30 April 2012 NAV Statement

RNS Number : 6218C

Baker Steel Resources Trust Ltd

03 May 2012

 



BAKER STEEL RESOURCES TRUST LIMITED

(Incorporated in Guernsey with registered number 51576 under the provisions of The Companies (Guernsey) Law, 2008 as amended)

02 May 2012

30 April 2012 NAV Statement

Net Asset Values

Baker Steel Resources Trust Limited (the "Company") announces its unaudited net asset value and diluted net asset value per share as at 30 April 2012:

Net asset value per Ordinary Share: 117.6 pence

Diluted net asset value per Ordinary Share: 114.7 pence

During the month, the undiluted NAV per share fell by 7.6% primarily due to a reduction in the carrying value of Ferrous Resources Limited, and to a lesser extent due to a fall in the dollar against sterling. 

The Company has a total of 66,140,610 Ordinary Shares and 13,087,073 Subscription Shares in issue following the exercise of 107,549 Subscription Shares at the end of March 2012.

Portfolio update

Ferrous Resources Limited ("Ferrous")

On 14 February 2012, Bloomberg reported that Harbinger Capital Partners LLC, the holder of approximately 26% of the shares of Ferrous, was seeking to sell shares in Ferrous to meet loan repayments. The Company has been informed that part of this holding was subsequently sold to Carl Icahn, during April 2012 at US$1.50 per share. Although this trade might be viewed as a "distressed sale", the Company has nevertheless decided to write down its carrying value from US$3.00 per share to US$1.50 per share. This has led to a 6.5% reduction in undiluted NAV per share in sterling terms.

In February 2012, Ferrous announced the appointment of a new Chief Executive, Jayme Niccolato Correa, who was previously with major iron ore producers Vale and CSN. It is understood that Mr Correa is undertaking a review of the corporate strategy of Ferrous and is due to report to its Board in June 2012. It is hoped that the commencement of the removal of the perceived overhang of shares from Harbinger and an invigorated new strategy from Mr Correa will allow Ferrous to turn the corner and make progress towards financing and developing what remain world class iron ore assets.

The Company is fully invested with top 10 investments as follows as a percentage of NAV:

Ivanplats Limited	27.1%
Gobi Coal & Energy Limited	21.9%
China Polymetallic Mining Limited	9.8%
Ironstone Resources Limited	7.7%
Ferrous Resources Limited	6.8%
Black Pearl	5.8%
Bilboes Holdings	4.8%
Polar Silver	4.6%
Metals Exploration plc	3.7%
South American Ferro Metals Limited	3.5%
Other Investments	6.2%
Net Cash, Equivalents and Accruals	-1.9%

Further details of the Company and its investments are available on the Company's website www.bakersteelresourcestrust.com 

Enquiries:

Baker Steel Resources Trust Limited                [phone]

Francis Johnstone
Trevor Steel

RBC Capital Markets                                       [phone]

Martin Eales

Winterflood Investment Trusts                          [phone]

James Moseley

Pelham Bell Pottinger

Lorna Spears                                                    [phone]

Joanna Boon                                                     [phone]

 

END

 

 

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