Net Asset Value(s)

RNS Number : 1652S

Baker Steel Resources Trust Ltd

06 September 2010

 



BAKER STEEL RESOURCES TRUST LIMITED

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

31 August 2010 NAV Statement

Net Asset Values

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

Net asset value per Ordinary share:                   94.3 pence

During the month the NAV rose 1.5% partly as a result of a rise in listed BacTech Mining Corporation and partly due to a weakening in the value of Sterling against the US Dollar in which the majority of the Portfolio is denominated.

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

Portfolio update

During the month the C$500,000 of subscription receipts the Company held in BacTech Mining Corporation converted into ordinary shares at 4.88c per share and the Company invested a further C$500,000 through a placing at 7.5c per share giving a total holding of 16.9 million shares being 12.7% of the issued share capital of BacTech. At the month end the shares were trading at 9.5c per share leading to an uplift in NAV of approximately 0.5%.

The Company is 66% invested with the top five shareholdings as follows as a percentage of NAV:

Ferrous Resources Limited	19.2%
Ivanhoe Nickel and Platinum Limited	17.9%
Gobi Coal & Energy Limited	10.8%
Copperbelt Minerals Limited	5.6%
First Coal Corporation	3.5%
Other Investments	9.0%
Net Cash and equivalents	34.0%

 Update on Investments

Ferrous Resources Limited ("Ferrous")

Following the postponement of the proposed listing in June 2010, the major shareholders of Ferrous have moved to achieve a greater influence over the direction of the company. As a result seven directors have departed and eight shareholder representative directors have been appointed representing over 75% of the shareholder base. The reconstituted Board has stated it remains committed to sourcing full funding for Phase I of the development plan to 25 million tonnes of iron ore per annum by 2013. The executive management team, including CEO Mozart Litwinski, remains in place.

During a shareholder conference call in August, the management stated that the company needed to raise approximately US$500 million in addition to the US$470 million cash currently held on the balance sheet. To this end they have appointed Deutsche Bank as exclusive financial advisor. Deutsche Bank's remit is to examine all options for the financing including a revived IPO, sale of a strategic stake, sale of non-core assets or a change of control transaction. This strategic process by Deutsche Bank is planned to be completed during November this year and, in addition to the raising of finance, provision of secondary liquidity to shareholders will be a key consideration.

South American Ferro Metals ("SAFM")

The reverse takeover of SAFM by ASX listed Riviera Resources Limited ("Riviera") has now received approval by the Australian Stock Exchange. The transaction is structured such that the Company will receive a quarter of the consideration in ordinary shares of Riviera with remainder in three equal tranches of performance shares. Conversion of each tranche of performance share is subject to satisfaction of various project milestones for SAFM's Ponte Verde, iron ore project in Brazil. The transaction is subject to shareholder approval at a general meeting scheduled for 13 September 2010.

Copperbelt Minerals Limited ("Copperbelt")

The acquisition of Copperbelt by Zijin Mining Limited and China-Africa Development Fund ("CADF") is still pending approval from the government of the Democratic Republic of Congo although Chi Jianxin, president of CADF, told a conference in Beijing on 25 August 2010 that they were close to securing approval though he was unable to put a timetable on it.

The interim report to 30 June 2010 with further information on the Company's investments is 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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