30 December 2011 NAV Statement

RNS Number : 0923V

Baker Steel Resources Trust Ltd

06 January 2012

 



BAKER STEEL RESOURCES TRUST LIMITED

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

6 January 2012

30 December 2011 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 December 2011:

Net asset value per Ordinary share:       130.3 pence

Diluted net asset value per Ordinary share:  125.2 pence

During the month, the undiluted NAV per share rose by 12.9% largely due to increases in the carrying value of the Company's holdings in Gobi Coal & Energy Limited ("Gobi Coal") and China Polymetallic Mining Limited ("CPM").  This follows a successful fund raising by Gobi Coal and the listing on the Hong Kong Stock Exchange of CPM. 

The rise in December has contributed to an increase in the NAV per share of 26.0% during 2011.

The Company has a total of 66,033,061 Ordinary Shares and 13,194,622 Subscription Shares in issue.

Portfolio update

Gobi Coal & Energy Limited ("Gobi Coal")

On 9 December 2011, Gobi Coal informed shareholders that it had completed a placing of 14 million new shares (15% of the enlarged issued share capital) to two sovereign wealth funds raising a total of US$91 million.  This placing was undertaken at a price of US$6.50 per share compared to the Company's carrying value of US$4.00 per share at 30 November 2011.  The funds will enable Gobi Coal to construct Phase 1 of the Shinejinst Mine and bring it into production in anticipation of an IPO during 2012.

Accordingly, the Company's carrying value of Gobi Coal shares has been uplifted to the value of the fund raising, resulting in an increase in the NAV of the Company of approximately 7.7% from the 30 November 2011 value in Sterling terms.

China Polymetallic Mining Limited ("CPM")

On 14 December 2011, CPM listed on the Hong Kong Stock Exchange.  CPM started production at the first of its mines, the Shizishan silver/lead/zinc mine in Yunnan Province, China, during the third quarter of 2011. The Shizishan mine is due to reach full annual capacity of 5.1 million ounces of silver, 57,000 tonnes of lead and 35,000 tonnes of zinc in concentrate during the second half of 2012. CPM has a strong pipeline of exploration and development projects in Yunnan Province, the first of which is the Lushan tungsten-tin polymetallic mine which is planned to start trial production in the second half of 2012.

Based on the closing listed share price on 30 December 2011, the Company's carrying value of CPM increased by approximately 76% over the 30 November 2011 value and has in turn resulted in a 3.7% increase in the NAV of the Company in Sterling terms.

South American Ferro Metals Limited ("SAFM")

On 28 December 2012, SAFM announced the conversion of the class B performance shares. These shares were the last of the performance shares to be converted, following the conversion of the class A and class C performance shares earlier in 2011. This conversion came as a result of the definition by SAFM of a maiden JORC-compliant mineral resource at its Ponto Verde iron ore project in Brazil. The resource was estimated at 230.6 million tonnes ore grading 44.52% Fe compared to the required hurdle for conversion of the class B performance shares of 50 million tonnes iron ore.

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

Ivanplats Limited	25.6%
Gobi Coal & Energy Limited	20.6%
Ferrous Resources Limited	12.8%
China Polymetallic Mining Limited	8.9%
Ironstone Resources Limited	6.1%
Black Pearl	5.2%
Bilboes Holdings	4.5%
Polar Silver	4.1%
Metals Exploration plc	4.0%
South American Ferro Metals Limited	3.1%
Other Investments	5.9%
Net Cash, Equivalents and Accruals	-0.8%

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]

 

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