Baker Steel Resources Trust Ltd Net Asset Value(s) (7902Z)

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RNS Number : 7902Z

Baker Steel Resources Trust Ltd

15 January 2020

BAKER STEEL RESOURCES TRUST LIMITED

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

15 January 2020

31 December 2019 Unaudited NAV Statement

Net Asset Value

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

   Net asset value per Ordinary Share:   73.9 pence 

The NAV per share has increased by 8.0% against the NAV at 29 November 2019, primarily due to changes following the usual review of unlisted positions at the year end. Over the full year 2019, the NAV has risen by 29.9% compared to a 18.4% rise in the EMIX Global Mining Index in Sterling terms.

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

Portfolio Update

The Company's top 12 investments at 31 December 2019 were as follows as a percentage of NAV:

 
 Bilboes Gold Limited                  15.9% 
 Futura Resources Ltd                  15.0% 
 Polar Acquisition Ltd                 11.3% 
 Cemos Group plc                       10.0% 
 Tungsten West Limited                  8.0% 
 Polymetal International Plc            6.1% 
 Anglo Saxony Mining Limited            4.6% 
 Mines & Metal Trading Peru PLC         4.4% 
 Nussir ASA                             4.1% 
 Sarmin Minerals Exploration            3.7% 
 Black Pearl Limited Partnership        3.4% 
 Ivanhoe Mines Ltd                      3.1% 
 Other Investments                      8.1% 
 Net Cash, Equivalents and Accruals     2.3% 
 
 
 

Investment Update

Full Year Adjustments to Carrying Values

The Company has carried out its normal review of its unlisted holdings, which it performs at the half-year and full year-ends. This review takes into account general market movements in mining equities, as well as specific factors, and an assessment of whether these should impact the carrying values of the Company's unlisted holdings. In order to quantify how the share price of a particular unlisted stock might have moved during the period had it been listed, the Investment Manager maintains an index of comparable listed companies for each unlisted investment. In addition the Investment Manager updates its royalty models for the royalty interests it owns in Futura Resources and Polar Acquisition Limited ("PAL") to take account of the latest estimated production profiles of the underlying projects and commodity prices. The net present values produced by these royalty models are then discounted for development risk to arrive at a valuation.

The two main changes to carrying values since 29 November 2019 are increases in the valuations of PAL and Bilboes Gold Limited.

PAL holds an approximate 1.1% to 1.8% net smelter royalty (dependent on the tax status of the project) of the Prognoz Silver project in far eastern Russia, owned by Polymetal International PLC ("Polymetal"). Polymetal has estimated an 18 year life for the Prognoz project at an average production rate of 20 million ounces of silver equivalent per annum from 2025. This is considerably longer than previously envisaged and suggests a significant increase in mineral resources from Polymetal's ongoing exploration programme although it has not released an updated resource statement for Prognoz in the past year. The Pre-Feasibility Study due for completion in the second half of 2020 will give much more detail as to Polymetal's production plans for Prognoz. Together with the increase in the silver price this year (+11.1% against Sterling), this has led to a 39.4% increase in the carrying value of PAL (equivalent to a 3.46% increase in NAV).

The carrying value of Bilboes Gold Limited ("Bilboes") has been increased by 22.2% in line with the movement in its index (equivalent to a 2.71% increase on NAV). Bilboes's carrying value was previously increased by 14.7% at 30 June 2019 making an overall increase of 40% during 2019. During the year gold shares as represented by the EMIX Global Gold Mining Index have risen 36.8% in Sterling terms following the increase in the gold price. Bilboes is due to complete the Definitive Feasibility Study into its 200,000 ounce per annum Isabella/Bubi gold project in Zimbabwe in the next few weeks.

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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January 15, 2020 02:00 ET (07:00 GMT)