Baker Steel Resources Trust Ltd Net Asset Value(s) (8512J)

TIDMBSRT

RNS Number : 8512J

Baker Steel Resources Trust Ltd

07 December 2018

BAKER STEEL RESOURCES TRUST LIMITED

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

7 December 2018

30 November 2018 Unaudited NAV Statement

Net Asset Value

Baker Steel Resources Trust Limited (the "Company") announces its unaudited net asset value per share at 30 November 2018:

Net asset value per Ordinary Share: 59.4 pence

Since 31 October 2018, the NAV per share has increased by 3.1% largely due to an 8.4% increase in the price of Polymetal International PLC shares on 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 30 November 2018.

Portfolio Update

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

 
 Polymetal International PLC           31.6% 
 Bilboes Gold Limited                  15.4% 
 Cemos Group plc                       10.5% 
 Polar Acquisition Ltd                  9.7% 
 Futura Resources Ltd                   8.9% 
 Sarmin Mineral Exploration             5.0% 
 Black Pearl Limited Partnership        4.0% 
 PRISM Diversified Inc                  3.7% 
 Nussir ASA                             3.2% 
 Metals Exploration PLC                 2.6% 
 Other Investments                      5.5% 
 Net Cash, Equivalents and Accruals    -0.1% 
 
 

Investment Update

Polymetal International PLC ("Polymetal")

During November 2018, Polymetal announced that it had completed the Feasibility Study for its Nezhda gold project located in north-east Yakutia, Russia. Mineral Resources (inclusive of Ore Reserves) comprise 12.4 Moz of gold equivalent ("GE") with an average GE grade of 4.5 g/t, a 1.6 Moz increase compared with the previous estimate. Proved and Probable Ore Reserves total 38 Mt at an average grade of 3.6 g/t GE for 4.4 Moz of GE contained.

The Feasibility Study is based on a conventional 1.8 Mtpa flotation concentrator with gravity concentration circuit. Combined recovery to concentrate is forecast at 85% with production of 180,000 oz during the first full 3 years of operation and 155,000 oz of payable gold during the first full 15 years of operation.

Pre-production capital expenditures are estimated at US$234 million with the IRR estimated at 29% and an NPV of US$302 million using a 10% discount rate and US$1,200/oz gold price. Total cash costs (TCC) for the open pit are estimated in the range of US$620-670/oz of GE and all-in sustaining cash costs (AISC) in the range of US$700-750/oz of GE. Life of mine TCC is expected in the range of US$700-750/oz of GE, with AISC in the range of US$800-850/oz of GE. First production is planned for Q4 2021 with full ramp-up by Q2 2022.

During the month Polymetal also announced that it had exercised its option to consolidate its holding to 100% of Nezhda.

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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December 07, 2018 08:03 ET (13:03 GMT)