<PAGE> 1
OPPENHEIMER GOLD & SPECIAL MINERALS FUND
ANNUAL REPORT JUNE 30, 1994
(OPPENHEIMERFUNDS(R) LOGO)
[PHOTO #1 -- SEE EDGAR APPENDIX]
"OUR FINANCIAL ADVISOR RECOMMENDED THIS
FUND BECAUSE IT FOCUSES ON STOCKS
OF FINANCIALLY STRONG COMPANIES, WHICH
PROVIDE THE POTENTIAL FOR CONTINUED
GROWTH IN MANY ECONOMIC ENVIRONMENTS."
<PAGE> 2
FUND FACTS
IN THIS REPORT:
ANSWERS TO THREE
TIMELY QUESTIONS
YOU SHOULD ASK YOUR
FUND'S MANAGERS.
* WHAT'S THE OUTLOOK FOR GOLD PRICES IN TODAY'S ECONOMIC ENVIRONMENT?
* HOW ARE METALS OTHER THAN GOLD CONTRIBUTING TO FUND PERFORMANCE?
* WHERE ARE YOU FINDING THE BEST INVESTMENT OPPORTUNITIES TODAY?
FACTS EVERY SHAREHOLDER SHOULD KNOW ABOUT
OPPENHEIMER GOLD & SPECIAL MINERALS FUND
- --------------------------------------------------------------------------------
1 The Fund seeks long-term capital growth by investing in
securities of companies engaged in mining, processing,
fabricating, and/or distributing gold and other precious
metals. The Fund seeks to combine the advantages of
investments in precious metals with less price volatility than
is offered by direct investments in the metals themselves.
- --------------------------------------------------------------------------------
2 Total return at net asset value was 8.25% for the 12-month
period ended June 30, 1994.(1)
- --------------------------------------------------------------------------------
3 Average annual total returns for the 1-, 5-, and 10-year
periods ended June 30, 1994 were 2.03%, 2.94%, and 9.74%,
respectively.(2)
- --------------------------------------------------------------------------------
4 The Fund's top five holdings on June 30, 1994, were:(3)
PLACER DOME. A global gold mining company with significant
exploration and mining operations in Latin America and Papua
New Guinea.
EURO NEVADA MINING CORP. LTD. A gold royalty company with a
diversified portfolio of properties in North America.
ENGELHARD CORP. A company specializing in chemicals and
platinum related products such as catalytic converters.
NEWMONT MINING. The premier U.S. gold mining company with a
proven trade record in overseas exploration and mine
development.
HEMLO GOLD MINES. One of the lowest-cost gold mining companies
in the world.
- --------------------------------------------------------------------------------
5 "Opportunities are shifting away from North America to
emerging markets where major finds are being made. That shift
is reflected in the portfolio's holdings, but we are cautious
of valuations that have risen excessively during the 'gold
rush' in South America during the past couple of years. We
continue to emphasize careful stock selection, focusing on
financially strong companies with proven exploration
capabilities and improving production profiles."
Portfolio Manager Jim Ayer, June 30, 1994
(1) Based on the change in net asset value per share for the period shown,
without deducting any sales charges.
(2) Average annual total returns are based on a hypothetical investment, after
deducting the current maximum initial sales charge of 5.75% on 6/30/93, 6/30/89
and 6/30/84 respectively, held until 6/30/94. The Fund's maximum sales charge
rate was higher during a portion of some of the periods shown, and actual
investment results will be different as a result of the change.
(3) The Fund's portfolio is subject to change.
All figures assume reinvestment of dividends and capital gains distributions.
Past performance is not indicative of future results. Investment return and
principal value on an investment in the Fund will fluctuate so that an
investor's shares, when redeemed, may be worth more or less than the original
cost.
2 Oppenheimer Gold & Special Minerals Fund
<PAGE> 3
REPORT TO SHAREHOLDERS
OUTSTANDING
TOTAL RETURN
Total return for the year ended
June 30, 1994
- -------------------------------
Oppenheimer Gold & 8.25%
Special Minerals Fund(4)
(at NAV)
- -------------------------------
Lipper gold-oriented 0.50%
funds average(5)
It is a pleasure to report that Oppenheimer Gold & Special Minerals Fund met
its objectives well for the year ended June 30, 1994. As the accompanying
chart shows, your Fund's total return at net asset value for the 12 months
ended on that date far outpaced the average gold-oriented fund. And your Fund's
long-term performance has been just as impressive.
In investing, as in any field, however, looking ahead is more
important than looking back, a point that is particularly significant in
today's economy, marked by slow growth and low inflation. In this environment,
your managers aren't looking for spectacular near-term gains in gold prices.
They do, however, expect the stocks of well-managed, financially sound gold
producers to continue to provide attractive returns, driven by fundamentals,
such as rising production and declining operating costs.
As noted in previous reports, industrial demand for gold continued to
outpace current and projected mining output, and there were no signs of selling
by central banks that would change the supply forecast. In your managers' view,
this situation provides solid support for gold prices in the $375 to $400
range.
While the Fund's outlook hasn't changed significantly over the past
several months, its investment tactics have. During the year, and especially
over the past six months, your managers shifted the focus of the gold-stock
portion of the portfolio away from North America and toward faster growing
gold-mining regions. For example, the Fund took positions in several companies,
including Battle Mountain, Cambior, and Dayton Mining--all strong companies
with mines and exploration properties in Latin America that are contributing to
rising production. In West Africa, the Fund took a position in Ashanti
Goldfields, a recently privatized mining company with new technologies that
should make considerable increases in production and reserves possible.
Your managers increased the Fund's exposure to other precious and
industrial metals. These metals--notably platinum, nickel, and copper--made up
15% of the portfolio at June 30. Their prices have strengthened along with
economies worldwide.
Unlike several other gold and metals funds, your Fund also holds
positions in several metals refiners, such as Union Miniere in Europe, Korea
Zinc, and Pasminco in Australia. As a result of restructurings and strong
business fundamentals, these stocks have performed well compared to gold over
the past six months.
