UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
Form
| QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
For
the Quarterly Period Ended
Or
| TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
For the Transition Period from ___________ to _____________
Commission
File Number:
(Exact name of registrant as specified in its charter)
(State or other jurisdiction of incorporation or organization) |
(I.R.S. Employer Identification No.) |
(Address of principal executive offices)
Registrant’s telephone number, including area code:
Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.
Yes
☐
Indicate by check mark whether the registrant has submitted electronically and posted on its corporate web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files).
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer”, “accelerated filer”, “smaller reporting company” and “emerging growth company” in Rule 12b-2 of the Exchange Act.
| Large accelerated filer | ☐ | Accelerated filer | ☐ |
| ☐ | Smaller reporting company | ||
| Emerging growth company |
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
Indicate
by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐
As of February 02, 2024, the Registrant had Shares outstanding.
Securities registered pursuant to Section 12(b) of the Act:
| Title of each class | Trading Symbol(s) | Name of each exchange on which registered | ||
GRANITESHARES PLATINUM TRUST
FORM 10-Q
FOR THE QUARTER ENDED DECEMBER 31, 2023
INDEX
| PART I. FINANCIAL INFORMATION | ||
| Item 1. | Financial Statements | 3 |
| Item 2. | Management’s Discussion and Analysis of Financial Condition and Results of Operations | 13 |
| Item 3. | Quantitative and Qualitative Disclosures About Market Risk | 15 |
| Item 4. | Controls and Procedures | 15 |
| PART II. OTHER INFORMATION | ||
| Item 1. | Legal Proceedings | 15 |
| Item 1A. | Risk Factors | 15 |
| Item 2. | Unregistered Sales of Equity Securities and Use of Proceeds | 15 |
| Item 3. | Defaults Upon Senior Securities | 16 |
| Item 4. | Mine Safety Disclosures | 16 |
| Item 5. | Other Information | 16 |
| Item 6. | Exhibits | 16 |
| SIGNATURES | 17 | |
| 2 |
PART I - FINANCIAL INFORMATION:
Item 1. Financial Statements
Statements of Assets and Liabilities
At December 31, 2023 (unaudited) and June 30, 2023
| Amounts in 000’s of US$, except share and per share data | December 31, 2023 | June 30, 2023 | ||||||
| (unaudited) | ||||||||
| Assets | ||||||||
| Investment in platinum, at fair value (1) | $ | $ | ||||||
| Total Assets | $ | $ | ||||||
| Liabilities | ||||||||
| Fees payable to Sponsor | $ | $ | ||||||
| Total Liabilities | ||||||||
| Net Assets | $ | $ | ||||||
| Shares issued and outstanding (2) | ||||||||
| Net asset value per Share | $ | $ | ||||||
| (1) | ||
| (2) |
See Notes to the Financial Statements
| 3 |
Schedules of Investments
At December 31, 2023 (unaudited) and June 30, 2023
Amounts in 000’s of US$, except for ounces and percentages
| December 31, 2023 (unaudited) | Ounces of platinum | Cost | Value | % of Net Assets | ||||||||||||
| Platinum | $ | $ | % | |||||||||||||
| Total investment | $ | $ | % | |||||||||||||
| Assets in excess of liabilities | $ | ( | ) | ( | )% | |||||||||||
| Net Assets | $ | % | ||||||||||||||
| June 30, 2023 | Ounces of platinum | Cost | Value | % of Net Assets | ||||||||||||
| Platinum | $ | $ | % | |||||||||||||
| Total investment | $ | $ | % | |||||||||||||
| Liabilities in excess of other assets | $ | ( | ) | ( | )% | |||||||||||
| Net Assets | $ | % | ||||||||||||||
See Notes to the Financial Statements
| 4 |
Statements of Operations (Unaudited)
For the three and six months ended December 31, 2023 and 2022
| Amounts in 000’s of US$, except per share data | Three Months Ended December 31, 2023 | Three Month Ended December 31, 2022 | Six Months Ended December 31, 2023 | Six Months Ended December 31, 2022 | ||||||||||||
