Oppenheimer Gold & Special Minerals Fund
Semi-Annual Report December 31, 1993
(LOGO) Oppenheimer Funds.
(Photograph)
"We don't want inflation to rob us
of a comfortable retirement.
"With part of our assets in this
Fund, we feel secure."
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Fund Facts
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Five Facts Every Shareholder Should Know About Oppenheimer
Gold & Special Minerals Fund
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1 The Fund seeks long-term capital appreciation by investing
in the stocks of companies engaged in mining, processing,
fabricating, and/or distributing gold and other precious
metals or minerals.
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2 The Fund's total return at net asset value was 16.24% for
the 6 months ended December 31, 1993. The Fund's total
return at net asset value for the 12 months ended on that
date was 61.82%.(1)
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3 The Fund significantly outperformed the S&P 500 Index(2) in
1993 and ranked first among all gold-oriented funds tracked
by Lipper over the last 10 years.(3)
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4 The Fund's top five stock holdings at December 31, 1993
were:(4) Franco-Nevada Mining Ltd. A gold royalty company
whose main assets include royalties on American Barrick's
Goldstrike Mine in Nevada. Euro-Nevada Mining Corp. Ltd. A
diversified gold royalty company in North America. Placer
Dome, Inc. A global gold mining company with significant
exploration and mining operations in Latin America and Asia.
Hemlo Gold Mines, Inc. One of the lowest-cost gold mining
companies in North America. Newmont Mining Corp. The premier
U.S. gold mining company.
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5 "In the past, we've focused the Fund's investments on
companies involved in gold exploration and production in
North America, where the major finds were being made. Today,
the promising discoveries are being made in other parts of
the world, and we're gradually shifting our investments to
companies operating in countries where the gold-production
growth rate is believed to be highest, such as South America
and Papua New Guinea."
Portfolio Managers, Bill Wilby and Jim Ayer, December 31, 1993
- -----------------------
In this report:
Answers to three
timely questions
you should ask your
Fund's managers.
# What's the outlook for gold prices?
# Why did the managers reduce the Fund's North American gold-stock exposure?
# Do precious minerals and metals other than gold still have a role
in the Fund's portfolio?
1. Based on the change in net asset value per share from 6/30/93 and
12/31/92 to 12/31/93. The Fund's average annual total returns, after
deducting the current maximum sales charge of 5.75%, for the 1-, 5-,
and 10-year periods ended 12/31/93 were 52.51%, 6.28%, and 9.16%,
respectively. All figures assume reinvestment of dividends and capital
gains distributions. The Fund's maximum sales charge rate was higher
during a portion of the periods shown, and actual investment results
will be different as a result of that change.
2. The S&P 500 Index is an unmanaged index of common stocks that is
widely recognized as an indicator of overall market performance. The
S&P 500 Index includes dividend reinvestments but does not take
capital gains distributions into consideration.
3. Source of data: Lipper Analytical Services, an independent mutual
fund monitoring service, 12/31/93. The Lipper total return average for
the 10-year period was for 9 gold-oriented funds ranked by Lipper in
that period. This figure assumes reinvestment of dividends and capital
gains distributions, and is shown for comparative purposes only.
Oppenheimer Gold & Special Minerals Fund is characterized by Lipper as
a gold-oriented fund. Lipper performance does not take sales charges
into consideration.
4. The Fund's portfolio is subject to change.
Past performance is not indicative of future results. An investment in
the Fund will fluctuate in value so that an investor's shares, when
redeemed, may be worth more or less than the original cost.
2 Oppenheimer Gold & Special Minerals Fund
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Report to Shareholders
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For the six months ended December 31, 1993, Oppenheimer Gold & Special
Minerals Fund provided a total return at net asset value of 16.24%,
bringing the Fund's total return at net asset value for the 12 months
ended on that date to 61.82%.(7)
The Fund's managers focus on the stocks of proven,
financially strong producers. We believe that this focus on a
company's underlying earnings capacity rather than the sensitivity of
its stock price to swings in the price of gold is the best way to
build long-term investment value. And this belief is borne out by the
Fund's #1 Lipper ranking among gold-oriented funds, based on
performance over the last 10 years.(6)
Currently, we believe that a gold price in the $375 to $400
range is solidly supported by developments in the world's economies as
well as by fundamental supply and demand factors. With the economy
strengthening in the U.S. and nations across Europe poised to emerge
from their recessions, fabrication demand for gold continues to
outpace projected mining output. We also see no signs of extensive
selling by central banks that would change the supply forecast. At the
same time, while rising inflation is not yet a concern in the U.S. or
Europe, political instability and rising inflation in some parts of
the world, such as China, have made gold more attractive to an
increasing number of investors, adding to already strong fabrication
demand.