Looking ahead, the Fund's prospects remain bright. Demand for gold
should continue to increase and, we believe, the kinds of companies in which
the Fund invests should perform well. We appreciate your trust in Oppenheimer
Gold & Special Minerals Fund. We look forward to continuing to help you reach
your financial objectives.
/s/ DONALD W. SPIRO
- -------------------
Donald W. Spiro
President, Oppenheimer Gold & Special Minerals Fund
July 22, 1994
(4) See footnote 1, page 2.
(5) Source of data: Lipper Analytical Services, Inc., an independent mutual
fund monitoring service, 6/30/94. The Lipper total return average for the year
ended 6/30/94 was for 31 gold-oriented funds. This average is shown for
comparative purposes only. Lipper performance rankings do not take sales
charges into consideration.
3 Oppenheimer Gold & Special Minerals Fund
<PAGE> 4
STATEMENT OF INVESTMENTS June 30, 1994
<TABLE>
<CAPTION>
FACE MARKET VALUE
AMOUNT SEE NOTE (1)
==================================================================================================================================
<S> <C> <C>
REPURCHASE AGREEMENTS--6.0%
- ----------------------------------------------------------------------------------------------------------------------------------
Repurchase agreement with
The First Boston Corp., 4.125%,
dated 6/30/94, to be repurchased at $10,801,237 on 7/1/94,
collateralized by U.S. Treasury Nts., 4%, 1/31/96, with a value
of $11,028,673 (Cost $10,800,000) $10,800,000 $10,800,000
==================================================================================================================================
CORPORATE BONDS AND NOTES--1.7%
- ----------------------------------------------------------------------------------------------------------------------------------
Coeur d'Alene Mines Corp., 6.375% Cv. Sub. Debs., 1/31/04 2,000,000 1,830,000
--------------------------------------------------------------------------------------------------
Agnico Eagle Mines 3.5% Sr. Nts., 1/31/04 1,500,000 1,237,500
-----------
Total Convertible Corporate Bonds and Notes (Cost $3,256,800) 3,067,500
UNITS
==================================================================================================================================
RIGHTS, WARRANTS AND CERTIFICATES--0.1%
- ----------------------------------------------------------------------------------------------------------------------------------
Ashton Mining of Canada, Inc. Wts., Exp. 10/95 100,000 55,011
--------------------------------------------------------------------------------------------------
Minera Rayrock, Inc. Wts., Exp. 6/95 170,000 43,068
-----------
Total Rights, Warrants and Certificates (Cost $68,278) 98,079
SHARES
==================================================================================================================================
PREFERRED STOCKS--3.3%
- ----------------------------------------------------------------------------------------------------------------------------------
Battle Mountain Gold Co., Cv. 34,500 2,113,125
--------------------------------------------------------------------------------------------------
Cyprus Amax Minerals Co., $4.00 Cv., Series A 26,666 1,796,622
--------------------------------------------------------------------------------------------------
Hecla Mining Co., $3.50 Cv., Series B 40,000 1,980,000
-----------
Total Preferred Stocks (Cost $5,363,441) 5,889,747
==================================================================================================================================
COMMON STOCKS--87.3%
- ----------------------------------------------------------------------------------------------------------------------------------
BASIC MATERIALS--85.3%
- ----------------------------------------------------------------------------------------------------------------------------------
ALUMINUM--0.8% Hindalco Industries Ltd., GDR(1) 38,000 1,387,000
- ----------------------------------------------------------------------------------------------------------------------------------
CHEMICALS: SPECIALTY--0.8% Minerals Technologies, Inc. 50,000 1,450,000
- ----------------------------------------------------------------------------------------------------------------------------------
COPPER--3.3% Freeport-McMoRan Copper & Gold, Inc., Cl. A 201,955 4,493,499
--------------------------------------------------------------------------------------------------
Zambia Copper Investments Ltd.(1) 410,000 1,499,819
-----------
5,993,318
- ----------------------------------------------------------------------------------------------------------------------------------
DIAMOND MINING Ashton Mining Ltd. 733,900 1,662,296
AND MARKETING--1.7% --------------------------------------------------------------------------------------------------
Ashton Mining of Canada, Inc.(1) 400,000 506,682
--------------------------------------------------------------------------------------------------
Pure Gold Resources, Inc.(1) 1,250,000 307,629
--------------------------------------------------------------------------------------------------
Texas Star Resources Corp.(1) 250,000 579,066
-----------
3,055,673
- ----------------------------------------------------------------------------------------------------------------------------------
GOLD MINING: AUSTRALIA--9.2% Gold Mines of Kalgoorlie Ltd. 2,097,604 1,869,791
--------------------------------------------------------------------------------------------------
Highlands Gold Ltd. 1,500,000 1,479,568
--------------------------------------------------------------------------------------------------
Lynas Gold Ltd.(1) 3,000,000 547,988
--------------------------------------------------------------------------------------------------
Newcrest Mining Ltd. 1,000,000 4,727,310
--------------------------------------------------------------------------------------------------
Niugini Mining Ltd.(1) 366,000 1,347,788
--------------------------------------------------------------------------------------------------
Placer Pacific Ltd. 1,500,000 3,452,325
--------------------------------------------------------------------------------------------------
Renison Goldfields Consolidated Ltd.(1) 400,000 1,318,094
--------------------------------------------------------------------------------------------------
Ross Offshore Co.(1) 2,500,000 1,771,828
-----------
16,514,692
</TABLE>
4 Oppenheimer Gold & Special Minerals Fund
<PAGE> 5
<TABLE>
<CAPTION>
MARKET VALUE
SHARES SEE NOTE(1)
<S> <C> <C> <C>
- ----------------------------------------------------------------------------------------------------------------------------------
GOLD MINING: CANADA--23.9% American Barrick Resources Corp. 200,000 $ 4,775,000
--------------------------------------------------------------------------------------------------
Cambior, Inc. 283,500 3,642,416
--------------------------------------------------------------------------------------------------
Canarc Resources Corp.(1) 282,500 715,708
--------------------------------------------------------------------------------------------------
Canarc Resources Corp.(1)(2) 450,000 1,140,065
--------------------------------------------------------------------------------------------------
Dayton Mining Corp., Units(1) 300,000 890,314
--------------------------------------------------------------------------------------------------
Glamis Gold Ltd. 500,000 3,438,205
--------------------------------------------------------------------------------------------------
Hemlo Gold Mines, Inc. 600,000 5,157,307
--------------------------------------------------------------------------------------------------
Kinross Gold(1) 300,000 1,248,611
