Net Asset Value(s)

RNS Number : 4666X

Baker Steel Resources Trust Ltd

06 December 2010

 



BAKER STEEL RESOURCES TRUST LIMITED

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

6 December 2010

30 November 2010 NAV Statement

Net Asset Values

Baker Steel Resources Trust Limited ("the Company") announces its net asset value per share as at 30 November 2010:

Net asset value per Ordinary share:                   95.3 pence

During the month the NAV per share rose 3.5% partly due to an increase in the value of South American Ferro Metals Limited following its listing on the Australian Stock Exchange and partly due to a weakening in the Sterling exchange rate, particularly 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.

Portfolio update

During November, South American Ferro Metals ("SAFM") listed on the Australian Stock Exchange ("ASX").  This contributed a 1.0% increase in the NAV. As explained in the October NAV statement, a significant portion of the Company's holding in SAFM is in the form of unlisted Performance Shares which are held at a discount to the Ordinary Shares pending conversion to Ordinary Shares upon SAFM's meeting various project milestones at its Ponto Verde iron ore project in Brazil.

At the end of October the mining of ore commenced at Ponto Verde and is being trucked to a nearby third party processing plant for beneficiation prior to sale, whilst SAFM commissions its own plant at Ponto Verde. This will not only provide early cashflow, but is also a key step towards meeting two of the project milestones for the conversion of the Performance Shares.

The Company is 69.1 % invested with the top shareholdings as follows as a percentage of NAV:

Ferrous Resources Limited	18.8%
Ivanhoe Nickel and Platinum Limited	17.5%
Gobi Coal & Energy Limited	10.6%
Copperbelt Minerals Limited	5.5%
South American Ferro Metals Limited	5.0%
First Coal Corporation	4.3%
Forbes & Manhattan Coal Corporation	3.6%
Other Investments	3.8%
Net Cash and equivalents	30.9%

Update on Investments

Ferrous Resources Limited ("Ferrous")

The board of Ferrous met in the middle of November to assess progress on the strategic review process being undertaken by Deutsche Bank. It reported that it is pleased with the progress made to date and has received confidential indications of interest from multiple credible parties.

First Coal Corporation ("First Coal")

First Coal has been making successful modifications to the cutting head on its narrow entry miner unit on its ADDCAR Highwall Mining System prior to a further test scheduled for April 2011. The recent C$3.3 billion bid for First Coal's immediate neighbour, Western Coal, demonstrates an increased interest in metallurgical coal projects.

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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