During the period, we continued to shift a portion of the
portfolio away from North America, where the prices of some gold
stocks seemed stretched and the mining industry faces mounting
political and regulatory challenges, toward fast-growing gold-mining
regions.
For example, we took profits on American Barrick Resources
and Newmont Mining and invested the proceeds in companies like TVX
Gold, which is pursuing new projects in Venezuela, Brazil, Ecuador and
Peru.
At the same time, we have continued to increase the Fund's
exposure to gold relative to other metals. We continue to take
advantage of special situations in base metals and other minerals, but
feel increasing our gold holdings will benefit shareholders most.
Looking ahead, the Fund's prospects appear bright. As
economies continue to strengthen worldwide, demand for gold should
continue to increase, and, we believe, the kinds of companies in which
the Fund invests will perform well.
We appreciate the confidence you have placed in Oppenheimer
Gold & Special Minerals Fund. We look forward to continuing to help
you reach your financial objectives in the future.
/s/ Donald W. Spiro
Donald W. Spiro
President, Oppenheimer Gold & Special Minerals Fund
January 21, 1994
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Performance
In Perspective
Total return for
10-year period
ended December 31, 1993
- -----------------------
Oppenheimer 140.30%
Gold & Special
Minerals Fund(5)
- -----------------------
Lipper 61.29%
gold-oriented
funds average(6)
5. Based on a hypothetical investment made in the Fund on 12/31/83 and
held until 12/31/93, with all dividends and capital gains
distributions reinvested and after deducting the current maximum sales
charge of 5.75%.
6. See footnote 3, page 2.
7. See footnote 1, page 2.
3 Oppenheimer Gold & Special Minerals Fund
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<TABLE>
<CAPTION>
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Statement of Investments December 31, 1993 (Unaudited)
Face Market Value
Amount See Note 1
- ------------------------------------------------------------------------------------------------------------------------------
<C> <S> <C> <C>
Repurchase Agreements--3.7%
- ------------------------------------------------------------------------------------------------------------------------------
Repurchase agreement with Morgan Guaranty Trust
Co., 3.15%, dated 12/31/93 and maturing 1/3/94,
collateralized by U.S. Treasury Bills, 2.93%,
2/3/94, with a value of $7,150,159 (Cost $7,000,000) $7,000,000 $ 7,000,000
- ------------------------------------------------------------------------------------------------------------------------------
Corporate Bonds and Notes--1.6%
- ------------------------------------------------------------------------------------------------------------------------------
Freeport-McMoRan Copper & Gold, Inc., 0% Liq. Yld. Opt. Sub. Nts.,
7/2/11 (Cost $2,114,011) 8,000,000 2,990,000
Units
- ------------------------------------------------------------------------------------------------------------------------------
Rights, Warrants and Certificates--0.6%
- ------------------------------------------------------------------------------------------------------------------------------
Ashton Mining of Canada, Inc. Wts., Exp. 10/95 400,000 158,615
-----------------------------------------------------------------------------------------------
Canarc Resources Corp. Wts., Exp. 5/94(2) 225,000 884,250
-----------------------------------------------------------------------------------------------
QNI Ltd. Rts., Exp. 1/94 320,000 89,050
-----------
Total Rights, Warrants and Certificates (Cost $569,821) 1,131,915
Shares
- ------------------------------------------------------------------------------------------------------------------------------
Preferred Stocks--4.1%
- ------------------------------------------------------------------------------------------------------------------------------
Alumax, Inc., $4.00 Cv., Series A 13,333 1,313,301
-----------------------------------------------------------------------------------------------
Battle Mountain Gold Co., Cv. 34,500 2,225,250
-----------------------------------------------------------------------------------------------
Cyprus Amax Minerals Co., $4.00 Cv., Series A 26,666 1,733,290
-----------------------------------------------------------------------------------------------
Hecla Mining Co., $3.50 Cv., Series B 30,000 1,578,750
-----------------------------------------------------------------------------------------------
Magma Copper Co., $3.00 Cum. Cv., Series E 15,000 870,000
-----------
Total Preferred Stocks (Cost $6,326,270) 7,720,591
- ------------------------------------------------------------------------------------------------------------------------------
Common Stocks--90.9%
- ------------------------------------------------------------------------------------------------------------------------------
Basic Materials--90.1%
- ------------------------------------------------------------------------------------------------------------------------------
Aluminum--0.6% Hindalco Industries Ltd., GDR(1) 38,000 1,216,000
