Net Asset Value(s)

RNS Number : 2600B

Baker Steel Resources Trust Ltd

06 October 2015

 



BAKER STEEL RESOURCES TRUST LIMITED

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

 6 October 2015

30 September 2015 Unaudited NAV Statement

Net Asset Value

Baker Steel Resources Trust Limited (the "Company") announces its unaudited net asset value per share at 30 September 2015:

Net asset value per Ordinary Share:  40.0 pence

Since 31 August 2015, the NAV per share has decreased by 2.4% largely due to falls in the share prices of Metals Exploration on the AIM market of the London Stock Exchange and Ivanhoe Mines on the Toronto Stock Exchange.

The Company had a total of 114,568,335 Ordinary Shares in issue with 700,000 shares held in treasury as at 30 September 2015.

Portfolio Update

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

Polar Silver Resources Ltd	21.4%
Global Oil Shale Group plc	18.1%
Black Pearl Limited Partnership	15.7%
Bilboes Gold Limited	10.5%
Gobi Coal & Energy Limited	6.1%
Ivanhoe Mines Limited	5.5%
Metals Exploration plc	5.1%
Archipelago Metals Limited	4.9%
Ironstone Resources Limited	4.3%
China Polymetallic Mining Limited	3.2%
Other Investments	3.6%
Net Cash, Equivalents and Accruals	1.6%

Metals Exploration PLC ("Metals Ex")

On 18 September 2015, Metals Ex announced that although staged commissioning of the processing plant at its Runruno gold project in Philippines had commenced in July 2015, it still required a number of operational and occupancy permits from the respective Philippine regulatory authorities before full commissioning and operations could commence. As a result of this permitting delay, Metals Ex has decided to raise additional funds to ensure it has sufficient working capital until it commences operations through to sustaining cashflow. Once in full production Runruno is scheduled to produce approximately 100,000 ounces of gold per annum.

Metals Ex's largest three shareholders agreed to a placing of US$5 million of new shares at 3 pence per new Metals Ex share and have also agreed to provide an additional US$5 million in debt securities if there is a protracted delay in receiving the permits. On 28 September 2015, Metals Ex extended the opportunity to participate in the equity issue through an open offer of up to £3 million to all other shareholders, also at 3 pence per share.

The Company is encouraged by the continuing support of Metals Ex's major shareholders and is considering the level of its participation in the Open Offer, which also includes the opportunity to make an application in excess of a shareholder's pro rata entitlement.

During September 2015 the Metals Ex share price fell 28.6% to 3.125p per share.

Ivanhoe Mines Limited ("Ivanhoe")

On 23 September 2015, the government of the Democratic Republic of Congo ("DRC") approved the sale by Ivanhoe of a 49.5% stake in Kamoa Holdings Limited to Zijin Mining Group Co., ending a potential dispute between Ivanhoe and the government. Kamoa Holdings Limited currently owns 95% interest in the local operating company, Kamoa Copper SA, which holds the licence to the Kamoa copper project in DRC, the world's largest undeveloped high-grade copper discovery.

Ivanhoe also agreed to the sale of 1% of its share interest in Kamoa Holdings to Crystal River Global Limited for US$8.32 million. Zijin will have the right to acquire this interest upon arranging project finance for the Kamoa project. Ivanhoe is also currently finalising the terms of a definitive agreement to increase the government's stake in Kamoa Copper SA to 20% from 5%.

The cash proceeds on completion of the sale of the 50.5% interest in Kamoa Holdings Limited will total US$420.3 million, equivalent to approximately C$0.72 per share. Although immediately following the announcement of the DRC approval, Ivanhoe's share price rose, it subsequently slipped back to close the month at C$0.65 per share, a fall of 18.75% during September 2015.

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)

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 26 January 2015.

 

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