Baker Steel Resources Trust Ltd Net Asset Value(s) (1570L)
July 02 2014 - 2:02AM
UK Regulatory
TIDMBSRT
RNS Number : 1570L
Baker Steel Resources Trust Ltd
02 July 2014
BAKER STEEL RESOURCES TRUST LIMITED
(Incorporated in Guernsey with registered number 51576 under the
provisions of The Companies (Guernsey) Law, 2008 as amended)
2 July 2014
30 June 2014 Unaudited NAV Statement
Net Asset Value
Baker Steel Resources Trust Limited (the "Company") announces
its unaudited net asset value per share at 30 June 2014:
Net asset value per Ordinary Share: 53.0 pence
During the month, the NAV per share decreased by 9.4%
predominantly due to a write down in the carrying value of Gobi
Coal and Energy as well falls in the listed prices of Metals
Exploration and China Polymetallic Mining. This has been
exacerbated by the increase in Sterling against the US Dollar and
Canadian Dollar in which the majority of the Company's investments
are denominated.
At 30 June 2014, the Company had a total of 68,401,890 Ordinary
Shares in issue.
The Company is fully invested with top 10 investments as follows
as a percentage of NAV:
Black Pearl Limited Partnership 15.4%
Ivanhoe Mines Limited 15.1%
Ironstone Resources Limited 14.0%
Polar Silver Resources Ltd 13.8%
Bilboes Gold Limited 11.1%
Metals Exploration plc 8.8%
Ferrous Resources Limited 6.9%
Gobi Coal & Energy Limited 6.8%
China Polymetallic Mining Limited 4.4%
South American Ferro Metals Limited 1.6%
Other Investments 2.4%
Net Cash, Equivalents and Accruals -0.3%
Investment Update
Gobi Coal & Energy Limited ("Gobi")
At the half year and full year, the Board reviews whether
general market movements in mining equities should impact the
carrying values of the unlisted holdings in the portfolio in the
absence of relevant transactions whilst 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.
At 30 June 2013, the Company reduced its carrying value of Gobi
in the light of a deteriorating environment for investment in
Mongolia and weakening prices for coking coal globally and more
specifically coking coal delivered at the Chinese border. Although
there are reasons to be optimistic about the future investment
climate in Mongolia, with the Government recently revoking various
protectionist laws and ministers stating that they wish to promote
foreign investment, the demand for Mongolian coal at the Chinese
border has remained extremely weak. As a result, listed Mongolian
coal stocks have fallen by approximately 50% over the past year and
the Company has decided to reduce its carrying value of Gobi in
line with this.
Gobi's Shinejinst coking coal project in Mongolia remains a high
quality mining asset and it is hoped that the discount to the
international coking coal price that China is prepared to pay for
Mongolian coal will narrow in due course and allow Gobi to move
Shinejinst into full scale production.
Polar Silver Resources Limited ("Polar Silver") ZAO Argentum
Loan Notes
At the end of June the Company acquired a further US$2,500,000
of convertible loans to ZAO Argentum the wholly owned subsidiary of
Polar Silver. ZAO Argentum owns a 50% interest in the high grade
Prognoz silver project in Russia. Prognoz has aNI 43-101 compliant
Indicated Resource of 5.86 million tonnes of ore grading 773 g/t
silver containing 146 million ounces of silver and Inferred
Resources of 9.64 million tonnes of ore grading 473 g/t silver
containing 147 million ounces of silver at Prognoz. A NI 43-101
compliant preliminary economic assessment (PEA) envisages a mine
producing an average of 16 million ounces of silver per annum over
the first 10 years of production, with pre-production capital costs
of US$270 million and an average operating cost of US$6.61 per
ounce of silver.
This acquisition was an attractive opportunity to raise the
Company's effective interest in the Tier 1 Prognoz silver project
from 7.5% to 10.6%.
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
Numis Securities Limited +44 20 7260 1000
David Benda (corporate)
James Glass (sales)
Bell Pottinger
Lorna Cobbett +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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