Net Asset Value(s)

RNS Number : 1304G

Baker Steel Resources Trust Ltd

06 May 2011

 



BAKER STEEL RESOURCES TRUST LIMITED

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

6 May 2011

28 April 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 April 2011:

Net asset value per Ordinary share:                   102.1 pence

Diluted net asset value per Ordinary share:        101.7 pence

During the month, the undiluted NAV per share fell by 3.9% largely attributable to the increase in the exchange rate of Sterling against both the US Dollar (3.8%) and Canadian Dollar (1.5%), in which the majority of the Company's holdings are denominated, and a decrease in the share price of some of the listed companies in the portfolio.

The Company has a total of 66,033,061 Ordinary Shares and 13,194,622 Subscription Shares in issue following the exercise of 2,429 Subscription Shares at the end of March.

Portfolio update

'Silver China'

During the month, the Company made a US$7million investment in 'Silver China'.  'Silver China' is a private company, which has an interest in a significant silver-lead-zinc deposit in Southwest China, where a mine is under construction with first production expected later this year.  The Company is precluded from disclosing the identity of 'Silver China' or providing further details, until a prospectus is issued, as 'Silver China' is currently considering a listing.

Ferrous Resources Limited ("Ferrous")

During April, the Company completed the sale of 410,000 shares of Ferrous. As announced on 26 May 2010, this sale was required as on the acquisition of the initial portfolio of assets immediately following the Company's listing, the position in Ferrous represented 20.95% of gross assets, above the 20% limit set out in the Company's prospectus. The sale was agreed last year but completion was delayed due to the purchaser requiring certain approvals from the Chinese authorities.

First Coal Corporation ("First Coal")

The Company exercised its warrants in First Coal which were due to expire shortly.  Following this exercise the Company holds an 8.6% interest in First Coal.

The Company is 92.5% invested with top 10 shareholdings as follows as a percentage of NAV:

Ivanhoe Nickel and Platinum Limited	25.3%
Ferrous Resources Limited	15.3%
Gobi Coal & Energy Limited	9.3%
Ironstone Resources Limited	7.9%
Silver China	6.2%
South American Ferro Metals Limited	5.6%
Copperbelt Minerals Limited	4.8%
First Coal Corporation	4.8%
Silver Russian	4.5%
Forbes & Manhattan Coal Corporation	3.3%
Other Investments	5.5%
Net Cash and Equivalents	7.5%

The Company has therefore achieved its 90% target level of investment as set out in the Company's prospectus.  This is in line with the Company's objective of achieving this within a year of listing.  A further investment in a private gold mining company is planned to be completed shortly, which will further reduce the cash holding.

Update on Investments

Ironstone Resources Ltd ("Ironstone")

Ironstone has recently completed a drilling programme at its Clear Hills iron ore / vanadium project in Alberta, Canada, aimed at extending the current NI 43-101 resource of 203 million tonnes of iron ore.  A total of 144 holes for 12,000 metres have been drilled on 400 metre by 400 metre spacing and the core sent to the laboratory for analysis.  An updated NI 43-101 resource report has been commissioned with SRK Consultants for completion in the third quarter of 2011.  In addition, excavation of a bulk sample pit has successfully been completed with 10,000 tonnes of ore extracted for pilot process trials under a management agreement with a global process engineering firm. 

South American Ferro Metals Limited ("SAFM")

SAFM has announced the appointment of Mr Philip Hopkins as Chief Executive Officer.  Mr Hopkins has over 30 years' experience in senior operational, project and corporate roles.  He was previously General Manager of the Leonora Operations of St Barbara Limited in Western Australia and prior to that worked for eight years at BHP Billiton, most recently as Mine Manager of the 50Mtpa Yandi Iron Ore Operation.  This is a key appointment for SAFM as it moves forward with a planned expansion of its Ponto Verde iron ore mine in Brazil.

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

Lorna Spears                                                                                                                    [phone]

Damian Beeley                                                                                                                  [phone]

Charles Vivian                                                                                                                   [phone]

 

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