Baker Steel Resources Trust Ltd 29 June 2012 NAV Statement (8890G)

TIDMBSRT

RNS Number : 8890G

Baker Steel Resources Trust Ltd

05 July 2012

BAKER STEEL RESOURCES TRUST LIMITED

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

5 July 2012

29 June 2012 NAV Statement

Net Asset Values

Baker Steel Resources Trust Limited (the "Company") announces its unaudited net asset value and diluted net asset value per share as at 29 June 2012:

Net asset value per Ordinary Share: 114.9 pence

Diluted net asset value per Ordinary Share: 112.5 pence

During the month, the undiluted NAV per share fell by 3.9%, largely due to falls in the market prices of certain of the listed investments in the portfolio together with a reduction in the carrying value of Copperbelt Minerals Limited.

The Company has a total of 66,140,610 Ordinary Shares and 13,087,073 Subscription Shares in issue.

Portfolio update

Copperbelt Minerals Limited ("Copperbelt")

During June 2012, Copperbelt undertook a discounted rights issue in which the Company participated on a pro rata basis. In line with its valuation policy, the Company reduced the carrying value of its investment to the price at which the rights issue was undertaken. In addition, Copperbelt made an offer to buy back its outstanding warrants in return for the issue of ordinary shares. The Company accepted this offer in respect of the warrants held. The net effect of both these actions has been a decrease in NAV of approximately 1.2%.

Since the abortive takeover of Copperbelt last year by the Chinese African Development Fund, Copperbelt has been in discussions with its partner Gecamines regarding the future financing and development of their joint venture concerning the Deziwa copper project in the Democratic Republic of Congo. The funds raised by the rights issue have provided Copperbelt with working capital to continue these negotiations.

The Company is fully invested with top 10 investments as follows as a percentage of NAV:

 
 Ivanplats Limited              28.7% 
 Gobi Coal & Energy Limited     23.1% 
 China Polymetallic Mining 
  Limited                        8.8% 
 Ironstone Resources Limited     7.9% 
 Ferrous Resources Limited       7.2% 
 Black Pearl                     6.2% 
 Bilboes Holdings                5.2% 
 Polar Silver                    4.9% 
 Metals Exploration plc          3.2% 
 South American Ferro Metals 
  Limited                        2.8% 
 Other Investments               4.6% 
 Net Cash, Equivalents and 
  Accruals                      -2.6%

Update on Investments

South American Ferro Metals Limited ("SAFM")

On 1 June 2012, SAFM announced that it had completed construction of a concentrator at its Ponto Verde mine and successfully installed a cone crusher within the processing plant. The new plant was expected to reach steady state production of 20,000-24,000 tonnes of concentrate per month, at a planned grade of 65-66% Fe by mid-June 2012. The concentrator is processing the fines material that is discharged from the existing beneficiation plant, which has previously been stockpiled. The addition of the concentrator will increase saleable product from Ponto Verde by around 50% and will have a material positive impact on SAFM's monthly cash flow. A second stage concentrator to increase recovery further is being considered and in addition a definitive feasibility study is underway to expand the operation from 1.5 million run of mine ("ROM") tonnes mined per annum to 8 million ROM tonnes per annum.

Ferrous Resources Limited ("Ferrous")

On 26 June 2012, Ferrous announced that following a comprehensive review of Ferrous' strategic options and operations by Ferrous' new CEO, Jayme Nicolato Correa, Ferrous has decided upon a step-by-step organic growth strategy. This approach will allow Ferrous to grow as a standalone entity by reducing overall funding requirements. Ferrous also announced that following the commencement of operations last year, it has turned EBITDA positive. Ferrous aims to produce 3 million tonnes of ore for 2012 and increase production capacity to 5 million tonnes of ore whilst completing feasibility studies for its infrastructure network and the Viga mine and obtaining the necessary licensing at Viga Norte and Serrinha. These operational objectives will be fully funded from balance sheet cash and cash flow from existing operations and require no additional capital raising.

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

   RBC Capital Markets                                       +44 20 7653 4000

Martin Eales

   Winterflood Investment Trusts                           +44 20 3100 0250

James Moseley

Pelham Bell Pottinger

   Lorna Spears                                                    +44 20 7861 3883 
   Joanna Boon                                                     +44 20 7861 3867

This information is provided by RNS

The company news service from the London Stock Exchange

END

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