--------------------------------------------------------------------------------------------------
Minera Rayrock, Inc., Cl. A(1) 340,000 583,264
--------------------------------------------------------------------------------------------------
Monarch Resources(1)(2) 300,000 1,009,746
--------------------------------------------------------------------------------------------------
Pegasus Gold, Inc. 250,000 4,000,000
--------------------------------------------------------------------------------------------------
Placer Dome, Inc. 310,000 6,665,000
--------------------------------------------------------------------------------------------------
Prime Resource Group, Inc.(1) 175,000 1,140,036
--------------------------------------------------------------------------------------------------
Rayrock Yellowknife Resources, Inc.(1) 103,000 1,267,431
--------------------------------------------------------------------------------------------------
Rayrock Yellowknife Resources, Inc.(1)(2) 30,000 369,155
--------------------------------------------------------------------------------------------------
Royal Oak Mines, Inc.(1) 200,000 812,500
--------------------------------------------------------------------------------------------------
Royalstar Resources Ltd.(1) 900,000 1,022,775
--------------------------------------------------------------------------------------------------
TVX Gold, Inc.(1)(2) 425,000 2,371,461
--------------------------------------------------------------------------------------------------
Teck Corp., Cl. B, Sub. Vtg. 150,000 2,483,650
-----------
42,732,644
- ----------------------------------------------------------------------------------------------------------------------------------
GOLD MINING: Anglo American Corp. of South Africa Ltd., ADR 75,000 3,600,000
SOUTH AFRICA--11.1% --------------------------------------------------------------------------------------------------
Ashanti Goldfields(1)(2) 170,000 3,495,625
--------------------------------------------------------------------------------------------------
Driefontein Consolidated Ltd., ADR 300,000 4,087,500
--------------------------------------------------------------------------------------------------
Free State Consolidated Gold Mines Ltd., ADR 250,000 3,468,750
--------------------------------------------------------------------------------------------------
Hartebeestfontein Gold Mining Co. 350,000 1,729,805
--------------------------------------------------------------------------------------------------
Randfontein Estates Gold Mining, ADR 200,000 1,787,640
--------------------------------------------------------------------------------------------------
Southvaal Holdings Ltd., ADR 58,000 1,628,443
-----------
19,797,763
- ----------------------------------------------------------------------------------------------------------------------------------
GOLD MINING: Battle Mountain Gold Co., CL. A 150,000 1,537,500
UNITED STATES--5.7% --------------------------------------------------------------------------------------------------
Crown Resources Corp.(1) 300,000 1,650,000
--------------------------------------------------------------------------------------------------
Hecla Mining Co.(1) 100,000 1,062,500
--------------------------------------------------------------------------------------------------
Homestake Mining Co. 150,000 2,812,500
--------------------------------------------------------------------------------------------------
Newmont Gold Co. 80,000 3,120,000
-----------
10,182,500
- ----------------------------------------------------------------------------------------------------------------------------------
GOLD RELATED Euro-Nevada Mining Corp. Ltd. 228,300 5,701,158
INVESTMENT--9.5% --------------------------------------------------------------------------------------------------
Franco-Nevada Mining Ltd. 80,000 4,256,135
--------------------------------------------------------------------------------------------------
Horsham Corp., Sub. Vtg. 114,500 1,574,698
--------------------------------------------------------------------------------------------------
Newmont Mining Corp. 137,291 5,525,963
-----------
17,057,954
</TABLE>
5 Oppenheimer Gold & Special Minerals Fund
<PAGE> 6
STATEMENTS OF INVESTMENTS (Continued)
<TABLE>
<CAPTION>
MARKET VALUE
SHARES SEE NOTE (1)
- ---------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
METALS: DIVERSIFIED--7.9% Elkem AS(1) 150,000 $ 2,052,010
-------------------------------------------------------------------------------------------------
Falconbridge(1)(2) 150,000 1,845,773
-------------------------------------------------------------------------------------------------
Freeport-McMoRan, Inc. 150,000 2,437,500
-------------------------------------------------------------------------------------------------
Svedala Industry AB, Free 125,000 2,439,982
-------------------------------------------------------------------------------------------------
Trelleborg AB, Series B Free Shares(1) 190,267 2,550,269
-------------------------------------------------------------------------------------------------
Western Mining Corp. Holdings Ltd. 519,989 2,739,298
-----------
14,064,832
- ---------------------------------------------------------------------------------------------------------------------------------
METALS: MISCELLANEOUS--3.1% Korea Zinc Co.(1) 75,000 1,742,184
-------------------------------------------------------------------------------------------------
NV Union Miniere SA(1) 25,000 1,996,247
-------------------------------------------------------------------------------------------------
Pasminco Ltd.(1) 1,500,000 1,753,562
-----------
5,491,993
- ---------------------------------------------------------------------------------------------------------------------------------
NICKEL--1.6% Inco Ltd. 70,000 1,706,250
-------------------------------------------------------------------------------------------------
QNI Ltd.(1) 1,000,000 1,147,122
-----------
2,853,372
- ---------------------------------------------------------------------------------------------------------------------------------
PLATINUM MINING--2.5% Rustenburg Platinum Holdings Ltd., ADR 230,000 4,522,741
- ---------------------------------------------------------------------------------------------------------------------------------
SPECIAL MINERAL Engelhard Corp. 225,000 5,681,250
-------------------------------------------------------------------------------------------------
PRODUCERS--4.2% Johnson Matthey PLC 250,000 1,921,658
------------
7,602,908
- ---------------------------------------------------------------------------------------------------------------------------------
INDUSTRIAL--2.0%
- ---------------------------------------------------------------------------------------------------------------------------------
MACHINERY: DIVERSIFIED--2.0% Australian National Industries Ltd. 1,000,000 1,329,784
-------------------------------------------------------------------------------------------------
Tampella AB(1) 724,333 2,226,374
------------
3,556,158
------------
Total Common Stocks (Cost $128,196,156) 156,263,548
- ---------------------------------------------------------------------------------------------------------------------------------
TOTAL INVESTMENTS, AT VALUE (COST $147,684,675) 98.4% 176,118,874
- ---------------------------------------------------------------------------------------------------------------------------------
OTHER ASSETS IN EXCESS OF LIABILITIES 1.6% 2,895,984
--------- ------------
NET ASSETS 100.0% $179,014,858
========= ============
</TABLE>
(1) Non-income producing security.
