Net Asset Value(s)

RNS Number : 1351E

Baker Steel Resources Trust Ltd

07 April 2014

 



BAKER STEEL RESOURCES TRUST LIMITED

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

7 April 2014

31 March 2014 Unaudited NAV Statement

Net Asset Values

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

Net asset value per Ordinary Share:  60.70 pence

During the month, the NAV per share increased by 1.8%, predominantly due to the appreciation of Metals Exploration which was up 26.2% in March.

At 31 March 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		17.1%
Black Pearl Limited Partnership		13.9%
Gobi Coal & Energy Limited		12.7%
Ironstone Resources Limited		12.6%
Bilboes Gold Limited		10.2%
Polar Silver Resources Ltd		9.1%
Metals Exploration plc		8.0%
Ferrous Resources Limited		6.4%
China Polymetallic Mining Limited		6.2%
South American Ferro Metals Limited		1.6%
Other Investments		2.1%
Net Cash, Equivalents and Accruals		0.1%

Investment Update

Metals Exploration plc ("Metals Ex")

On 11 March 2014, Metals Ex reported good progress on the construction of its Runruno gold project in the Philippines. The construction phase commenced mid 2013, was 46% complete at 31 January 2014 and remains on time and on budget with first gold pour scheduled for Q4 2014.

Runruno has JORC compliant Mineral Resources of 1.4 million ounces of gold and is targeting annual gold production of approximately 100,000 ounces at an operating cost of US$474 per ounce of gold.

The next key milestone for the project will be the finalisation of a US$70 million debt facility, which Metals Ex advised is nearing completion and is forecast to be sufficient to complete the project.

Metals Exploration shares rose 26.2% on the AIM market of the London Stock Exchange during the month which translated to a 1.7% rise in the NAV.

Ivanhoe Mines Limited ("Ivanhoe")

On 26 March 2014, Ivanhoe released the results of an independent Preliminary Economic Study ("PEA") on its platinum, palladium, nickel, copper, gold and rhodium discovery at its Platreef Project on the Bushveld Complex's Northern Limb in South Africa. The PEA outlines a large mechanised underground mine developed on a phased approach. An initial mine of 4 million tonnes per annum (Mtpa) would establish an operating platform at 455,000 ounces of platinum, palladium, gold and rhodium ("4PE") per annum which would immediately be followed by an expansion to 8 Mtpa producing 785,000 ounces 4PE as the base case. There are plans for a further expansion to 12 Mtpa (1.1 million ounces 4PE).

The NPV (8%) of the base case is US$1.6 billion with a payback of 6.4 years and an IRR of 14.3%. Pre-production capital costs are estimated at US$1.7 billion and operating costs of US$341 per ounce 4PE, which would make the Platreef mine the lowest cost producer in South Africa.

Earlier in the month, Ivanhoe announced the results of exploration which suggested a major extension to the currently identified mineralisation. It has been estimated that this additional area could add a further 66 million ounces 4PE to the current 76 million ounce 4PE resources at Platreef.

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)

Bell Pottinger

Lorna Cobbett                                         [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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