| Expenses | ||||||||||||||||
| Sponsor fees | $ | $ | $ | $ | ||||||||||||
| Total expenses | ||||||||||||||||
| Net investment loss | ( | ) | ( | ) | ( | ) | ( | ) | ||||||||
| Net realized and unrealized gain (loss) | ||||||||||||||||
| Net realized gain (loss) from: | ||||||||||||||||
| Platinum bullion sold to pay expenses | ( | ) | ( | ) | ( | ) | ( | ) | ||||||||
| Platinum bullion distributed for the redemption of Shares | ( | ) | ( | ) | ( | ) | ( | ) | ||||||||
| Net realized gain (loss) | ( | ) | ( | ) | ( | ) | ( | ) | ||||||||
| Net change in unrealized appreciation (depreciation) | ||||||||||||||||
| Net realized and unrealized gain (loss) | ||||||||||||||||
| Net increase (decrease) in net assets resulting from operations | $ | $ | $ | $ | ||||||||||||
| Net increase (decrease) in net assets per share | $ | $ | $ | $ | ||||||||||||
| Weighted average number of shares (in 000’s) | ||||||||||||||||
See Notes to the Financial Statements
| 5 |
Statements of Changes in Net Assets (Unaudited)
For the three and six months ended December 31, 2023 and 2022
| Amounts in 000’s of US$ | Three Months Ended December 31, 2023 | Three Months Ended December 31, 2022 | Six Months Ended December 31, 2023 | Six Months Ended December 31, 2022 | ||||||||||||
| Net Assets – beginning of period | $ | $ | $ | $ | ||||||||||||
| Creations of , , and shares respectively | ||||||||||||||||
| Redemptions of , , and shares respectively | ( | ) | ( | ) | ( | ) | ( | ) | ||||||||
| Net investment loss | ( | ) | ( | ) | ( | ) | ( | ) | ||||||||
| Net realized gain (loss) from platinum bullion sold to pay expenses | ( | ) | ( | ) | ( | ) | ( | ) | ||||||||
| Net realized gain (loss) from platinum bullion distributed for redemptions | ( | ) | ( | ) | ( | ) | ( | ) | ||||||||
| Net change in unrealized appreciation (depreciation) on investment in platinum bullion | ||||||||||||||||
| Net Assets – end of period | $ | $ | $ | $ | ||||||||||||
See Notes to the Financial Statements
| 6 |
Financial Highlights (Unaudited)
For the three and six months ended December 31, 2023 and 2022
Per Share Performance (for a Share outstanding throughout each period) |
Three Months Ended December 31, 2023 |
Three Months Ended December 31, 2022 |
Six Months Ended December 31, 2023 |
Six Months Ended December 31, 2022 |
||||||||||||
| Net asset value per Share at beginning of period | $ | $ | $ | $ | ||||||||||||
| Net investment gain (loss)(1) | ( |
) | ( |
) | ( |
) | ( |
) | ||||||||
| Net realized and unrealized gain (loss) on investment in platinum | ||||||||||||||||
| Net change in net assets from operations | ||||||||||||||||
| Net asset value per Share at end of period | $ | $ | $ | $ | ||||||||||||
| Market value per Share at end of period | $ | $ | $ | $ | ||||||||||||
| Total return ratio, at net asset value(2) | % | % | % | % | ||||||||||||
| Total return ratio, at market price | % | % | % | % | ||||||||||||
| Net assets ($000’s) | $ | $ | $ | $ | ||||||||||||
| Ratio to average net assets | ||||||||||||||||
| Net investment loss (3) | ( |
)% | ( |
)% | ( |
)% | ( |
)% | ||||||||
| Expenses (3) | % | % | % | % | ||||||||||||
| (1) | |
| (2) | |
| (3) |
See Notes to the Financial Statements
| 7 |
Notes to the Financial Statements (Unaudited)
1. Organization
GraniteShares Platinum Trust (the “Trust”) is an investment trust formed on January 11, 2018 under New York law pursuant to a trust indenture. The Sponsor of the Trust, GraniteShares LLC (the “Sponsor”), is responsible for, among other things, overseeing the performance of The Bank of New York Mellon (the “Trustee”) and the Trust’s principal service providers, including the preparation of financial statements. The Trustee is responsible for the day-to-day administration of the Trust.
