Net asset value up 57% for BGR

The net asset value of BGR Precious Metals for the year ended Jan 31 was $81 million, an increase of 57% from last year, President Ned Goodman reports.

Of that total, $14.3 million represents the additional capitalization of the company as a result of the exercise of the Series 1 warrants and the $3.8 million sale of flow- through shares used for the purchase and cancellation of 451,100 of BGR’s own shares.

The after tax net asset value per share at Jan 31 was $13, up 25% from last year.

Net income for the year, before the extraordinary item, was $6.23 million (up from $552,000 last year); net income after the extraordinary item was $8 million (down from $1.1 million in 1986). Earnings per share before the extraordinary item were $1.20 (in 1986, 11 cents ), and after the extraordinary item $1.54 (in 1986, 23 cents ).

(The extraordinary item in both 1987 and 1986 represents the utilization of deferred tax timing differences and loss carry over which were not previously recognized in the financial statements.)

BGR, a closed-end fund specializing in precious metals, has been requested to put forward at the next annual meeting a proposal to mutualize the company, a proposal, Mr Goodman reports, which will be opposed by management, the board of directors, and the manager.