Tuesday 5 July 2011
Net asset value update
Since the Company last issued a net asset value statement as at 31 March 2011,
the market has weakened, particularly in the natural resource sector where
Starvest is focused so that the net asset value has fallen by £2m to £8.1m or
21.2 pence per share against the closing mid price of 12.5 pence. The resulting
discount is 41%.
However, values remain significantly ahead of those at the last Company year
end, 30 September 2010, since when the net asset value shows a 93% increase.
A key event of the period has been the announcement by Belmore Resources
(Holdings) plc that the offer it has received from Lundin Mining Exploration
Limited, having been accepted by over 90% of shareholders, is now
unconditional. This adds significantly to the expected profit for the current
year to 30 September 2011 on which a full corporation tax provision is included
in the portfolio valuation.
During the quarter, the Company made modest additions to its investments in
Regency Mines, Red Rock Resources, Oracle Coalfields and Guild Acquisitions and
paid an interim dividend of 0.25 pence per share on 15 June 2011.
Investments in the following companies account for the greater part of the
portfolio value: Ariana Resources, Beowulf Mining, Greatland Gold, Kefi
Minerals, Oracle Coalfields, Red Rock Resources, Regency Mines, Sheba
Exploration and Sunrise Diamonds.
30 June 31 March 30 September Change since
2011 2011 2010 September 2010
Trading portfolio £8.70m £10.03m £4.57m 90%
Company asset value £8.10m £10.10m £4.19m 93%
net of debt
Net asset value - 21.21 pence 26.16 pence 11.28 pence 88%
fully diluted per
Share price - mid 12.50 pence 13.75 pence 7.75 pence 61%
Share price discount 41.1% 47.0% 31.3%
to fully diluted net
Market £4.59m £5.05m £2.84m 61%
With one exception, all valuations are based on the closing market bid prices or
lower directors' valuation as described in the 2010 annual report. The
exception relates to Belmore where, because the offer became unconditional on
30 June, a full offer price valuation is included.
Whilst the overall valuation at the period end is disappointing, the profit for
the year to date of £2.8m before taxation encourages your board which remains
confident that its patience is being rewarded. We look forward with
anticipation of a full recovery as the investee companies progress their
projects and mature.
R Bruce Rowan
Chairman & Chief Executive
5 July 2011
Bruce Rowan, Chairman 020 7486 3997 or John Watkins, Finance Director
07768 512404; email@example.com
Colin Aaronson or David Hignell, Grant Thornton Corporate Finance 020 7383 5100
uters on behalf of
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Source: Starvest plc via Thomson Reuters ONE