TIDMBSRT
RNS Number : 0355P
Baker Steel Resources Trust Ltd
05 February 2019
BAKER STEEL RESOURCES TRUST LIMITED
(Incorporated in Guernsey with registered number 51576 under the
provisions of The Companies (Guernsey) Law, 2008 as amended)
5 February 2019
31 January 2019 Unaudited NAV Statement
Net Asset Value
Baker Steel Resources Trust Limited (the "Company") announces
its unaudited net asset value per share at 31 January 2019:
Net asset value per Ordinary Share: 59.7 pence
Since 31 December 2018 the NAV per share has increased by 2.4%,
primarily due to the continued rise in the share price of Polymetal
International Plc on the London Stock Exchange ("LSE"), the
recovery in the price of Metals Exploration PLC on the AIM market
of the LSE and in the price of Ivanhoe Mines Ltd on the Toronto
Stock Exchange.
The Company had a total of 116,139,980 Ordinary Shares in issue
with a further 700,000 shares held in treasury as at 31 January
2019.
Portfolio Update
The Company's top 10 investments are as follows as a percentage
of NAV:
Polymetal International Plc 29.1%
Futura Resources Ltd 16.4%
Bilboes Gold Limited 12.6%
Cemos Group plc 9.9%
Polar Acquisition Ltd 9.1%
Sarmin Minerals Exploration 4.9%
Black Pearl Limited Partnership 3.8%
Nussir ASA 3.2%
PRISM Diversified Ltd 2.7%
Ivanhoe Mines Limited 2.6%
Other Investments 4.8%
Net Cash, Equivalents and Accruals 1.5%
Investment Update
Polymetal International PLC ("Polymetal")
On 31 January 2019, Polymetal announced that it had produced
977,000 gold equivalent ounces in the fourth quarter of 2018. Full
year 2018 production totalled 1,562,000 gold equivalent ounces, up
9% on the previous year and exceeding Polymetal's original
production guidance of 1,550,000 gold equivalent ounces. In
addition, due to the weaker Rouble exchange rate against the US
Dollar, Polymetal's All-in-Sustaining Cash Costs are expected to be
towards the low end of its guidance of US$875-925 per gold
equivalent ounce.
Polymetal shares have reflected this strong operating
performance in the last few months, rising 5.6% during January 2019
and from its recent low around GBP6.00 per share in September 2018
to GBP8.62 per share at the end of January 2019.
Metals Exploration PLC ("Metals Ex")
On 30 January 2019, Metals Ex announced its operating results
for the fourth quarter of 2018. 11,016 ounces of gold were sold
from its Runruno Mine in the Philippines, compared to 10,522 ounces
the previous quarter though still well below the 25,000 ounces per
quarter target. During January 2019, the Investment Manager met
with Metals Ex's new Chief Executive, Darren Bowden, who appeared
confident that there were no fatal flaws with the mine and believed
that he could turn around the operating performance at Runruno
fairly rapidly.
During January 2019 the share price of Metals Ex more than
trebled on the AIM market of the LSE after falling 73% during
December 2018. As such at 31 January 2019 its share price was 15.5%
down from the beginning of December 2018. The shares are likely to
remain volatile until Metals Ex is able to complete the refinancing
of its loans.
Cemos Group PLC ("Cemos")
During January 2019, Cemos reported a positive reception by its
customers to the quality of cement now being produced and sold from
its Phase 1 cement plant operation in Morocco. The cement plant is
one month into its planned ramp up of production and sales and is
now generating positive operating cashflow. At full capacity for
the initial Phase 1, targeted to be achieved by the end of 2019,
the operation is anticipated to generate over Euro 10m in EBITDA
per annum. The Company's investment is via equity and convertible
unsecured loan stock ("CULS") and currently implies a value of Euro
25.2m for CEMOS. BSRT owns around 31.2% pro-forma of CEMOS assuming
full conversion of all CULS into equity.
Ivanhoe Mines Limited ("Ivanhoe")
On 30 January 2019, Ivanhoe announced the results of drill hole
DD1450 at its Kamoa copper project in the Democratic Republic of
Congo which intersected 13.05% copper over 22.3 metres. Although
this is only one exploration drill hole it highlights the
extraordinary copper grades being discovered at Kamoa which is
already the fourth biggest copper discovery in the world. Ivanhoe's
share price responded well to the news, rising 20% during the month
on the Toronto Stock Exchange.
Futura Resources Limited ("Futura")
On 1(st) February 2019, the Company announced the acquisition of
a 0.75% Gross Revenue Royalty ("GRR") on the metallurgical coal
assets of Futura in Queensland, Australia for A$6 million, together
with the option to acquire an additional 0.25% GRR for a further
A$2 million. At consensus long term average prices for
metallurgical and thermal coal, the Royalties (assuming the option
is exercised and therefore a 1% GRR) are anticipated to generate
around A$3.5m per annum for the Company before tax once Futura's
properties reach full production. Production from Wilton is
expected to commence mid-2019, with first royalty payments made to
the Company on a quarterly basis thereafter. Production from
Fairhill is scheduled to commence in 2020 and then aggregate coal
production will ramp-up to a targeted sustainable level of 2.5
million tonnes of coal per annum of saleable processed coal by
2021/2 for at least 25 years
The Company's acquisition of these royalties follows good
progress by Futura towards production following the Company's A$10m
investment in Futura around a year ago. It is supportive of the
strategy to add additional royalties to the Company's portfolio in
order to generate meaningful income which can in turn be passed on
to shareholders through the returns policy. It is the second
significant royalty asset to be acquired by the Company after the
Net Smelter Royalty on the Prognoz silver asset held through Polar
Acquisition Limited.
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)
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 are set
out in the Company's Prospectus dated 26 January 2015.
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
END
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