- ------------------------------------------------------------------------------------------------------------------------------
Chemicals: Specialty--0.8% Minerals Technologies, Inc. 50,000 1,450,000
- ------------------------------------------------------------------------------------------------------------------------------
Copper--7.6% Freeport-McMoRan Copper & Gold, Inc., Cl. A 250,000 6,250,000
-----------------------------------------------------------------------------------------------
Magma Copper Co. New, Cl. B(1) 300,000 3,975,000
-----------------------------------------------------------------------------------------------
Phelps Dodge Corp. 60,000 2,925,000
-----------------------------------------------------------------------------------------------
Zambia Copper Investments Ltd.(1) 410,000 1,225,322
-----------
14,375,322
- ------------------------------------------------------------------------------------------------------------------------------
Diamond Mining and Ashton Mining Ltd. 700,000 1,401,581
Marketing--1.4% -----------------------------------------------------------------------------------------------
Ashton Mining of Canada, Inc.(1) 400,000 528,716
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Texas Star Resources Corp.(1) 250,000 689,220
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2,619,517
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Gold--0.4% Venezuelan Goldfields Ltd.(1) 75,0000 708,102
</TABLE>
4 Oppenheimer Gold & Special Minerals Fund
<PAGE>
<TABLE>
<CAPTION>
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Market Value
Shares See Note 1
- ------------------------------------------------------------------------------------------------------------------------------
<C> <S> <C> <C>
Gold Mining: Australia--11.0% Gold Mines of Kalgoorlie Ltd. 2,097,604 $ 1,893,535
-----------------------------------------------------------------------------------------------
Highlands Gold Ltd. 2,500,000 2,986,420
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Newcrest Mining Ltd. 1,200,000 5,457,004
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Niugini Mining Ltd.(1) 366,000 1,366,287
-----------------------------------------------------------------------------------------------
Placer Pacific Ltd. 1,500,000 3,461,532
-----------------------------------------------------------------------------------------------
Renison Goldfields Consolidated Ltd. 400,000 1,438,911
-----------------------------------------------------------------------------------------------
Ross Offshore Co.(1) 2,500,000 1,730,766
-----------------------------------------------------------------------------------------------
Western Mining Corp. Holdings Ltd. 516,904 2,466,399
-----------
20,800,854
- ------------------------------------------------------------------------------------------------------------------------------
Gold Mining: Canada--23.0% American Barrick Resources Corp. 200,000 5,700,000
-----------------------------------------------------------------------------------------------
Bema Gold Corp.(1) 948,100 2,219,937
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Cambior, Inc. 233,500 3,527,294
-----------------------------------------------------------------------------------------------
Glamis Gold Ltd. 500,000 3,634,926
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Hemlo Gold Mines, Inc. 600,000 6,571,191
-----------------------------------------------------------------------------------------------
Minera Rayrock, Inc., Units(1)(2) 340,000 770,415
-----------------------------------------------------------------------------------------------
Pegasus Gold, Inc. 250,000 5,500,000
-----------------------------------------------------------------------------------------------
Placer Dome, Inc. 310,000 7,711,250
-----------------------------------------------------------------------------------------------
Prime Resource Group, Inc.(1) 175,000 1,189,612
-----------------------------------------------------------------------------------------------
Pure Gold Resources, Inc.(1) 1,250,000 330,448
-----------------------------------------------------------------------------------------------
Royalstar Resources Ltd.(1) 900,000 815,734
-----------------------------------------------------------------------------------------------
TVX Gold, Inc.(1)(2) 425,000 2,749,539
-----------------------------------------------------------------------------------------------
Teck Corp., Cl. B, Sub. Vtg. 150,000 2,634,141
-----------
43,354,487
- ------------------------------------------------------------------------------------------------------------------------------
Gold Mining: Anglo American Corp. of South Africa Ltd., ADR 100,000 5,237,500
South Africa--9.1% -----------------------------------------------------------------------------------------------
Driefontein Consolidated Ltd., ADR 270,000 3,476,250
-----------------------------------------------------------------------------------------------
Free State Consolidated Gold Mines Ltd., ADR 297,500 5,057,500
-----------------------------------------------------------------------------------------------
Randfontein Estates Gold Mining, ADR 150,000 1,691,250
