28 May 2010 NAV Statement

RNS Number : 0010N

Baker Steel Resources Trust Ltd

03 June 2010

 



BAKER STEEL RESOURCES TRUST LIMITED

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

28 May 2010 NAV Statement

Net Asset Values

Baker Steel Resources Trust Limited ("the Company") announces its net asset value per share as at 28 May 2010:

Net asset value per Ordinary share - undiluted: 100.8 pence

Net asset value per Ordinary share - diluted: 100.7 pence

During the month the NAV rose by 3.0% mainly as a result of the weakness of Sterling against the US Dollar and Canadian Dollar in which the majority of the portfolio is denominated.

The Company has a total of 66,023,089 Ordinary Shares and 13,204,594 Subscription Shares in issue.

Portfolio update

During May 2010, the Company acquired a further 2.2% stake in Gobi Coal and now holds 8.2% of that company. 

As a result of the above transaction the Company is 64.6% invested with the top 5 shareholdings as follows as a percentage NAV:

Ferrous Resources Limited	22.30%
Ivanhoe Nickel and Platinum Limited	17.80%
Gobi Coal & Energy Limited	10.70%
Copperbelt Minerals Limited	5.60%
First Coal Corporation	3.50%
Other Investments	4.70%
Net Cash	39.30%

The Investment Manager continues to evaluate a number of new private investment opportunities and in addition, the recent "pull back" in the prices of listed equities has increased potential opportunities in the listed space. Further information on any significant new investments will be made following acquisition.

Update on Investments

Ferrous Resources Limited ("Ferrous")

On 17 May 2010 Ferrous formally announced its intention to list its shares on the London Stock Exchange with a raising of US$350-$400 million sponsored by J.P. Morgan Cazenove. On 2 June 2010, Ferrous subsequently announced that it had decided to postpone the Initial Public Offering "in the light of unfavourable market conditions." It should be noted that the Company is holding its position in Ferrous at US$3.50 per share compared to its last fund raising in July 2008 in which it raised US$451 million at US$4.50 per share.

On 24 May 2010, Ferrous announced that the Minas Gerais state government has published a decree that the iron ore slurry pipeline which is planned to connect Ferrous' Viga property to its planned port in Espƒrito Santo is 'in the public interest'. This is an important step in the development of Ferrous' pipeline infrastructure as it effectively allows the company to compulsorily acquire rights of way along the proposed pipeline route.

On 24 May 2010, Ferrous also announced the signing of two non-binding Memoranda of Understanding covering the off-take of iron ore concentrate, bringing the total number of offtake MOUs it has signed in recent months to eight.

Copperbelt Minerals Limited ("Copperbelt")                         

On 7 May 2010, an announcement was made by Zijin Mining Limited, a company listed on the Hong Kong Stock Exchange, that it had entered into an agreement to acquire all of the assets of Copperbelt at a cash purchase price of US$26.55 per share compared to the Company's current carrying value of US$20 per share. The transaction is subject to a number of conditions precedent being met, in particular the consent of the government of the Democratic Republic of Congo which is required to be obtained by 30 July 2010.

Further information on the Company and its investments can be found on the Company's website www.bakersteelresourcestrust.com 

Enquiries:

Baker Steel Resources Trust Limited [phone]

Francis Johnstone
Trevor Steel

Winterflood Investment Trusts [phone]/0250

Robert Peel

James Moseley

RBC Capital Markets [phone]

Martin Eales

Pelham Bell Pottinger

Damian Beeley [phone]

Charles Vivian [phone]

 

END

 

 

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