(2) Restricted security--See Note 5 of Notes to Financial Statements.
See accompanying Notes to Financial Statements.
6 Oppenheimer Gold & Special Minerals Fund
<PAGE> 7
STATEMENT OF ASSETS AND LIABILITIES June 30, 1994
<TABLE>
<S> <C> <C>
===================================================================================================================================
ASSETS Investments, at value (cost $147,684,675)--see accompanying statement $176,118,874
---------------------------------------------------------------------------------------------------
Cash 1,224,968
---------------------------------------------------------------------------------------------------
Receivables:
Shares of beneficial interest sold 2,291,259
Dividends and interest 593,538
---------------------------------------------------------------------------------------------------
Other 96,781
------------
Total assets 180,325,420
===================================================================================================================================
LIABILITIES Payables and other liabilities:
Shares of beneficial interest redeemed 1,061,528
Service plan fees--Note 4 58,503
Other 190,531
------------
Total liabilities 1,310,562
===================================================================================================================================
NET ASSETS $179,014,858
============
===================================================================================================================================
COMPOSITION OF Paid-in capital $163,915,373
NET ASSETS ---------------------------------------------------------------------------------------------------
Undistributed net investment income 793,753
---------------------------------------------------------------------------------------------------
Accumulated net realized loss from investment and foreign currency transactions (14,128,555)
---------------------------------------------------------------------------------------------------
Net unrealized appreciation on investments and translation
of assets and liabilities denominated in foreign currencies 28,434,287
------------
Net assets--applicable to 13,478,386 shares of beneficial interest outstanding $179,014,858
============
</TABLE>
<TABLE>
<S> <C>
===================================================================================================================================
NET ASSET VALUE AND REDEMPTION PRICE PER SHARE $13.28
===================================================================================================================================
MAXIMUM OFFERING PRICE PER SHARE (net asset value plus sales charge of 5.75% of offering price) $14.09
</TABLE>
See accompanying Notes to Financial Statements.
7 Oppenheimer Gold & Special Minerals Fund
<PAGE> 8
STATEMENT OF OPERATIONS For the Year Ended June 30, 1994
<TABLE>
<S> <C> <C>
==================================================================================================================================
INVESTMENT INCOME Dividends (net of withholding taxes of $195,330) $ 2,612,976
--------------------------------------------------------------------------------------------------
Interest 550,266
-----------
Total income 3,163,242
==================================================================================================================================
EXPENSES Management fees--Note 4 1,414,294
--------------------------------------------------------------------------------------------------
Transfer and shareholder servicing agent fees--Note 4 458,789
--------------------------------------------------------------------------------------------------
Service plan fees--Note 4 225,720
--------------------------------------------------------------------------------------------------
Shareholder reports 77,740
--------------------------------------------------------------------------------------------------
Trustees' fees and expenses 26,489
--------------------------------------------------------------------------------------------------
Legal and auditing fees 34,151
--------------------------------------------------------------------------------------------------
Other 60,129
-----------
Total expenses 2,297,312
==================================================================================================================================
NET INVESTMENT INCOME 865,930
==================================================================================================================================
REALIZED AND UNREALIZED GAIN Net realized gain (loss) from:
(LOSS) ON INVESTMENTS AND Investments 15,581,840
FOREIGN CURRENCY TRANSACTIONS Foreign currency transactions (57,557)
--------------------------------------------------------------------------------------------------
Net change in unrealized appreciation or depreciation on:
Investments (5,573,999)
Translation of assets and liabilities denominated in foreign currencies 1,964,639
-----------
Net realized and unrealized gain on investments and foreign currency transactions 11,914,923
</TABLE>
<TABLE>
<S> <C>
==================================================================================================================================
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS $12,780,853
===========
</TABLE>
See accompanying Notes to Financial Statements.
8 Oppenheimer Gold & Special Minerals Fund
<PAGE> 9
STATEMENTS OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
YEAR ENDED JUNE 30,
1994 1993
==================================================================================================================================
<S> <C> <C> <C>
OPERATIONS Net investment income $ 865,930 $ 762,165
--------------------------------------------------------------------------------------------------
Net realized gain on investments and foreign currency transactions 15,524,283 954,449
--------------------------------------------------------------------------------------------------
Net change in unrealized appreciation or depreciation on
investments and translation of assets and liabilities denominated
in foreign currencies (3,609,360) 20,425,829
------------ ------------
Net increase in net assets resulting from operations 12,780,853 22,142,443
==================================================================================================================================
DIVIDENDS TO Dividends from net investment income
SHAREHOLDERS ($.059 and $.136 per share, respectively) (776,209) (1,698,280)
==================================================================================================================================
BENEFICIAL INTEREST Net increase in net assets resulting from
TRANSACTIONS beneficial interest transactions--Note 2 8,028,555 5,192,486
==================================================================================================================================
NET ASSETS Total increase 20,033,199 25,636,649
--------------------------------------------------------------------------------------------------
Beginning of year 158,981,659 133,345,010
------------ ------------
End of year (including undistributed net investment
income of $793,753 and $786,012, respectively) $179,014,858 $158,981,659
============ ============
</TABLE>
See accompanying Notes to Financial Statements.