-----------------------------------------------------------------------------------------------
Southvaal Holdings Ltd., ADR 58,000 1,892,250
-----------
17,354,750
- ------------------------------------------------------------------------------------------------------------------------------
Gold Mining: Amax Gold, Inc. 156,100 1,073,188
United States--6.5% -----------------------------------------------------------------------------------------------
Battle Mountain Gold Co., Cl. A 150,000 1,518,750
-----------------------------------------------------------------------------------------------
Crown Resources Corp.(1) 300,000 1,387,500
-----------------------------------------------------------------------------------------------
Hecla Mining Co.(1) 100,000 1,162,500
-----------------------------------------------------------------------------------------------
Homestake Mining Co. 150,000 3,300,000
-----------------------------------------------------------------------------------------------
Newmont Gold Co. 80,000 3,770,000
-----------
12,211,938
- ------------------------------------------------------------------------------------------------------------------------------
Gold Related Canarc Resources Corp.(1) 207,500 658,232
Investment--15.6% -----------------------------------------------------------------------------------------------
Euro-Nevada Mining Corp. Ltd. 228,300 8,126,099
-----------------------------------------------------------------------------------------------
Franco-Nevada Mining Ltd. 120,000 8,247,977
-----------------------------------------------------------------------------------------------
Horsham Corp., Sub. Vtg. 414,500 6,065,841
-----------------------------------------------------------------------------------------------
Newmont Mining Corp. 110,000 6,338,750
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29,436,899
5 Oppenheimer Gold & Special Minerals Fund
<PAGE>
</TABLE>
<TABLE>
<CAPTION>
-----------------------------------------------------------------------------------------------
Statement of Investments (Unaudited) (Continued)
Market Value
Shares See Note 1
- ------------------------------------------------------------------------------------------------------------------------------
<C> <S> <C> <C>
Metals: Diversified--4.3% Elkem AS(1) 150,000 $ 1,775,065
-----------------------------------------------------------------------------------------------
Freeport-McMoRan, Inc. 150,000 2,962,500
-----------------------------------------------------------------------------------------------
Svedala Industry Free(1) 100,000 1,631,625
-----------------------------------------------------------------------------------------------
Trelleborg AB, Series B Free Shares(1) 190,267 1,826,144
-----------
8,195,334
- ------------------------------------------------------------------------------------------------------------------------------
Metals: Miscellaneous--1.4% Korea Zinc Co.(1) 75,000 1,598,216
-----------------------------------------------------------------------------------------------
Union Miniere SA(1) 15,000 1,016,526
-----------
2,614,742
- ------------------------------------------------------------------------------------------------------------------------------
Nickel--2.1% Inco Ltd. 100,000 2,687,500
-----------------------------------------------------------------------------------------------
QNI Ltd. 1,600,000 1,368,323
-----------
4,055,823
- ------------------------------------------------------------------------------------------------------------------------------
Platinum Mining--2.3% Rustenburg Platinum Holdings Ltd., ADR 230,000 4,370,000
- ------------------------------------------------------------------------------------------------------------------------------
Special Mineral Engelhard Corp. 225,000 5,484,375
Producers--4.0% -----------------------------------------------------------------------------------------------
Johnson Matthey PLC 250,000 1,989,928
-----------
7,474,303
- ------------------------------------------------------------------------------------------------------------------------------
Industrial--0.8%
- ------------------------------------------------------------------------------------------------------------------------------
Machinery: Diversified--0.8% Tampella AB(1) 200,000 863,375
-----------------------------------------------------------------------------------------------
Tampella AB(1)(2) 160,000 690,702
-----------
1,554,077
-----------
Total Common Stocks (Cost $122,822,051) 171,792,148
- ------------------------------------------------------------------------------------------------------------------------------
Total Investments, at Value (Cost $138,832,153) 100.9% 190,634,654
- ------------------------------------------------------------------------------------------------------------------------------
Liabilities in Excess of Other Assets (.9) (1,742,590)
------- ------------
Net Assets 100.0% $188,892,064
======= ============
</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>
<TABLE>
<CAPTION>
-----------------------------------------------------------------------------------------------
Statement of Assets and Liabilities December 31, 1993 (Unaudited)
