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    ASA (ASA) Is Up 16.3% After Saba’s Private Credit Subadviser Proposal and Strong Half-Year Results

    Simply Wall St·08/11/2026 15:35:09
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    • In late July 2026, Saba Capital Management, L.P. announced an enhanced proposal for ASA Gold and Precious Metals Limited, including the potential retention of a private credit manager as a subadviser for a restructured business development company.
    • This move, alongside ASA’s recently reported half-year revenue of US$5.77 million and net income of US$287.35 million for the period ended May 31, 2026, highlights a possible shift in how the company’s portfolio could be managed going forward.
    • Against this backdrop, we will examine how Saba’s push for a private credit-focused subadviser may influence ASA’s broader investment narrative.

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    What Is ASA Gold and Precious Metals' Investment Narrative?

    To own ASA Gold and Precious Metals today, you have to believe in two things at once: the underlying appeal of its precious metals exposure and the value that might be unlocked through the ongoing governance shake‑up. Recent results, including half‑year net income of US$287.35 million driven by large one‑off gains, show how headline numbers can be distorted, which makes the evolving structure even more important. Saba’s latest proposal to bring in a private credit manager as subadviser for a restructured BDC suggests a possible pivot away from a pure gold‑equity identity, and that could become a key short term catalyst if shareholders back the change. At the same time, rapid board turnover, a very new management team and public disputes with former adviser Merk Investments keep governance risk front and center.

    However, investors should be aware of how the governance battle could reshape ASA’s core mandate. ASA Gold and Precious Metals' shares have been on the rise but are still potentially undervalued by 38%. Find out what it's worth.

    Exploring Other Perspectives

    ASA 1-Year Stock Price Chart
    ASA 1-Year Stock Price Chart
    With only two fair value estimates from the Simply Wall St Community, views cluster between about US$93.69 and US$175.73 per share, suggesting very different expectations. Set against ASA’s recent governance turmoil and potential shift toward private credit, those gaps highlight why many market participants are watching how the boardroom conflict gets resolved before forming a firm view.

    Explore 2 other fair value estimates on ASA Gold and Precious Metals - why the stock might be worth over 3x more than the current price!

    Reach Your Own Conclusion

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    This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.