Net Asset Value(s)

RNS Number : 1078L

Baker Steel Resources Trust Ltd

04 September 2019

 

BAKER STEEL RESOURCES TRUST LIMITED

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

4 September 2019

30 August 2019 Unaudited NAV Statement Net Asset Value

Baker Steel Resources Trust Limited (the "Company") announces its unaudited net asset value per share at 30 August 2019:

Net asset value per Ordinary Share: 70.7 pence

The NAV per share has increased by 3.4% against the NAV at 31 July 2019, primarily due to an increase in the carrying value of Nussir ASA following a share placement at a 50% premium to the previous carrying value, and an 18.8% increase in the share price of Polymetal International Plc on the London Stock Exchange.

The Company has a total of 106,462,502 Ordinary Shares in issue with a further 700,000 shares held in treasury as at 30 August 2019.

Portfolio Update

The Company's top 12 investments are as follows as a percentage of NAV:

Futura Resources Ltd	16.5%
Bilboes Gold Limited	14.8%
Polymetal International Plc	14.2%
Cemos Group plc	10.6%
Polar Acquisition Ltd	9.0%
Sarmin Minerals Exploration	4.8%
Nussir ASA	4.5%
Mines & Metal Trading Peru PLC	4.4%
Anglo Saxony Mining Limited	3.8%
Black Pearl Limited Partnership	3.8%
Ivanhoe Mines Ltd	3.1%
Azarga Metals Corp	3.1%
Other Investments	5.5%
Net Cash, Equivalents and Accruals	1.9%

Investment Update

Nussir ASA ("Nussir")

During August 2019, Nussir completed an oversubscribed rights issue of NOK 5 million at a 50% premium to its previous fundraising and the Company's carrying value. The Company participated in the rights issue and in accordance with its valuation policy has increased its carrying value of Nussir shares to the rights issue price.

The rights issue was to fund a limited amount of additional drilling in an area of inferred resources so that those resources could be upgraded to Indicated Resources and therefore included in Nussir's definitive feasibility study on the Nussir/Ulveryggen copper project in northern Norway. The area being drilled is close to the proposed portal site to the mine and if confirmed would provide early tonnage to the processing plant and would be expected to have a significant positive impact on the feasibility study cashflow. The drilling is due to be completed in September and the definitive feasibility study completed in the fourth quarter of 2019.

Azarga Metals Corp ("Azarga")

On 15 April 2019, the Company completed an agreement to invest US$3 million into TSXV listed Azarga via an 8% secured convertible loan due 31 December 2022, convertible at C$0.14/share ("the Convertible Loan") and the first US$1 million tranche of the Convertible Loan has been drawn. 13.49 million 2-year warrants were also issued to the Company with an exercise price of C$0.17/share.

On 12 August 2019, Azarga drew down the remaining US$2 million convertible loan, and assuming BSRT converted all of the US$3 million owing to it and also converted all its warrants, BSRT would hold approximately 39.16% of the issued and outstanding shares of Azarga.

The drawdown will be used to fund the ongoing exploration program on the Unkur Copper-Silver Project in Eastern Russia. Magnetic and induced polarization geophysical surveys are underway and will continue through September. Following this work, an approximate 6,000-meter diamond drilling program will be initiated. The combined program represents the largest physical exploration program undertaken on Unkur since Azarga's acquisition of the Unkur project in 2016.  The goal of the program is to expand the estimated Inferred Mineral Resource of 62 million tonnes grading 0.53% copper and 38.6g/t silver, containing 328,600 tonnes of copper and 76.8 million ounces of silver.

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 are set out in the Company's Prospectus dated 26 January 2015.

 

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