Friday 2 January 2009
Chairman's update for shareholders - 2 January 2009
Whilst the past three months have proved to be more challenging in
markets generally, the valuation basis adopted when preparing the
Starvest annual financial statements at 30 September 2008 has proved
to be fully justified so that the portfolio valuation at 31 December
2008 is very slightly higher at £3.92m.
The basis of valuation is consistent with that adopted for the
September 2008 annual report which was based on closing bid prices or
the Directors' lower valuation, if deemed appropriate.
31 December 30 September 30 June
2008 2008 2008
at BID values at BID values at MID
Trading portfolio value £3.92m £3.9m £10.5m
Company asset value net of debt £3.23m £3.4m £11.9m
Net asset value - fully diluted 8.98 pence 9.06 p 27.46p
Share price - bid 6 pence 12.25p 17.75p
Share price discount to fully 33.2% 35% premium 35.35%
diluted net asset value
Market capitalisation £2.09m £4.28m £6.2m
The speculation of which I wrote in July that the crises impacting
the financial markets would lead to world-wide recession with a
consequential reduction in demand for natural resources and services
has proven to be well founded and as a result many of the companies
in which Starvest is invested have seen their share prices fall
during the past year.
It remains the view of the Starvest board that demand for raw
materials will return as current stocks are exhausted and that
commodity prices must return to levels at which it again becomes
economic to mine newly discovered deposits.
During the quarter, Starvest added to its investments in Greatland
Gold plc, an Australian gold explorer, and in Red Rock Resources plc
with interests in Australia and Zambia.
Whilst disappointed that our fears have been realised, the Board
continues to believe that it has within its portfolio investments
with considerable potential and is looking forward to 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 January 2009
Bruce Rowan, Chairman 020 7486 3997 or John Watkins, Finance Director
01483 771992; firstname.lastname@example.org
Gerry Beaney or Colin Aaronson Grant Thornton Corporate Finance 020