- ------------------------------------------------------------------------------------------------------------------------------
<C> <S> <C>
Assets Investments, at value (cost $138,832,153)--see accompanying statement $190,634,654
-----------------------------------------------------------------------------------------------
Cash 480,644
-----------------------------------------------------------------------------------------------
Receivables:
Shares of beneficial interest sold 1,224,720
Dividends and interest 206,035
-----------------------------------------------------------------------------------------------
Other 28,615
------------
Total assets 192,574,668
- ------------------------------------------------------------------------------------------------------------------------------
Liabilities Payables and other liabilities:
Shares of beneficial interest redeemed 2,445,521
Investments purchased 639,540
Dividends 172,583
Distribution assistance--Note 4 47,286
Other 377,674
------------
Total liabilities 3,682,604
- ------------------------------------------------------------------------------------------------------------------------------
Net Assets $188,892,064
============
- ------------------------------------------------------------------------------------------------------------------------------
Composition of Paid-in capital $160,197,910
Net Assets -----------------------------------------------------------------------------------------------
Undistributed net investment income 82,423
-----------------------------------------------------------------------------------------------
Accumulated net realized loss from investment and foreign currency transactions (23,190,661)
-----------------------------------------------------------------------------------------------
Net unrealized appreciation on investments and translation of assets and
liabilities denominated in foreign currencies--Note 3 51,802,392
------------
Net assets--applicable to 13,247,454 shares of beneficial interest outstanding $188,892,064
============
- ------------------------------------------------------------------------------------------------------------------------------
Net Asset Value and Redemption Price Per Share $14.26
- ------------------------------------------------------------------------------------------------------------------------------
Maximum Offering Price Per Share (net asset value plus sales charge of 5.75% of offering price) $15.13
</TABLE>
See accompanying Notes to Financial Statements.
7 Oppenheimer Gold & Special Minerals Fund
<PAGE>
<TABLE>
<CAPTION>
-----------------------------------------------------------------------------------------------
Statement of Operations For the Six Months Ended December 31, 1993 (Unaudited)
- ------------------------------------------------------------------------------------------------------------------------------
<C> <S> <C>
Investment Income Dividends (net of withholding taxes of $54,067) $ 1,075,022
-----------------------------------------------------------------------------------------------
Interest 262,393
------------
Total income 1,337,415
- ------------------------------------------------------------------------------------------------------------------------------
Expenses Management fees--Note 4 677,855
-----------------------------------------------------------------------------------------------
Transfer and shareholder servicing agent fees--Note 4 430,376
-----------------------------------------------------------------------------------------------
Distribution assistance--Note 4 100,681
-----------------------------------------------------------------------------------------------
Shareholder reports 24,884
-----------------------------------------------------------------------------------------------
Trustees' fees and expenses 13,248
-----------------------------------------------------------------------------------------------
Legal and auditing fees 8,125
-----------------------------------------------------------------------------------------------
Other 8,844
------------
Total expenses 1,264,013
- ------------------------------------------------------------------------------------------------------------------------------
Net Investment Income 73,402
- ------------------------------------------------------------------------------------------------------------------------------
Realized and Unrealized Net realized gain (loss) from:
Gain (Loss) on Investments Investments 6,555,838
And Foreign Currency Foreign currency transactions (14,430)
Transactions -----------------------------------------------------------------------------------------------
Net change in unrealized appreciation or depreciation on:
Investments 24,717,103
Translation of assets and liabilities denominated in foreign currencies (4,958,358)
------------
Net realized and unrealized gain on investments and foreign currency transactions 26,300,153
- ------------------------------------------------------------------------------------------------------------------------------
Net Increase in Net Assets Resulting From Operations $26,373,555
============
</TABLE>
See accompanying Notes to Financial Statements.
