Net Asset Value(s)

RNS Number : 1070J

Baker Steel Resources Trust Ltd

02 August 2012

 



BAKER STEEL RESOURCES TRUST LIMITED

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

2 August 2012

31 July 2012 NAV Statement

Net Asset Values

Baker Steel Resources Trust Limited (the "Company") announces its unaudited net asset value and diluted net asset value per share as at 31 July 2012:

Net asset value per Ordinary Share: 107.8 pence

Diluted net asset value per Ordinary Share: 106.5 pence

During the month, the undiluted NAV per share fell by 6.2%, predominantly due to a reduction in the carrying values of Gobi Coal & Energy Limited and Ferrous Resources Limited.

The Company has a total of 66,140,610 Ordinary Shares and 13,087,073 Subscription Shares in issue.

Portfolio update

Gobi Coal & Energy Limited ("Gobi")

The recent weakness in global coking coal prices has translated into a significant reduction in the price of coal delivered to the Chinese border. This combined with current equity market conditions indicates a reduced likelihood of Gobi achieving its planned IPO in the near future and therefore funding the Phase 2 expansion of its Shinejinst Mine in Mongolia. The Company has reviewed its carrying value of Gobi and taken the decision to reduce it by approximately 23%, which is consistent with the decline in share prices of comparable listed coal companies operating in the same area. This decrease in carrying value has reduced the Company's NAV by approximately 5.3%.

Ferrous Resources Limited ("Ferrous")

Further to significant "grey market" trades in Ferrous during July 2012, the Company has taken the decision to reduce its carrying value by 16.7% in line with these trades. This decrease in carrying value has reduced the Company's NAV by approximately 1.2%.

The Company is fully invested with top 10 investments as follows as a percentage of NAV:

Ivanplats Limited	30.6%
Gobi Coal & Energy Limited	19.0%
China Polymetallic Mining Limited	8.8%
Ironstone Resources Limited	8.6%
Black Pearl	6.7%
Ferrous Resources Limited	6.4%
Bilboes Holdings	5.5%
Polar Silver	5.3%
South American Ferro Metals Limited	3.9%
Metals Exploration plc	3.8%
Other Investments	4.3%
Net Cash, Equivalents and Accruals	-2.9%

Investment Update

Metals Exploration plc ("Metals Ex")

Metals Ex, quoted on the AIM market of the London Stock Exchange, announced on 31 July 2012 that it had obtained commitments from certain existing to raise approximately US$25 million via the issue of new ordinary shares at a price of 13 pence per share, shareholders and has also agreed with its largest shareholder, Solomon Capital Limited, subject to contract, for the provision of loan facilities totalling US$105 million.

This financing is an important milestone for Metals Ex as it will enable it to proceed with development of its Runruno gold mine in the Philippines, which is scheduled to produce at a rate of approximately 100,000 ounces of gold per year.

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

RBC Capital Markets                                                              [phone]

Martin Eales

Winterflood Investment Trusts                                                  [phone]

James Moseley

Pelham Bell Pottinger

Lorna Spears                                                                           [phone]

Joanna Boon                                                                            [phone]

 

END

 

 

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