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Singapore’s Listed Gold Plays

By Geoff Howie, Market Strategist, Singapore Exchange

Published on March 9, 2017

Geoff Howie is the Singapore Exchange’s Market Strategist and is the author of the SGX My Gateway Report and Market Updates published at http://sgx.com/research/. He previously held lead broking and market strategist roles across the Asia Pacific offices of a large international futures broker. He has also served as the Treasury Adviser to the Leader of the Queensland Liberal Party in Queensland Parliament. He has received a bachelor’s and master’s degree in Economics at the University of Queensland.

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Gold is an important part of Singapore’s stock market. In addition to the SPDR Gold Shares – Singapore’s most actively traded exchange-traded fund (ETF) in 2016 – Singapore Exchange (SGX) also lists three gold miners, each at different stages of exploration, development and production, predominantly focusing on Malaysia and Indonesia.

SPDR Gold Shares

The objective of the SPDR Gold Shares is for the ETF to reflect the performance of the price of gold bullion, less the trust’s expenses. The shares represent fractional, undivided interests in the trust, the primary asset of which is allocated gold. The ETF also uses the LBMA Gold Price PM as the reference benchmark price in calculating the net asset value (NAV) of the trust.

Since its inception in November 2004, the ETF has generated an annualised return of 7.9% through to the end of 2016. The SPDR Gold Shares ETF was subsequently listed on SGX in October 2006 with the intention of lowering barriers such as access, custody, and transaction costs that had traditionally prevented investors from investing in gold.

The moves of the LBMA Gold Price PM have correlated with the moves of the SPDR Gold Shares in recent years (Figure 1).

Figure 1: LBMA Gold Price PM & SPDR Gold Shares Weekly Prices (USD)

Source: sgx.com/ETF, sgx.com/research, Bloomberg

SPDR Gold Shares are also traded on four other global exchanges, showcasing the global interest in this particular ETF. When the price of gold peaked in 2011, SPDR Gold Shares was briefly ranked the world’s biggest ETF by assets under management (AUM). With almost 26 million ounces, or about 810 tonnes of gold in the trust and a unit price of US$115.0 at the time of writing, the AUM of the trust is currently more than US$33 billion. Singapore accounts for 70% of SPDR Gold Shares’ Asian AUM.

The value of each unit is based on the price of 1/10 of an ounce of gold. Hence with the minimum board transaction quantity of 10 units, the minimum transaction size is equivalent to 1 ounce of gold. This means, at present prices, the minimum transaction of SPDR Gold Shares listed on SGX would be US$1,150.0 (equivalent to holding 1 ounce of gold), not including transaction fees or the 0.4% total expense ratio associated with this ETF.

Even though the transaction size is relatively small, the typical transaction for the SPDR Gold Shares ETF is significantly bigger. The typical bid offer spread for the ETF is US$0.10 with 1,000 units on both the bid and offer. For investors who wish to transact more than the implied US$115,000 transaction value at market, market makers are active in the market and block trades can be conducted in sizes of at least 50,000 ETF units or a transaction value of at least S$150,000. Please note that SGX currently waives clearing fees for ETF block trades (expiring 31 December 2017).

Gold Mining Stocks

Of the 16 mining stocks listed on SGX, three stocks, all listed on Catalist, focus on gold mining. They are CNMC Goldmine Holdings (5TP), Wilton Resources Corporation (5F7) and Anchor Resources (43E).

Headquartered in Singapore, CNMC Goldmine Holdings started operations in 2006 and is principally involved in the exploration and mining of gold and the processing of mined ore into gold dorés. CNMC Goldmine Holdings is currently focused on developing the Sokor Gold Field Project located in the Malaysian state of Kelantan. Spanning an area of 10 km2, Sokor had 618,000 ounces of JORC-compliant gold resources (including ore reserves) as of 31 December 2015.

Wilton Resources is engaged in the business of exploration and mining of gold, and production of gold doré. The group’s concession blocks, collectively termed the “Ciemas Gold Project”, are located in West Java, Indonesia, and cover a total area of 3,078.5 hectares. As at 30 June 2016, the Ciemas Gold Project contains JORC-compliant estimated total mineral resources amounting to approximately 39,000 kg of gold (around 1,250,000 troy ounces).

Anchor Resources listed in 2016 and engages in the exploration, mining, processing, production, and sale of gold and related minerals. The company holds interests in the Lubuk Mandi mine and Bukit Panji property in Terengganu, Malaysia. It also provides mining consultancy services. As of 30 September 2015, JORC reported that the estimated total mineral resources for the Lubuk Mandi project amounted to approximately 115,000 ounces of gold.