8 Oppenheimer Gold & Special Minerals Fund
<PAGE>
<TABLE>
<CAPTION>
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Statements of Changes in Net Assets
Six Months Ended
December 31, 1993 Year Ended
(Unaudited) June 30, 1993
- ------------------------------------------------------------------------------------------------------------------------------------
<C> <S> <C> <C>
Operations Net investment income $ 73,402 $ 762,165
-----------------------------------------------------------------------------------------------------
Net realized gain on investments and foreign currency transactions 6,541,408 954,449
-----------------------------------------------------------------------------------------------------
Net change in unrealized appreciation or depreciation
on investments and translation of assets and liabilities
denominated in foreign currencies 19,758,745 20,425,829
------------ ------------
Net increase in net assets resulting from operations 26,373,555 22,142,443
- ------------------------------------------------------------------------------------------------------------------------------------
Dividends to Shareholders Dividends from net investment income
($.059 and $.136 per share, respectively) (776,991) (1,698,280)
- ------------------------------------------------------------------------------------------------------------------------------------
Beneficial Interest Net increase in net assets resulting from
Transactions beneficial interest transactions---Note 2 4,313,841 5,192,486
- ------------------------------------------------------------------------------------------------------------------------------------
Net Assets Total increase 29,910,405 25,636,649
-----------------------------------------------------------------------------------------------------
Beginning of period 158,981,659 133,345,010
------------ ------------
End of period (including undistributed net investment
income of $82,423 and $786,012, respectively) $188,892,064 $158,981,659
============ ============
</TABLE>
See accompanying Notes to Financial Statements.
9 Oppenheimer Gold & Special Minerals Fund
<PAGE>
<TABLE>
<CAPTION>
----------------------------------------------------------------------------------------------------
Financial Highlights
Six Months Ended Year Ended
December 31, 1993 June 30,
(Unaudited) 1993 1992 1991 1990 1989
- -----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Per Share Operating Data:
Net asset value, beginning
of period $12.32 $10.68 $10.36 $11.65 $12.58 $12.82
- -----------------------------------------------------------------------------------------------------------------------------------
Income from investment operations:
Net investment income .01 .06 .16 .17 .14 .23
Net realized and unrealized
gain (loss) on investments and
foreign currency transactions 1.99 1.72 .35 (1.42) .54 .50
-------- -------- -------- -------- -------- --------
Total income from
investment operations 2.00 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 period $14.26 $12.32 $10.68 $10.36 $11.65 $12.58
======== ======== ======== ======== ======== ========
- -----------------------------------------------------------------------------------------------------------------------------------
Total Return, at Net Asset Value(1) 16.24% 17.15% 5.08% (10.71)% 3.10% 6.43%
- -----------------------------------------------------------------------------------------------------------------------------------
Ratios/Supplemental Data:
Net assets, end of period
(in thousands) $188,892 $158,982 $133,345 $150,907 $163,118 $120,198
- -----------------------------------------------------------------------------------------------------------------------------------
Average net assets
(in thousands) $164,778 $124,869 $137,906 $154,318 $154,079 $110,873
- -----------------------------------------------------------------------------------------------------------------------------------
Number of shares
outstanding at end
of period (in thousands) 13,247 12,908 12,486 14,564 13,999 9,552
- -----------------------------------------------------------------------------------------------------------------------------------
Ratios to average net assets:
Net investment income .09%(2) .61% 1.25% 1.67% 1.17% 1.97%
Expenses 1.52%(2) 1.38% 1.38% 1.43% 1.37% 1.22%
- -----------------------------------------------------------------------------------------------------------------------------------
Portfolio turnover rate(3) 9.2% 23.9% 39.4% 113.3% 82.3% 111.7%
<FN>
1. Assumes a hypothetical initial investment on the business day before the
first day of the fiscal period, 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 period. Sales charges
are not reflected in the total returns.
2. Annualized.
3. The lesser of purchases or sales of portfolio securities for a period,
divided by the monthly average of the market value of portfolio securities owned
during the period. 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 six
months ended December 31, 1993 were $3,007,808 and $1,042,465, respectively.
</TABLE>
See accompanying Notes to Financial Statements.
10 Oppenheimer Gold & Special Minerals Fund
<PAGE>
-------------------------------------------------------
Notes to Financial Statements (Unaudited)
- --------------------------------------------------------------------------------
1. Significant Oppenheimer Gold & Special Minerals Fund (the Fund)
Accounting Policies is registered under the 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.
