Net Asset Value(s)

RNS Number : 1893H

Baker Steel Resources Trust Ltd

06 June 2017

 

BAKER STEEL RESOURCES TRUST LIMITED

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

6 June 2017

31 May April 2017 Unaudited NAV Statement

Net Asset Value

Baker Steel Resources Trust Limited (the "Company") announces its unaudited net asset value per share at 31 May 2017:

Net asset value per Ordinary Share: 49.0 pence

Since 28 April 2017 the NAV per share has decreased by 1.4%. A 19.4% fall in the share price of Ivanhoe Mines on the Toronto Stock Exchange was partially offset by a 57.3% rise in the share price of China Polymetallic on the Hong Kong Stock Exchange.

The Company had a total of 116,139,980 Ordinary Shares in issue with a further 700,000 shares held in treasury as at 31 May 2017.

Portfolio Update

The Company's top 10 investments are as follows as a percentage of NAV:

Polar Acquisition Ltd	36.0%
Bilboes Gold Limited	12.8%
Ivanhoe Mines Limited	11.5%
Cemos Group plc	7.0%
Metals Exploration plc	6.2%
Black Pearl Limited Partnership	4.8%
Ironstone Resources Limited	4.2%
Nussir ASA	3.3%
China Polymetallic Mining Limited	3.2%
Gobi Coal & Energy Limited	1.2%
Other Investments	2.2%
Net Cash, Equivalents and Accruals	7.6%

Investment Update

On 17 May 2017, Ivanhoe Mines Limited ("Ivanhoe") - whose share price has experienced significant volatility over recent months - announced an updated Mineral Resource estimate for its Kakula discovery on the Kamoa project in the Democratic Republic of Congo. Kakula's Indicated Mineral Resource has increased 62% to 116 million tonnes at a grade of 6.09% copper, using a 3% cut-off grade. This updated resource statement has brought the total Indicated Mineral Resource at Kamoa to 31.4 million tonnes of contained copper with a further 5.2 million tonnes of contained copper in the inferred category. An updated preliminary economic assessment is scheduled for the third quarter 2017.

During May 2017, China Polymetallic Mining Limited ("CPM") announced that it had agreed to acquire the entire share capital of Horeb Mountain Mining Company Limited ("Horeb") for RMB 98 million (£10.8 million) in cash. This was accompanied by a placing to third party investors which raised HKD 80 million (£8.0 million).

Horeb is the owner of a copper-lead mine in Mandalay State, Myanmar and the acquisition continues CPM's strategy to diversify its assets from the Shizishan lead-zinc-silver mine in Yunan province, China. Since its construction, the Shizishan mine has experienced problematic mining conditions and flooding and has failed to reach its target production rate. CPM identified Myanmar as a prospective emerging market for mining.

Previously, in December 2015, CPM acquired 90% of Harbor Star Mining Company Limited for RMB 125 million (£13.7 million) and in January 2017, CPM announced an agreement to acquire Hua Xing Global Limited for RMB 101.5 million (£11.1 million). Both of these companies also have base metal projects in Myanmar.

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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