World Gold Trust 10-K

Item 5. Market for Registrant ’ s Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities MARKET INFORMATION SPDR® Gold MiniShares® Trust’s Shares are listed on the NYSE Arca under the symbol “GLDM” and have been listed since June 26, 2018. HOLDERS OF RECORD As of October 31, 2022, there were approximately 111 DTC participating shareholders of record of GLDM. Because most of the Shares are held by brokers and other institutions on behalf of shareholders, we are unable to estimate the total number of shareholders represented by these record holders. ISSUER PURCHASE OF SHARES Although GLDM does not purchase Shares directly from its shareholders, in connection with its redemption of Creation Units, GLDM redeemed 43,200,000 Shares (432 Creation Units) during the year ended September 30, 2022, including 16,000,000 Shares (160 Creation Units) for the three months ended September 30, 2022 as set forth in the table below. Period Total number of Shares redeemed Average ounces of gold per Share 7/1/22 to 7/31/22 2,300,000 .01986 8/1/22 to 8/31/22 4,100,000 .01986 9/1/22 to 9/30/22 9,600,000 .01986 TOTAL 16,000,000 .01986 Item 6. [Reserved] Item 7. Management ’ s Discussion and Analysis of Financial Condition and Results of Operations Trust Overview The World Gold Trust (the “Trust”) was formed as a Delaware statutory trust on August 27, 2014. The Trust consists of multiple series (each, a “Fund” and collectively, the “Funds”). Each Fund issues common units of beneficial interest that represent units of fractional undivided beneficial interest in and ownership of such Fund. The term of the Trust and each Fund is perpetual (unless terminated earlier in certain circumstances). The Trust was organized in separate series as a Delaware statutory trust rather than as separate statutory trusts to achieve certain administrative and other efficiencies. The Trust is sponsored by WGC USA Asset Management Company, LLC (the “Sponsor”). The Trust established six separate series, of which only SPDR® Gold MiniShares® Trust (“GLDM”) is operational as of September 30, 2022. GLDM commenced operations on June 26, 2018. GLDM’s investment objective is for its shares (the “Shares”) to reflect the performance of the price of gold, less its expenses. 30 Table of Contents Investing in the Shares does not insulate the investor from risks, including price volatility. The following chart illustrates the movement in the market price of the Shares and NAV of the Shares against the corresponding gold price (per 1/100 of an oz. of gold) since the day the Shares first began trading on the NYSE Arca: Share price & NAV v. gold price—June 26, 2018 to September 30, 2022 Critical Accounting Policy Valuation of Gold, Definition of Net Asset Value GLDM values the investment in gold bullion at fair value. BNY Mellon Asset Servicing, a division of The Bank of New York Mellon (the “Administrator”), will value any gold bullion held by GLDM on the basis of the price of an ounce of gold as determined by the IBA. In determining the NAV, the Administrator will value the gold bullion held by GLDM on the basis of the LBMA Gold Price PM. The Administrator will calculate the NAV on each day the NYSE Arca is open for regular trading, at the earlier LBMA Gold Price PM for the day or 12:00 PM New York time. If no LBMA Gold Price (AM or PM) is made on a particular evaluation day or if the LBMA Gold Price PM has not been announced by 12:00 PM New York time on a particular evaluation day, the next most recent LBMA Gold Price AM or PM will be used in the determination of the NAV, unless the Sponsor determines that such price is inappropriate to use as the basis for such determination. Gold held by GLDM is reported at fair value on the Statement of Financial Condition. Once the value of the gold has been determined, the Administrator subtracts all estimated accrued expenses and other liabilities of GLDM from the total value of the gold and all other assets of GLDM. The resulting figure is the NAV. The NAV is used to compute the Sponsor’s fee. The Administrator determines the NAV per Share by dividing the NAV of GLDM by the number of Shares outstanding as of the close of trading on NYSE Arca. Inspectorate conducts two counts each year of the gold bullion held on behalf of the Trust at the vaults of the Custodian. A complete bar count is conducted once per year and coincides with the Trust’s financial year end at September 30 th . On October 6, 2022, Inspectorate concluded the annual full count of the Trust’s gold bullion held by the Custodian. The second count is a random sample count and is conducted at a date which falls within the same financial year and was conducted most recently on May 4, 2022. The results can be found on www.spdrgoldshares.com . The Sponsor generally visits the vaults of the Custodian twice a year as part of its due diligence procedures. 