Net Asset Value(s) 30 Sept 20

RNS Number : 9618T

Baker Steel Resources Trust Ltd

06 October 2010

 



BAKER STEEL RESOURCES TRUST LIMITED

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

30 September 2010 NAV Statement

Net Asset Values

Baker Steel Resources Trust Limited ("the Company") announces its net asset value per share as at 30 September 2010:

Net asset value per Ordinary share:                   93.7 pence

During the month the NAV per share fell 0.64% with the rise in the listed part of the portfolio being outweighed by a 2.3% rise in the value of Sterling against the US Dollar in which the majority of the portfolio's assets are denominated.

The Company has a total of 66,023,089 Ordinary Shares and 13,204,594 Subscription Shares in issue.

Portfolio update

During September, the Company made a further investment in First Coal Corporation, participating in a placing of new shares and warrants to fund the ongoing feasibility studies into its coking coal projects in British Columbia, Canada.  In addition, Forbes & Manhattan Coal Corporation, acquired in July as part of a late pre-IPO financing, commenced trading on the Toronto Stock Exchange on 26 September 2010, and finished the month up 23% from the Company's acquisition price.

The Company is 67% invested with the top five shareholdings as follows as a percentage of NAV:

Ferrous Resources Limited	18.9%
Ivanhoe Nickel and Platinum Limited	17.6%
Gobi Coal & Energy Limited	10.7%
Copperbelt Minerals Limited	5.5%
First Coal Corporation	4.3%
Other Investments	10.0%
Net Cash and equivalents	33.0%

Update on Investments

South American Ferro Metals ("SAFM")

The reverse takeover of SAFM by ASX listed Riviera Resources Limited ("Riviera") received shareholder approval on 13 September 2010. Riviera is in the process of raising up to A$15 million in order to start production at SAFM's Ponto Verde iron ore project in Brazil and undertake drilling to prove-up further resources on the property. The transaction is expected to be completed on 19 October 2010.

Copperbelt Minerals Limited ("Copperbelt")

Following delays in receiving approval from the government of the Democratic Republic of Congo ("DRC"), one of the two parties which had agreed jointly to acquire Copperbelt, Zijin Mining Group Company Limited ("Zijin"), decided not to extend the date of completion and effectively pulled out of the acquisition. Copperbelt management believe that this withdrawal was primarily due to the ongoing difficulties Zijin was facing at its mining operations in China, rather than any issues concerning Copperbelt's project or doing business in the DRC.

Following Zijin's withdrawal, Copperbelt and the other party to the original acquisition agreement, China Africa Development Fund ("CAD Fund"), have entered into a new sale deed. Prior to the expiry of the previous acquisition agreement, the required consents from the government of DRC were well advanced although are expected to require the acceleration of certain licence payments. These costs will result in a small reduction in the sale price of Copperbelt, but this is still expected to be in excess of 20% over the Company's current carrying value. The acquisition is now scheduled for completion during November 2010.

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

Winterflood Investment Trusts               [phone]/0250

Robert Peel

James Moseley

RBC Capital Markets                            [phone]

Martin Eales

Pelham Bell Pottinger

Damian Beeley                                       [phone]

Charles Vivian                                        [phone]

 

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