Net Asset Value Update

RNS Number : 0658U

Baker Steel Resources Trust Ltd

15 December 2011

 



BAKER STEEL RESOURCES TRUST LIMITED

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

15 December 2011

Net Asset Value Update

Baker Steel Resources Trust Limited (the "Company") announces recent events at Gobi Coal & Energy Limited and China Polymetallic Mining Limited, two of the companies in which it is invested, which could have a significant positive impact on the Company's net asset value.

Gobi Coal & Energy Limited ("Gobi Coal")

On 9 December 2011, Gobi Coal informed shareholders that it had completed a placing of 14 million new shares (15% of the enlarged issued share capital) to two sovereign wealth funds raising US$91 million.  This placing was undertaken at US$6.50 per share compared to the Company's carrying value of US$4.00 per share at 30 November 2011.  The funds will enable Gobi Coal to construct Phase 1 of the Shinejinst Mine, and bring it into production, in anticipation of an IPO during 2012.

At 30 November 2011, Gobi Coal represented 14.2% of the NAV of the Company. In the absence of unforeseen events prior to the end-December valuation, it is expected that the carrying value of Gobi will be raised to the level of the placing. This would have the effect of increasing the NAV by approximately 7.5% from the 30 November 2011 value.

China Polymetallic Mining Limited ("CPM")

On 14 December 2011, CPM listed on the Hong Kong Stock Exchange.  As at the close of trading on 15 December the midmarket share price was HK$1.59 per share.  In future the Company's investment in CPM will be valued with reference to market price.

At 30 November 2011, CPM represented 5.7% of the NAV of the Company.  The current share price of HK$1.59 represents a 52 % uplift in the carrying value at 30 November 2011, which in turn represents approximately a 2.6% increase in the NAV of the Company.

Summary

The cumulative effect of the two above events could result in an increase in NAV of approximately 10%, to give an undiluted NAV for the Company of approximately 127 pence per share (compared to 115.5 pence at 30 November 2011).  The unaudited NAV statement for 30 December 2011 is expected to be released during the first week of January 2012.

Further details of the Company and its investments are available on the Company's website www.bakersteelresourcestrust.com 

Enquiries:

Baker Steel Resources Trust Limited    

Francis Johnstone                                             [phone]
Trevor Steel

RBC Capital Markets                                      

Martin Eales                                                     [phone]

Pelham Bell Pottinger

Lorna Spears                                                    [phone]

Joanna Boon                                                     [phone]

 

END

 

 

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