31 Table of Contents The table below summarizes the impact of unrealized appreciation on GLDM’s gold holdings at September 30, 2022 and 2021: (Amount in 000’s of US$) Sep-30, 2022 Sep-30, 2021 Investment in gold – cost $ 4,864,729 $ 4,237,696 Unrealized appreciation/(depreciation) on investment in gold (172,342 ) 150,035 Investment in gold – market value $ 4,692,387 $ 4,387,731 Review of Financial Results Financial Highlights (All amounts in the following table and the subsequent paragraphs, are in 000’s of US$) For the year ended Sep-30, 2022 For the year ended Sep-30, 2021 For the year ended Sep-30, 2020 Net realized and change in unrealized gain/(loss) on investment in gold $ (289,201 ) $ (338,455 ) $ 446,656 Net income $ (295,357 ) $ (345,917 ) $ 443,161 Net cash provided by operating activities $ — $ — $ — GLDM’s net realized and change in unrealized loss on investment in gold for the year ended September 30, 2022 of $(289,201) is made up of a realized gain of $394 from the sale of gold to pay Sponsor fees, a realized gain of $32,782 from gold distributed for the redemption of shares, and a change in unrealized depreciation of $(322,377) on investment in gold. GLDM’s net realized and change in unrealized loss on investment in gold for the year ended September 30, 2021 of $(338,455) is made up of a realized gain of $634 from the sale of gold to pay Sponsor fees, a realized gain of $39,311 from gold distributed for the redemption of shares, and a change in unrealized depreciation of $(378,400) on investment in gold. GLDM’s net realized and change in unrealized gain on investment in gold for the year ended September 30, 2020 of $446,656 is made up of a realized gain of $455 from the sale of gold to pay Sponsor fees, a realized gain of $37,008 from gold distributed for the redemption of shares, and a change in unrealized appreciation of $409,193 on investment in gold. Selected Supplemental Data Year ended Sep-30, 2022 Year ended Sep-30, 2021 Year ended Sep-30, 2020 Ounces of Gold: Opening balance 2,517,632.7 1,877,680.9 697,523.6 Creations (excluding gold receivable at September 30, 2022 – 0; September 30, 2021—0 and September 30, 2020—9,959.7) 917,800.7 893,821.8 1,355,433.7 Redemptions (excluding gold payable at September 30, 2022 – 31,570.5; September 30, 2021 – 0 and September 30, 2020 – 0) (625,024.9 ) (249,855.2 ) (173,448.7 ) Sales of gold (3,537.3 ) (4,014.8 ) (1,827.7 ) Closing balance 2,806,871.2 2,517,632.7 1,877,680.9 Gold price per ounce – LBMA Gold Price PM $ 1,671.75 $ 1,742.80 $ 1,886.90 Market value of gold holdings (in 000’s) $ 4,692,387 $ 4,387,731 $ 3,542,996 Number of Shares (in 000’s): Opening balance 126,600 94,750 35,450 Creations 46,200 44,400 68,000 Redemptions . (33,050 ) (12,550 ) (8,700 ) Closing balance 139,750 126,600 94,750 Share values adjusted per reverse stock split effective Feb. 23, 2022 32 Table of Contents In the year ended September 30, 2022, 46,200,000 Shares (462 Creation Units) were created in exchange for 917,800.7 ounces of gold, 33,050,000 Shares (330 Creation Units) were redeemed in exchange for 656,595.4 ounces of gold and 3,537.3 ounces of gold were sold to pay Sponsor fees. For accounting purposes, GLDM reflects creations and redemptions on the date of receipt of a notification of a creation but does not issue Shares until the requisite amount of gold is received. Upon a redemption, GLDM delivers gold upon receipt of Shares. These creations were completed in the normal course of business. As at September 30, 2022, the amount of gold owned by GLDM and held by the custodian in its vault was 2,806,871.2 ounces, 100% of which is allocated gold in the form of London Good Delivery gold bars with a market value $4,692,387,416 based on the LBMA Gold Price PM on September 30, 2022 (cost—$4,864,729,757). As at September 30, 2021, the amount of gold owned by GLDM and held by the custodian in its vault was 2,517,632.7 ounces, 100% of which is allocated gold in the form of London Good Delivery gold bars with a market value $4,387,730,778 based on the LBMA Gold Price PM on September 30, 2021 (cost—$4,237,695,934). As at September 30, 2020, the amount of gold owned by GLDM and held by the custodian in its vault was 1,887,680.9 ounces, 100% of which is allocated gold in the form of London Good Delivery gold bars with a market value $3,542,996,473 based