Baker Steel Resources Trust Ltd Net Asset Value(s) (0299N)

TIDMBSRT

RNS Number : 0299N

Baker Steel Resources Trust Ltd

04 August 2017

BAKER STEEL RESOURCES TRUST LIMITED

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

4 August 2017

31 July 2017 Unaudited NAV Statement

Net Asset Value

Baker Steel Resources Trust Limited (the "Company") announces its unaudited net asset value per share at 31 July 2017:

Net asset value per Ordinary Share: 53.0 pence

Since 30 June 2017 the NAV per share has increased by 3.1% largely following a recovery in the listed share price of Ivanhoe Mines on the Toronto Stock Exchange and the exercise of the Company's option to acquire a further stake in SME Inc. as explained in the June 2017 NAV statement.

The Company had a total of 116,139,980 Ordinary Shares in issue with a further 700,000 shares held in treasury as at 31 July 2017.

Portfolio Update

The Company's top 10 investments are as follows as a percentage of NAV:

 
 Polar Acquisition Ltd                 29.0% 
 Ivanhoe Mines Limited                 14.4% 
 Bilboes Gold Limited                  11.6% 
 Cemos Group plc                        7.1% 
 Metals Exploration plc                 6.7% 
 SME Inc                                4.9% 
 Black Pearl Limited Partnership        4.3% 
 Ironstone Resources Limited            4.1% 
 Nussir ASA                             3.6% 
 China Polymetallic Mining Limited      2.2% 
 Other Investments                      2.3% 
 Net Cash, Equivalents and Accruals     9.8% 
 
 

Investment Update

Polar Acquisition Limited ("PAL")

During the month the Company sold 11% of its holding in PAL for proceeds of GBP2.2 million. This sale was undertaken at the same price as the carrying value at the end of June 2017 and therefore had no effect on NAV. The sale enabled the Company to reduce its investment in PAL to less than 30% of NAV and its shareholding in PAL to 49.6% on a fully diluted basis, in line with its previously announced intention. The Company expects to retain its current holding in PAL until the time when Polymetal International plc's option to acquire PAL's 90% interest in Polar Silver Resources Limited can be exercised in March 2019.

Ivanhoe Mines Limited ("Ivanhoe")

On 31 July 2017 Ivanhoe released the results of an independent definitive feasibility study for the planned first phase of its Platreef platinum-group metal mine in South Africa. The first phase of development envisages an annual throughput rate of four million tonnes a year, producing 476,000 ounces of platinum, palladium, rhodium and gold, plus 33 million pounds of nickel and copper for 32 years. The feasibility study envisages pre-production capital costs of US$1.5 billion with an operating cost of US$739 /oz, which falls to US$326/oz after taking into account nickel and copper bi-product credits. The economic results of the feasibility study give a post-tax net present value (8%) of US$916 million and an internal rate of return of 14.2%.

Although the projected operating cost would put the Platreef mine at the bottom of the cost curve, the loading of the bulk of capital costs onto the first phase of development has adversely affected the headline economic results. Should Ivanhoe proceed with expansion up to a throughput of 12 million tonnes per annum, this should lead to much greater capital efficiency and accordingly enhanced financial returns.

During July 2017 the share price of Ivanhoe increased 18% on the Toronto Stock Exchange.

Nussir ASA ("Nussir")

During July 2017, Nussir undertook a rights issue of NOK12 million (GBP1.2 million) to fund the next stage of feasibility work at its Nussir/Ulveryggen copper project in Norway following its positive pre-feasibility study published in December 2016. The Company participated in the rights issue, which was undertaken at an 8% premium to the Company's carrying value at the end of June 2017 and accordingly this has been adjusted at 31 July 2017.

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.

This information is provided by RNS

The company news service from the London Stock Exchange

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August 04, 2017 02:01 ET (06:01 GMT)