Baker Steel Resources Trust Ltd 31 July 2013 Unaudited NAV Statement (8984K)

TIDMBSRT

RNS Number : 8984K

Baker Steel Resources Trust Ltd

05 August 2013

BAKER STEEL RESOURCES TRUST LIMITED

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

5 August 2013

31 July 2013 Unaudited NAV Statement

Net Asset Values

Baker Steel Resources Trust Limited (the "Company") announces its unaudited net asset value per share as at 31 July 2013:

Net asset value per Ordinary Share: 69.3 pence

During the month, the NAV per share decreased by 0.4% with no significant movements in any of the Company's positions.

At 31 July 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                            16.6% 
 Bilboes Gold Limited                         13.1% 
 Ironstone Resources Limited                  12.7% 
 Black Pearl Limited Partnership              12.3% 
 Gobi Coal & Energy Limited                   12.2% 
 China Polymetallic Mining Limited             9.7% 
 Polar Silver Resources Ltd                    8.5% 
 Ferrous Resources Limited                     6.2% 
 Metals Exploration plc                        6.2% 
 South American Ferro Metals Limited           1.6% 
 Other Investments                             2.4% 
 Net Cash, Equivalents and Accruals           -1.5%

Investment Update

Metals Exploration plc ("Metals Ex")

On 19 June 2013 Metals Ex announced that full construction of its Runruno gold project in the Philippines would commence on 1 July 2013. It is expected that the build duration will take around 15 months to first pour, forecast for early Q4 2014. The longest lead-time item in the equipment procurement schedule for construction of the process plant, is for a SAG mill which will be manufactured in China and is expected to be fully delivered in May 2014 with commissioning by the end of Q3 2014.

The Investment Manager took the opportunity to visit Runruno at the beginning of July to confirm progress on site. Initial earthmoving works and construction work appeared to have been carried out to a high standard and Runruno has every potential of being a low cost gold mine producing around 100,000 ounces per annum. The key challenge for management will be developing the asset without major delays or cost overruns.

Black Pearl Limited Partnership ("Black Pearl")

The Investment Manager also recently visited Black Pearl's iron sands project in Indonesia where significant progress has been made on its development. The project is currently in the trial production phase with two dredges and one separation ship being commissioned. Preliminary testwork indicates that a 60% Fe concentrate can be produced, which is slightly higher grade than previously anticipated. The first commercial shipment of concentrate is scheduled to be made during September 2013 and production will ramp up to the planned 10Mtpa sales rate thereafter.

The project is now fully funded, with the US$169.5m facility having been agreed with a Chinese Bank, a respectable achievement given current market conditions for developing iron ore projects. Black Pearl's competitive advantages are that its simple processing method will mean low operating and capital costs and its proximity to China will result in a low shipping cost.

Purchase of Shares in the Company

During the first half of the month, an investment company representing the interests of the Investment Manager acquired 150,000 shares in BSRT in the open market, adding to the already significant shareholding of the Company held directly or indirectly by partners of the Investment Manager and its Investment Advisors. The purchase underlines the confidence of the Investment Manager in the inherent fundamental value of the BSRT investment portfolio.

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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