year. The Company utilised the share issuance powers and issued 9,708,731 new shares during the year raising
Unfortunately, the rise in the net asset value over the last year has not been sizeable enough to enable the ordinary shares to trade over the final subscription price for the subscription shares at the end of
Your Board and the Investment Managers remain confident over the long-term outlook for uranium. Power output from nuclear generation continues to rise and governments around the world are looking to nuclear power to provide both a base load for energy to supplement renewal sources and to reduce more polluting energy generation such as coal. The Investment Managers have a portfolio of leading companies involved in the mining and supply of uranium and firmly believe that prices will improve.
The impact of the Covid-19 pandemic has been dramatic across the world and although we have seen recent good news on vaccine development we still face a very uncertain time ahead of us all as we work through the various opportunities and threats to the Company. The Board and I would like to thank all of the Company's service providers for working so diligently in these difficult circumstances. We would also thank shareholders for their continued support for the Company and we look forward to a continued period of growth.
Finally, it should be noted that
Chairman
INVESTMENT ADVISER'S REPORT - FOR THE YEAR ENDED
There has been a step change in uranium prices during the second half of the Fund's fiscal year with prices rising to
While sector equities fell in March, in a broad synchronised sell-off across most asset classes, uranium mining equities have subsequently performed extremely well against the improved price backdrop and the Fund NAV increased 60% over the second half of the year to
Wider endorsement of nuclear power gaining momentum
In addition to the supply side effects, increasing recognition of Nuclear's merits is being reflected in governments' inclusion of nuclear power generation in new "green" policies, which is important for investor sentiment. While centrally planned investment in
Crucially, in recognition of the importance of nuclear power generation and its over reliance on foreign sources uranium, the US Senate has most recently approved a bipartisan bill to advance the purchase of a national strategic uranium reserve. Under the American Nuclear Infrastructure Act, the US Department of Energy will be restricted to only buy uranium recovered from facilities licensed by the Nuclear Regulatory Commission or equivalent agreement state agencies as of the date of enactment. The Senate indicated that the bill "preserves America's nuclear fuel supply chain, prevents more carbon emissions from entering the atmosphere, and protect economic, energy, and national security". Uranium from companies owned, controlled, or subject to jurisdictions in
Closer to home, new
It is crucial to appreciate that such nuclear policies will run alongside renewables. As shown below, these will continue to supplant a proportion of fossil fuel generation capacity around the world particularly the secular decline in thermal coal, whose secular decline is clearly evident in recent data published by the US Energy Information Administration.
Supply concentration and political risks remain
Despite the expected decision by US Department of Commerce to extend the Russian Suspension Agreement, effectively ceasing its investigation into Russian state subsidised supply of uranium, political tensions between the two nations have recently stepped-up with the US threatening to sanction companies involved in the delivery of the Nord Stream II pipeline which will deliver gas from
Unquoted investments
The Fund has a position in High Power Exploration Inx ("HPX"), which is unquoted global mineral exploration company. HPX raised a substantial amount of new funding in
New City Investment Managers
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