TIDMBSRT
RNS Number : 8348J
Baker Steel Resources Trust Ltd
06 July 2011
BAKER STEEL RESOURCES TRUST LIMITED
(Incorporated in Guernsey with registered number 51576 under the
provisions of The Companies (Guernsey) Law, 2008 as amended)
06 July 2011
30 June 2011 NAV Statement
Net Asset Values
Baker Steel Resources Trust Limited (the "Company") announces
its net asset value and diluted net asset value per share as at 30
June 2011:
Net asset value per Ordinary share: 117.0 pence
Diluted net asset value per Ordinary share: 114.1 pence
During the month, the undiluted NAV per share rose by 0.5%, with
an increase in the value of the US Dollar in which the majority of
the investments are denominated against Sterling outweighing a fall
in the market price of some of the listed stocks in the
portfolio.
The Company has a total of 66,033,061 Ordinary Shares and
13,194,622 Subscription Shares in issue.
Portfolio update
Bilboes Holdings (Pvt) Limited ("Bilboes")
During June 2011, the Company completed a US$6 million
investment in Bilboes, a private Zimbabwean gold mining company
which owns four previously producing oxide mines in Zimbabwe and is
run by Victor Gapare, the former President of the Chamber of Mines
of Zimbabwe. Current JORC compliant resources signed off by
international consultant, SRK, total 778,000 ounces and SRK also
highlighted in its report the opportunity for Bilboes to expand the
current resource base significantly, through drilling of the
underlying sulphide mineralisation. Bilboes plans to use the
proceeds of the investment on drilling and the commencement of a
bankable feasibility study. The Company has acquired a 27.4%
interest in Bilboes through this investment and will be represented
on its Board.
The key recent concern for investment into Zimbabwe has been the
Government's requirement for projects to be owned 51% by indigenous
Zimbabweans. Bilboes was 100% locally owned prior to the Company's
investment, and following the investment it will continue to comply
with the 51% ownership threshold. Furthermore, the investment has
received the approval of the Reserve Bank of Zimbabwe, the Zimbabwe
Investment Authority and the Ministry of Youth Development
Indigenisation and Empowerment.
Ivanplats Limited ("Ivanplats")
Following shareholder approval in May 2011 for a reorganisation
of Ivanplats in anticipation of an IPO on a major international
stock exchange, Ivanplats has stated that the reorganisation will
not be put into effect until shortly before it files a preliminary
prospectus. Ivanplats has suggested that, subject to market
conditions, it will look at initiating the IPO later this year or
early in 2012.
On 3 June 2011, ITOCHU Corporation of Japan, acquired an 8%
interest in Ivanplats' Platreef Project in South Africa for 22.4
billion Japanese Yen, valuing the Platreef Project at approximately
US$3.5 billion. In early June, Ivanplats was granted a three-year
renewal of its prospecting permits for the Platreef Project. Using
the cash provided by the ITOCHU transaction, Ivanplats plans to
complete pre-feasibility and feasibility studies, headed by
principal contractor AMEC, which will support an application for a
mining licence and underground development. Accordingly, drilling
and related activities have been increased and a total of 21 drill
rigs are operational and more are scheduled to be added.
Ivanplats has publicly stated that its Kamoa copper deposit now
ranks as the most significant copper discovery in the Democratic
Republic of Congo since Belgian colonial-era exploration more than
100 years ago. Its drilling campaign has been stepped up with the
diamond drill fleet increased from five to seven rigs, and two
additional rigs presently in transit. A NI 43-101-compliant
resource update was completed by AMEC's Technical Director, Dr.
Harry Parker, effective 31 March, 2011, and it is reported by
Ivanplats that the resource update substantially increased
Indicated Resources and overall resource grade, although the
details of this report have not yet been made public.
Ivanplats has decided to apply for conversion of the Kamoa
Project to a Mining Licence to secure formal mining title for the
project in conjunction with intensive exploration and development
activities planned during the next several years. A full range of
studies is underway, including scoping/pre-feasibility (AMEC),
metallurgy (Xstrata Process Support), geotechnical (SRK
Consulting), hydrogeology (Golder) and socio-economic and
environmental (African Mining Consultants).
The Company is 99.5% invested with top 10 shareholdings as
follows as a percentage of NAV:
Ivanplats Limited 27.6%
Gobi Coal & Energy Limited 16.9%
Ferrous Resources Limited 13.8%
First Coal Corporation 7.6%
Ironstone Resources Limited 7.0%
Silver China 5.6%
Bilboes Holdings 4.8%
Copperbelt Minerals Limited 4.3%
Polar Silver 4.1%
Forbes & Manhattan Coal Corporation 2.7%
Other Investments 5.1%
Net Cash and Equivalents 0.5%
Update on Investments
Ferrous Resources Limited ("Ferrous")
During June 2011, Ferrous announced it had been awarded the
Preliminary Licence (PL) for its 400km slurry pipeline. The
pipeline will connect its Viga mine in Congonhas, Minas Gerais, to
its Port Terminal in Presidente Kennedy, Espirito Santo State. The
pipeline is expected to transport 25Mtpa of iron ore from 2014. The
PL marks the approval of the Environmental Impact Study for the
slurry pipeline by the Brazilian Institute of Environment and
Natural Resources, and follows a period of extensive engagement
with local authorities and communities, including seventy public
hearings. Ferrous will now begin to apply for an Installation
Licence (IL) which, once awarded, would permit construction of the
pipeline to start. Ferrous expects the IL to be awarded in the
second half of 2011.
The licence for the pipeline is the last key regulatory
milestone in the development of Ferrous' fully integrated iron ore
project in Brazil following earlier approvals for the mining and
port licences. Ferrous also announced that over the last year it
has successfully acquired 90% of land through which the pipeline
will pass and remains confident of securing the remaining 10% of
land.
Further details of the Company and its investments are available
on the Company's website
www.bakersteelresourcestrust.com
Enquiries:
Baker Steel Resources Trust Limited +44 20 7389 8237
Francis Johnstone Trevor Steel
Winterflood Investment Trusts +44 20 3100 0291/0250
Robert Peel
James Moseley
RBC Capital Markets +44 20 7653 4000
Martin Eales
Pelham Bell Pottinger
Lorna Spears +44 20 7861 3883
Charles Vivian +44 20 7861 3126
This information is provided by RNS
The company news service from the London Stock Exchange
END
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