Net Asset Value(s)

RNS Number : 0551R

Baker Steel Resources Trust Ltd

07 December 2016

 

BAKER STEEL RESOURCES TRUST LIMITED

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

7 December 2016

30 November 2016 Unaudited NAV Statement

Net Asset Value

Baker Steel Resources Trust Limited (the "Company") announces its unaudited net asset value per share at 30 November 2016:

Net asset value per Ordinary Share: 42.8 pence

Since 31 October 2016, the NAV per share has increased by 0.5%. A rise in the share price of Ivanhoe Mines on the Toronto Stock Exchange slightly outweighed the movement of the Sterling exchange rate against the US and Canadian Dollars.

The Company had a total of 116,139,980 Ordinary Shares in issue with a further 700,000 shares held in treasury as at 30 November 2016.

Portfolio Update

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

Polar Silver Resources Ltd	27.5%
Bilboes Gold Limited	15.9%
Metals Exploration plc	13.2%
Ivanhoe Mines Limited	12.7%
Cemos Group plc	7.3%
Black Pearl Limited Partnership	5.6%
Ironstone Resources Limited	5.1%
Nussir ASA	3.7%
China Polymetallic Mining Limited	3.2%
Gobi Coal & Energy Limited	2.7%
Other Investments	3.0%
Net Cash, Equivalents and Accruals	0.1%

Polar Silver Resources Limited ("Polar Silver")

At the beginning of December 2016, the reorganisation of the Polar Silver group, announced in June 2016, was completed. This entailed a conversion of the debt that the Company held in Polar Silver and its 100% owned Russian subsidiary, Argentum, which was immediately followed by the acquisition of Polar Silver for shares by a newly formed holding company Polar Acquisitions Limited ("PAL"). As a result of this reorganisation, the Company now holds a 64% interest in PAL which in turn owns 100% of Polar Silver.

Argentum holds a 50 per cent. indirect interest in the Prognoz silver project, 444km north of Yakutsk in Russia ("Prognoz"). An NI 43-101 compliant report by independent consultants Micon International Limited ("Micon") in July 2009 estimated an indicated resource of 5.86 million tonnes of ore grading 773 g/t silver containing 146 million ounces silver and inferred resources of 9.64 million tonnes of ore grading 473g/t silver containing 147 million ounces silver. An NI 43-101 compliant preliminary economic assessment by Micon envisages a mine producing an average of 13 million ounces of silver per annum over a 16-year mine life.

In a separate transaction on 14 November 2016, Nord Gold SE announced that it had sold its 50% stake in Prognoz for US$30 million in cash plus a royalty over future production revenue from the Prognoz License Area. The amount receivable under the royalty is capped at a total of US$40 million. This sale was to a subsidiary of Baker Steel Capital International Limited (Cayman), part of the Baker Steel Group, which provides investment management services to its discretionary clients.

These developments will facilitate the recommencement of fieldwork on the Prognoz project in the New Year towards the completion of a bankable feasibility study.

As the reorganisation of the Polar Silver group had not been completed by November 2016 month end, the carrying value of the Company's interest in Polar Silver remained unchanged at 30 November 2016. The Company will review the valuation during December 2016 and any change will be incorporated in the 30 December 2016 NAV.

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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