SVE Starvest Plc

 
TIDMSVE 
 
Thursday 2 July 2009 
 
 
Chairman's update for shareholders - 2 July 2009 
Investment performance 
Although Starvest  has  maintained  its position  this  quarter,  the 
investment performance has been mixed.  At 30 June 2009, the  closing 
portfolio net  asset  value was  marginally  ahead at  GBP4.3m,  a  10% 
increase in the nine  months since 30  September 2008.  However,  the 
net asset value per share has not moved in the quarter since 31 March 
2009. 
Starvest  now  uses  closing  bid  prices  or  the  Directors'  lower 
valuation, if deemed appropriate.  This prudent valuation basis first 
adopted when preparing the Starvest annual financial statements at 30 
September 2008 has proved to be fully justified. 
Company statistics 
 
                          30 June   31 March 31 December 30 September 
                             2009       2009        2008         2008 
                                                  At BID       at BID 
                           At BID     at BID      values       values 
                           values     values 
Trading portfolio value     GBP4.3m     GBP4.25m      GBP3.92m        GBP3.9m 
Company asset value net    GBP3.62m     GBP3.62m      GBP3.23m        GBP3.4m 
of debt 
Net asset value - fully     10.01      10.01  8.98 pence   9.06 pence 
diluted per share           pence      pence 
Share price - mid       9.5 pence 6.25 pence     6 pence       12.25p 
Share price discount to        5%        37%         33%  35% premium 
fully diluted net asset 
value 
Market capitalisation      GBP3.31m     GBP2.18m      GBP2.09m       GBP4.28m 
 
 
Comment 
Market conditions  remain fragile.   However, there  are early  signs 
that underlying prices for raw  materials are hardening which in  due 
course will impact on  share prices.  For example,  in July 2008  the 
price of nickel was $22,000 per tonne; by October 2008 it had  fallen 
to $9,000 since when it has gradually recovered to $16,000.  Although 
even at this level it  may be below the  cost of production for  many 
miners, it remains a positive change. 
The junior explorers in which Starvest is predominantly invested  are 
not generating  cash,  rather they  are  consumers of  cash  as  they 
continue  with  their  exploration  programmes  towards  establishing 
proven resources.  In the economic circumstances of the past year  it 
has been extremely difficult for many of them to raise the  essential 
new cash  except at  a discount  to those  market prices  which  were 
common a  year ago.   These  tough circumstances  continue so  it  is 
unsurprising that the values of some investments have fallen and will 
take time to recover. 
On the other hand, we are delighted to note that some of our investee 
companies are making significant advances with their programmes, some 
even drawing close to generating revenue  so we hope for share  price 
improvements in the near future. 
The Board  continues to  believe  that it  has within  its  portfolio 
investments with considerable potential and  is hoping for an  upturn 
during 2010, possibly earlier for some. 
Shareholders who wish to  receive electronic copies of  announcements 
are invited to register their email  address on the home page of  the 
Company website: www.starvest.co.uk. 
 
R Bruce Rowan 
Chairman & Chief Executive 
2 July 2009 
 
 
 
Enquiries to: 
Bruce Rowan, Chairman 020 7486 3997 or John Watkins, Finance Director 
07768 512404; john@starvest.co.uk 
Gerry Beaney or Colin Aaronson Grant Thornton UK LLP 020 7383 5100 
END 
 
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solely responsible for the content of this announcement. 
 

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