Baker Steel Resources Trust Ltd Net Asset Value(s) (2067S)

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RNS Number : 2067S

Baker Steel Resources Trust Ltd

05 November 2019

BAKER STEEL RESOURCES TRUST LIMITED

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

5 November 2019

31 October 2019 Unaudited NAV Statement

Net Asset Value

Baker Steel Resources Trust Limited (the "Company") announces its unaudited net asset value per share at 31 October 2019:

Net asset value per Ordinary Share: 68.8 pence

The NAV per share has decreased by 1.4% against the NAV at 30 September 2019, primarily due to the rise in the Sterling Exchange rate which was partially offset by a rise in the share price of Polymetal International Plc on the London Stock Exchange.

The Company has a total of 106,462,502 Ordinary Shares in issue with a further 700,000 shares held in treasury as at 31 October 2019.

Portfolio Update

The Company's top 12 investments are as follows as a percentage of NAV:

 
 Futura Resources Ltd                  16.3% 
 Polymetal International Plc           15.5% 
 Bilboes Gold Limited                  14.3% 
 Cemos Group plc                       10.7% 
 Polar Acquisition Ltd                  8.7% 
 Sarmin Minerals Exploration            4.7% 
 Mines & Metal Trading Peru PLC         4.5% 
 Nussir ASA                             4.3% 
 Anglo Saxony Mining Limited            3.9% 
 Black Pearl Limited Partnership        3.7% 
 PRISM Diversified                      2.9% 
 Azarga Metals Corp                     2.7% 
 Other Investments                      6.1% 
 Net Cash, Equivalents and Accruals     1.7% 
 
 

Investment Update

Azarga Metals Corp. ("Azarga Metals")

During October 2019 Azarga reported that it had completed geophysical surveys on its Unkur Copper-Silver Project in Eastern Russia and commenced a drilling campaign.

The works included a property-wide ground magnetic survey and nine induced polarization (IP) traverses, totalling 28 line kilometers covering an area four times the area previously covered by similar studies. It identified potentially mineralized horizons more than three times longer than the previously drilled strike length. The IP survey revealed that there could be four or five mineralized horizons against the previously contemplated two or three horizons.

The survey identified multiple additional exploration drilling targets. Most of these targets will be drill tested during a 6,000 m exploration programme which commenced during October 2019. Should the drilling confirm the potential identified by these surveys, Azarga believes it would be significant for the potential scale of mineralisation at Unkur.

On 23 October 2019 Azarga issued to the Company 1,470,443 common Azarga shares to settle its semi-annual interest payment of C$88,227 on the Company's US$3 million convertible loan to Azarga.

Further detail on Azarga is available on its website: www.azargametals.com

Polymetal International plc ("plc")

During October 2019 Polymetal reported solid production results for the third quarter driven by a strong performance at Kyzyl. Polymetal's third quarter gold equivalent ("GE") production was 476,000 ounces totalling 1,232,000 ounces for the first nine months of 2019, an increase of 16% on the same period in 2018

Third quarter revenue increased by 43% to US$ 656 million on the back of higher sales volumes and prices. Despite higher royalty payments due to higher prices, Polymetal has maintained its all-in-sustaining-cost guidance for 2019 of US$ 800-850/GE oz, and has indicated that it is likely to exceed its 2019 full-year production guidance of 1,550,000 GE ounces by up to 50,000 ounces.

These results were well received by the market with Polymetal's share price rising 11% 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 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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November 05, 2019 02:00 ET (07:00 GMT)