Net Asset Value(s)

RNS Number : 1145X

Baker Steel Resources Trust Ltd

08 January 2014

 



BAKER STEEL RESOURCES TRUST LIMITED

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

8 January 2014

31 December 2013 Unaudited NAV Statement

Net Asset Values

Baker Steel Resources Trust Limited (the "Company") announces its unaudited net asset value per share as at 31 December 2013:

Net asset value per Ordinary Share:    62.0 pence

During the month, the NAV per share decreased by 6.2% largely due to a mark down in the value of Bilboes Gold Limited to reflect the weakness in listed gold equities during the year coupled with a fall in the share price of Ivanhoe Mines Limited on the Toronto Stock Exchange.  

At 31 December 2013, the Company had a total of 66,142,533 Ordinary Shares in issue.

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

Ivanhoe Mines Limited		18.9%
Black Pearl Limited Partnership		13.3%
Ironstone Resources Limited		12.6%
Gobi Coal & Energy Limited		12.5%
Bilboes Gold Limited		10.1%
Polar Silver Resources Ltd		8.7%
China Polymetallic Mining Limited		7.1%
Ferrous Resources Limited		6.3%
Metals Exploration plc		5.9%
South American Ferro Metals Limited		1.5%
Other Investments		2.3%
Net Cash, Equivalents and Accruals	0.8%

Investment Update

Review of the Year

2013 was a difficult year for the mining sector with the Euromoney Mining 100 Index falling 25.7% and the FTSE Gold Mines Index falling 54.1%. The Company's investments were not immune to this headwind, with the NAV falling 43.2% during the year. A significant portion of this fall reflects the Company's valuation policy which takes into consideration the price movements of similar publicly listed shares when arriving at the value of the unlisted equities at the half and full year, where there has not been a relevant pricing transaction in the previous 6 months. At 30 June 2013, Ferrous Resources and Gobi Coal & Energy were written down by 40% and 50% respectively and at 31 December 2013, the carrying value of Bilboes Gold was reduced by 25%. This mark down was not a reflection of the performance of Bilboes itself which during the year successfully re-commissioned its previously producing heap leach operations and made good progress on the feasibility study for the underlying sulphide mineralisation, but rather to take into account the de-rating of listed gold equities during the period.

Ivanhoe Mines Limited ("Ivanhoe")

On 18 December 2013 Ivanhoe announced that its dewatering programme at the historic, high-grade Kipushi copper-zinc-germanium-lead mine in the Democratic Republic of Congo had achieved its key initial objective of restoring access to the main underground working level.

Ivanhoe is now in a position to begin a 100 hole, 20,000-metre, underground diamond-drilling program early in 2014, designed to confirm the mine's estimated, remaining high-grade resources and to seek to further expand the resources on strike and at depth.

To reflect the decreased timetable for release of the majority of its Ivanhoe shares from the lock-up arrangements put in place on listing, the Company has reduced the discount to the listed price on the Toronto Stock Exchange it uses to value the locked-up Ivanhoe shares from 10% to 6%.

  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

Numis Securities Limited                                   [phone]

David Benda (corporate)

James Glass (sales)

Pelham Bell Pottinger

Lorna Spears                                                    [phone]

Joanna Boon                                                   [phone]

The Net Asset Value ("NAV") figure stated is 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 figure is set out in the Company's Prospectus dated 31 March 2010.

 

END

 

 

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