CNMC Goldmine Holdings, the largest capitalised of the trio, achieved its first gold pour in 2010 and saw share trading volumes increase threefold from May 2016 to June 2016, then threefold again, from June 2016 to July 2016. Following the Brexit vote on 24 June 2016, the World Gold Council reiterated the diversifier role of gold, noting that it was fulfilling its classic role as a haven asset, with its history of maintaining low correlations to most other asset classes.

Geoff Howie is the Singapore Exchange’s Market Strategist and is the author of the SGX My Gateway Report and Market Updates published at http://sgx.com/research/. He previously held lead broking and market strategist roles across the Asia Pacific offices of a large international futures broker. He has also served as the Treasury Adviser to the Leader of the Queensland Liberal Party in Queensland Parliament. He has received a bachelor’s and master’s degree in Economics at the University of Queensland.

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Lee Jia Yi

OPERATIONS & ADMIN EXECUTIVE
Before joining SBMA, Jia Yi worked as an Admin & Reporting Officer in her previous role. She holds a Diploma in Business & Social Enterprise from Ngee Ann Polytechnic. Jia Yi is responsible for managing and maintaining physical and digital files in SBMA, supporting invoicing processes, reconciling receivables and payables, coordinating meetings and conferences. Additionally, she will provide support to the team and assist the Business Director in managing the Association’s office operations and general administrative activities.

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Emily Oh

OPERATIONS & ADMIN EXECUTIVE
Emily Oh is the Operations & Admin Executive, a seasoned professional who values teamwork and effective communication. She is skilled at adapting to new challenges and takes a proactive and resourceful approach to every task. Before joining SBMA, Emily had experience coordinating international travel arrangements and spearheading community initiatives. Her role at SBMA will be providing operational and administrative support for projects and other matters to the team.

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Clara Chang

MARKETING & COMMUNICATIONS EXECUTIVE
Clara Chang joins SBMA as the Marketing & Communications Executive, enriching the team with her extensive experience in content creation, social media management, and digital marketing. Prior to joining SBMA, Clara held the position of Marketing Executive at her previous job. She holds two bachelor’s degrees from the University at Buffalo, one in International Trade and another in Geographical Information Science. Her core duties will include maintaining the SBMA website, managing the quarterly Crucible newsletter, among other responsibilities.

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Mr John Levin

Global Metals
TD Securities
John Levin is the Head of Metal Sales & Trading – APAC at the Toronto Dominion Bank’s Singapore office. Prior to this role, he devoted seven years to leading precious metal sales for the ANZ banking group in his home country, Australia. Notably, from 2009 to 2011, John played a significant role on the management committee of the London Bullion Market Association while serving as the Head of Precious Metals Sales for HSBC Global Banking and Markets in the UK.

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Fabian Lew

MARKETING & COMMUNICATIONS OFFICER

Fabian was a Business Development and Marketing Associate before joining SBMA. He graduated from Singapore Management University with a Bachelor’s degree in Economics.

He has joined SBMA since February, 2022.

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Margaret Wong

BUSINESS DIRECTOR

Margaret Wong, Business Director at SBMA (Singapore Bullion Market Association), brought valuable experience from her previous role at the World Gold Council (WGC). Her tenure at WGC provided her with extensive exposure to the gold community in Singapore and the broader region. This background has been instrumental in establishing strong working relationships within the industry.

Margaret’s role at SBMA encompasses a diverse range of responsibilities. She oversees office management, business support processes, finance, and administrative functions essential for the smooth operation of the team and management committee. Additionally, Margaret handles membership matters, member communications, and addresses public inquiries related to SBMA.

One of Margaret’s key responsibilities is coordinating with the Event Management Company for SBMA’s prestigious annual event, the Asia Pacific Precious Metals Conference. This flagship conference plays a crucial role in the industry, making her involvement pivotal in its success.

Described as resourceful and self-motivated, Margaret Wong brings a wealth of skills and experience to her role at SBMA, ensuring efficient operations and effective engagement within the precious metals community in Singapore and beyond.

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Albert Cheng

Chief Executive Officer

Albert Cheng joined the World Gold Council in March 1993 as a Regional Manager, becoming Managing Director, Far East in 2003. He retired at the end of March 2015 and was subsequently named its Advisor. He has also been an International Advisor to the Shanghai Gold Exchange since 2002.

His marketing career began with Dentsu Young & Rubicam, Hong Kong in the early 80’s. He began gold marketing in July 1985 when he joined the Royal Canadian Mint as a Regional Manager for Southeast Asia.

He was appointed honorary CEO of SBMA in November 2015. He is responsible for the success and strategic development of SBMA, represents the interests of the Association, and is responsible for all the legal and regulatory aspects of the work of the Association. He is the primary contact for regulators and government bodies on bullion market development.

