Baker Steel Resources Trust Ltd Net Asset Value(s) (7438S)

TIDMBSRT

RNS Number : 7438S

Baker Steel Resources Trust Ltd

05 December 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 December 2012

30 November 2012 Unaudited 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 30 November 2012:

Net asset value per Ordinary Share: 110.3 pence

Diluted net asset value per Ordinary Share: 108.6 pence

During the month, the undiluted NAV per share was largely unchanged rising by 0.5% with no major movements in any of the Company's positions.

The Company has a total of 66,142,533 Ordinary Shares and 13,085,150 Subscription Shares in issue. Holders of Subscription Shares have the right to subscribe for Ordinary Shares at 100 pence in cash on one further occasion being 2 April 2013.

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

 
 Ivanplats Limited              35.5% 
 Gobi Coal & Energy Limited     18.1% 
 China Polymetallic Mining 
  Limited                        8.7% 
 Ironstone Resources Limited     8.2% 
 Black Pearl                     6.7% 
 Ferrous Resources Limited       6.1% 
 Bilboes Gold                    5.8% 
 Polar Silver                    5.1% 
 Metals Exploration plc          3.5% 
 South American Ferro Metals 
  Limited                        2.4% 
 Other Investments               4.1% 
 Net Cash, Equivalents and 
  Accruals                      -4.2%

Investment Update

Bilboes Gold Limited ("Bilboes")

During November 2012, Bilboes received a JORC compliant resource report from independent consultants, compiled following its 16,000 metre resource definition diamond drilling campaign earlier in the year. Contained gold in the global sulphide resources at Bilboes's Isabella/McCays/Bubi complex increased impressively from 534,000 ounces of gold to 3,964,000 ounces of gold. The mineralisation is open along strike and at depth so there is good potential for these mineral resources to be increased.

The resource classification based on JORC guidelines is summarised below:

 
                              Indicated                           Inferred                 Total 
----------------  ---------------------------------  ---------------------------------  ----------- 
 Orebody           Tonnes       Grade    Contained    Tonnes       Grade    Contained    Contained 
                    (million)    (g/t)    Gold (oz)    (million)    (g/t)    Gold (oz)    Gold (oz) 
----------------  -----------  -------  -----------  -----------  -------  -----------  ----------- 
 Bubi                    13.3     1.67      713,030         14.4     1.84      851,960    1,564,990 
----------------  -----------  -------  -----------  -----------  -------  -----------  ----------- 
 Isabella North           6.4     2.60      537,200          7.9     2.46      625,650    1,162,850 
----------------  -----------  -------  -----------  -----------  -------  -----------  ----------- 
 Isabella South           5.7     2.63      484,370          2.3     2.48      185,900      670,270 
----------------  -----------  -------  -----------  -----------  -------  -----------  ----------- 
 McCays                   3.9     2.14      266,610          5.4     1.72      299,050      565,660 
----------------  -----------  -------  -----------  -----------  -------  -----------  ----------- 
 Total                   29.3     2.12    2,001,210         30.0     2.03    1,962,560    3,963,770 
----------------  -----------  -------  -----------  -----------  -------  -----------  -----------

An analysis is currently being undertaken to determine how much of the mineral resources will be contained in the proposed open pits. Bilboes is in advanced discussions to raise funds for further drilling and the production of a definitive feasibility study into an open pit mine producing 100,000 - 200,000 ounces of gold per annum. Bilboes will remain more than 51% indigenous following this fund raising.

Bilboes has recently signed a facility agreement with The Industrial Development Corporation of South Africa for the provision of a US$7 million loan to redevelop the previously producing oxide heap leach operations at the Isabella/McCays/Bubi complex. The final conditions precedent to drawdown are in the process of being satisfied and first drawdown is expected before the end of 2012. The mines are scheduled to be producing at the rate of approximately 12,000 ounces per annum by the end of 2013 at an operating cost of around US$750 per ounce which should provide useful cashflow for the further development of Bilboes.

The Company's current carrying value for Bilboes values it at approximately US$22 million or US$5.50 per ounce of JORC compliant resource. The carrying value will be reviewed following the completion of the current financing.

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

The Net Asset Value ("NAV") figures stated are based on unaudited estimated valuations of the underlying investments and not necessarily based on observable inputs. Such estimates are not subject to any independent verification or other due diligence and may not comply with generally accepted accounting practices or other generally accepted valuation principles. In addition, some estimated valuations are based on the latest available information which may relate to some time before the date set out above.

Accordingly, no reliance should be placed on such estimated valuations and they should only be taken as an indicative guide. Other risk factors which may be relevant to the NAV figures are set out in the Company's Prospectus dated 31 March 2010.

This information is provided by RNS

The company news service from the London Stock Exchange

END

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