Quarterly Update

RNS Number : 0807Y
Starvest PLC
02 July 2008
 



 

 

Chairman's update for shareholders - July 2008

Investment performance

The past three months have proved to be more challenging than the three previous quarters with a further decline in the net asset value of £1m or 8.7%.

There has been speculation that the crises impacting the financial markets would lead to world-wide recession with a consequential reduction in demand for natural resources and services. In addition, a recent Financial Times article suggested that many private investors, to whom small-cap resource companies look for support, have become more cautious in their outlook and investing habits citing actual and anticipated inflation as a key reason. Against this background many of the companies in which Starvest is invested have seen their share prices fall during the past year.

It is fact that as resource stocks have risen strongly in the past eighteen months many investors will have taken substantial profits. It is the view of the Starvest board that demand for raw materials is unlikely to diminish in the foreseeable future; on the contrary, all the evidence suggests that commodity prices will remain high as China, India and other fast developing nations expand their voracious appetite for scarce commodity resources. 

To the extent that cash resources are available, Starvest will continue to seize opportunities to make further investments. During the June quarter, further investments were made in Greatland Gold plc and Kefi Minerals plc. 

Company statistics

30 June 2008

Change since 30 June 2007

30 September 2007

30 June 2007

Portfolio net asset value

£10.5m

-45%

£15.1m

£19.2m

Net asset value - basic per share

30.17p

-43%

42.89p

53.11p

Net asset value - fully diluted per share

27.46p

-42%

38.45p

47.43p

Share price

17.75p

-44%

29.75p

31.75p

Share price discount to fully diluted net asset value 

35.35%

+2.35 points

22.63%

33%

Market capitalisation

£6.2m

-46%

£10.46m

£11.5m


With two exceptions, the net asset values are based on mid-market closing prices on Monday 30 June 2008.  As a matter of prudence, two investments have been valued at less than current market value.

Conclusion:

The Board continues to be pleased with the investments now held and to expect exciting growth in the medium term.  More than one investee company is expected to make positive announcements in the near term leading to a substantial re-rating which will have the effect of increasing Starvest's net asset value.

The Company now holds trade investments in the following companies: 

  • Treslow Limited  - Copper-nickel in Canada

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 2008





Enquiries to: 

Bruce Rowan, Chairman 020 7486 3997 or John Watkins, Finance Director 01483 771992; john@starvest.co.uk

Gerry Beaney or Colin Aaronson Grant Thornton Corporate Finance 020 7383 5100

 



This information is provided by RNS
The company news service from the London Stock Exchange
 
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