Net Asset Value(s)

RNS Number : 9309D

Baker Steel Resources Trust Ltd

03 May 2013

 



BAKER STEEL RESOURCES TRUST LIMITED

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

3 May 2013

30 April 2013 Unaudited NAV Statement

Net Asset Values

Baker Steel Resources Trust Limited (the "Company") announces its unaudited net asset value per share as at 30 April 2013:

Net asset value per Ordinary Share:  94.4 pence

During the month, the undiluted NAV per share decreased by 13.4% primarily as result in the fall of listed mining equities and in particular the share price of Ivanplats on the Toronto Stock Exchange.  

At 30 April 2013, the Company had a total of 66,142,533 Ordinary Shares and 13,085,150 Subscription Shares in issue. The final exercise date for Subscription Shares was 2 April 2013. No Subscription Shares were exercised at this time and the Company is in the process of cancelling all remaining Subscription Shares.

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

Ivanplats Limited		27.2%
Gobi Coal & Energy Limited		17.5%
Bilboes Gold Limited		9.4%
Ironstone Resources Limited		9.3%
Black Pearl Limited Partnership		8.6%
China Polymetallic Mining Limited		8.2%
Ferrous Resources Limited		7.3%
Polar Silver Resources Ltd		6.1%
Metals Exploration plc		4.7%
South American Ferro Metals Limited		1.7%
Other Investments		2.3%
Net Cash, Equivalents and Accruals	-2.3%

Investment Update

Ivanplats Limited ("Ivanplats")

During the month the share price of Ivanplats fell 30.9% on the Toronto Stock Exchange ("TSX"). This can be attributed to a general weakness of mining and precious metals shares with the HSBC World Mining Index falling 7.4% and the FTSE Gold Mines Index falling 20.9% during April 2013, combined with the release of the first 8% tranche of Ivanplats shares from lock-up following its listing in October 2012. Ivanplats has announced that it is conducting a strategic process whereby locked-up shares might be released early and sold to designated purchasers. The Company carries the locked-up shares in Ivanplats at a 10% discount to the TSX price.

On 11 April 2013 Ivanplats announced that it had signed a memorandum of understanding ("MOU") with the Democratic Republic of Congo's state-owned power company ("SNEL"), to upgrade a third hydroelectric power plant - Nzilo 1 - to secure an additional supply of sustainable electricity for Ivanplats' Kamoa copper discovery in Katanga province. The proposed Nzilo 1 upgrade is in addition to the planned upgrades by Ivanplats of the Mwadingusha and Koni hydroelectric plants. The three plants could produce a combined 200 megawatts of long-term, clean electricity for the grid, which would be more than sufficient to launch production at Kamoa. The MOU provides that Ivanplats would finance the refurbishment through a repayable loan to SNEL and SNEL would grant Ivanplats a priority entitlement of power from the power grid.

South America Ferro Metals Limited ("SAFM")

On 24 April 2013, SAFM, the Australian Stock Exchange listed iron ore producer, announced a further increase of its JORC compliant resource estimate within the projected open pit envelope from 277.9 million tonnes to 301.1 million tonnes at its Ponto Verde Iron Ore Project, in the state of Minas Gerais, Brazil. This revised estimate will provide the basis for open pit design and scheduling to establish mineable ore reserves, as part of a feasibility study into increasing run of mine production from the current 1.5 million tonnes per annum to 8 million tonnes per annum.

SAFM also announced that it is working with MRS Logistica SA to develop a logistics solution for the rail transportation of iron ore from the Ponto Verde mine to the port terminals at Baia de Sepetiba in the state of Rio de Janeiro, approximately 400 km from Ponte Verde mine. The Ponto Verde mine is located 15 km west of the Andaime branch line of the MRS system, which transports production from the Minas Itabaritos mines adjoining Ponto Verde. SAFM plans to introduce its iron ore product to the export market upon the development of the haulage infrastructure to deliver its production to the rail system and the completion of its 8 Mpta expansion programme. The feasibility study is due to be completed by the end of 2013.

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]

The Net Asset Value ("NAV") figures stated are based on unaudited estimated valuations of the underlying investments and not necessarily based on observable inputs. Such estimates are not subject to any independent verification or other due diligence and may not comply with generally accepted accounting practices or other generally accepted valuation principles. In addition, some estimated valuations are based on the latest available information which may relate to some time before the date set out above.

Accordingly, no reliance should be placed on such estimated valuations and they should only be taken as an indicative guide. Other risk factors which may be relevant to the NAV figures are set out in the Company's Prospectus dated 31 March 2010.

 

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