Net Asset Value(s)

RNS Number : 1709Z

Baker Steel Resources Trust Ltd

10 January 2011

 



BAKER STEEL RESOURCES TRUST LIMITED

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

 10 January 2011

31 December 2010 NAV Statement

Net Asset Values

Baker Steel Resources Trust Limited ("the Company") announces its net asset value per share as at 31 December 2010:

Net asset value per Ordinary share:                   96.9 pence

During the month the NAV per share rose 1.7% with strong performance from Toronto Stock Exchange listed Forbes Coal adding approximately 1.0% to the NAV.

The Company has a total of 66,030,632 Ordinary Shares and 13,197,051 Subscription Shares in issue.

Portfolio update

During December the Company made a C$8 million investment in Ironstone Resources Limited ("Ironstone"), a private Canadian company which owns the Clear Hills Iron Ore/Vanadium Project ("Clear Hills") in Alberta, Canada. Clear Hills currently has a resource of 203 million tonnes of iron ore at a grade of 33% designated under Canadian National Instrument 43-101 (NI 43-101). Historic work (pre NI 43-101) in the 1950's estimated a resource of over 1 billion tonnes of iron ore at Clear Hills so there is a good opportunity for Ironstone to increase its NI 43-101 resource significantly through its planned drilling campaign over the next few months. In addition Ironstone is due to extract a 20,000 tonne bulk sample as feed for a pilot plant later in the year as part of its work towards a feasibility study on Clear Hills. The project has also demonstrated significant vanadium by-product and gold assays in recent core samples suggesting the potential for further credits from those commodities.

The Company is 78.3% invested with the top shareholdings as follows as a percentage of NAV:

Ferrous Resources Limited	18.4%
Ivanhoe Nickel and Platinum Limited	17.2%
Gobi Coal & Energy Limited	10.4%
Ironstone Resources Limited	8.1%
South American Ferro Metals Limited	5.7%
Copperbelt Minerals Limited	5.4%
Forbes & Manhattan Coal Corporation	4.6%
First Coal Corporation	4.3%
Other Investments	4.2%
Net Cash and equivalents	21.7%

Update on Investments

Copperbelt Minerals Limited ("Copperbelt")

The acquisition of Copperbelt by the Chinese African Development Fund was due to have been completed by 31 December 2010. However the requisite approvals from the Chinese and Congolese authorities were still to be received by that date and it was agreed to extend the deadline as sufficient progress had already been made.

Gobi Coal & Energy Limited ("Gobi Coal")

On 5 January 2011, shareholders approved the placing of up to 20 million new shares of Gobi Coal. Provisional agreement has been reached with two investors for the placing of 16.25 million new shares at US$4 per share to raise US$65million. The placing is expected to be completed by the end of February 2011. The proposed placing price is double the Company's current carrying value of US$2 per share and as the placing represents over 20% of Gobi Coal's existing issued share capital, if completed, it would be expected to lead to a doubling of the Company's carrying value of Gobi or approximately an 8% increase in the Company's NAV.

Ivanhoe Nickel and Platinum Limited ("Ivanplats")

During December, Ivanplats advised that it had undertaken a small placing of new shares at US$12 per share compared to the Company's carrying value of US$8.75 per share. As this placing amounted to around 1% of the issued share capital of Ivanplats, the carrying value has not been adjusted. Ivanplats is currently discussing a larger placing and if this were to take place, the Company's carrying value will be reviewed. A carrying value for Ivanplats of US$12 per share would add approximately 6% to the Company's 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              [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]

 

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