Baker Steel Resources Trust Ltd Net Asset Value(s) (5183I)
July 04 2013 - 2:00AM
UK Regulatory
TIDMBSRT
RNS Number : 5183I
Baker Steel Resources Trust Ltd
04 July 2013
BAKER STEEL RESOURCES TRUST LIMITED
(Incorporated in Guernsey with registered number 51576 under the
provisions of The Companies (Guernsey) Law, 2008 as amended)
4 July 2013
28 June 2013 Unaudited NAV Statement
Net Asset Values
Baker Steel Resources Trust Limited (the "Company") announces
its unaudited net asset value per share as at 28 June 2013:
Net asset value per Ordinary Share: 69.6 pence
During the month, the NAV per share decreased by 24.8% primarily
as a result in the fall in the price of Ivanplats on the Toronto
Stock Exchange and write downs to Gobi Coal and Ferrous
Resources.
At 28 June 2013, the Company had a total of 66,142,533 Ordinary
Shares in issue.
The Company is fully invested with top 10 investments as follows
as a percentage of NAV:
Ivanplats Limited 16.8%
Bilboes Gold Limited 13.1%
Ironstone Resources Limited 12.4%
Gobi Coal & Energy Limited 12.1%
Black Pearl Limited Partnership 12.1%
China Polymetallic Mining Limited 10.2%
Polar Silver Resources Ltd 8.5%
Ferrous Resources Limited 6.1%
Metals Exploration plc 6.1%
South American Ferro Metals Limited 1.1%
Other Investments 2.8%
Net Cash, Equivalents and Accruals -1.3%
Investment Update
During the first 6 months of the year the NAV per share has
fallen 36.2% compared to the HSBC Global Mining Index which has
fallen 28.9% in Sterling terms.
At the half year and full year, the Board reviews whether
general market movements in mining equities should be reflected in
the carrying values of the unlisted holdings in the portfolio in
the absence of relevant transactions and taking into account the
specific progress and structure of each investment. In order to
quantify how the share price of a particular stock might have moved
during the period had it been listed, the Investment Manager
maintains an index of comparable listed companies for each unlisted
investment.
Following the review at 28 June 2013, the Board has decided to
write down the values of its holdings in Ferrous Resources Limited
and Gobi Coal Limited in line with movements in their respective
indices.
It is emphasised that these write downs are not a reflection of
the viability of Ferrous or Gobi's projects which remain robust,
rather a reflection of the general market movement of comparable
listed companies.
Ferrous Resources Limited ("Ferrous")
As mentioned in the 31 May 2013 NAV Statement, following a site
visit to Ferrous' operations in Brazil it appears that Ferrous is
making good progress on the ground under its new management and
generating positive EBITDA from its current operations. Despite
this and in the absence of any verifiable "grey market"
transactions since the beginning of the year, it has been decided
to write down the Company's carrying value of Ferrous by 40% in
line with the movement of an index of comparable listed iron ore
stocks.
The management of Ferrous is planning to be in a position by the
year end to announce how it will finance its major expansion to 17
million tonnes of iron ore product. It is expected that the terms
of such financing will allow the Company to review its valuation of
Ferrous again.
Gobi Coal & Energy Limited ("Gobi")
In mid 2012, Gobi halted development of its Shinejinst coking
coal project in Mongolia in the light of a deteriorating
environment for investment in Mongolia and weakening prices for
coking coal delivered at the Chinese border. Following this, the
Company wrote down its carrying value of Gobi by 38.5% in 2012.
Share prices of listed coal companies and in particular
Mongolian coals stocks have continued to deteriorate in the first
half of 2013 with the index attributable to Gobi falling
approximately 50%, of which around half might be attributed to be
specific to investor sentiment towards Mongolia. In line with this,
the Company has decided to reduce its carrying value of Gobi by
50%. The revised carrying value remains slightly above the
Company's acquisition price.
Shinejinst remains a good quality mining project and it is hoped
that the re-election of the incumbent President of Mongolia last
week will lead to an improvement in the investment climate in that
country and allow Gobi to move Shinejinst into production.
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") figure stated is 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 figure is 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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