Interim Management Statement (6139E)

TIDMBSRT

RNS Number : 6139E

Baker Steel Resources Trust Ltd

08 April 2011

BAKER STEEL RESOURCES TRUST LTD

www.bakersteelresourcestrust.com

March 2011 Quarterly Factsheet

 
                                    Price /       % Change        % Change 
 At 31 March 2011                  Index Level    in Quarter    from Inception 
-------------------------------  -------------  ------------  ---------------- 
 Net Asset Value (pence/share)           106.2         +9.6%            +8.5%* 
-------------------------------  -------------  ------------  ---------------- 
 Diluted Net Asset Value 
  (pence/share)                          105.1         +8.5%            +7.4%* 
-------------------------------  -------------  ------------  ---------------- 
 Ordinary Share Price 
  (pence/share)                           93.5        +19.1%           -6.5%** 
-------------------------------  -------------  ------------  ---------------- 
 Subscription Share Price 
  (pence/share)                           18.5        +19.4%               n/a 
-------------------------------  -------------  ------------  ---------------- 
 MSCI World Index                       343.64         +3.9%            +11.5% 
-------------------------------  -------------  ------------  ---------------- 
 HSBC Global Mining Index              1603.76         -1.0%            +23.3% 
-------------------------------  -------------  ------------  ---------------- 
 CRB Index                              359.43         +8.0%            +31.6% 
-------------------------------  -------------  ------------  ---------------- 
 Chinese Domestic Iron Ore -- 
  Hebei/Tangshan (US$/t)                   221         +2.8%            +15.1% 
-------------------------------  -------------  ------------  ---------------- 
 Copper (US$/t)                        9413.25         -2.5%            +26.3% 
-------------------------------  -------------  ------------  ---------------- 
 Gold (US$/oz)                         1432.30         +0.8%            +22.6% 
-------------------------------  -------------  ------------  ----------------

Source: Bloomberg closing 27/4/10, **Issue price 28/4/10, * NAV 30/4/10

This document constitutes an interim management statement for the period from 1 January 2011 to 8 April 2011 (the "Period"). Financial information has been drawn up as at 31/3/2011. There have been no material changes since that date. NAV performance from 31/12/2010 relates to the unaudited 31/12/2010 NAV published on 10/1/2011.

