Net Asset Value(s)
BAKER STEEL RESOURCES TRUST LIMITED
(Incorporated in Guernsey with registered number 51576 under the provisions of The Companies (Guernsey) Law, 2008 as amended)
3 March 2011
28 February 2011 NAV Statement
Net Asset Values
Baker Steel Resources Trust Limited ("the Company") announces its net asset value and diluted net asset value per share as at 28 February 2011:
Net asset value per Ordinary share: 101.4 pence
Diluted net asset value per Ordinary share: 101.2 pence
During the month the NAV per share rose 0.4% with strong performance from Australian Stock Exchange listed South American Ferro Metals Limited being partially offset by the continued strength of Sterling against the US Dollar (which appreciated 1.5%), in which the largest of the portfolio's investments are denominated.
The Company has a total of 66,030,632 Ordinary Shares and 13,197,051 Subscription Shares in issue.
Portfolio update
Silver Russian
During February, the Company sold US$900,000 of its recently acquired interest in Silver Russian to a Russian investor who it is anticipated will be able to assist in optimising value realisation from the investment. The sale was transacted at the same US dollar price at which the Company invested, in January 2011, resulting in a current net investment of US$5.1million.
Prospective Investments
A number of prospective investments are in the final stages of negotiation and it is expected that the Company will be close to being fully invested by the first anniversary of the listing of the Company in April.
The Company is 85.8% invested with the top shareholdings as follows as a percentage of NAV:
|
Ivanhoe Nickel and Platinum Limited |
21.6% |
|
Ferrous Resources Limited |
16.9% |
|
Gobi Coal & Energy Limited |
9.5% |
|
Ironstone Resources Limited |
7.8% |
|
South American Ferro Metals Limited |
6.0% |
|
Copperbelt Minerals Limited |
4.9% |
|
Silver Russian |
4.7% |
|
Forbes & Manhattan Coal Corporation |
4.7% |
|
First Coal Corporation |
4.0% |
|
Other Investments |
5.7% |
|
Net Cash and equivalents |
14.2% |
Update on Investments
Ivanhoe Nickel & Platinum ("Ivanplats")
During February, the Investment Manager made a site visit to Ivanplats' Turfspruit, nickel, platinum, palladium, copper and gold project on the northern limb of the Bushveld Igneous Complex in South Africa. Drilling during 2010 has intersected high-grade mineralisation over substantial widths and a flattening of the Platreef mineralisation at depth. A NI 43-101 compliant resource and technical report has been produced by independent consultants, AMEC. Previously, the Investment Manager's emphasis with respect to valuation has been on Ivanplats' world class copper discovery, Kamoa, in the Democratic Republic of Congo but it is clear that Turfspruit also has the potential to be a major project with substantial value. Ivanplats is planning to expand and upgrade the current resource at Turfspruit substantially, with 14 drill rigs on site during February.
The Wall Street Journal reported in February that Ivanplats is considering an IPO during 2011 with a possible valuation of around US$5 billion. The Company increased its carrying value of Ivanplats at the end of January 2011, in view of recent private placements and significant secondary trading in the "grey market. The Company's current carrying value would imply an enterprise value for the whole of Ivanplats at just over US$1 billion.
South American Ferro Metals Ltd ("SAFM")
On 14 February 2011, SAFM announced that the commissioning of the beneficiation plant at its Ponto Verde Iron Ore Mine in Brazil had reached an advanced stage following the completion of its refurbishment. Production is increasing steadily towards its design rate of 60,000 tonnes per month.
On 28 February 2011, SAFM announced that the production milestone for the A Class performance shares had been achieved and accordingly these shares had been converted into ordinary shares. This conversion, together with a 17% rise in the ordinary share price, contributed to a 27.5% rise in the value of the Company's position in SAFM and a 1.3% increase in NAV.
Further details of the Company and its investments are available on the Company's website www.bakersteelresourcestrust.com
Enquiries:
Baker Steel Resources Trust Limited +44 20 7389 8237
Francis Johnstone
Trevor Steel
Winterflood Investment Trusts +44 20 3100 0291/0250
Robert Peel
James Moseley
RBC Capital Markets +44 20 7653 4000
Martin Eales
Pelham Bell Pottinger
Damian Beeley +44 20 7861 3139
Charles Vivian +44 20 7861 3126
This information is provided by RNS