Baker Steel Resources Trust Ltd Net Asset Value(s) (7214G)

TIDMBSRT

RNS Number : 7214G

Baker Steel Resources Trust Ltd

06 March 2018

BAKER STEEL RESOURCES TRUST LIMITED

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

6 March 2018

28 February 2018 Unaudited NAV Statement

Net Asset Value

Baker Steel Resources Trust Limited (the "Company") announces its unaudited net asset value per share at 28 February 2018:

Net asset value per Ordinary Share: 56.3 pence

Since 31 January 2018 the NAV per share has increased by 5.4%, primarily due to an increase in the carrying value of Polar Acquisition Limited following the agreement to sell its subsidiary Polar Silver Resources Limited.

The Company had a total of 116,139,980 Ordinary Shares in issue with a further 700,000 shares held in treasury as at 28 February 2018.

Portfolio Update

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

 
 Polar Acquisition Ltd              41.0% 
 Bilboes Gold Limited               12.7% 
 Cemos Group plc                     9.3% 
 Futura Resources Ltd                8.7% 
 Metals Exploration plc              6.6% 
 Ivanhoe Mines Limited               4.8% 
 SME Inc                             4.4% 
 Black Pearl Limited Partnership     3.9% 
 PRISM Diversified Inc               3.7% 
 Nussir ASA                          3.2% 
 Other Investments                   1.8% 
 Net Cash, Equivalents and 
  Accruals                          -0.1% 
 
 

Investment Update

Polar Acquisition Limited ("PAL")

On 19 February 2018 PAL announced that it had agreed to sell its 90% interest in Polar Silver Resources Limited to Polymetal International plc ("Polymetal") for a consideration of US$72 million to be satisfied in new Polymetal shares, with 90% of the consideration shares subject to a lock-up period of 180 days. In addition PAL will retain a 2-4% royalty on its 45% pro rata share of production from the Prognoz silver project.

The transaction is expected to close during March 2018 at which point the number of shares receivable by PAL will be calculated based on the average share price of Polymetal on the London Stock Exchange over the previous 6 months. During 2018, the price of Polymetal shares has fallen approximately 17.4% so that, although PAL will receive a greater number of Polymetal shares due to a lowering of the average, the value of such shares would have equated to approximately US$61 million based on the closing share price of Polymetal on 28 February 2018.

The carrying value of PAL has increased by 11% during February 2018 and will continue to be adjusted in line with the Polymetal share price.

Futura Resources Limited ("Futura") (formerly Queensland Coal Investment Holdings Limited)

During February 2018, the Company completed the final tranche of its A$10,000,000 investment into Futura following the first tranche in December 2017. Futura owns the Wilton and Fairhill coking coal projects which together hold estimated resources of 2.6 billion tonnes of coal in the Bowen Basin in Queensland, Australia, which is well known for its high-quality coking mines. The forecast low capital costs to bring the projects into production together with excellent local infrastructure means Futura is targeting first production within 2018. A key near-term milestone would be an agreement to use a nearby wash plant, which is expected in the next few months.

Ivanhoe Mines Limited ("Ivanhoe")

On 26 February 2018 Ivanhoe announced a 58% increase in Indicated Mineral Resources at its Kakula discovery, part of the Kamoa-Kakula project in the Democratic Republic of Congo. The new resource estimate increases the total Indicated Mineral Resource at the Kamoa-Kakula Project to 1.34 billion tonnes grading 2.72% containing 36.6 million tonnes of copper at a 1% cut-off grade, with a further 5.9 million tonnes of copper in the Inferred Mineral Resource category. This makes Kamoa-Kakula the fourth largest copper deposit in the world and the largest one which is yet to be developed.

During February Ivanhoe shares fell 22% to C$2.76 on the Toronto Stock Exchange, following the proposed changes to the mining code in DRC, which if implemented would entail increased royalties and a super profits tax. However, following the assurance of a detailed consultation process with the mining industry in DRC and the resource upgrade at Kakula, Ivanhoe shares recovered to C$3.23, a fall of 8.2% during the month.

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 are 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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March 06, 2018 02:01 ET (07:01 GMT)