The objective of the Trust is for the value of the Shares to reflect, at any given time, the value of the assets owned by the Trust at that time less the Trust’s accrued expenses and liabilities as of that time. The Shares are intended to constitute a simple and cost-effective means of making an investment similar to an investment in platinum.
The fiscal year end for the Trust is June 30.
Undefined capitalized terms shall have the meaning as set forth in the Trust’s registration statement.
2. Basis of Accounting and Significant Accounting Policies
The Sponsor has determined that the Trust falls within the scope of Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) 946, Financial Services—Investment Companies, and has concluded that for reporting purposes, the Trust is classified as an Investment Company. The Trust is not registered as an investment company under the Investment Company Act of 1940, as amended, and is not required to register under such act.
The preparation of financial statements in accordance with accounting principles generally accepted in the United States of America requires those responsible for preparing financial statements to make estimates and assumptions that affect the reported amounts and disclosures. Actual results could differ from those estimates.
The following is a summary of significant accounting policies followed by the Trust.
2.1 Custody and Fair Valuation of Platinum
The Trust follows the provisions of ASC 820, Fair Value Measurements (“ASC 820”). ASC 820 provides guidance for determining fair value and requires increased disclosure regarding the inputs to valuation techniques used to measure fair value. ASC 820 defines fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date.
Platinum
is held by ICBC Standard Bank Plc (the “Custodian”), on behalf of the Trust, at the Custodian’s London, United Kingdom
vaulting premises.
LBMA Platinum Price PM is the price per troy ounce of platinum, stated in U.S. dollars, determined by the LME, following an auction process starting after 2:00 p.m. (London time), on each day that the London platinum market is open for business, and announced by the LME shortly thereafter.
The per Share amount of platinum exchanged for a purchase or redemption is calculated daily by the Trustee, using the LBMA Platinum Price PM to calculate the platinum amount in respect of any liabilities for which covering platinum sales have not yet been made, and represents the per Share amount of platinum held by the Trust, after giving effect to its liabilities, to cover expenses and liabilities and any losses that may have occurred.
| 8 |
ASC 820 establishes a hierarchy that prioritizes inputs to valuation techniques used to measure fair value. The three levels of inputs are as follows:
Level 1: Unadjusted quoted prices in active markets for identical assets or liabilities that the Trust has the ability to access.
Level 2: Observable inputs other than quoted prices included in level 1 that are observable for the asset or liability either directly or indirectly. These inputs may include quoted prices for the identical instrument on an inactive market, prices for similar instruments and similar data.
Level 3: Unobservable inputs for the asset or liability to the extent that relevant observable inputs are not available, representing the Trust’s own assumptions about the assumptions that a market participant would use in valuing the asset or liability, and that would be based on the best information available.
The following table summarizes the Trust’s investments at fair value:
| (Amounts in 000’s of US$) | ||||||||||||
| December 31, 2023 | Level 1 | Level 2 | Level 3 | |||||||||
| Investment in Platinum | $ | $ | $ | |||||||||
| Total | $ | $ | $ | |||||||||
The following table summarizes the Trust’s investments at fair value:
| (Amounts in 000’s of US$) | ||||||||||||
| June 30, 2023 | Level 1 | Level 2 | Level 3 | |||||||||
| Investment in Platinum | $ | $ | $ | |||||||||
| Total | $ | $ | $ | |||||||||
There
were
2.2 Expenses, realized gains and losses
The
Trust’s only ordinary recurring fee is expected to be the fee paid to the Sponsor, which will accrue daily at an annualized rate
equal to
The Sponsor has agreed to assume administrative and marketing expenses incurred by the Trust, including the Trustee’s monthly fee and out of pocket expenses, the Custodian’s fee and the reimbursement of the Custodian’s expenses, exchange listing fees, United States Securities and Exchange Commission (the “SEC”) registration fees, printing and mailing costs, audit fees and certain legal expenses.
