Net Asset Value(s)

RNS Number : 6391T

Baker Steel Resources Trust Ltd

05 July 2018

 

BAKER STEEL RESOURCES TRUST LIMITED

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

 5 July 2018

29 June 2018 Unaudited NAV Statement

Net Asset Value

Baker Steel Resources Trust Limited (the "Company") announces its unaudited net asset value per share at 29 June 2018:

Net asset value per Ordinary Share:  57.1 pence

Since 31 May 2018 the NAV per share has increased by 1.2% primarily due to the increase in the carrying value of Bilboes Gold following the mid year carrying value review of unlisted investments.

The Company had a total of 116,139,980 Ordinary Shares in issue with a further 700,000 shares held in treasury as at 29 June 2018.

Portfolio Update

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

Polymetal International plc	29.9%
Bilboes Gold Limited	15.4%
Cemos Group plc	10.0%
Polar Acquisition Ltd	9.6%
Futura Resources Ltd	8.7%
Metals Exploration plc	6.0%
Sarmin Mineral Exploration Inc	4.6%
Black Pearl Limited Partnership	4.0%
PRISM Diversified Inc	3.6%
Ivanhoe Mines Limited	3.0%
Other Investments	4.5%
Net Cash, Equivalents and Accruals	0.7%

Investment Update

Polar Acquisition Limited ("PAL")/ Polymetal International plc ("Polymetal")

During June 2018, PAL distributed the Polymetal shares it had received as consideration for the sale of its former subsidiary Polar Silver Resources Limited to Polymetal in April 2018. Consequently the Company received 2.95 million Polymetal shares (equivalent to 0.65% of Polymetal), 90% of which are locked-up until October 2018. As a result, Polymetal has become the Company's largest investment at almost 30% of NAV, although the Company intends to reduce this holding over time in order to reduce concentration risk.

PAL continues to retain a 2-4% royalty over 45% of the future production from the Prognoz Silver project in Russia. Polymetal is intending to publish a revised resource statement on Prognoz in the fourth quarter of 2018, following which the value of the royalty will be reviewed.

Half Year Review of Unlisted Investments

The Company has carried out its normal half yearly review of general market movements in mining equities, as well as specific factors, and an assessment of whether these should impact the carrying values of its unlisted holdings. The Investment Manager maintains an index of comparable listed companies for each unlisted investment, in order to quantify how the share price of a particular unlisted stock might have moved during the period had it been listed. In accordance with this assessment the carrying value of Bilboes Gold Limited has been increased by 18% and that of Nussir ASA decreased by 12%.

Ivanhoe Mines Limited ("Ivanhoe")

On 11 June 2018, Ivanhoe announced that a subsidiary of CITIC Limited, China's largest conglomerate, had agreed to acquire a 19.9% stake in Ivanhoe for C$723 million, equivalent to C$3.68 per share. This financing puts Ivanhoe in a strong financial position to progress its three Tier 1 projects: the Kamoa-Kakula copper project in the Democratic Republic of Congo ("DRC"); the Platreef platinum-palladium-nickel project in South Africa and the Kipushi zinc mine in DRC. Despite this, Ivanhoe shares fell 17.4% during June 2018 from C$3.27 to C$2.70 per share on the Toronto Stock Exchange.

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.

 

END

 

 

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