28 October 2011 NAV Statement (5917R)
November 07 2011 - 3:13AM
UK Regulatory
TIDMBSRT
RNS Number : 5917R
Baker Steel Resources Trust Ltd
07 November 2011
BAKER STEEL RESOURCES TRUST LIMITED
(Incorporated in Guernsey with registered number 51576 under the
provisions of The Companies (Guernsey) Law, 2008 as amended)
7 November 2011
28 October 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 28
October 2011:
Net asset value per Ordinary share: 113.1 pence
Diluted net asset value per Ordinary share: 110.9 pence
During the month, the undiluted NAV per share fell by 4.7 %
largely due to a write down in the value of the Company's holding
in Copperbelt Minerals and a recovery during October in the
exchange rate of Sterling against the US Dollar, the denomination
of the Company's largest investments.
The Company has a total of 66,033,061 Ordinary Shares and
13,194,622 Subscription Shares in issue.
Portfolio update
Copperbelt Minerals Limited ("Copperbelt")
During October 2011, Copperbelt successfully raised US$7.1
million through a deeply discounted rights issue to shareholders at
US$8 per unit of one share plus two warrants to acquire shares at
US$21.50 per share for one year. This compares to Copperbelt's
previous fund raising at US$21.50 per share and the Company's
carrying value at 30 September 2011 of US$20.00 per share. It
should also be compared with the US$25.50 per share offer by CAD
Fund which expired on 31 May 2011 as all the requisite consents
including that of the government of the Democratic Republic of
Congo and Copperbelt's joint venture partner, the parastatal
Gecamines had not been achieved. Prior to 31 May 2011, Copperbelt
informed CAD Fund that they did not intend to renew the sale deed
on the same terms beyond 31 May 2011 if the relevant approvals were
not forthcoming, given the significant increase in valuations for
Central African copper projects seen during the previous 9
months.
As part of the Rights Issue raising, Copperbelt brought in
Solway Industries Limited, part of the Solway Group ("Solway") to
acquire shares in Copperbelt on the same terms as the rights issue
together with an agreement to acquire further shares at US$21.50
per share dependent on certain conditions precedent being satisfied
including the consent of Gecamines.
US$8 per Copperbelt share was considered a good buying
opportunity and accordingly the Company participated in the rights
issue. However, the further issue of shares to Solway at US$21.50
per share remains uncertain and accordingly the carrying value of
the shares has been reduced from the value at the end of September.
This has had an effect of reducing the NAV by 2.7% in Sterling
terms. The carrying value of Copperbelt will continue to be under
review.
Black Pearl Limited Partnership ("Black Pearl")
During October the Company invested US$7 million into Black
Pearl, a special purpose vehicle formed to invest in the Black
Pearl beach placer iron sands project in West Java, Indonesia. The
Black Pearl concession area is 15,000 ha of which 1,600 ha has been
drilled. Current JORC compliant mineral resources stand at 572
million tonnes grading 11% Fe and a drilling programme is currently
underway. Once complete, resources are expected to sustain
operations for at least 15 years.
Mine construction has commenced following a feasibility study
undertaken by China Metallurgical Industry Planning and Research
Institute. An independent review of capital and operating costs was
undertaken by Minarco. At full capacity, the mine is expected to
produce 10 million tonnes per annum of iron ore concentrate grading
58-60% Fe. Commissioning is scheduled for the first half of 2012
prior to an expected listing at the end of 2012. Off-take
agreements are being negotiated with a number of Chinese steel
mills, one of which has also invested US$50M in the project.
The Company is 98.8% invested with top 10 shareholdings as
follows as a percentage of NAV:
Ivanplats Limited 28.4%
Ferrous Resources Limited 14.2%
Gobi Coal & Energy Limited 14.1%
Ironstone Resources Limited 6.9%
Black Pearl 5.8%
Silver China 5.7%
Metals Exploration plc 5.0%
Bilboes Holdings 5.0%
Polar Silver 4.4%
South American Ferro Metals 2.8%
Other Investments 6.5%
Net Cash and Equivalents 1.2%
Ferrous Resources Limited ("Ferrous")
During October, it was reported in the media that BHP Billiton
may be considering a bid for Ferrous. Whilst a spokesperson for
Ferrous commented that it was still in the process of choosing the
strategic partner and no deadline had been set, the emergence of
speculation in the media suggests that the strategic process being
conducted by Deutsche Bank is nearing its conclusion.
South American Ferro Metals Limited ("SAFM")
On 27 October 2011, SAFM announced that it had met the
production milestone for the conversion of its "C" performance
shares achieving production over a continuous twelve month period
at a rate equal to or greater than 800,000 tonnes per annum. The
"A" performance shares were converted in February 2011 leaving only
the "B" performance shares remaining to be converted. The milestone
triggering the "B" performance shares is expected to be achieved
around the end of 2011 when a resource definition report is due,
incorporating the results of the recently completed drilling
campaign.
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 0290/0250
Robin Archibald
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
NAVUGGGGGUPGURM
Baker Steel Resources (LSE:BSRT)
Historical Stock Chart
From Jun 2024 to Jul 2024
Baker Steel Resources (LSE:BSRT)
Historical Stock Chart
From Jul 2023 to Jul 2024