Cadence Capital (CDM) H1 2026 earnings summary

Executive summary

• Achieved a half-year profit before tax of $56.6m for the period ended 31 December 2025, with the portfolio up 25.3% and outperforming the All Ordinaries Accumulation Index by 20.9%.

• Top contributors included Robex Resources, Kingsgate Consolidated, Equinox Gold, Turaco Gold, Endeavour Mining, Samsung Electronics, and New Gold; Boss Energy and QBE Insurance were the largest detractors.

• Gold company share prices surged in 2025, aligning with rising gold prices and driving strong fund performance.

Financial highlights

• Profit before tax reached $56.6m for the half year ended 31 December 2025.

• Fully franked interim dividend of 3.0c per share, yielding 7.5% annualized (10.6% grossed up).

• 17 cps profits reserves remain after dividend, covering more than 2.5 years of dividends.

• Fund was up 6.9% in January following the reporting period.

Outlook and guidance

• Gold equities remain a core exposure due to relatively inexpensive valuations.

• Persistent inflation is expected, driven by government spending, high migration, and low productivity.

• RBA resumed rate hikes in February, with inflation at 3.8%, above target.

• Monitoring increased volatility in gold and gold mining companies for potential trend changes.