Net Asset Value(s)

RNS Number : 3943Z

Baker Steel Resources Trust Ltd

06 February 2014

 



BAKER STEEL RESOURCES TRUST LIMITED

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

6 February 2014

31 January 2014 Unaudited NAV Statement

Net Asset Values

Baker Steel Resources Trust Limited (the "Company") announces its unaudited net asset value per share as at 31 January 2014:

Net asset value per Ordinary Share:  60.0 pence

During the month, the NAV per share decreased by 3.2% largely due to a fall in the share price of Ivanhoe Mines Limited on the Toronto Stock Exchange.  

At 31 January 2014, 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		16.3%
Black Pearl Limited Partnership		13.9%
Gobi Coal & Energy Limited		13.0%
Ironstone Resources Limited		12.5%
Bilboes Gold Limited		10.5%
Polar Silver Resources Ltd		9.3%
China Polymetallic Mining Limited		6.9%
Ferrous Resources Limited		6.6%
Metals Exploration plc		6.4%
South American Ferro Metals Limited		1.8%
Other Investments		2.3%
Net Cash, Equivalents and Accruals		0.5%

 
Investment Update

Ferrous Resources Limited ("Ferrous")

On 21 January 2014 Ferrous announced that it had successfully achieved its targeted production of 5 million tonnes of iron ore in 2013 from its two operating mines in Brazil. Its Viga Mine produced 3.40 million tonnes and the Esperança Mine produced 1.73 million tonnes to give a total 5.13 million tonnes for the year, a 60% increase on 2012.

Following a positive feasibility study in 2013, the next major milestone for Ferrous will be the financing of the expansion of the Viga Mine to 15 million tonnes per annum which is currently scheduled to be completed in 2017.

Black Pearl Limited Partnership ("Black Pearl")

Black Pearl is close to completing phase I of the development of its iron ore beach sands project in Indonesia. It is expected to produce 5 million tonnes of iron ore concentrate in 2014 and plans are in place for this to be rapidly expanded to around three times this figure. However the move by the Indonesian government to halt exports of unrefined minerals on 12 January 2014, is certainly of concern.  The situation remains unclear but it appears that the new law is primarily targeted at the nickel and bauxite industries whilst projects producing other metals, including iron ore such as Black Pearl, will have until 2017 to move to smelt its product onshore. In the meantime it appears probable that the project will bear an additional export tax. Despite these new taxes, it is still likely that the operating margins will be attractive given Black Pearl's low operating costs. It is interesting to note that in the same week the Indonesian government instituted this export ban, the Government of the Democratic Republic of Congo postponed its proposed ban on copper and cobalt concentrate exports acknowledging the lack of electricity generation capacity to process the minerals.

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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