 
 Review At the end of March, Baker       Investment Objective 
 Steel Resources Trust Limited ("BSRT"    To seek capital growth 
 or "the Company") was 86.7% invested.    over the long term through 
 During the quarter the NAV per share     a focused global portfolio 
 rose 9.6% largely due to an increase     consisting principally 
 in the value of Ivanhoe Nickel &         of the equities, or related 
 Platinum Ltd ("Ivanplats") following     instruments, of natural 
 a discovery at its South African         resources companies. 
 nickel/platinum project and as           Investment Strategy 
 Ivanplats considers a listing later      Investing predominantly 
 this year. Following a strong second     in attractively valued 
 half of 2010, markets for commodities    private companies with 
 and mining equities paused for breath    strong development projects 
 with the HSBC Global Mining Index        and focused management 
 falling 1.0% during the first quarter    and also in listed securities 
 2011. During the quarter the Company     to exploit value inherent 
 made one significant addition to its     in market inefficiencies. 
 portfolio, investing a net US$5.1        Asset Allocation 
 million in a company which holds an      Unlisted Equities GBP52.9 
 interest in a Russian silver project     M 75.4 % 
 with substantial mineral resources       Listed Equities GBP 7.9 
 under JORC guidelines ("Silver           M 11.3 % 
 Russian"). The Company is currently      Net Cash & GBP 9.3 M 13.3 
 under confidentiality provisions         % 
 whilst Silver Russian progresses         Equivalents 
 towards a listing, anticipated           Net Assets GBP70.1 M 
 through a reverse takeover.              Gearing: NIL 
 Significant operational progress was     Shares in Issue 
 made during the quarter at several of    Trading: The London Stock 
 the companies in which BSRT is           Exchange Ordinary: 66,030,632 
 invested. South American Ferro Metals    Code: BSRT 
 ("SAFM") announced the commissioning     ISIN GG00B6686L20 
 of the beneficiation plant at its        Subscription: 13,197,051 
 Ponto Verde Iron Ore Mine in Brazil      Code: BSRW 
 with production increasing steadily      ISIN GG00B64WLC23 
 towards its design rate of 60,000        Financial Calendar 
 tonnes per month. SAFM also achieved     Listing Date: 28 April 
 the production milestone for the A       2010 
 Class performance shares held by         Year End: 31 December 
 BSRT, and accordingly these shares       Interims: August 
 were converted into ordinary shares.     Finals April 
 During the period, Ferrous Resources 
 announced that it had achieved a 
 number of important milestones in 
 developing its fully integrated iron 
 ore project in Brazil including the 
 grant of two key licences for the 
 installation of the Viga Mine and for 
 a port terminal. Production of iron 
 ore has commenced and Ferrous has 
 stated that it remains on schedule to 
 achieve its target of exporting 25 
 million tonnes of iron ore per annum 
 from 2014. Outlook It is anticipated 
 that a major theme for 2011 will be 
 the increase in IPOs in the gold and 
 mining sectors. The strong 
 performance of listed mining shares 
 in 2010 and continuing strength in 
 commodity prices means that the 
 market is increasingly receptive to 
 new listed opportunities. However, 
 unlisted companies are likely to 
 continue to face difficulties raising 
 finance, as investors continue to opt 
 for more liquid investments, 
 presenting the Fund with some good 
 value opportunities from those 
 companies not yet ready to list. 
--------------------------------------  -------------------------------------- 
 LargestInvestments (at 31 March 2011)      Investment Manager Baker Steel 
 Ivanhoe Nickel and Platinum Limited        Capital Managers LLP Investment 
 25.2% NAV A private company with a        Advisers AWR Capital Rock Capital 
 major copper project in the             Partners Ltd Management Fees Monthly: 
 Democratic Republic of Congo and a             1/12 of 1.75% of Market 
 platinum/nickel project in South         Capitalisation Performance: 15% of 
 Africa. Ferrous Resources Limited       NAV growth (if over 8% p.a. compound 
 16.3% NAV A private company with five     hurdle rate, with high watermark) 
 iron ore projects in Brazil. It has       Board Howard Myles (Chairman) Ed 
 Joint Ore Resource Committee ("JORC")    Flood Charles Hansard Clive Newall 
 resources of 4.5 billion tonnes of        Chris Sherwell Joint Brokers RBC 
 iron ore at an average grade of          Capital Markets +44(0)20 7653 4253 
 33.52% Fe. Gobi Coal & Energy Limited       Winterflood Investment Trusts 
 9.3% NAV A private company with three     +44(0)20 3100 0000 Contact: Baker 
 and coking coal projects in Mongolia    Steel Capital Managers LLP 86 Jermyn 
 with a JORC compliant resource of 322    Street, London SW1Y 6JD +44 (0) 20 
 million tonnes. Ironstone Resources                   7389 8237 
 Limited 7.6% NAV A private company      enquiries@bakersteelresourcestrust.co 
 with an iron ore/vanadium project in    m Baker Steel Resources Trust Ltd is 
 Canada. It has a NI-43-101 compliant    incorporated in Guernsey Registration 
 resource of 203 million tonnes of          Number: 51576 Arnold House, St 
 iron ore at an average grade of 33%        Julian's Avenue, St Peter Port, 
 Fe. South American Ferro Metals                       Guernsey 
 Limited ("SAFM") 5.8% NAV A company 
 listed on the Australian Stock 
 Exchange whose main asset is the 
 Ponto Verde iron ore project in 
 Brazil. Copperbelt Minerals Limited 
 4.8% NAV A private company with a 68% 
 interest in the Deziwa Copper-Cobalt 
 Project in the Democratic Republic of 
 Congo. Silver Russian 4.5% NAV A 
 private company which holds an 
 interest in a Russian silver project 
 with substantial mineral resources 
 under JORC guidelines. Forbes & 
 Manhattan Coal Corporation (Forbes 
 Coal) 3.9% NAV A coal producer listed 
 on the Toronto Stock Exchange with 
 two mines in South Africa containing 
 total reported resources of 106 
 million tonnes. First Coal 
 Corporation 3.9% NAV A private 
 company with a coking and PCI coal 
 project in British Columbia, Canada, 
 containing NI-43-101 compliant 
 resources of 78 million tonnes of 
 coal. The remainder of the Portfolio 
 (excluding cash) comprises seven 
 holdings totalling 5.4% NAV. Further 
 information is available on BSRT's 
 website: 
 www.bakersteelresourcestrust.com 
--------------------------------------  -------------------------------------- 
 Important Information This document is issued and approved by Baker Steel 
 Capital Managers LLP (authorised and regulated by the Financial Services 
 Authority). The information contained in this document is not intended to and 
 does not constitute an offer, solicitation, inducement, invitation or 
 commitment to purchase, subscribe to, provide or sell any securities, service 
 or product or to provide any recommendations which should be relied upon for 
 financial, securities, investment or other advice or to take any decision 
 based on such information. Individual advice should be sought from legal, 
 financial, personal and other advisors before making any investment or 
 financial decision or purchasing any financial, securities or 
 investment-related service or product. As a registered collective investment 
 scheme, shares in Baker Steel Resources Trust Ltd are not permitted to be 
 directly offered to the public in Guernsey but may be offered to regulated 
 entities in Guernsey or offered to the public by entities appropriately 
 licensed under the Protection of Investors (Bailiwick of Guernsey) Law 1987 
 as amended. 
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