Baker Steel Resources Trust Ltd Net Asset Value(s) (5869V)

TIDMBSRT

RNS Number : 5869V

Baker Steel Resources Trust Ltd

06 November 2017

BAKER STEEL RESOURCES TRUST LIMITED

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

6 November 2017

31 October 2017 Unaudited NAV Statement

Net Asset Value

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

Net asset value per Ordinary Share: 51.4 pence

Since 29 September 2017 the NAV per share has increased by 2.0% primarily due to a rise in the share price of Ivanhoe Mines Limited on the Toronto Stock Exchange.

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 October 2017.

Portfolio Update

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

 
 Polar Acquisition Ltd              29.8% 
 Ivanhoe Mines Limited              13.6% 
 Bilboes Gold Limited               11.9% 
 Cemos Group plc                    10.7% 
 Metals Exploration plc              7.5% 
 SME Inc                             5.1% 
 Black Pearl Limited Partnership     4.4% 
 Ironstone Resources Limited         4.1% 
 Nussir ASA                          3.5% 
 Archipelago Metals Limited          1.1% 
 Other Investments                   1.1% 
 Net Cash, Equivalents and 
  Accruals                           7.2% 
 
 

Investment Update

Ivanhoe Mines Limited ("Ivanhoe")

On 30 October 2017, Ivanhoe announced that it had reached agreement to rebuild 34km of rail track connecting the Kipushi zinc copper mine with the Democratic Republic of Congo national railway to the South of Lubumbashi. This rail spur will complete the route for the export of the planned 530,000 tonnes per annum of zinc concentrate to be produced by Kipushi.

Over the past two years Ivanhoe has been focussed on dewatering and upgrading the Kipushi Mine's underground infrastructure. With this nearing completion, attention is now moving on to modernising and upgrading surface infrastructure with a view to the resumption of commercial production.

In May 2016, Ivanhoe announced the results of an independent, preliminary economic assessment (PEA) which estimated the net present value of Kipushi at US$533 million with an IRR of 31% and a payback of 2.2 years on a capital cost of US$409 million. Since that time the zinc price has risen by around 50% and long-term price forecasts for the metal look positive. A pre-feasibility study (PFS) to refine the findings of the PEA is expected to be published in early 2018.

Metals Exploration plc ("Metals Ex")

During October 2017 Metals Ex announced its quarterly production results. A total of 9,677 ounces of gold were recovered compared to the targeted 25,000 ounces per quarter following a further set-back during the period when the BIOX(R) circuit was contaminated by algae. The BIOX(R) circuit is reported to be recovering and stood at 27.5% of design throughput as at 19 October 2017. Once the teething problems with the plant have been finally resolved, the Runruno gold mine has the potential to be highly cash generative and a few quarters of production at its specified production rate should hopefully lead to a re-rating of Metals Ex shares.

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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November 06, 2017 02:00 ET (07:00 GMT)