NewGold Issuer Limited, the gold-backed exchange-traded fund listed on the Ghana Stock Exchange, reported net profit of USD 2.7 million for the six months ending September 30, 2025, though revenue fell 32 percent compared to the previous period.
The ETF’s unaudited financial statements show revenue declining from USD 5.6 million in the March 2025 half-year to USD 3.8 million in the September period, with net profit dropping 27 percent from USD 3.7 million to USD 2.7 million. The decline reflects reduced gains from gold price movements during the reporting period.
Total assets expanded 18 percent to USD 2.645 billion, driven primarily by bullion investment holdings of USD 2.64 billion that represent 99.8 percent of the fund’s assets. The gold holdings increased by USD 401.5 million compared to March 2025, indicating continued investor inflows into the fund.
NewGold’s structure follows typical ETF patterns, with debenture liabilities of USD 2.639 billion nearly matching bullion assets. This alignment reflects how the fund finances gold purchases through debenture issuance to investors who effectively own claims on the underlying metal.
The fund maintains minimal shareholder equity of just USD 263,089, representing 0.01 percent of total assets. This razor-thin equity base is characteristic of commodity-backed ETFs where value resides with debenture holders rather than shareholders.
Cash and equivalents grew 47 percent to USD 5.03 million from USD 3.41 million in March, suggesting improved liquidity management. Operating cash flow of USD 2.7 million covered dividend payments of USD 1.36 million with room for cash accumulation.
Fair value adjustments on bullion generated USD 455.9 million in gains, completely offset by corresponding adjustments on debentures of the same amount. This offsetting pattern demonstrates how the fund’s structure passes gold price movements through to debenture holders rather than creating profit or loss for the ETF operator.
Net revenue derives from operating income, finance income, and other sources rather than gold price appreciation, which flows to investors through the debenture structure. This explains how the fund generates profits from management activities while gold price exposure transfers to unitholders.
The 32 percent revenue decline suggests reduced management fees or other income sources compared to the prior period. Whether this reflects lower trading activity, fee compression, or other operational factors remains unclear from the financial statements alone.
NewGold has become one of the Ghana Stock Exchange’s most actively traded securities by value, frequently dominating daily trading volumes. Ghanaian investors have embraced the fund as a hedge against cedi depreciation and economic uncertainty, driving substantial demand for gold-backed securities.
The fund’s September trading activity on the GSE showed 3,073 units changing hands for GH¢1.44 million in a single day, representing the highest value trade across all listed securities. This popularity reflects broader investor preference for hard assets amid persistent inflation and currency pressures.
However, the fund’s high leverage ratio, with liabilities representing 99.99 percent of assets, creates structural vulnerabilities should gold prices decline sharply or liquidity challenges emerge. While typical for ETF structures, this leverage means even small mismatches between assets and liabilities could eliminate the thin equity base.
The dividend payment of USD 1.36 million demonstrates the fund’s ability to extract profits from its management operations while maintaining the gold-backed structure that protects investor capital. Dividend coverage of approximately two times profit suggests sustainable distribution capacity.
For Ghanaian investors, NewGold offers exposure to dollar-denominated gold prices while trading in local currency on the domestic exchange. This convenience factor, combined with gold’s historical value preservation, explains the fund’s appeal despite relatively modest profitability for the operator.
Looking ahead, NewGold’s performance will track global gold prices and investor appetite for gold-backed securities in Ghana. Rising economic uncertainty typically drives increased demand for the fund, while improved economic conditions or stronger cedi performance could reduce investor interest.
The 18 percent asset growth to USD 2.645 billion suggests continued confidence in the fund’s structure and management. Whether this growth trajectory can continue depends largely on gold price trends and Ghana’s economic stability over coming quarters.
