Net Asset Value(s)

RNS Number : 9898Q

Baker Steel Resources Trust Ltd

04 March 2016

 

BAKER STEEL RESOURCES TRUST LIMITED

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

  4 March 2016

29 February 2016 Unaudited NAV Statement

Net Asset Value

Baker Steel Resources Trust Limited (the "Company") announces its unaudited net asset value per share at 29 February 2016:

Net asset value per Ordinary Share:  34.6 pence

Since 29 January 2016, the NAV per share has increased by 2.1%. The depreciation of Sterling against the US Dollar and Canadian Dollar in which much of the Company's portfolio is denominated outweighed a mark down in the price of Gobi Coal following its launch of a rights issue at a 20% discount to the Company's carrying value at the end of January 2016.

The Company had a total of 114,568,335 Ordinary Shares in issue with 700,000 shares held in treasury as at 29 February 2016.

Portfolio Update

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

Polar Silver Resources Ltd	26.8%
Black Pearl Limited Partnership	19.2%
Metals Exploration plc	10.6%
Bilboes Gold Limited	10.0%
Cemos Group plc	9.0%
Ivanhoe Mines Limited	6.3%
Ironstone Resources Limited	5.3%
Gobi Coal & Energy Limited	3.1%
Archipelago Metals Limited	2.8%
China Polymetallic Mining Limited	2.4%
Other Investments	3.9%
Net Cash, Equivalents and Accruals	0.6%

Ivanhoe Mines Limited ("Ivanhoe")

On 23 February 2016, Ivanhoe announced positive results of an independent pre-feasibility study for the first phase of development of the Kamoa Copper Project in the Democratic Republic of Congo (DRC), the world's largest, undeveloped, high-grade copper discovery.

The pre-feasibility study covers a three-million-tonne-per-annum (Mtpa) underground mine and concentrator processing facility with associated infrastructure as the initial phase of project development. The first phase of mining would target high-grade copper mineralisation from shallow underground resources to yield a high-value concentrate. The planned second phase would entail a major expansion of the mine and mill and construction of a smelter to produce blister copper. It is envisaged mining at an average grade of 3.86% copper resulting in annual copper production of around 100,000 tonnes per annum for a 24 year mine life.

Initial capital costs of the mine are estimated to be US$1.2 billion (including a 18.4% contingency) with an average C1 cash cost of US$1.48/lb copper. Using a long term copper price of US$3.00/lb the pre-feasibility study estimates an internal rate of return (IRR) of 17.2%, a payback period of 4.6 years and an after tax net present value of U$986 million. Importantly the project still has a positive IRR at a copper price of US$2.00/lb. The study represents a reduction in initial capital expenditure and lower operating costs than the previous estimates.

The Kamoa Copper Project is a joint venture between Ivanhoe and Zijin Mining which  acquired a 49.5% interest from Ivanhoe in December 2015 for US$412 million (C$580 million).

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.

 

END

 

 

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