9 Oppenheimer Gold & Special Minerals Fund
<PAGE> 10
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
YEAR ENDED JUNE 30,
1994 1993 1992 1991 1990 1989
==================================================================================================================
<S> <C> <C> <C> <C> <C> <C>
PER SHARE OPERATING DATA:
Net asset value, beginning of year $12.32 $10.68 $10.36 $11.65 $12.58 $12.82
- ------------------------------------------------------------------------------------------------------------------
Income from investment operations:
Net investment income .06 .06 .16 .17 .14 .23
Net realized and unrealized
gain (loss) on investments
and foreign currency transactions .96 1.72 .35 (1.42) .54 .50
-------- -------- -------- -------- -------- --------
Total income (loss) from
investment operations 1.02 1.78 .51 (1.25) .68 .73
- ------------------------------------------------------------------------------------------------------------------
Dividends and distributions to shareholders:
Dividends from net
investment income (.06) (.14) (.19) (.04) (.27) (.18)
Distributions from net
realized gain on investments
and foreign currency transactions -- -- -- -- (1.34) (.79)
-------- -------- -------- -------- -------- --------
Total dividends and
distributions to shareholders (.06) (.14) (.19) (.04) (1.61) (.97)
- ------------------------------------------------------------------------------------------------------------------
Net asset value, end of year $13.28 $12.32 $10.68 $10.36 $11.65 $12.58
======== ======== ======== ======== ======== =======
==================================================================================================================
TOTAL RETURN, AT NET ASSET VALUE(1) 8.25% 17.15% 5.08% (10.71)% 3.10% 6.43%
==================================================================================================================
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of year
(in thousands) $179,015 $158,982 $133,345 $150,907 $163,118 $120,198
- ------------------------------------------------------------------------------------------------------------------
Average net assets (in thousands) $175,093 $124,869 $137,906 $154,318 $154,079 $110,873
- ------------------------------------------------------------------------------------------------------------------
Number of shares outstanding
at end of year (in thousands) 13,478 12,908 12,486 14,564 13,999 9,552
- ------------------------------------------------------------------------------------------------------------------
Amount of debt outstanding
at end of year (in thousands) $-- $-- $-- $-- $-- $--
- ------------------------------------------------------------------------------------------------------------------
Average amount of debt
outstanding throughout
each year (in thousands)(2) $-- $-- $-- $-- $-- $--
- ------------------------------------------------------------------------------------------------------------------
Average number of shares
outstanding throughout
each year (in thousands)(3) -- -- -- -- -- --
- ------------------------------------------------------------------------------------------------------------------
Average amount of debt per share
outstanding throughout each year $-- $-- $-- $-- $-- $--
- ------------------------------------------------------------------------------------------------------------------
Ratios to average net assets:
Net investment income .50% .61% 1.25% 1.67% 1.17% 1.97%
Expenses 1.31% 1.38% 1.38% 1.43% 1.37% 1.22%
- ------------------------------------------------------------------------------------------------------------------
Portfolio turnover rate(4) 29.5% 23.9% 39.4% 113.3% 82.3% 111.7%
</TABLE>
<TABLE>
<CAPTION>
1988 1987 1986 1985
============================================================================================
<S> <C> <C> <C> <C>
PER SHARE OPERATING DATA:
Net asset value, beginning of year $12.10 $6.43 $6.88 $8.21
- --------------------------------------------------------------------------------------------
Income from investment operations:
Net investment income .26 .15 .15 .01
Net realized and unrealized
gain (loss) on investments
and foreign currency transactions 3.39 5.66 (.58) (1.20)
-------- ------- ------- -------
Total income (loss) from
investment operations 3.65 5.81 (.43) (1.19)
- --------------------------------------------------------------------------------------------
Dividends and distributions to shareholders:
Dividends from net
investment income (.36) (.14) (.02) (.07)
Distributions from net
realized gain on investments
and foreign currency transactions (2.57) -- -- (.07)
-------- ------- ------- -------
Total dividends and
distributions to shareholders (2.93) (.14) (.02) (.14)
- --------------------------------------------------------------------------------------------
Net asset value, end of year $12.82 $ 12.10 $6.43 $6.88
======== ======= ======= =======
============================================================================================
TOTAL RETURN, AT NET ASSET VALUE(1) 33.24% 92.35% (6.23)% (14.37)%
============================================================================================
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of year
(in thousands) $107,264 $76,532 $29,080 $32,673
- --------------------------------------------------------------------------------------------
Average net assets (in thousands) $ 90,672 $49,947 $32,407 $27,809
- --------------------------------------------------------------------------------------------
Number of shares outstanding
at end of year (in thousands) 8,365 6,324 4,523 4,751
- --------------------------------------------------------------------------------------------
Amount of debt outstanding
at end of year (in thousands) $-- $-- $-- $500
- --------------------------------------------------------------------------------------------
Average amount of debt
outstanding throughout
each year (in thousands)(2) $-- $79 $366 $67
- --------------------------------------------------------------------------------------------
Average number of shares
outstanding throughout
each year (in thousands)(3) -- 5,253 4,743 4,023
- --------------------------------------------------------------------------------------------
Average amount of debt per share
outstanding throughout each year $-- $.02 $.08 $.02
- --------------------------------------------------------------------------------------------
Ratios to average net assets:
Net investment income 2.38% 2.10% 2.19% .43%
Expenses 1.22% 1.41% 1.61% 1.62%
- --------------------------------------------------------------------------------------------
Portfolio turnover rate(4) 175.8% 191.7% 52.9% 12.1%
</TABLE>
(1) Assumes a hypothetical initial investment on the business day before the
first day of the fiscal year, with all dividends and distributions reinvested
in additional shares on the reinvestment date, and redemption at the net asset
value calculated on the last business day of the fiscal year. Sales charges are
not reflected in the total returns.
