All change at Golden Prospect

19/09/2006 Robert Tyerman

Buoyant resources investment group Golden Prospect intends to change its name to Ambrian Capital and float a precious metals fund.

Chaired by Malcom Burne, AIM-quoted Golden Prospect increased pre-tax profits 52 per cent to £7.74 million in the six months to June. The company's traditional resources-focused investment portfolio generated gross trading and asset disposal profits up 40 per cent to £7.18 million, while gross investment banking profits more than trebled to £4.1 million.

These investment banking profits were mostly achieved by Ambrian Partners, the company's corporate finance and broking arm which Golden Prospect acquired in 2004. Ambrian, whose American boss Tom Gaffney is now chief executive officer of Golden Prospect, has launched Ambrian Commodities as a London Metal Exchange associate member, acting as broker-dealer in a range of metals.

Gaffney says the group's strategy is to become firmly earnings-driven, rather than asset-driven. He says the commodities division, which intends to become a carbon credit broker-dealer and is also looking at energy and soft commodities, solely acts for producers and users and is not a principal, maintaining no overnight positions of its own.

Golden Prospect plans to float a precious metals companies fund on AIM, partly, says Gaffney, to be able to make un-taxed profits on investments in such companies. Charles Crick, former corporate finance boss at broker Numis, has become a non-executive director and Gaffney is building up the non-resources side by recruiting ex-Morgan Stanley telecoms chief Michael Armitage and two tech researchers from Dawnay Day.

At 58.75p, Golden Prospect shares value the company at £63.3 million and should have further to go.

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