Net Asset Value(s)

RNS Number : 7881H

Baker Steel Resources Trust Ltd

03 June 2011

 



BAKER STEEL RESOURCES TRUST LIMITED

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

3 June 2011

31 May 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 31 May 2011:

Net asset value per Ordinary share:                   116.4 pence

Diluted net asset value per Ordinary share:        113.7 pence

During the month, the undiluted NAV per share rose by 14% largely attributable to increases in the carrying values of Gobi Coal, Ivanplats Limited and First Coal Corporation.

The Company has a total of 66,033,061 Ordinary Shares and 13,194,622 Subscription Shares in issue.

Portfolio update

Gobi Coal & Energy Limited ("Gobi")

Following recent significant "grey" market trading activity, the Directors have increased the carrying value of Gobi adding approximately 8.2% to the Company's NAV. There is increasing interest in Gobi following the completion of a positive feasibility study on the first of its Mongolian coking coal projects and as Gobi moves towards production and a prospective listing later this year.  

Ivanplats Limited ("Ivanplats")

On 26 May 2011, the shareholders of Ivanplats approved a reorganisation in anticipation of an IPO on a major international stock exchange. The reorganisation included a change of name from Ivanhoe Nickel & Platinum Limited to Ivanplats Limited, and an effective "lock-up" of all existing shares of Ivanplats until after its IPO. The "grey" market for trading Ivanplats shares therefore essentially closed on 26 May 2011, although earlier in the month there had been significant trades in Ivanplats shares.

The Company has increased its carrying value of Ivanplats by 20.7% to reflect the price at which the significant trades were transacted prior to the closure of the "grey" market.

First Coal Corporation ("First Coal")

The Directors have reviewed the carrying value of the holding in First Coal in the light of recent corporate activity on the same coal district as First Coal's properties. Accordingly the Company's carrying value has been increased by 77% adding approximately 3.1% to the NAV.

The Company is 94.8% invested with top 10 shareholdings as follows as a percentage of NAV:

Ivanplats Limited	27.1%
Gobi Coal & Energy Limited	16.6%
Ferrous Resources Limited	13.6%
First Coal Corporation	7.4%
Ironstone Resources Limited	6.8%
Silver China	5.5%
Copperbelt Minerals Limited	4.3%
Polar Silver	4.0%
South American Ferro Metals Limited	3.8%
Forbes & Manhattan Coal Corporation	2.8%
Other Investments	2.9%
Net Cash and Equivalents	5.2%

Update on Investments

Copperbelt Minerals Limited ("Copperbelt")

In September 2010, Copperbelt signed a sale deed with China Africa Development Fund ("CAD Fund") whereby CAD Fund would purchase substantially all the assets of Copperbelt for US$281.9 million. This transaction was subject to a number of conditions precedent, including consent by the government of the Democratic Republic of Congo, which needed to be satisfied by 31 May 2011. Prior to 31 May 2011, Copperbelt informed CAD Fund that they did not intend to renew the sale deed on the same terms beyond 31 May 2011 if the relevant approvals were not forthcoming, given the significant increase in valuations for Central African copper projects seen during the past 9 months.

Copperbelt has stated that it has a commitment from one potential new investor to an investment of US$35 million, such investment being at a premium to the CAD Fund transaction price, subject to the successful outcome of ongoing discussions between Copperbelt and its joint venture partner, Gecamines.

The Company currently holds Copperbelt at a discount to the CAD Fund transaction price and will keep the carrying value of the investment under review pending developments and conclusion of any funding.

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]

Charles Vivian                                                  [phone]

 

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