As
of period ended of December 31, 2023, the fees payable to the Sponsor were $
With respect to expenses not otherwise assumed by the Sponsor, the Trustee will, at the direction of the Sponsor or in its own discretion, sell the Trust’s platinum as necessary to pay these expenses. When selling platinum to pay expenses, the Trustee will endeavor to sell the smallest amounts of platinum needed to pay these expenses in order to minimize the Trust’s holdings of assets other than platinum. Other than the Sponsor’s Fee, the Trust had no expenses during the six months and 3 months ended December 31, 2023 and 2022.
| 9 |
Unless otherwise directed by the Sponsor, when selling platinum the Trustee will endeavor to sell at the price established by the LBMA PM Platinum Price. The Trustee will place orders with dealers (which may include the Custodian) through which the Trustee expects to receive the most favorable price and execution of orders. The Custodian may be the purchaser of such platinum only if the sale transaction is made at the next LBMA PM Platinum Price or such other publicly available price that the Sponsor deems fair, in each case as set following the sale order. A gain or loss is recognized based on the difference between the selling price and the cost of the platinum sold. Neither the Trustee nor the Sponsor is liable for depreciation or loss incurred by reason of any sale.
Realized gains and losses result from the transfer of platinum for Share redemptions and / or to pay expenses and are recognized on a trade date basis as the difference between the fair value and cost of platinum transferred. Gain or loss on sales of platinum bullion is calculated on a trade date basis using the average cost method.
2.3 Platinum Receivable and Payable
Platinum receivable or payable represents the quantity of platinum covered by contractually binding orders for the creation or redemption of Shares respectively, where the platinum has not yet been transferred to or from the Trust’s account. Generally, ownership of the platinum is transferred within two business days of the trade date.
The Trust issues and redeems in one or more blocks of Shares (a block of Shares is called a “Basket”) only to Authorized Participants on an ongoing basis. The creation and redemption of Baskets will only be made in exchange for the delivery to the Trust or the distribution by the Trust of the amount of platinum represented by the Baskets being created or redeemed, the amount of which will be based on the combined ounces represented by the number of shares included in the Baskets being created or redeemed determined on the day the order to create or redeem Baskets is properly received.
Orders
to create and redeem Baskets may be placed only by Authorized Participants. An Authorized Participant must: (1) be a registered broker-dealer
or other securities market participant, such as a bank or other financial institution, which, but for an exclusion from registration,
would be required to register as a broker-dealer to engage in securities transactions, (2) be a participant in DTC, and (3) must have
an agreement with the Custodian establishing an unallocated account in London or have an existing unallocated account meeting the standards
described herein. To become an Authorized Participant, a person must enter into an Authorized Participant Agreement with the Sponsor
and the Trustee. The Authorized Participant Agreement provides the procedures for the creation and redemption of Baskets and for the
delivery of the platinum required for such creations and redemptions. The Authorized Participant Agreement and the related procedures
attached thereto may be amended by the Trustee and the Sponsor, without the consent of any investor or Authorized Participant. A transaction
fee of $
Authorized Participants who make deposits with the Trust in exchange for Baskets will receive no fees, commissions or other form of compensation or inducement of any kind from either the Sponsor or the Trust, and no such person has any obligation or responsibility to the Sponsor or the Trust to effect any sale or resale of shares.