(2) Based upon daily outstanding borrowing.
(3) Based upon month-end balances.
(4) The lesser of purchases or sales of portfolio securities for a year,
divided by the monthly average of the market value of portfolio securities
owned during the year. Securities with a maturity or expiration date at the
time of acquisition of one year or less are excluded from the calculation.
Purchases and sales of investment securities (excluding short-term securities)
for the year ended June 30, 1994 were $52,444,667 and $48,139,367,
respectively.
See accompanying Notes to Financial Statements.
10 Oppenheimer Gold & Special Minerals Fund
<PAGE> 11
NOTES TO FINANCIAL STATEMENTS
<TABLE>
<S> <C>
====================================================================================================================================
1. SIGNIFICANT Oppenheimer Gold & Special Minerals Fund (the Fund) is registered under the
ACCOUNTING POLICIES Investment Company Act of 1940, as amended, as a diversified, open-end management
investment company. The Fund's investment advisor is Oppenheimer Management
Corporation (the Manager). The following is a summary of significant accounting
policies consistently followed by the Fund.
-------------------------------------------------------------------------------------
INVESTMENT VALUATION. Portfolio securities are valued at 4:00 p.m. (New York time) on
each trading day. Listed and unlisted securities for which such information is
regularly reported are valued at the last sale price of the day or, in the absence of
sales, at values based on the closing bid or asked price or the last sale price on
the prior trading day. Long-term debt securities are valued by a portfolio pricing
service approved by the Board of Trustees. Long-term debt securities which cannot be
valued by the approved portfolio pricing service are valued by averaging the mean
between the bid and asked prices obtained from two active market makers in such
securities. Short-term debt securities having a remaining maturity of 60 days or less
are valued at cost (or last determined market value) adjusted for amortization to
maturity of any premium or discount. Securities for which market quotes are not
readily available are valued under procedures established by the Board of Trustees to
determine fair value in good faith.
-------------------------------------------------------------------------------------
FOREIGN CURRENCY TRANSLATION. The accounting records of the Fund are maintained in
U.S. dollars. Prices of securities denominated in foreign currencies are translated
into U.S. dollars at the closing rates of exchange. Amounts related to the purchase
and sale of securities and investment income are translated at the rates of exchange
prevailing on the respective dates of such transactions.
The Fund generally enters into forward currency exchange
contracts as a hedge, upon the purchase or sale of a security denominated in a
foreign currency. Risks may arise from the potential inability of the counterparty to
meet the terms of the contract and from unanticipated movements in the value of a
foreign currency relative to the U.S. dollar.
The effect of changes in foreign currency exchange rates on
investments is separately identified from the fluctuations arising from changes in
market values of securities held and reported with all other foreign currency gains
and losses in the Fund's results of operations.
-------------------------------------------------------------------------------------
REPURCHASE AGREEMENTS. The Fund requires the custodian to take possession, to have
legally segregated in the Federal Reserve Book Entry System or to have segregated
within the custodian's vault, all securities held as collateral for repurchase
agreements. If the seller of the agreement defaults and the value of the collateral
declines, or if the seller enters an insolvency proceeding, realization of the value
of the collateral by the Fund may be delayed or limited.
-------------------------------------------------------------------------------------
FEDERAL INCOME TAXES. The Fund intends to continue to comply with provisions of the
Internal Revenue Code applicable to regulated investment companies and to distribute
all of its taxable income, including any net realized gain on investments not offset
by loss carryovers, to shareholders. Therefore, no federal income tax provision is
required. At June 30, 1994, the Fund had available for federal income tax purposes an
unused capital loss carryover of approximately $13,838,821, $10,585,991 of which will
expire in 2000 and $3,252,830 in 2001.
-------------------------------------------------------------------------------------
TRUSTEES' FEES AND EXPENSES. The Fund has adopted a nonfunded retirement plan for the
Fund's independent trustees. Benefits are based on years of service and fees paid to
each trustee during the years of service. During the year ended June 30, 1994, a
provision of $11,049 was made for the Fund's projected benefit obligations, resulting
in an accumulated liability of $70,659 at June 30, 1994. No payments have been made
under the plan.
-------------------------------------------------------------------------------------
DISTRIBUTIONS TO SHAREHOLDERS. Dividends and distributions to shareholders are
recorded on the ex-dividend date.
-------------------------------------------------------------------------------------
CHANGE IN ACCOUNTING FOR DISTRIBUTIONS TO SHAREHOLDERS. Effective July 1, 1993, the
Fund adopted Statement of Position 93-2: Determination, Disclosure, and Financial
Statement Presentation of Income, Capital Gain, and Return of Capital Distributions
by Investment Companies. As a result, the Fund changed the classification of
distributions to shareholders to better disclose the differences between financial
statement amounts and distributions determined in accordance with income tax
regulations. Accordingly, subsequent to June 30, 1993, amounts have been reclassified
to reflect an increase in paid-in capital of $2,749, a decrease in undistributed net
investment income of $81,980, and a decrease in undistributed capital loss on
investments of $79,231.
</TABLE>
11 Oppenheimer Gold & Special Minerals Fund
<PAGE> 12
NOTES TO FINANCIAL STATEMENTS (Continued)
<TABLE>
<S> <C>
====================================================================================================================================
1. SIGNIFICANT ACCOUNTING OTHER. Investment transactions are accounted for on the date the investments are
POLICIES (CONTINUED) purchased or sold (trade date) and dividend income is recorded on the ex-dividend
date. Discount on securities purchased is amortized over the life of the respective
securities, in accordance with federal income tax requirements. Realized gains and
losses on investments and unrealized appreciation and depreciation are determined on
an identified cost basis, which is the same basis used for federal income tax
purposes.
