Net Asset Value(s)

RNS Number : 6390V

Baker Steel Resources Trust Ltd

04 November 2010

 



BAKER STEEL RESOURCES TRUST LIMITED

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

4 November 2010

29 October 2010 NAV Statement

Net Asset Values

Baker Steel Resources Trust Limited ("the Company") announces its net asset value per share as at 29 October 2010:

Net asset value per Ordinary share:                   92.1 pence

During the month the NAV per share fell 1.71% largely reflecting the continued strength of Sterling, in particular against the US Dollar in which the majority of the portfolio's assets are denominated.

The Company has a total of 66,030,632 Ordinary Shares and 13,197,051 Subscription Shares in issue following the exercise of 7,543 Subscription Shares at the end of September.

Portfolio update

During October, the Company made a further investment in South American Ferro Metals ("SAFM") as part of the A$15 million placing being undertaken concurrent to its reverse takeover by Australian Stock Exchange ("ASX") listed Riviera Resources Limited.  The placing was oversubscribed and the new shares together with the shares issued as a result of the acquisition of SAFM are due to list on the ASX on 8 November 2010 under the symbol SFZ.

The new shares issued pursuant to the SAFM acquisition comprise ordinary shares and three categories of unlisted performance share which will convert to ordinary shares on SAFM meeting various project milestones on its Ponto Verde iron ore project in Brazil. It is expected that the A$15 million raised will provide sufficient funding to enable SAFM to satisfy these project milestones.

As the performance shares are unlisted and their conversion into ordinary shares is conditional, each of the three classes of performance share will be carried at discounted values to the ordinary shares. The revaluation of the Company's interest in SAFM will result in an increase of approximately 1% in the Company's NAV based on the placing price. Thereafter a full unlocking of value will only occur on conversion of the performance shares, which is expected over a 6-18 month period.

The Company is 67.6% invested with the top shareholdings as follows as a percentage of NAV:

Ferrous Resources Limited	18.9%
Ivanhoe Nickel and Platinum Limited	17.6%
Gobi Coal & Energy Limited	10.6%
Copperbelt Minerals Limited	5.5%
First Coal Corporation	4.3%
South American Ferro Metals Limited	4.2%
Forbes & Manhattan Coal Corporation	3.5%
Other Investments	3.0%
Net Cash and equivalents	32.4%

Update on Investments

Gobi Coal & Energy Limited ("Gobi")

During the month Gobi undertook a private placing of shares at US$5 per share compared to the Company's carrying value of US$2 per share. However, as this placing amounted to less than 2% of Gobi's issued share capital, the Company's carrying value remains unchanged in accordance with its valuation policy.

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

Winterflood Investment Trusts               [phone]/0250

Robert Peel

James Moseley

RBC Capital Markets                           [phone]

Martin Eales

Pelham Bell Pottinger

Damian Beeley                                     [phone]

Charles Vivian                                      [phone]

 

END

 

 

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