on the LBMA Gold Price PM on September 30, 2020 (cost—$3,014,561,176). Cash Flow from Operations GLDM had no net cash flow from operations in the years ended September 30, 2022, 2021 and 2020. Cash received in respect of gold sold to pay expenses in the years ended September 30, 2022, 2021 and 2020 was the same as those expenses, resulting in a zero cash balance at September 30, 2022, 2021 and 2020. Off-Balance Sheet Arrangements Neither GLDM nor the Trust is a party to any off-balance sheet arrangements. Cash Resources and Liquidity At September 30, 2022 and 2021 GLDM did not have any cash balances. When selling gold to pay expenses, GLDM endeavors to sell the exact amount of gold needed to pay expenses in order to minimize GLDM’s holdings of assets other than gold or any gold receivable. As a consequence, we expect that GLDM will not record any net cash flow from its operations and that its cash balance will be zero at the end of each reporting period. Analysis of Movements in the Price of Gold As movements in the price of gold are expected to directly affect the price of the Shares, it is important to understand the recent movements in the price of gold. However, past movements in the price of gold are not indicators of future movements. The following chart shows movements in the price of gold based on the LBMA Gold Price PM in U.S. dollars per ounce over the period from June 26, 2018 (the first date the Shares began trading on the NYSE Arca) to September 30, 2022. 33 Table of Contents Daily Gold Price - June 26, 2018 - September 30, 2022 LBMA Gold Price PM USD The average, high, low and end-of-period gold prices for the three and twelve-month periods for the prior three years and for the period from June 26, 2018 (the date the Shares began trading on the NYSE Arca) to September 30, 2022, based on the LBMA Gold Price were: Period Average High Date Low Date End of period Last business day (1) Three months to December 31, 2019 $ 1,480.96 $ 1,517.10 Oct 3, 2019 $ 1,452.05 Nov 12, 2019 $ 1,523.00 Dec 31, 2019 (2) Three months to March 31, 2020 $ 1,582.80 $ 1,683.65 Mar 6, 2020 $ 1,474.25 Mar 19, 2020 $ 1,608.95 Mar 31, 2020 Three months to June 30, 2020 $ 1,711.13 $ 1,771.60 June 29, 2020 $ 1,576.55 Apr 1, 2020 $ 1,768.10 June 30, 2020 Three months to September 30, 2020 $ 1,908.56 $ 2,067.15 Aug 6, 2020 $ 1,771.05 July 1, 2020 $ 1,886.90 Sep 30, 2020 Three months to December 31, 2020 $ 1,874.23 $ 1,940.80 Nov 6, 2020 $ 1,762.55 Nov 30, 2020 $ 1,891.10 Dec 31, 2020 (2) Three months to March 31, 2021 $ 1,794.01 $ 1,943.20 Jan 4, 2021 $ 1,683.95 Mar 30, 2021 $ 1,691.05 Mar 31, 2021 Three months to June 30, 2021 $ 1,816.48 $ 1,902.75 June 2, 2021 $ 1,726.05 Apr 1, 2021 $ 1,763.15 June 30, 2021 Three months to September 30, 2021 $ 1,789.52 $ 1,829.30 July 29, 2021 $ 1,723.35 Aug 10, 2021 $ 1,742.80 Sep 30, 2021 Three months to December 31, 2021 $ 1,795.25 $ 1,864.90 Nov 17, 2021 $ 1,753.20 Oct 5, 2021 $ 1,820.10 Dec 31, 2021 (2) Three months to March 31, 2022 $ 1,877.16 $ 2,039.05 Mar 8, 2022 $ 1,788.15 Jan 28, 2022 $ 1,942.15 Mar 31, 2022 Three months to June 30, 2022 $ 1,870.58 $ 1,976.75 Apr 13, 2022 $ 1,809.50 May 16, 2022 $ 1,817.00 June 30, 2022 Three months to September 30, 2022 $ 1,728.91 $ 1,808.40 Jul 4, 2022 $ 1,634.30 Sep 27, 2022 $ 1,671.75 Sep 30, 2022 Twelve months ended September 30, 2020 $ 1,672.83 $ 2,067.15 Aug 6, 2020 $ 1,452.05 Nov 12, 2019 $ 1,886.90 Sep 30, 2020 Twelve months ended September 30, 2021 $ 1,818.12 $ 1,943.20 Jan 4, 2021 $ 1,683.95 Mar 30, 2021 $ 1,742.80 Sep 30, 2021 Twelve months ended September 30, 2022 $ 1,817.08 $ 2,039.05 Mar 8, 2022 $ 1,634.30 Sep 27, 2022 $ 1,671.75 Sep 30, 2022 June 26, 2018 to September 30, 2022 $ 1,630.97 $ 2,067.15 Aug 6, 2020 $ 1,178.40 Aug 17, 2018 $ 1,671.75 Sep 30, 2022 (1) The end of period gold price is the LBMA Gold Price PM on the last business day of the period. This is in accordance with the Trust Indenture and the basis used for calculating the Net Asset Value of the Trust. (2) There was no LBMA Gold Price PM on the last business day of December 2021, 2020 or 2019. The LBMA Gold Price AM on the last business day of December 2021, 2020 and 2019 was $1,820.10, $1,891.10 and $1,523.00 respectively. The Net Asset Value of the Trust on December 31, 2021, 2020 and 2019 was calculated using the LBMA Gold Price AM. Item 7A. Quantitative and Qualitative Disclosures about Market Risk GLDM is a passive investment vehicle. Fluctuations in the value of gold bullion will affect the value of Shares which are designed to reflect the performance of the price of gold bullion, less GLDM’s expenses.