====================================================================================================================================
2. SHARES OF The Fund has authorized an unlimited number of no par value shares of beneficial
BENEFICIAL INTEREST interest. Transactions in shares of beneficial interest were as follows:
</TABLE>
<TABLE>
<CAPTION>
YEAR ENDED JUNE 30, 1994 YEAR ENDED JUNE 30, 1993
------------------------ -----------------------
SHARES AMOUNT SHARES AMOUNT
-------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Sold 16,319,300 $218,789,343 8,221,891 $85,718,322
Dividends reinvested 48,817 596,985 170,363 1,572,218
Redeemed (15,798,058) (211,357,773) (7,969,879) (82,098,054)
---------- ------------ --------- -----------
Net increase 570,059 $ 8,028,555 422,375 $ 5,192,486
========== ============ ========= ===========
</TABLE>
<TABLE>
<S> <C>
====================================================================================================================================
3. UNREALIZED GAINS AND At June 30, 1994, net unrealized appreciation of investments of $28,434,287 was
LOSSES ON INVESTMENTS composed of gross appreciation of $35,694,846, and gross depreciation of $7,260,559.
====================================================================================================================================
4. MANAGEMENT FEES Management fees paid to the Manager were in accordance with the investment advisory
AND OTHER TRANSACTIONS agreement with the Fund which provides for an annual fee of .80% on the first $200
WITH AFFILIATES million of average net assets, .75% on the next $200 million, .69% on the next $200
million, .66% on the next $200 million and .60% on average net assets in excess of
$800 million. Effective July 1, 1994, the management fee rates will change solely
with respect to the first and second $200 million of average net assets as follows:
.75% on the first $200 million and .72% on the next $200 million of average net
assets. The Manager has agreed to reimburse the Fund if aggregate expenses (with
specified exceptions) exceed the most stringent applicable regulatory limit on Fund
expenses.
For the year ended June 30, 1994, commissions (sales charges
paid by investors) on sales of Fund shares totaled $1,175,491, of which $277,123 was
retained by Oppenheimer Funds Distributor, Inc. (OFDI), a subsidiary of the Manager,
as general distributor, and by an affiliated broker-dealer.
Oppenheimer Shareholder Services (OSS), a division of the
Manager, is the transfer and shareholder servicing agent for the Fund, and for other
registered investment companies. OSS's total costs of providing such services are
allocated ratably to these companies.
Under an approved service plan, the Fund may expend up to .25%
of its net assets annually to reimburse OFDI for costs incurred in connection with
the personal service and maintenance of accounts that hold shares of the Fund (prior
to July 1, 1994, reimbursements were made with respect to shares sold subsequent to
April 1, 1991), including amounts paid to brokers, dealers, banks and other
institutions. During the year ended June 30, 1994, OFDI paid $3,838 to an affiliated
broker/dealer as reimbursement for personal service and maintenance expenses.
====================================================================================================================================
5. RESTRICTED SECURITIES The Fund owns securities purchased in private placement transactions, without
registration under the Securities Act of 1933 (the Act). The securities are valued
under methods approved by the Board of Trustees as reflecting fair value, and amount
to $10,231,825, or 5.7% of the Fund's net assets, at June 30, 1994. The Fund may not
invest more than 10% of its net assets (determined at the time of purchase) in
restricted or illiquid securities.
</TABLE>
<TABLE>
<CAPTION>
VALUATION
PER UNIT
AS OF
JUNE 30,
SECURITY ACQUISITION DATE COST PER UNIT 1994
-------------------------------------------------------------------------------------
<S> <C> <C> <C>
Ashanti Goldfields(1) 4/19/94 $20.00 $20.56
-------------------------------------------------------------------------------------
Canarc Resources Corp. 6/6/94 $ 2.15 $ 2.53
-------------------------------------------------------------------------------------
Falconbridge(1) 6/10/94 $13.47 $12.31
-------------------------------------------------------------------------------------
Monarch Resources(1) 6/31/94 $ 3.25 $ 3.37
-------------------------------------------------------------------------------------
Rayrock Yellowknife Resources, Inc.(1) 5/31/94 $13.00 $12.31
-------------------------------------------------------------------------------------
TVX Gold, Inc. 6/23/93-10/20/93 $ 4.38 $ 5.58
</TABLE>
(1) Transferable under Rule 144A of the Act.
12 Oppenheimer Gold & Special Minerals Fund
<PAGE> 13
INDEPENDENT AUDITORS' REPORT
The Board of Trustees and Shareholders of Oppenheimer Gold & Special Minerals
Fund:
We have audited the accompanying statements of investments and assets and
liabilities of Oppenheimer Gold & Special Minerals Fund as of June 30, 1994,
and the related statement of operations for the year then ended, the statements
of changes in net assets for each of the years in the two-year period then
ended and the financial highlights for each of the years in the ten-year period
then ended. These financial statements and financial highlights are the
responsibility of the Fund's management. Our responsibility is to express an
opinion on these financial statements and financial highlights based on our
audits.
We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements and financial
highlights are free of material misstatement. An audit includes examining, on a
test basis, evidence supporting the amounts and disclosures in the financial
statements and financial highlights. Our procedures included confirmation of
securities owned as of June 30, 1994, by correspondence with the custodian and
brokers; and where confirmations were not received from brokers, we performed
other auditing procedures. An audit also includes assessing the accounting
principles used and significant estimates made by management, as well as
evaluating the overall financial statement presentation. We believe that our
audits provide a reasonable basis for our opinion.
In our opinion, the financial statements and financial highlights
referred to above present fairly, in all material respects, the financial
position of Oppenheimer Gold & Special Minerals Fund as of June 30, 1994, the
results of its operations for the year then ended, the changes in its net
assets for each of the years in the two-year period then ended, and the
financial highlights for each of the years in the ten-year period then ended,
in conformity with generally accepted accounting principles.
KPMG PEAT MARWICK LLP
Denver, Colorado
July 22, 1994
13 Oppenheimer Gold & Special Minerals Fund
<PAGE> 14
FEDERAL INCOME TAX INFORMATION (Unaudited)
In early 1995, shareholders will receive information regarding all dividends
and distributions paid to them by the Fund during calendar year 1994.
Regulations of the U.S. Treasury Department require the Fund to report this
information to the Internal Revenue Service.