Ms Pawan Nawawattanasub

Ms Pawan Nawawattanasub

CEO
YLG Bullion Singapore Pte Ltd

Pawan is the CEO of YLG Bullion Singapore and founder of YLG Bullion International. She has almost 40 years of experience in the jewellery industry and established YLG in Thailand in 2003. In 2012, she brought YLG to Singapore. She sits on the Board of Directors of the Thailand Gold Traders Association, the Thailand Futures Exchange’s Arbitration Committee, and the Rotary Bangkok committee. She holds a master’s degree in Political Science.

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Mr Shaokai Fan

Head of Asia-Pacific (ex China) and Global Head of Central Banks
World Gold Council
Shaokai Fan is the Global Head of Central Banks at the World Gold Council, responsible for advising governments on gold matters, and enhancing the gold market through engagement, dialogue, and thought leadership. He works directly with central banks and sovereign wealth funds on investment considerations. Prior to this position, Shaokai held multiple roles at Standard Chartered Bank, including Director for Asia Strategic Initiatives and Associate-Director for Public Sector coverage. Shaokai holds a Masters of Public Administration from Columbia University and the London School of Economics, and an undergraduate degree in finance and economics from New York University.

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Mr Alan Liew

Head of Bullion & Commodities Trading
United Overseas Bank Limited
Alan is Head of Bullion and Commodities Trading for Group Trading in Global Markets, United Overseas Bank (UOB). Alan joined UOB and started the bank’s commodities trading business in 2014, previously he spent eight years in Standard Chartered Bank (SCB) trading both precious and base metals. During his tenure at SCB, he obtained the SGE gold trader licence and was part of the pioneering team for the SGE business and the FX quantitative trading team. Prior to trading, he worked for Monetary Authority of Singapore in the Financial Risk Management Division. He holds a BSc (Hon) in Computer Science at National University of Singapore and a MSc in Financial Engineering at Nanyang Technological University.

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Mr Nikos Kavalis

Managing Director
Metals Focus Singapore Pte Ltd
Nikos Kavalis is a founding partner of Metals Focus. He has over 20 years of experience in precious metals, having previously worked for the Royal Bank of Scotland and GFMS. Since September 2019, Nikos has been based in Singapore, where he also runs the local subsidiary of Metals Focus.

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Mr Nuttapong Hirunyasiri

CEO
MTS Gold Global Trading Pte Ltd
Nuttapong Hirunyasiri is the CEO of MTS Gold Group, one of Thailand’s top 10 companies and top 3 bullion companies. He started MTS Gold Group’s first overseas office in Singapore and has been expanding the group business internationally. He focuses on product development and innovation for gold investment, with the aim of being a leader in providing the full suite of gold investment services in the ASEAN region.

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Mr Raman Walia

Executive Director, Head of Commodities Sales – APAC
JP Morgan Chase Bank N.A.

Raman is Executive Director and Head of Commodities Sales, APAC, for J.P. Morgan. He joined JPMorgan in 2008 in New York, moved to Singapore in 2011, and helped expand the precious metals business in the region. Raman has an MBA from Cornell University, and likes to travel in his spare time.

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Mr Andrew Clarke

Head of Brink’s Global Services
Brink’s Global Services Pte Ltd

Andrew Clarke is the Head of BGS (Brink’s Global Services) for Singapore, Indonesia, Malaysia and Brunei. He has held various leadership positions throughout his career in secure logistics and risk management with Brink’s, which started in Hong Kong in 2010. Andrew relocated to Singapore in 2018 to expand the precious metals line of business along with Brink’s portfolio of services and industries.

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Mr Kazuya Naoki

Head of Metals, Asia
ICBC Standard Bank Plc, Singapore Branch

Kazuya (Kaz) Naoki is the Head of Metals, Asia of ICBC Standard Bank in Singapore and is responsible for the precious & base metals sales and trading in the region. He joined Standard Bank Plc Tokyo Branch in 2008 and was relocated to its Singapore Branch in 2013 whose controlling stake was acquired by the Industrial and Commercial Bank of China in 2015. Prior to joining Standard Bank, Kaz spent 11 years focusing on commodity trading and risk management with Mitsui & Co in Tokyo, Sydney and London. Kaz has been serving on the SBMA Management Committee since 2016.

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Mr Vinh Nguyen

Head of Precious Metals, Asia
StoneX APAC Pte Ltd

Vinh Nguyen joined StoneX Group in Singapore at the beginning of 2008 and responsible for its APAC precious metals activities since 2019 until now.

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Mr KL Yap

General Manager, Singapore Refining Business Unit
Metalor Technologies (Singapore) Pte Ltd
KL YAP is the General Manager of Metalor Technologies (Singapore) Pte Ltd’s Singapore Refining Business Unit. He joined Metalor in 2013, initially in Refining Sales. In 2014, he became Refining Business Unit Manager, leading the development of a new precious metal refinery. KL was Vice Chairman of SBMA from 2017 to 2021, now serving as Chairman. With a degree in business commerce, finance, and marketing, he brings prior experience from refinery and heavy industries.