11 Oppenheimer Gold & Special Minerals Fund
<PAGE>
-------------------------------------------------------
Notes to Financial Statements (Unaudited) (Continued)
-------------------------------------------------------
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 December 31, 1993,
the Fund had available for federal income tax purposes
an unused capital loss carryover of approximately
$29,272,000, $2,084,000 of which will expire in 1998,
$10,817,000 in 1999, $13,118,000 in 2000 and $3,253,000
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.
The accumulated liability for the Fund's projected
benefit obligations was $59,610 at December 31, 1993.
No payments have been made under the plan.
-------------------------------------------------------
Distributions to Shareholders. Dividends and
distributions to shareholders are recorded on the
ex-dividend date.
-------------------------------------------------------
Other. Investment transactions are accounted for on the
date the investments are 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
Beneficial Interest value shares of beneficial interest. Transactions in
shares of beneficial interest were as follows:
<TABLE>
<CAPTION>
Six Months Ended
December 31, 1993 (Unaudited) Year Ended June 30, 1993
------------------------------- --------------------------
Shares Amount Shares Amount
-----------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Sold 7,289,534 $91,575,088 8,221,891 $85,718,322
Dividends reinvested 48,779 596,482 170,363 1,572,218
Redeemed (6,999,186) (87,857,729) (7,969,879) (82,098,054)
---------- ----------- ---------- -----------
Net increase 339,127 $4,313,841 422,375 $ 5,192,486
========== =========== ========== ===========
</TABLE>
- --------------------------------------------------------------------------------
3. Unrealized Gains and At December 31, 1993, the market value of each
Losses on Investments portfolio security held exceeded the associated cost,
resulting in unrealized appreciation of $56,760,750.
12 Oppenheimer Gold & Special Minerals Fund
<PAGE>
- --------------------------------------------------------------------------------
4. Management Fees Management fees paid to the Manager were in accordance
And Other with the investment advisory agreement with the Fund
Transactions which provides for an annual fee of .80% on the first
With Affiliates $200 million of net assets, .75% on the next $200
million, .69% on the next $200 million, .66% on the
next $200 million and .60% on net assets in excess of
$800 million. Under the terms of the agreement, the
annual fees on the first and second $200 million of net
assets will decrease to .75% and .72%, respectively, on
July 1, 1994. 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 six months ended December 31, 1993,
commissions (sales charges paid by investors) on sales
of Fund shares totaled $570,551, of which $135,738 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 plan of distribution, the
Fund reimburses OFDI for costs incurred in distributing
shares of the Fund, including amounts paid to brokers,
dealers, banks and other institutions. Reimbursements
are not to exceed .25% annually of the net asset value
of Fund shares sold subsequent to March 31, 1991.
During the six months ended December 31, 1993, OFDI
paid $1,498 to an affiliated broker/dealer as
reimbursement for distribution-related 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. The Fund intends to invest no more than 10%
of its net assets (determined at the time of purchase)
in restricted and illiquid securities, excluding
securities eligible for resale pursuant to Rule 144A of
the Act that are determined to be liquid by the Board
of Trustees or by the Manager under Board-approved
guidelines. Restricted and illiquid securities amount
to $3,633,789, or 1.92% of the Fund's net assets, at
December 31, 1993.
<TABLE>
<CAPTION>
Valuation
Per Unit as of
Security Acquisition Date Cost Per Unit December 31, 1993
---------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
Canarc Resources Corp. Wts., Exp. 5/94 5/21/93 $2.14 $3.93
---------------------------------------------------------------------------------------------------------
Minera Rayrock, Inc. Units(1) 12/9/93 $1.88 $2.66
---------------------------------------------------------------------------------------------------------
Tampella AB(1) 11/1/93 $4.25 $4.32
---------------------------------------------------------------------------------------------------------
TVX Gold, Inc. 6/28/93-10/20/93 $5.68 $6.47
</TABLE>
1. Transferable under Rule 144A of the Act.
13 Oppenheimer Gold & Special Minerals Fund
<PAGE>
-------------------------------------------------------
Oppenheimer Gold & Special Minerals Fund
- --------------------------------------------------------------------------------
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
William L. Wilby, Vice President
George C. Bowen, Treasurer
Lynn M. Coluccy, 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
- --------------------------------------------------------------------------------
Legal Counsel Gordon Altman Butowsky Weitzen Shalov & Wein
The financial statements included herein have been taken from the records of the
Fund without examination by the independent auditors.
