Net Asset Value(s)

RNS Number : 4926M

Baker Steel Resources Trust Ltd

08 May 2015

 



BAKER STEEL RESOURCES TRUST LIMITED

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

8 May 2015

30 April 2015 Unaudited NAV Statement

Net Asset Value

Baker Steel Resources Trust Limited (the "Company") announces its unaudited net asset value per share at 30 April 2015:

Net asset value per Ordinary Share:  44.5 pence

Since 31 March 2015, the NAV per share has risen by 2.8% largely due to a 26% increase in the price of Ivanhoe Mines on the Toronto Stock Exchange, an increase in the value of China Polymetallic Mining Limited on the Hong Kong Stock Exchange and an increase in the carrying value of Ferrous Resources Limited. The appreciation of Sterling against the US$ and Canadian Dollar reduced the gain during the month.

The Company had a total of 115,268,335 Ordinary Shares in issue as at 30 April 2015.

Portfolio Update

The Company is fully invested with top investments as follows as a percentage of NAV:

Polar Silver Resources Ltd	18.8%
Global Oil Shale Group plc	18.2%
Black Pearl Limited Partnership	13.2%
Ivanhoe Mines Limited	9.5%
Bilboes Gold Limited	9.3%
Metals Exploration plc	7.2%
Gobi Coal & Energy Limited	5.4%
Archipelago Metals Limited	4.3%
China Polymetallic Mining Limited	3.8%
Ironstone Resources Limited	2.9%
Ferrous Resources Limited	2.6%
Other Investments	4.1%
Net Cash, Equivalents and Accruals	0.7%

Ferrous Resources Limited ("Ferrous")

On 25 April 2015, Ferrous entered into an Implementation Agreement pursuant to which a wholly-owned subsidiary of Icahn Enterprises Holdings L.P. ("Icahn") has agreed to launch a tender offer for any and all Ferrous shares at a price of US$0.36 per share and to buy up to US$40,000,000 of new shares at US$0.20 per share.

Following the fall in iron ore prices, Ferrous has suspended operations at its Santanese and Esperanca iron ore mines. This has left the Viga mine as Ferrous's only operating mine, which is reported by Ferrous management to be operating at marginal levels of profitability that are not able to support Ferrous's care and maintenance costs at its other mines as well as its corporate overhead. The outlook for iron ore has also meant Ferrous has struggled to raise the US$1.2 billion required to increase production levels from the current 3.8 million tonnes to 17 million tonnes per annum following its positive feasibility study in 2013.

The agreed tender offer by Icahn represents a 38.5% premium to the Company's carrying value of US$0.26 per share at 31 March 2015, which has now been increased to reflect the offer resulting in a 0.7% increase to the Company's Net Asset Value. The Investment Manager is reviewing the proposals but should the Company decide to accept the tender, it would result in a realisation of US$2.06 million.

Metals Exploration plc ("Metals Ex")

During April 2015, the Company took the opportunity to acquire 10 million additional shares in Metals Ex at 3.5 pence per share (representing a market cap £48.1 million) from a significant seller. This compares to the market price at the end of April 2015 of 4.88 pence per share (representing a market cap £67.0million)

Metals Ex is due to start commissioning the Runruno gold project in the Philippines in June 2015. Once in full production the mine is forecast by Metals Ex to produce approximately 100,000 ounces per annum at a cash operating cost of US$474 per ounce and at current gold prices the mine's operations should generate around £46 million cash per annum.

Further details of the Company and its investments are available on the Company's website www.bakersteelresourcestrust.com 

Enquiries:

Baker Steel Resources Trust Limited     [phone]

Francis Johnstone
Trevor Steel

Numis Securities Limited                                   [phone]

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 is set out in the Company's Prospectus dated 26 January 2015.

 

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