There has been a drop in the share price of GoldLink Incomeplus from 0.93 cents on the 04 April 2007 to 0.60 cents 12th April 2007. 

On the 10 April 2007 GoldLink IncomePlus removed its current earnings guidance for 2007 and determined not to proceed with the capital return of 5 cents per share.  A letter from the Manager dated 10 April 2007 is attached as is a report from Aegis Research House dated 19 February 2007.  Reduction in the gold price volatility meant that a significant income and cash generating strategy of the Company is at present not producing sufficient risk adjusted returns.  Further the difference between the spot (daily) gold price and the unmatched forward contract price is producing increasing unrealised accounting losses.

Although the strategy is still generating positive cash flows the Board and Management were not satisfied that the cash returns were high enough relative to the risks and as such have moved to re-structure the portfolio to reduce risk.

These measures have been implemented without incurring any realised losses.

The Manager has informed us that they are examining ways of re-structuring the portfolio in order to rejuvenate the earnings capacity of the investment strategy.

We will meet with the Manager in the next two weeks to better understand the success of their re-structuring.

It is our recommendation to continue to hold your investment in GoldLink IncomePlus, but as this is general advice, you should discuss your personal situation with your adviser.

 

Regards

 

Dean Guse
Managing Director

 

Disclaimer: 
The advice contained in this email is of a general advice nature only and should not be taken as personal advice.  Your personal situation and circumstances have not been taken into consideration.  Should you wish to obtain personal advice regarding the above information please contact your Thornton Group Adviser on 08-8271 5144.