# abrdn Platinum ETF Trust: Form 10-Q for the period ended Sep 30, 2011

- Company: [abrdn Platinum ETF Trust](/companies/pplt.md) (CIK 1460235)
- Form: 10-Q
- Filed: 2011-11-09
- Accepted by EDGAR: Nov 9, 2011, 15:36 ET
- Period: 2011-09-30
- Accession: 0000930413-11-007142
- Inline XBRL: yes
- Main document: https://www.sec.gov/Archives/edgar/data/1460235/000093041311007142/c67359_10q.htm
- All documents and exhibits: https://www.sec.gov/Archives/edgar/data/1460235/000093041311007142/

## Figures reported in this filing

Standardized XBRL line items for the period ended 2011-09-30.

| Line item | Period | Value | XBRL concept |
| --- | --- | ---: | --- |
| Gross profit | 3 months, 2011-07-01 to 2011-09-30 | $69.5k | us-gaap:GrossProfit |
| Gross profit | 9 months, 2011-01-01 to 2011-09-30 | $274.7k | us-gaap:GrossProfit |
| Net income | 3 months, 2011-07-01 to 2011-09-30 | −$77.8m | us-gaap:NetIncomeLoss |
| Net income | 9 months, 2011-01-01 to 2011-09-30 | −$66.1m | us-gaap:NetIncomeLoss |
| Basic EPS | 3 months, 2011-07-01 to 2011-09-30 | −$16.97 | us-gaap:EarningsPerShareBasic |
| Basic EPS | 9 months, 2011-01-01 to 2011-09-30 | −$14.68 | us-gaap:EarningsPerShareBasic |
| Operating cash flow | 3 months, 2011-07-01 to 2011-09-30 | $0 | us-gaap:NetCashProvidedByUsedInOperatingActivities |
| Operating cash flow | 9 months, 2011-01-01 to 2011-09-30 | $0 | us-gaap:NetCashProvidedByUsedInOperatingActivities |
| Share repurchases | 3 months, 2011-07-01 to 2011-09-30 | −$117.6m | us-gaap:PaymentsForRepurchaseOfCommonStock |
| Share repurchases | 9 months, 2011-01-01 to 2011-09-30 | −$328.6m | us-gaap:PaymentsForRepurchaseOfCommonStock |
| Cash and equivalents | at 2011-09-30 | $0 | us-gaap:CashAndCashEquivalentsAtCarryingValue |
| Total assets | at 2011-09-30 | $665.8m | us-gaap:Assets |
| Total liabilities | at 2011-09-30 | $7.8m | us-gaap:Liabilities |

## Management's discussion and analysis

As filed, 8,773 characters.

*This information should be read in conjunction with the financial statements and notes to the financial statements included in Item 1 of Part 1 of this Form 10-Q. The discussion and analysis that follows may contain forward-looking statements with respect to the Trust’s financial conditions, operations, future performance and business. These statements can be identified by the use of the words “may”, “should”, “expect”, “plan”, “anticipate”, “believe”, “estimate”, “predict”, “potential” or similar words and phrases. These statements are based upon certain assumptions and analyses the Sponsor has made based on its perception of historical trends, current conditions and expected future developments. 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 reflect a change in management’s expectations or predictions.*

### Introduction

The Trust is a common law trust, formed under the laws of the state of New York on the Date of Inception. 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 will not hold or trade in commodity futures contracts, nor is it a commodity pool, 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, only in aggregations of 50,000 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 “PPLT”.

### Valuation of Platinum and Computation of Net Asset Value

As of the London PM Fix on each day that the NYSE Arca is open for regular trading or as soon as practicable after 4:00 p.m. New York time on such day, (the “Evaluation Time”) the Trustee values the platinum held by the Trust and determines both the ANAV and the NAV of the Trust.

At the Evaluation Time, the Trustee values the Trust’s platinum on the basis of that day’s London PM Fix, or, if no London PM Fix is made on such day or has not been announced by the Evaluation Time, the next most recent London platinum price (AM or PM) determined prior to the Evaluation Time is used, unless the Sponsor determines that such price is inappropriate as a basis for valuation. In the case this determination is made, the Sponsor will identify an alternative basis for such evaluation to be used by the Trustee.

Once the value of the platinum held by the Trust has been determined, the Trustee subtracts all estimated accrued but unpaid fees and other liabilities of the Trust from the total value of the platinum and all other assets of the Trust. The resulting figure is the ANAV of the Trust. The ANAV is used to compute the Sponsor’s Fee.

The Trustee then subtracts from the ANAV the amount of Sponsor’s Fees computed for such day to determine the net asset value (“NAV”) of the Trust. The Trustee also determines the NAV per Share by dividing the NAV of the Trust by the number of Shares outstanding as of the close of trading on the NYSE Arca.