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.
14 Oppenheimer Gold & Special Minerals Fund
<PAGE>
-------------------------------------------------------
The Family of OppenheimerFunds
- --------------------------------------------------------------------------------
OppenheimerFunds offers over 30 funds designed to fit
virtually every investment goal. Whether you're
investing for retirement, your children's education, or
tax-free income, we have the funds to help you seek
your objective.
When you invest with OppenheimerFunds, you
can feel comfortable knowing that you are investing
with a respected financial institution with over 30
years of experience in helping people just like you
reach their financial goals. And you're investing with
a leader in global, growth stock, and flexible fixed
income investments--with over 1.7 million shareholder
accounts and more than $25 billion under Oppenheimer's
management and that of our affiliates.
As an OppenheimerFunds shareholder, you can
easily exchange shares of eligible funds of the same
class by mail or by telephone for a small
administrative fee.(1) For more information on
OppenheimerFunds, please contact your financial advisor
or call us at 1-800-525-7048 for a prospectus. You may
also write us at the address shown on the back cover.
As always, please read the prospectus carefully before
you invest.
<TABLE>
- -------------------------------------------------------------------------------------------------------
<S> <C> <C>
Specialty Stock Funds Global Bio-Tech Fund Gold & Special Minerals Fund
Global Environment Fund
- -------------------------------------------------------------------------------------------------------
Stock Funds Discovery Fund Global Fund
Time Fund Oppenheimer Fund
Target Fund Value Stock Fund
Special Fund
- -------------------------------------------------------------------------------------------------------
Stock and Bond Funds Main Street Income & Growth Fund Equity Income Fund
Total Return Fund Asset Allocation Fund
Global Growth & Income Fund
- -------------------------------------------------------------------------------------------------------
Bond Funds High Yield Fund Strategic Short-Term Income Fund
Champion High Yield Fund Investment Grade Bond Fund
Strategic Income & Growth Fund Mortgage Income Fund(3)
Strategic Income Fund U.S. Government Trust
Strategic Diversified Income Fund Government Securities Fund
Strategic Investment Grade Bond Fund
- -------------------------------------------------------------------------------------------------------
Tax-Exempt Funds New York Tax-Exempt Fund(2) Tax-Free Bond Fund
California Tax-Exempt Fund(2) Insured Tax-Exempt Bond Fund
Pennsylvania Tax-Exempt Fund(2) Intermediate Tax-Exempt Bond Fund
Florida Tax-Exempt Fund(2)
- -------------------------------------------------------------------------------------------------------
Money Market Funds Money Market Fund Tax-Exempt Cash Reserves
Cash Reserves
</TABLE>
1. The fee is waived for PhoneLink exchanges between
existing accounts. Exchange privileges are subject to
change or termination.
2. Available only to residents of those states.
3. Formerly GNMA Fund.
OppenheimerFunds are distributed by Oppenheimer Funds
Distributor, Inc., Two World Trade Center, New York, NY
10048-0203. (C) Copyright 1994 Oppenheimer Management
Corporation. All rights reserved.
15 Oppenheimer Gold & Special Minerals Fund
<PAGE>
-------------------------------------------------------
"How may I help you?"
- --------------------------------------------------------------------------------
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.
TelephoneTransactions
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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.
(Photograph of Barbara Hennigar)
Barbara Hennigar
President
Oppenheimer Shareholder Services
"Just as OppenheimerFunds offers over 30 different 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.
"We also make it 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 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 regular business hours.
1 9 9 3
AWARD of
EXCELLENCE
INTERNATIONAL
CUSTOMER SERVICE
ASSOCIATION
"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 recently awarded Oppenheimer
Shareholder Services a 1993 Award of Excellence for consistently
demonstrating superior customer service.
"Whatever your needs, we're ready to assist you."
RS410.0294.R
- --------------------------------------------------------------------------------
---------------------
(Logo) OppenheimerFunds(R) Bulk Rate
Oppenheimer Funds Distributor, Inc. U.S. Postage
P.O. Box 5270 PAID
Denver, CO 80217-5270 Permit No. 469
Denver, CO
---------------------
