Last checked at 
5 Jun 2015 07:00
BAKER STEEL RESOURCES TRUST LIMITED
(Incorporated in Guernsey with registered number 51576 under the provisions of The Companies (Guernsey) Law, 2008 as amended)
5 June 2015
29 May 2015 Unaudited NAV Statement
Net Asset Value
Baker Steel Resources Trust Limited (the "Company") announces its unaudited net asset value per share at 29 May 2015:
Net asset value per Ordinary Share: 45.5 pence
Since 30 April 2015, the NAV per share has risen by 2.2% largely due to a 36% recovery in the price of Metals Exploration plc on the AIM market of the London Stock Exchange. This follows the clearing out of a motivated seller of the stock in April, and as Metal Exploration's Runruno gold project in the Philippines remains on target to start commissioning its plant later this month, interest has started to be generated in the Company.
The Company had a total of 115,268,335 Ordinary Shares in issue as at 29 May 2015.
Portfolio Update
The Company is fully invested with top investments as follows as a percentage of NAV:
Polar Silver Resources Ltd | 18.5% | |
Global Oil Shale Group plc | 17.8% | |
Black Pearl Limited Partnership | 13.1% | |
Metals Exploration plc | 9.4% | |
Ivanhoe Mines Limited | 9.3% | |
Bilboes Gold Limited | 9.1% | |
Gobi Coal & Energy Limited | 5.3% | |
Archipelago Metals Limited | 4.2% | |
China Polymetallic Mining Limited | 3.6% | |
Ironstone Resources Limited | 2.8% | |
Ferrous Resources Limited | 2.6% | |
Other Investments | 3.5% | |
Net Cash, Equivalents and Accruals | 0.8% | |
Ivanhoe Mines Limited ("Ivanhoe")
On 26 May 2015 Ivanhoe announced that it had signed agreements with Zijin Mining Group Co., Ltd of China ("Zijin") for the strategic co-development of the Kamoa copper discovery in the Democratic Republic of Congo. Under the terms of the agreements Zijin will buy a 49.5% equity interest in Kamoa Holding Limited (Kamoa Holding), an Ivanhoe subsidiary that presently owns 95% of the Kamoa Project, for an aggregate consideration of US$412 million.
Zijin has also committed to use its best efforts to arrange or procure non-recourse project financing for 65% of the capital required to develop the first phase of the Kamoa Project, as set out in the feasibility study, on terms acceptable to Ivanhoe. Upon the successful procurement of project financing, Zijin will have the right to acquire a further 1% equity interest in Kamoa Holding.
The 2013 Kamoa preliminary economic assessment (PEA) reflects a two-phased approach to development of the Kamoa Project. The first phase of mining would target high-grade copper mineralisation from shallow, underground resources to produce approximately 100,000 tonnes of contained copper in a high-value concentrate. The PEA estimated that the pre-production capital required for Kamoa's first phase of development would be approximately US$1.4 billion. Therefore assuming Zijin procures project financing for 65% of this (US$910 million), the US$412 million to be received from Zijin will more than cover Ivanhoe's US$245 million share of the equity required for the development.
This transaction is a major boost for Ivanhoe as it gives a clear path for the development of Kamoa and unlocking its considerable value. Given that there is a strong chance that Ivanhoe's joint venture partner in its Platreef project in South Africa, the ITOCHU-led Japanese consortium, will procure the finance for that project there is now the potential that Ivanhoe will not need to issue any further equity to progress its two major projects.
Further details of the Company and its investments are available on the Company's website www.bakersteelresourcestrust.com
Enquiries:
Baker Steel Resources Trust Limited +44 20 7389 8237
Francis JohnstoneTrevor Steel
Numis Securities Limited +44 20 7260 1000
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.