2.5 Income Taxes
The Trust is classified as a “grantor trust” for United States federal income tax purposes. As a result, the Trust itself will not be subject to United States federal income tax. Instead, the Trust’s income and expenses will “flow through” to the Shareholders, and the Trustee will report the Trust’s proceeds, income, gains, losses and deductions to the Internal Revenue Service on that basis.
The
Sponsor has evaluated whether or not there are uncertain tax positions that require financial statement recognition and has determined
that
| 10 |
The
Sponsor evaluates tax positions taken or expected to be taken in the course of preparing the Trust’s tax returns to determine
whether the tax positions are “more-likely-than-not” to be sustained by the applicable tax authority. Tax positions not
deemed to meet that threshold would be recorded as an expense in the current year. The Trust is required to analyze all open tax
years. Open tax years are those years that are open for examination by the relevant income taxing authority.
3. Investment in Platinum
Changes in ounces of platinum and their respective values for the period ended December 31, 2023:
| Amounts in 000’s of US$, except for ounces data | Ounces | Fair Value | ||||||
| Opening balance as of June 30, 2023 | ||||||||
| Platinum contributed | ||||||||
| Platinum distributed | ( | ) | ( | ) | ||||
| Change in unrealized appreciation (depreciation) | ||||||||
| Ending balance as of December 31, 2023 | ||||||||
Changes in ounces of platinum and their respective values for the fiscal year ended June 30, 2023:
| Amounts in 000’s of US$, except for ounces data | Ounces | Fair Value | ||||||
| Opening balance as of June 30, 2022 | ||||||||
| Platinum contributed | ||||||||
| Platinum distributed | ( | ) | ( | ) | ||||
| Change in unrealized appreciation (depreciation) | ||||||||
| Ending balance as of June 30, 2023 | ||||||||
4. Related parties – Sponsor and Trustee
A
fee is paid to the Sponsor as compensation for services performed under the Trust Agreement. In exchange for the Sponsor’s fee,
the Sponsor has agreed to assume the following administrative and marketing expenses incurred by the Trust: the Trustee’s fee and
out-of-pocket expenses, the custodian’s fee and reimbursement of the custodian expenses, NYSE Arca listing fees, SEC registration
fees, printing and mailing costs, audit fees and expenses, and up to $
The Sponsor, from time to time, may temporarily waive all or a portion of the Sponsor’s Fee at its discretion for a stated period of time. Presently, the Sponsor does not intend to waive any part of its fee.
Affiliates of the Trustee may from time to time act as Authorized Participants or purchase or sell platinum or Shares for their own account, as agent for their customers and for accounts over which they exercise investment discretion.
| 11 |
5. Concentration of risk
The Trust’s sole business activity is the investment in platinum. Several factors could affect the price of platinum, including: (i) global platinum supply and demand, which is influenced by factors such as production and cost levels in major platinum-producing countries, recycling, autocatalyst demand, industrial demand, jewelry demand and investment demand; (ii) investors’ expectations with respect to the rate of inflation; (iii) currency exchange rates; (iv) interest rates; (v) investment and trading activities of hedge funds and commodity funds; and (vi) global or regional political, economic or financial events and situations. In addition, there is no assurance that platinum will maintain its long-term value in terms of purchasing power in the future. In the event that the price of platinum declines, the Sponsor expects the value of an investment in the Shares to decline proportionately. Each of these events could have a material effect on the Trust’s financial position and results of operations.
6. Indemnification
Under the Trust’s organizational documents, each of the Trustee (and its directors, officers, employees, shareholders, agents and affiliates) and the Sponsor (and its members, managers, directors, officers, employees, agents and affiliates) is indemnified against any liability, loss or expense it incurs without (i) gross negligence, bad faith, willful misconduct or willful misfeasance on its part in connection with the performance of its obligations under the Trust Agreement or any such other agreement or any actions taken in accordance with the provisions of the Trust Agreement or any such other agreement and (ii) reckless disregard on its part of its obligations and duties under the Trust Agreement or any such other agreement. Such indemnity shall also include payment from the Trust of the reasonable costs and expenses incurred by the indemnified party in investigating or defending itself against any such loss, liability or expense or any claim therefor. In addition, the Sponsor may, in its sole discretion, undertake any action that it may deem necessary or desirable in respect of the Trust Agreement and in such event, the reasonable legal expenses and costs and other disbursements of any such actions shall be expenses and costs of the Trust and the Sponsor shall be entitled to reimbursement by the Trust. The Trust’s maximum exposure under these arrangements is unknown as this would involve future claims that may be made against the Trust that have not yet occurred.