Dividends paid by the Fund during the fiscal year ended June 30, 1994
which are not designated as capital gain distributions should be multiplied by
100% to arrive at the net amount eligible for the corporate dividend-received
deduction.
The Fund has elected the application of Section 853 of the Internal
Revenue Code to permit shareholders to take a federal income tax credit or
deduction, at their option, on a per share basis for an aggregate amount of
$195,330 of foreign income taxes paid by the Fund during the fiscal year ended
June 30, 1994. A separate notice will be mailed to each shareholder in January
of 1995, which will reflect the proportionate share of such foreign taxes (as
well as the dividend expected to be paid by the Fund in December of 1994) which
must be treated by shareholders as gross income for federal income tax
purposes.
The foregoing information is presented to assist shareholders in
reporting distributions received from the Fund to the Internal Revenue Service.
Because of the complexity of the federal regulations which may affect your
individual tax return and the many variations in state and local tax
regulations, we recommend that you consult your tax advisor for specific
guidance.
14 Oppenheimer Gold & Special Minerals Fund
<PAGE> 15
OPPENHEIMER GOLD & SPECIAL MINERALS FUND
<TABLE>
<S> <C>
====================================================================================================================================
OFFICERS AND TRUSTEES Leon Levy, Chairman of the Board of Trustees
Leo Cherne, Trustee
Edmund T. Delaney, Trustee
Robert G. Galli, Trustee
Benjamin Lipstein, Trustee
Elizabeth B. Moynihan, Trustee
Kenneth A. Randall, Trustee
Edward V. Regan, Trustee
Russell S. Reynolds, Jr., Trustee
Sidney M. Robbins, Trustee
Donald W. Spiro, Trustee and President
Pauline Trigere, Trustee
Clayton K. Yeutter, Trustee
James Ayer, Vice President
George C. Bowen, Treasurer
Robert J. Bishop, Assistant Treasurer
Scott Farrar, Assistant Treasurer
Andrew J. Donohue, Secretary
Robert G. Zack, Assistant Secretary
====================================================================================================================================
INVESTMENT ADVISOR Oppenheimer Management Corporation
====================================================================================================================================
DISTRIBUTOR Oppenheimer Funds Distributor, Inc.
====================================================================================================================================
TRANSFER AND SHAREHOLDER Oppenheimer Shareholder Services
SERVICING AGENT
====================================================================================================================================
CUSTODIAN OF The Bank of New York
PORTFOLIO SECURITIES
====================================================================================================================================
INDEPENDENT AUDITORS KPMG Peat Marwick LLP
====================================================================================================================================
LEGAL COUNSEL Gordon Altman Butowsky Weitzen Shalov & Wein
This is a copy of a report to shareholders of Oppenheimer Gold & Special Minerals
Fund. This report must be preceded or accompanied by a Prospectus of Oppenheimer Gold
& Special Minerals Fund. For material information concerning the Fund, see the
Prospectus.
</TABLE>
15 Oppenheimer Gold & Special Minerals Fund
<PAGE> 16
"HOW MAY I HELP YOU?"
[PHOTO #2 -- SEE EDGAR APPENDIX]
"Just as OppenheimerFunds offers over 30 different mutual funds designed to
help meet virtually every investment need, Oppenheimer Shareholder Services
offers a variety of services to satisfy your individual needs. Whenever you
require help, we're only a toll- free phone call away.
"For personalized assistance and account information, call
our General Information number to speak with our knowledgeable Customer Service
Representatives and get the help you need.
"When you want to make account transactions, it's easy for
you to redeem shares, exchange shares, or conduct AccountLink transactions,
simply by calling our Telephone Transactions number.
"And for added convenience, OppenheimerFunds' PhoneLink,
an automated voice response system is available 24 hours a day, 7 days a week.
PhoneLink gives you access to a variety of fund, account, and market
information. You can even make purchases, exchanges and redemptions using your
touch-tone phone. Of course, PhoneLink will always give you the option to speak
with a Customer Service Representative during the hours shown to the left.
"When you invest in OppenheimerFunds, you know you'll
receive a high level of customer service. The International Customer Service
Association knows it, too, as it awarded Oppenheimer Shareholder Services a
1993 Award of Excellence for consistently demonstrating superior customer
service.
"Whatever your needs, we're ready to assist you."
(1993 AWARD OF EXCELLENCE INTERNATIONAL CUSTOMER SERVICE ASSOCIATION LOGO)
GENERAL INFORMATION
1-800-525-7048
Talk to a Customer Service
Representative.
Monday through Friday from
8:30 a.m. to 8:00 p.m., and
Saturday from 10:00 a.m.
to 2:00 p.m. ET.
TELEPHONE TRANSACTIONS
1-800-852-8457
Make account transactions with a
Customer Service Representative.
Monday through Friday from
8:30 a.m. to 8:00 p.m. ET.
PHONELINK
1-800-533-3310
Get automated information or
make automated transactions.
24 hours a day, 7 days a week.
TELECOMMUNICATION
DEVICE FOR THE DEAF
1-800-843-4461
Service for the hearing impaired.
Monday through Friday from
8:30 a.m. to 8:00 p.m. ET.
OPPENHEIMERFUNDS
INFORMATION HOTLINE
1-800-835-3104
Hear timely and insightful
messages on the economy and
issues that affect your finances.
24 hours a day, 7 days a week.
RA220.0794.N
(OPPENHEIMERFUNDS(R) LOGO)
Oppenheimer Funds Distributor, Inc.
P.O. Box 5270
Denver, CO 80217-5270
- ---------------
Bulk Rate
U.S. Postage
PAID
Permit No. 314
Farmingdale, NY
- ---------------
<PAGE> 17
APPENDIX TO ELECTRONIC FORMAT DOCUMENT
The front cover of the report in the printed version contains a photo
(photo # 1) of two adults, two dogs.
The back cover of the report in the printed version contains a photo
(photo #2) of Barbara Hennigar, Chief Executive Officer, Oppenheimer
Shareholder Services.
