Last checked at 
6 Nov 2014 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)
6 November 2014
31 October 2014 Unaudited NAV Statement
Net Asset Value
Baker Steel Resources Trust Limited (the "Company") announces its unaudited net asset value per share at 31 October 2014:
Net asset value per Ordinary Share: 51.5 pence
During the month, the NAV per share decreased by 2.3% largely due to a 25% fall in the share price of Ivanhoe Mines on the Toronto Stock Exchange.
At 31 October 2014, the Company had a total of 71,703,776 Ordinary Shares in issue.
The Company is fully invested with top 10 investments as follows as a percentage of NAV:
Black Pearl Limited Partnership | 16.8% | |
Polar Silver Resources Ltd | 14.6% | |
Ironstone Resources Limited | 13.7% | |
Bilboes Gold Limited | 11.6% | |
Metals Exploration plc | 8.2% | |
Ivanhoe Mines Limited | 7.8% | |
Ferrous Resources Limited | 7.2% | |
Gobi Coal & Energy Limited | 7.2% | |
Global Oil Shale Group plc | 5.0% | |
China Polymetallic Mining Limited | 4.3% | |
Other Investments | 2.8% | |
Net Cash, Equivalents and Accruals | 0.8% | |
Investment Update
Ivanhoe Mines Limited ("Ivanhoe Mines")
Ivanhoe shares fell 25% on the Toronto Stock Exchange during the month on news that there was a delay in the issue of the Mining Right for Ivanhoe's Platreef Project. The South African Department of Mineral Resources ("DMR") had previously indicated to Ivanhoe on 30 May 2014 that the Mining Right would be issued by the end of September 2014. Ivanhoe escalated the issue by starting a process that would lead to job cuts at the project unless it received a more definite indication of when the Mining Right will be executed. On 5 November 2014 the DMR and Ivanhoe jointly announced that the Mining Right had been issued. Ivanhoe Mines' Executive Chairman Robert Friedland stated that the issue of the Mining Right will enable the immediate resumption of preparations for continued construction at the Platreef site.
Such delays are not uncommon in licensing for mines globally, although it is an interesting indication of the current state of the market that a relatively minor piece of negative news was seized upon as a signal to sell. It should be noted that Ivanhoe has three tier one projects which it has generally progressed well over the two years since its IPO but nevertheless its share price had fallen 82.1% from C$4.75 per share to C$0.85 at the end of October 2014. Ivanhoe's market capitalisation fell to C$595 million despite having net cash and equivalents of approximately C$247 million as at 30 June 2014.
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 31 March 2010.