7. Subsequent events
Management has evaluated the events and transactions that have occurred through the date the financial statements were issued and noted no items requiring adjustment of the financial statements or additional disclosures.
| 12 |
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations
This information should be read in conjunction with the financial statements and notes to the financial statements included in Item 1 of Part I of this Form 10-Q. The discussion and analysis that follows may contain statements that relate to future events or future performance. In some cases, such forward-looking statements can be identified by terminology such as “may,” “should,” “could,” “expect,” “plan,” “anticipate,” “believe,” “estimate,” “predict,” “potential” or the negative of these terms or other comparable terminology. Except as required by applicable disclosure laws, neither the Sponsor, nor any other person assumes responsibility for the accuracy or completeness of any forward-looking statements. Neither the Trust nor the Sponsor is under a duty to update any of the forward-looking statements to conform such statements to actual results or to a change in the Sponsor’s expectations or predictions.
Introduction
The Trust is a common law trust, formed under the laws of the state of New York on January 11, 2018. The Trust is not managed like a corporation or an active investment vehicle. It does not have any officers, directors, or employees and is administered by the Trustee pursuant to the Trust Agreement. The Trust is not registered as an investment company under the Investment Company Act of 1940 and is not required to register under such act. It does not hold or trade in commodity futures contracts, nor is it a commodity pool, or subject to regulation as a commodity pool operator or a commodity trading adviser in connection with issuing Shares.
The Trust holds platinum and is expected to issue Baskets in exchange for deposits of platinum, and to distribute platinum in connection with redemptions of Baskets. Shares issued by the Trust represent units of undivided beneficial interest in and ownership of the Trust. The investment objective of the Trust is for the Shares to reflect the performance of the price of platinum, less the Trust’s expenses. The Sponsor believes that, for many investors, the Shares will represent a cost-effective investment relative to traditional means of investing in platinum.
The Trust issues and redeems Shares only with Authorized Participants in exchange for platinum and only in aggregations of 50,000 Shares or integral multiples thereof. A list of current Authorized Participants is available from the Sponsor or the Trustee.
Shares of the Trust trade on the New York Stock Exchange (the “NYSE”) Arca under the symbol “PLTM”.
Valuation of Platinum; Computation of Net Asset Value
On each business day, as soon as practicable after 4:00 p.m. (New York time), the Trustee evaluates the platinum held by the Trust and determines the net asset value of the Trust and the NAV. The Trustee values the platinum held by the Trust using that day’s LBMA Platinum Price PM. If there is no announced LBMA Platinum PM on a business day, the Trustee is authorized to use that day’s LBMA Platinum Price AM. Having valued the platinum held by the Trust, the Trustee then subtracts all accrued fees, expenses and other liabilities of the Trust from the value of the platinum and other assets of the Trust. The result is the net asset value of the Trust. The Trustee computes the NAV by dividing the net asset value of the Trust by the number of Shares outstanding on the date the computation is made.
Liquidity and Capital Resources
The Trust is not aware of any trends, demands, commitments, events or uncertainties that are reasonably likely to result in material changes to its liquidity needs. In exchange for the Sponsor’s Fee, the Sponsor has agreed to assume most of the expenses incurred by the Trust. As a result, the only ordinary expense of the Trust during the period covered by this report was the Sponsor’s Fee.
