Baker Steel Resources Trust Ltd Net Asset Value(s) (4001X)

TIDMBSRT

RNS Number : 4001X

Baker Steel Resources Trust Ltd

06 May 2016

BAKER STEEL RESOURCES TRUST LIMITED

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

6 May 2016

29 April 2016 Unaudited NAV Statement

Net Asset Value

Baker Steel Resources Trust Limited (the "Company") announces its unaudited net asset value per share at 29 April 2016:

Net asset value per Ordinary Share: 37.7 pence

Since 31 March 2016, the NAV per share has increased by 8.6% largely due to the increases in the share prices of Metals Exploration plc on the AIM market of the London Stock Exchange and of Ivanhoe Mines on the Toronto Stock Exchange.

The Company had a total of 114,568,335 Ordinary Shares in issue with 700,000 shares held in treasury as at 29 April 2016.

Portfolio Update

The Company is fully invested with top 10 investments as follows as a percentage of NAV:

 
 Polar Silver Resources Ltd            23.4% 
 Black Pearl Limited Partnership       17.1% 
 Metals Exploration plc                16.8% 
 Bilboes Gold Limited                   8.9% 
 Ivanhoe Mines Limited                  8.9% 
 Cemos Group plc                        8.3% 
 Ironstone Resources Limited            5.3% 
 Gobi Coal & Energy Limited             2.7% 
 Archipelago Metals Limited             2.4% 
 China Polymetallic Mining Limited      2.4% 
 Other Investments                      3.7% 
 Net Cash, Equivalents and Accruals     0.1% 
 
 

Metals Exploration plc ("Metals Ex")

During March 2016, Metals Ex announced the completion of rehabilitation and enhancement works following the damage in October 2015 by super Typhoon Lando at its Runruno gold mine in the Philippines.

On 25 April 2016 Metals Ex announced that that the Partial Suspension Order placed on the RSI and Malilibeg Dump Site construction had been lifted by the Mines & Geosciences Bureau Regional Office in the Philippines, subject to ongoing performance monitoring and conditions.

Commissioning and first gold production is now expected to take place during May 2016. Once in full production Runruno is scheduled to produce approximately 100,000 ounces of gold per annum at a cash cost of US$474 per ounce. At current gold prices this would result in operating cashflow of approximately US$80 million per annum equivalent to around 3 pence per Metals Ex share.

During April 2016, Metals Ex rose 63% to 7.125 pence per share. This rise contributed approximately a 7% increase in the Company's NAV.

Ivanhoe Mines Ltd ("Ivanhoe")

On 2 May 2016 Ivanhoe announced the results of an independent, preliminary economic assessment (PEA) for the planned redevelopment of its Kipushi zinc-copper joint venture in the Democratic Republic of Congo. The PEA covers the redevelopment of Kipushi as an underground mine, producing an average of 530,000 tonnes of zinc concentrate annually over a 10-year mine life. The PEA plan focuses on the mining of Kipushi's Big Zinc Zone, which has an estimated 10.2 million tonnes of Measured and Indicated Mineral Resources grading 34.9% zinc.

The capital costs of the redevelopment are estimated to be US$528 million, giving an after-tax net present value at an 8% real discount rate of US$533 million and a 30.9% after-tax real internal rate of return (IRR). Total cash costs, including copper by-product credits, are estimated at approximately US$0.54 per pound of zinc which would place Kipushi in the lowest cost quartile of global zinc producers.

During April 2016, Ivanhoe shares rose 23.8% to C$1.04 per share on the Toronto Stock Exchange.

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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May 06, 2016 02:00 ET (06:00 GMT)