Interim Management Statement

RNS Number : 2056O

Baker Steel Resources Trust Ltd

09 October 2012

 



BAKER STEEL RESOURCES TRUST LTD

www.bakersteelresourcestrust.com

September 2012 Quarterly Factsheet

At 28 September 2012	Price / Index Level	% Change in Quarter	% Change in Year	% Change from Inception
Net Asset Value (pence/share)	102.6	-10.7%	-21.9%	+2.6%*
Diluted Net Asset Value (pence/share)	102.2	-9.2%	-19.0%	n/a
Ordinary Share Price (pence/share)	87.5	-6.4%	+13.3%	-12.5%**
Subscription Share Price (pence/share)	12.5	-3.8%	-30.6%	n/a
MSCI ACWI Index	331.58	+6.2%	+10.7%	+7.6%%†
HSBC Global Mining Index (Sterling)	689.58	+3.9%	-7.3%	-18.9%†
CRB Index	309.3	+8.8%	+1.3%	+13.2%†
Chinese Domestic Iron Ore - Hebei/Tangshan (US$/t)	153.00	-13.1%	-18.2%	-20.3%†
Copper (US$/t)	8211.50	+6.8%	+8.2%	+10.2%†
Gold (US$/oz)	1772.10	+10.9%	+13.3%	+51.7%†

Source: Bloomberg                                                       † closing 27/4/10, **Issue price 28/4/10, * NAV 30/4/10 

This document constitutes an interim management statement for the period from 1 July 2012 to 8 October 2012 ("the Period"). Financial information has been drawn up as at 28/09/2012. There have been no material changes since that date.