The Trustee will, at the direction of the Sponsor or in its own discretion, sell the Trust’s platinum as necessary to pay the Trust’s expenses not otherwise assumed by the Sponsor. The Trustee will not sell platinum to pay the Sponsor’s Fee but will pay the Sponsor’s Fee through in-kind transfers of platinum to the Sponsor. At September 30, 2023 the Trust did not have any cash balances.
| 13 |
Off-Balance Sheet Arrangements
The Trust has no off-balance sheet arrangements.
Critical Accounting Policies
The financial statements and accompanying notes are prepared in accordance with accounting principles generally accepted in the United States of America. The preparation of these financial statements relies on estimates and assumptions that impact the Trust’s financial position and results of operations. These estimates and assumptions affect the Trust’s application of accounting policies. Below, the Trust describes the valuation of platinum bullion, a critical accounting policy that the Trust believes is important to understanding its results of operations and financial position. In addition, please refer to Note 2 to the financial statements included in this report for further discussion of the Trust’s accounting policies.
Results of Operations
The Quarter Ended December 31, 2023
During the quarter the Trust’s net asset value increased by 8.86% from $36,334,386 on September 30, 2023, to $39,552,262 on December 31, 2023. The change in the Trust’s net asset value was due to the change in the price of platinum, which increased 8.99% from $923.00 on September 30, 2023, to $1,006.00 on December 31, 2023. There were no changes in the Trust’s number of shares outstanding over this period.
The 8.92% increase in the Trust’s net asset value per share from $8.97 at September 30, 2023 to $9.77 at December 31, 2023 is directly related to the 8.99% increase in the price of platinum.
The Trust’s net asset value per share increased slightly less than the price of platinum on a percentage basis due to the Sponsor’s fees, which were $45,290 for the period, or 0.13% of the Trust’s average weighted net assets of $36,040,977 during the period. The net asset value per share of $9.77 on December 29, 2023 was the highest during the period, compared with a low during the period of $8.26 on November 13, 2023.
Net increase in net assets resulting from operations for the quarter ended December 31, 2023 was $3,257,615, resulting primarily from an unrealized gain on investment in platinum bullion of $3,352,432, reduced by a loss of $49,527 on metal sold to cover redemption orders and Sponsor’s fees and by the Sponsor’s fees of $45,290. Other than the Sponsor’s fees the Trust had no expenses during the quarter.
Six Months Ended December 31, 2023
The Trust’s net asset value increased by 13.27% from $34,919,057 on June 30, 2023, to $39,552,262 on December 31, 2023. The increase in the Trust’s net asset value was mainly due to the change in the price of platinum, which increased 12.15% from $897.00 on June 30, 2023 to $1,006.00 on December 31, 2023. The increase in the Trust’s net asset value was also partly due to an increase in the number of shares outstanding from 4,000,000 to 4,050,000 over this period. The net 50,000 shares increase was a result of 10 creation orders and 9 redemption orders (50,000 shares per creation and redemption).
The 11.91% increase in the Trust’s net asset value per share from $8.73 at June 30, 2023 to $9.77 at December 31, 2023 is directly related to the 12.15% increase in the price of platinum.
The Trust’s net asset value per share increased slightly less than the price of platinum on a percentage basis due to the Sponsor’s fees, which were $92,159 for the period, or 0.25% of the Trust’s average weighted net assets of $36,664,671 during the period. The net asset value per share of $9.77 on December 29, 2023 was the highest during the period, compared with a low during the period of $8.25 on November 13, 2023.
Net increase in net assets resulting from operations for the six-month period ended December 31, 2023 was $4,523,617, resulting primarily from an unrealized gain on investment in platinum bullion of $4,839,362, reduced by a loss of $223,586 on metal sold to cover redemption orders and Sponsor’s fees and by the Sponsor’s fees of $92,159. Other than the Sponsor’s fees the Trust had no expenses during the quarter.
| 14 |
Item 3. Quantitative and Qualitative Disclosures About Market Risk
Not applicable.
