Baker Steel Resources Trust Ltd Net Asset Value(s) (7017W)

TIDMBSRT

RNS Number : 7017W

Baker Steel Resources Trust Ltd

03 August 2018

BAKER STEEL RESOURCES TRUST LIMITED

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

3 August 2018

31 July 2018 Unaudited NAV Statement

Net Asset Value

Baker Steel Resources Trust Limited (the "Company") announces its unaudited net asset value per share at 31 July 2018:

Net asset value per Ordinary Share: 55.9 pence

Since 29 June 2018 the NAV per share has decreased by 2.0% primarily due to the fall in the value of Metals Exploration plc on the AIM market of the London 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 July 2018.

Portfolio Update

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

 
 Polymetal International 
  PLC                               30.2% 
 Bilboes Gold Limited               15.8% 
 Cemos Group plc                    10.2% 
 Polar Acquisition Ltd               9.9% 
 Futura Resources Ltd                9.0% 
 Sarmin Mineral Exploration 
  Inc                                4.7% 
 Metals Exploration plc              4.3% 
 Black Pearl Limited Partnership     4.1% 
 PRISM Diversified Inc               3.8% 
 Ivanhoe Mines Limited               3.0% 
 Other Investments                   4.8% 
 Net Cash, Equivalents and 
  Accruals                           0.2% 
 
 

Investment Update

Metals Exploration plc ("Metals Ex")

On 23 July 2018, Metals Ex announced its operations update for the second quarter 2018. Despite the encouraging update at the end of the previous quarter that the BIOX(R) circuit had achieved 100% of design throughput at its Runruno Gold Mine in the Philippines, severe power disruptions during June, resulted in the Biox(R) circuit shutting down and the bacteria ceasing to be active. During July 2018, Metals Ex installed additional power supply circuitry to protect the BIOX(R) circuit from further disruptions. Metals Ex reported that subsequently the BIOX(R) circuit had been substantially rehabilitated with a throughput of 88% of design achieved with improved gold recoveries from the total processing circuit being experienced.

During the quarter the Runruno mine produced 12,359 ounces of gold against 11,604 ounces of gold in the first quarter but this remains approximately 50% of targeted production. The company generated cashflow of a total US$790,000 but this was insufficient to pay interest on its loans or make scheduled debt repayments. Metals Ex's senior lenders consented to defer the December 2017, March 2018 and June 2018 capital payment amounts totalling US$20.25 million, until 31 August 2018 and interest payments thereon were funded through loans from Metals Ex's two largest shareholders. Management is continuing discussions with third party finance providers and its senior lenders to find a solution to its overall debt position.

During July 2018, Metals Ex shares fell 31% on the AIM market of the London Stock Exchange.

Polymetal International PLC (Polymetal)

On 26 July 2018 Polymetal announced its production results for the second quarter and six months ended 30 June 2018. Polymetal produced 324,000 oz of gold equivalent (GE) in the second quarter of 2018, up 17% year-on-year largely as a result of greater volumes at Svetloye and Amursk POX combined with improved grades at Omolon.

Polymetal stated that production in the second half is expected to increase, driven by its usual seasonal concentrate de-stockpiling at Mayskoye, as well as first contributions from the recently launched Kyzyl operation which produced first concentrate in June 2018. The Kyzyl operation is expected to ramp up to full throughput capacity (150 Kt per month) and reach design recoveries (86%) by October 2018 and is planned to produce 80 Koz of gold this year.

Following these results, Polymetal stated that it remains on track to meet its full year 2018 production guidance of 1.55 million ounces GE at an "All-In-Sustaining-Cost" of US$875-925 per GE ounce.

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 news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact [e-mail] or visit www.rns.com.

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August 03, 2018 02:01 ET (06:01 GMT)