Net Asset Value(s)

RNS Number : 8833O

Baker Steel Resources Trust Ltd

06 July 2010

 



BAKER STEEL RESOURCES TRUST LIMITED

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

30 June 2010 NAV Statement

Net Asset Values

Baker Steel Resources Trust Limited ("the Company") announces its Net Asset Value per share as at 30 June 2010:

Net asset value per Ordinary share:                   95.5 pence

During the month the NAV fell by -5.3% partly as a result of a reduction in the carrying value of Ferrous Resources and partly due to a strengthening in the value of the pound against the US dollar and Canadian dollar in which the majority of the Portfolio's assets are denominated.

The Company has a total of 66,023,089 Ordinary Shares and 13,204,594 Subscription Shares in issue.

Portfolio update

No sales or purchases were made during the month. 

The Company is 63% invested with the top five shareholdings as follows as a percentage of NAV:

Ferrous Resources Limited	19.5%
Ivanhoe Nickel and Platinum Limited	18.1%
Gobi Coal & Energy Limited	11.0%
Copperbelt Minerals Limited	5.7%
First Coal Corporation	3.5%
Other Investments	4.8%
Net Cash	37.4%

 

Update on Investments

Ferrous Resources Limited ("Ferrous")

On 2 June 2010, Ferrous announced that it had decided to postpone its Initial Public Offering "in the light of unfavourable market conditions". The Board of the Company therefore considered it appropriate to review the carrying value of Ferrous in the Portfolio. Due to the size and spread of shareholders, "grey market" trading in Ferrous is reasonably liquid and the Investment Manager is aware of a transaction in a sizeable tranche of shares being executed at US$3.00/share subsequent to the news of the postponed IPO. In order to reflect the current fair value of Ferrous shares in the Portfolio, it has been decided to impair the carrying value from US$3.50/share to US$3.00/share. This is reflected in a -3% fall in Net Asset Value of the Company. The Investment Manager is engaging with Ferrous management to ascertain their revised plans for the company and when a revised liquidity event might be anticipated.

BacTech Mining Corporation ("BacTech")

In April 2010, the Company acquired C$500,000 worth of subscription receipts in BacTech Gold Corporation, a subsidiary of BacTech formed to exploit gold mining opportunities utilising BacTech's proprietary bioleaching technology. During June, this transaction was renegotiated and the Company has agreed to convert its subscription receipts directly into 10.25 million shares in BacTech with associated warrants on a one-for-one basis. BacTech is a Canadian company listed on the TSX Venture Exchange which aims to acquire mining projects with difficult to treat ore, whose value can be unlocked by the application of BacTech's proprietary bioleaching technology.

Gobi Coal & Energy Limited ("Gobi")

During the month the Investment Manager visited Gobi's operations in Mongolia.  Development plans are well advanced and Gobi appears to be on course for a listing on the Hong Kong Stock Exchange in the first quarter of 2011. The recent site visit, supported by discussions with management, has led to the Investment Manager increasing its internal "risk-adjusted value" of Gobi, although an external event is required before this might be reflected in the carrying value.

A quarterly report to 30 June 2010 with further information on the Company's investments is available on the Company's website www.bakersteelresourcestrust.com 

Ends

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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