Item 4. Controls and Procedures
Disclosure Controls and Procedures
The duly authorized officers of the Sponsor, performing functions equivalent to those a principal executive officer and principal financial officer of the Trust would perform if the Trust had any officers, have evaluated the effectiveness of the Trust’s disclosure controls and procedures, and have concluded that the disclosure controls and procedures of the Trust were effective as of the end of the period covered by this report. Such disclosure controls and procedures are designed to provide reasonable assurance that information required to be disclosed in the reports that the Trust files or submits under the Securities Exchange Act of 1934, as amended, are recorded, processed, summarized and reported, within the time period specified in the applicable rules and forms, and that such information is accumulated and communicated to the duly authorized officers of the Sponsor performing functions equivalent to those a principal executive officer and principal financial officer of the Trust would perform if the Trust had any officers to allow timely decisions regarding required disclosure.
Internal Control over Financial Reporting
There has been no change in the internal control over financial reporting that occurred during the fiscal quarter that has materially affected, or is reasonably likely to materially affect, the Trust’s internal control over financial reporting.
PART II – OTHER INFORMATION
Item 1. Legal Proceedings
None.
Item 1A. Risk Factors
You should carefully consider the factors discussed in Part I, Page 13 “Risk Factors” in our prospectus dated February 23, 2023, filed pursuant to Rule 424(b)(3) under the Securities Act of 1933, as amended, with the U.S. Securities and Exchange Commission, file number 333-276531, which could materially affect our business, financial condition or future results. The risks described in the prospectus are not the only risks facing the Trust. Additional risks and uncertainties not currently known to us or that we currently deem to be immaterial also may materially adversely affect our business, financial condition and/or operating results.
Item 2. Unregistered Sales of Equity Securities and Use of Proceeds
a) None.
b) Not applicable.
| 15 |
c) For the three months ended December 31, 2023: 1 basket was redeemed
| Period | Total Baskets Redeemed | Total Shares Redeemed | Average ounces of platinum per Share | |||||||||
| October 2023 | - | - | - | |||||||||
| November 2023 | 1 | 50,000 | 0.0097118 | |||||||||
| December 2023 | - | - | - | |||||||||
| Total | 1 | 50,000 | 0.0097118 | |||||||||
Item 3. Defaults Upon Senior Securities
None.
Item 4. Mine Safety Disclosures
Not applicable.
Item 5. Other Information
None.
Item 6. Exhibits
| (a) | Exhibits |
| 31.1 | Chief Executive Officer’s Certificate, pursuant to Section 302 of the Sarbanes-Oxley Act of 2002. |
| 31.2 | Chief Accounting Officer’s Certificate, pursuant to Section 302 of the Sarbanes-Oxley Act of 2002. |
| 32.1 | Chief Executive Officer’s Certificate, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002. |
| 32.2 | Chief Accounting Officer’s Certificate, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002. |
| 101.INS | Inline XBRL Instance Document |
| 101.SCH | Inline XBRL Taxonomy Extension Schema Document |
| 101.CAL | Inline XBRL Taxonomy Extension Calculation Document |
| 101.DEF | Inline XBRL Taxonomy Extension Definitions Document |
| 101.LAB | Inline XBRL Taxonomy Extension Labels Document |
| 101.PRE | Inline XBRL Taxonomy Extension Presentation Document |
| 16 |
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned in the capacities thereunto duly authorized.
| GraniteShares LLC | |
| Sponsor of the GraniteShares Platinum Trust | |
| (Registrant) | |
| Date: February 02, 2024 | /s/ William Rhind |
| William Rhind* | |
| CEO and CFO | |
| Date: February 02, 2024 | /s/ Benoit Autier |
| Benoit Autier* | |
| Chief Accounting Officer |
*The Registrant is a trust and the persons are signing in their capacities as officers of GraniteShares LLC, the Sponsor of the Registrant.
| 17 |