### The Quarter Ended September 30, 2011

The NAV of the Trust is obtained by subtracting the Trust’s liabilities on any day from the value of the platinum owned or receivable by the Trust on that day; the NAV per Share is obtained by dividing the NAV of the Trust on a given day by the number of Shares outstanding on that day.

The Trust’s NAV decreased from $725,374,893 at June 30, 2011 to $657,958,965 at September 30, 2011, a 9.29% decrease for the quarter. The decrease in the Trust’s NAV resulted primarily from a decrease in the price per ounce of platinum, which fell 12.25% from $1,722.00 at June 30, 2011 to $1,511.00 at September 30, 2011.

There was an increase in outstanding Shares, which rose from 4,250,000 Shares at June 30, 2011 to 4,400,000 Shares at September 30, 2011, a result of 850,000 Shares (17 Baskets) being created and 700,000 Shares (14 Baskets) being redeemed during the quarter.

NAV per Share decreased 12.39% from $170.68 at June 30, 2011 to $149.54 at September 30, 2011. The Trust’s NAV per Share fell slightly more than the price per ounce of platinum on a percentage basis due to Sponsor’s Fees, which were $1,173,726 for the quarter, or 0.60% of the Trust’s assets on an annualized basis.

The NAV per Share of $186.87 at August 22, 2011 was the highest during the quarter, compared with a low of $149.54 at September 30, 2011.

Net loss from operations for the quarter ended September 30, 2011 was $77,840,020, resulting from a net gain of $69,541 on the transfer of platinum to pay expenses and a net gain of $2,158,979 on platinum distributed for the redemption of Shares, offset by an unrealized loss of $78,894,814 and Sponsor’s Fees of $1,173,726. Other than the Sponsor’s Fee, the Trust had no expenses during the quarter ended September 30, 2011.

### The Nine Months Ended September 30, 2011

The Trust’s NAV decreased from $765,761,606 at December 31, 2010 to $657,958,965 at September 30, 2011, a 14.08% decrease for the period. The decrease in the Trust’s NAV resulted primarily from a decrease in the price per ounce of platinum, which fell 12.71% from $1,731.00 at December 31, 2010 $1,511.00 at September 30, 2011 and a decrease in outstanding Shares, which fell from 4,450,000 Shares at December 31, 2010 to 4,400,000 Shares at September 30, 2011, a result of 1,850,000 Shares (37 Baskets) being created and 1,900,000 Shares (38 Baskets) being redeemed during the period.

NAV per Share decreased 13.10% from $172.08 at December 31, 2010 to $149.54 at September 30, 2011. The Trust’s NAV per Share fell slightly more than the price per ounce of platinum on a percentage basis due to Sponsor’s Fees, which were $3,526,008 for the period, or 0.60% of the Trust’s assets on an annualized basis.

The NAV per Share of $186.87 at August 22, 2011 was the highest during the period, compared with a low of $149.54 at September 30, 2011.

Net loss from operations for the nine-month period ended September 30, 2011 was $66,109,037 resulting from a net gain of $274,654 on the transfer of platinum to pay expenses and a net gain of $16,037,131 on platinum distributed for the redemption of Shares, offset by an unrealized loss of $78,894,814 and Sponsor’s Fees of $3,526,008. Other than the Sponsor’s Fee, the Trust had no expenses during the period ended September 30, 2011.

### Liquidity & 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, 2011 the Trust did not have any cash balances.

### Off-Balance Sheet Arrangements

The Trust has no off-balance sheet arrangements.

### Critical Accounting Estimates

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. In addition, please refer to Note 2 to the financial statements for further discussion of accounting policies.

## Controls and procedures

As filed, 799 characters.

The authorized officers of the Sponsor performing functions equivalent to those that a principal executive officer and principal financial officer of the Trust would perform if the Trust had any officers, and with the participation of the Trustee, have evaluated the effectiveness of the Trust’s disclosure controls and procedures, and have concluded that the disclosure controls and procedures of the Trust have been effective as of the end of the period covered by this Form 10-Q.

There have been no changes in the Trust’s or Sponsor’s internal control over financial reporting that occurred during the Trust’s fiscal quarter ended September 30, 2011 that have materially affected, or are reasonably likely to materially affect, the Trust’s or Sponsor’s internal control over financial reporting.

## Risk factors

As filed, 163 characters.

There have been no material changes to the risk factors previously disclosed in the Trust’s Annual Report on Form 10-K for the fiscal year ended December 31, 2010.

Filed Nov 9, 2011.
Source: SEC EDGAR, the filing index for accession 0000930413-11-007142. Last ingested by Listed: Nov 6, 2026, 17:56 ET. No prices; not investment advice.