Review At the end of September 2012, Baker Steel Resources Trust Limited ("BSRT" or "the Company") was fully invested.  During the quarter there have been no significant changes to the Company's portfolio as it was fully invested at the end of June 2012 and there were no realisations during the period.  Following a weak first half of 2012, markets for mining equities stabilised during the third quarter of 2012, with the HSBC Global Mining Index rising 3.9%. The performance of commodities themselves was mixed with the prices of the steel minerals, iron ore and coking coal weakening over fears of a slowdown in Chinese growth. Conversely the prices for precious metals and copper have remained strong albeit volatile.  During the quarter the net asset value of the Company fell 10.7%. This fall was largely due to decisions to decrease the carrying values of Gobi Coal & Energy Limited ("Gobi") and Ferrous Resources Limited ("Ferrous") as well as falls in the share prices of certain of the listed stocks in the portfolio, particularly China Polymetallic Mining Limited. The decision to cut the carrying value of Gobi, which reduced overall NAV by 5.3%, was made following a fall in coking coal prices and a consequent postponement of its proposed IPO.  In August 2012, Copperbelt Minerals signed a conditional Settlement Agreement with its joint venture partner Gécamines whereby Copperbelt will exit its joint venture in the Democratic Republic of Congo for deferred compensation. Since then good progress appears to have been made on satisfying the numerous conditions precedent for completion of the transaction, which is expected to close before the year end. Outlook At the beginning of October 2012, Ivanplats Limited launched its roadshow to raise approximately C$300 million from an IPO on the Toronto Stock Exchange. Final pricing is expected during the week commencing 15 October 2012 with the IPO anticipated to close the following week. Based on the range indicated by Ivanplats' brokers, the Net Asset Value of the Company would rise between approximately 9% and 17%.  As the Company will be subject to a lock-up on its shareholding, the Board may apply a discount in assessing the Company's carrying value of Ivanplats following the IPO. The Ivanplats IPO will not only be an important milestone for the Company, as its largest investment (31.3% NAV), but could also be a significant indicator for the state of the IPO market in general and therefore the prospects for other IPO's within the Company's portfolio companies.	Investment Objective To seek capital growth over the long term through a focused global portfolio consisting principally of the equities, or related instruments, of natural resources companies. Investment Strategy Investing predominantly in attractively valued private companies with strong development projects and focused management and also in listed securities to exploit value inherent in market inefficiencies. Asset Allocation Unlisted Equities  £ 65.0 M         95.8 % Listed Equities       £  5.4 M            7.9 % Net Cash &              £ -2.5 M          -3.7 % Equivalents                                  Net Assets              £67.9 M Gearing:                  -3.7% Shares in Issue Trading:       The London Stock Exchange Ordinary:                                  66,142,533 Code:                                                  BSRT ISIN                                    GG00B6686L20 Subscription:                           13,085,150 Code:                                                BSRW ISIN                                  GG00B64WLC23 Financial Calendar Year End:                           31 December Interims:                                        August Finals:                                               April The final date to subscribe for Subscription Shares is 2 April 2013
Top 10  Investments (at 28 September 2012) Ivanplats Limited                                                                                                 31.3% NAV A private company with major copper and zinc projects in the Democratic Republic of Congo and a platinum/nickel project in South Africa. Gobi Coal & Energy Limited                                                                               19.4% NAV A private company with three coking coal projects in Mongolia. Ironstone Resources Limited                                                                              8.9% NAV A private company with an iron ore/vanadium project in Canada. China Polymetallic Mining Limited                                                                     8.2% NAV A company listed on the Hong Kong Stock Exchange with a producing silver/lead/zinc mine and other development opportunities in China. Black Pearl Limited Partnership                                                                          7.0% NAV Black Pearl is the private vehicle through which the investment in the Black Pearl beach placer iron sands project in West Java, Indonesia is held. Ferrous Resources Limited                                                                                  6.5% NAV A private company with five iron ore projects in Brazil. Bilboes Gold Limited                                                                                             5.9% NAV A private company with four previously producing gold mines in Zimbabwe. Polar Silver Resources Limited                                                                            5.4% NAV A private company which holds a 50% interest in a silver project in Russia. Metals Exploration plc                                                                                          4.1% NAV A company listed on the AIM market of the London Stock Exchange with a gold project in the Philippines. South American Ferro Metals Limited                                                              2.5% NAV A company listed on the Australian Stock Exchange with a producing iron ore mine in Brazil. The remainder of the Portfolio (excluding cash) comprises seven holdings totalling 4.5% NAV. Further information is available on BSRT's website: www.bakersteelresourcestrust.com		Investment Manager Baker Steel Capital Managers LLP Investment Advisers AWR Lloyd Capital Ltd Rock Capital Partners Ltd Management Fees Monthly:                                  1/12 of 1.75% of                                                Market Capitalisation Performance: 15% of NAV growth (if over 8% p.a. compound hurdle rate, with high watermark) Board Howard Myles (Chairman) Ed Flood Charles Hansard Clive Newall Chris Sherwell Joint Brokers RBC Capital Markets [phone] Winterflood Investment Trusts [phone] Contact: Baker Steel Capital Managers LLP 86 Jermyn Street, London SW1Y 6JD [phone] [e-mail]  Baker Steel Resources Trust Limited is incorporated in Guernsey Registration Number: 51576 Arnold House, St Julian's Avenue,          St Peter Port, Guernsey
Important Information This document is issued by Baker Steel Capital Managers LLP (a Limited Liability Partnership registered in England No OC301191 and authorised and regulated by the Financial Services Authority). The information contained in this document  is not intended to and does not constitute an offer, solicitation, inducement, invitation or commitment to purchase, subscribe to, provide or sell any securities, service or product or to provide any recommendations which should be relied upon for financial, securities, investment or other advice or to take any decision based on such information. Individual advice should be sought from legal, financial, personal and other advisors before making any investment or financial decision or purchasing any financial, securities or investment-related service or product. As a registered collective investment scheme, shares in Baker Steel Resources Trust Ltd are not permitted to be directly offered to the public in Guernsey but may be offered to regulated entities in Guernsey or offered to the public by entities appropriately licensed under the Protection of Investors (Bailiwick of Guernsey) Law 1987 as amended. The Net Asset Value ("NAV") figures stated are based on unaudited estimated valuations of the underlying investments and not necessarily based on observable inputs. Such estimates are not subject to any independent verification or other due diligence and may not comply with generally accepted accounting practices or other generally accepted valuation principles. In addition, some estimated valuations are based on the latest available information which may relate to some time before the date set out above. Accordingly, no reliance should be placed on such estimated valuations and they should only be taken as an indicative guide. Other risk factors which may be relevant to the NAV figures are set out in the Company's Prospectus dated 31 March 2010.

 

END

 

 

IMSZMMGGKRZGZZM