Baker Steel Resources Trust Ltd Net Asset Value(s) (9554B)

TIDMBSRT

RNS Number : 9554B

Baker Steel Resources Trust Ltd

05 February 2020

BAKER STEEL RESOURCES TRUST LIMITED

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

5 February 2020

31 January 2020 Unaudited NAV Statement

Net Asset Value

Baker Steel Resources Trust Limited (the "Company") announces its unaudited net asset value per share at 31 January 2020:

   Net asset value per Ordinary Share:    73.3 pence 

The NAV per share decreased by 0.8% against the NAV at 31 December 2019, primarily due to the 19.5% fall in the share price of Ivanhoe Mines on the Toronto Stock Exchange as fears of a slowdown in China following the outbreak of the coronavirus pandemic led to a weakening in the copper price. Ivanhoe Mines represented 2.5% of NAV at 31 January 2020.

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 January 2020.

Portfolio Update

The Company's top 12 investments at 31 January 2020 were as follows as a percentage of NAV:

 
 Bilboes Gold Limited                  16.1% 
 Futura Resources Ltd                  15.3% 
 Polar Acquisition Ltd                 11.5% 
 Cemos Group plc                       10.0% 
 Tungsten West Limited                  8.1% 
 Polymetal International Plc            6.6% 
 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% 
 PRISM Diversified Ltd                  2.8% 
 Other Investments                      8.5% 
 Net Cash, Equivalents and Accruals     0.9% 
 
 

Investment Update

Bilboes Gold Limited ("Bilboes")

During the month Bilboes released the results of its Definitive Feasibility Study ("DFS") on its Isabella/McCays/Bubi gold project in Zimbabwe. The DFS has defined an open pit gold mine with a peak production rate of 203,000 ounces of gold per year over a ten year mine life. There remains significant exploration upside potential at the project to extend this life further.

The peak funding requirement for the project is US$231 million with cash operating costs of US$664 per ounce of gold and All-in Sustaining Costs of US$742 per ounce of gold. At the current gold price of US$1580 per ounce, the project economics show an after tax NPV (10%) of US$329 million with an internal rate of return of 40% and a payback on investment of just over one year.

Bilboes and its shareholders, including the Company which holds 23% of Bilboes, will now discuss the best way of bringing the mine into production and realising its value.

Metals Exploration PLC ("Metals Ex")

During January 2020, Metals Ex announced that its two major shareholders and mezzanine debt holders had acquired the Senior Debt Facility, amounting to US$68.5 million, previously due to HSBC and BNP Paribas. Metals Ex is currently in negotiations with the two major shareholders to restructure both the Senior and Mezzanine debt. This consolidation of Metals Ex's debt is an important first step towards stabilising the financial position of the company although the final terms of the revised debt profile remain uncertain. Metals Ex represented 2.4% of NAV at 31 January 2020.

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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February 05, 2020 02:00 ET (07:00 GMT)