Last checked at 
4 Dec 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)
4 December 2014
28 November 2014 Unaudited NAV Statement
Net Asset Value
Baker Steel Resources Trust Limited (the "Company") announces its unaudited net asset value per share at 28 November 2014:
Net asset value per Ordinary Share: 46.5 pence
Since 31 October 2014, the NAV per share has decreased by 9.7% largely due to write downs in the carrying values of Ironstone Resources Limited ("Ironstone") and Ferrous Resources Limited ("Ferrous") which reflect recent sharp falls in the prices of similar listed iron ore shares.
At 28 November 2014, the Company had a total of 71,703,776 Ordinary Shares in issue.
Update on Potential Acquisitions and Issue of Equity
The Board confirms that it intends to proceed with the proposals for the acquisition of certain assets in exchange for equity, and the issue of new equity for cash, as outlined in the Company's announcement of 10 November 2014. However, due to recent market movements in the sector, discussions are ongoing regarding the potential acquisitions and it is therefore currently expected, subject to the conclusion of these discussions and to regulatory clearances, that the Company will publish the circular and prospectus during January 2015.
Portfolio Update
The Board normally reviews whether general market movements in mining equities, as well as specific factors, should impact the carrying values of the Company's unlisted holdings at the half and full year ends. 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 view of the transaction announced on 10 November 2014, and given the sharp falls in iron ore shares since 30 June 2014 - which was the last time when carrying values of unlisted holdings were reviewed for general market movements - the Investment Manager and the Board have decided to reflect general market movements in the NAV at 28 November 2014. In particular the carrying values of Ironstone and Ferrous have been written down by 68% and 47% respectively to take into account the performances of their respective indices since the last general market adjustment or transaction. Recent information on the grey market for shares in Ferrous supports the updated valuation.
The Company is fully invested with top 10 investments as follows as a percentage of NAV:
Black Pearl Limited Partnership | 19.1% | |
Polar Silver Resources Ltd | 16.5% | |
Bilboes Gold Limited | 14.0% | |
Ivanhoe Mines Limited | 9.7% | |
Metals Exploration plc | 9.4% | |
Gobi Coal & Energy Limited | 8.1% | |
Global Oil Shale Group plc | 6.3% | |
Ironstone Resources Limited | 5.2% | |
China Polymetallic Mining Limited | 5.1% | |
Ferrous Resources Limited | 4.4% | |
Other Investments | 2.8% | |
Net Cash, Equivalents and Accruals | -0.6% | |
Investment Update
Ivanhoe Mines Limited ("Ivanhoe")
On 24 November 2014, Ivanhoe reported exceptionally high-grade silver, zinc and copper assay results from its continuing drilling campaign at the Kipushi Mine in the Democratic Republic of Congo. These included a 34.5-metre intercept grading 35.1% zinc, 10.7% copper, 479 grams/tonne silver, 77 g/t germanium and 0.30 g/t gold.
The discovery of high grade copper-zinc-silver mineralisation with significant gold and germanium values within the Big Zinc zone confirms Ivanhoe's hypothesis that copper zones, which are also rich in precious metals, exist within the deep, unmined portions of the Kipushi Mine.
Ivanhoe has now completed 62 holes totalling approximately 12,000 metres of its planned 20,000-metre underground diamond drilling programme. Assays for holes 1 to 47 have been released, while assays for hole 46 and holes 48 through 62, are pending. Two diamond-drill rigs continue to complete confirmatory drilling of the Big Zinc zone and to test its extensions.
The continuing drilling results from Kipushi confirm the Investment Manager's opinion that Ivanhoe now has a third tier-one mining project after the Kamoa Copper Project also in the DRC and the Platreef Platinum, Palladium, Nickel project in South Africa.
Ivanhoe shares recovered 15% on the Toronto Stock Exchange 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 +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.