The L1 Gold Fund Ltd (ASX: LGF) share price came into focus today after the company released its inaugural FY26 results.
What did L1 Gold Fund report?
- Loss after income tax: $71.1 million (first reporting period since IPO)
- Total investment losses: $92.5 million
- Portfolio net return: -10.90% (April to June 2026)
- No dividends declared or paid during the period
- Net tangible asset backing per share (post-tax): $1.8482
- Basic and diluted loss per share: 14.97 cents
What else do investors need to know?
L1 Gold Fund officially listed on the ASX in April 2026, raising $950 million in its IPO. The first reporting period coincided with a sharp 17% decline in the gold price, driven by geopolitical tensions, shifting interest rates, and heavy defensive selling.
Despite a challenging debut, the Investment Manager used active stock selection and hedging strategies, such as a physical gold short position, to cushion portfolio performance relative to sector declines. Management capitalised on the sector sell-off by adding high-conviction, mid-cap gold producers and late-stage developers to the portfolio.
On 24 August 2026, the company announced a capital raising comprising a non-underwritten placement of up to $160 million and a 1-for-3 non-renounceable entitlement offer at $2.25 per share. This offer remains open, with completion pending further updates.
What did L1 Gold Fund management say?
Chairman Andrew Larke said:
In an exceptionally volatile environment for gold and mining equities, our portfolio return of -10.90% compared to a decline of nearly 20% for the sector reflects the resilience of our investment strategy. While the initial period of performance is disappointing, we remain confident in the long-term opportunity for quality gold equities. We thank shareholders for their ongoing support and patience.
What’s next for L1 Gold Fund?
The company’s investment manager remains optimistic about the longer-term case for gold and quality gold equities, with ongoing central bank buying and elevated geopolitical risks expected to support the gold price. The current capital raise is aimed at expanding the portfolio to capture what management views as compelling valuations across mid-cap producers and late-stage developers.
L1 Gold Fund plans to maintain its focus on strong research, portfolio discipline, and active risk management to navigate further market volatility. The next Annual General Meeting will be held on 10 November 2026.
L1 Gold Fund share price snapshot
Over the past 12 months, L1 Gold Fund shares have risen 19%, outperforming the All Ordinaries Index (ASX: XAO), which is flat over the same period.
The post L1 Gold Fund posts debut FY26 result and capital raise update appeared first on The Motley Fool Australia.
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Motley Fool contributor Laura Stewart has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips. This article was prepared with the assistance of Large Language Model (LLM) tools for the initial summary of the company announcement. Any content assisted by AI is subject to our robust human-in-the-loop quality control framework, involving thorough review, substantial editing, and fact-checking by our experienced writers and editors holding appropriate credentials. The Motley Fool Australia stands behind the work of our editorial team and takes ultimate responsibility for the content published by The Motley Fool Australia.