Last checked at 
4 Oct 2013 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 October 2013
30 September 2013 Unaudited NAV Statement
Net Asset Values
Baker Steel Resources Trust Limited (the "Company") announces its unaudited net asset value per share as at 30 September 2013:
Net asset value per Ordinary Share: 70.3 pence
During the month, the NAV per share decreased by 1% with a rise in the share price of Ivanhoe Mines Limited on the Toronto Stock Exchange more than outweighed by a strengthening in the exchange rate of Sterling against the US and Canadian Dollars in which the majority of the Company's portfolio is denominated.
At 30 September 2013, the Company had a total of 66,142,533 Ordinary Shares in issue.
The Company is fully invested with top 10 investments as follows as a percentage of NAV:
Ivanhoe Mines Limited | 22.0% | |
Bilboes Gold Limited | 12.1% | |
Ironstone Resources Limited | 11.7% | |
Black Pearl Limited Partnership | 11.6% | |
Gobi Coal & Energy Limited | 11.3% | |
China Polymetallic Mining Limited | 8.0% | |
Polar Silver Resources Ltd | 7.9% | |
Metals Exploration plc | 6.6% | |
Ferrous Resources Limited | 5.7% | |
South American Ferro Metals Limited | 1.3% | |
Other Investments | 2.4% | |
Net Cash, Equivalents and Accruals | -0.6% | |
Investment Update
Ivanhoe Mines Limited ("Ivanhoe")
On 23 September 2013 Ivanhoe announced that it had agreed the terms for a non-brokered, common share, private-placement financing with a group of investors (not including the Company) under which it will issue between 50 million and 54 million new Class A common shares ("common shares") at C$2.00 per share to raise a total of C$100-108 million. Robert Friedland, Ivanhoe's Executive Chairman, will subscribe for C$25 million of the offering, approximately pro rata to his current holding in Ivanhoe.
The proceeds from the financing will be used to further advance the development of Ivanhoe's Kamoa copper discovery and its Kipushi zinc-copper-lead-germanium-precious metals project, and for general corporate purposes.
Ivanhoe also noted that, as previously disclosed, confidential discussions and the conduct of due diligence are continuing with a select number of leading international, private and state-owned mining companies that have expressed interest in participating in Ivanhoe's assets, both at the project and corporate levels.
During the month Ivanhoe's share price on the Toronto Stock Exchange rose 13% from C$1.96 to C$2.22 per share. The majority of the Company's holding is restricted by lock-up arrangements introduced on Ivanhoe's IPO and is carried at a 10% discount to the market price.
During the month Ivanhoe also announced that, having obtained government approval, it is proceeding with the sinking of a bulk-sample shaft to access the underground platinum, palladium, nickel, copper, gold and rhodium discovery at its Platreef Project in South Africa's Bushveld Complex. The vertical shaft will extend to a depth below surface of 800 metres and facilitate the collection of a mineralised bulk sample in the second half of 2015 to complete Ivanhoe's development assessment of the project. The shaft is expected to cost around US$80 million and will be funded from the approximately US$180 million in dedicated funds remaining in Ivanhoe's treasury from the US$280 million received in 2011 from the sale of an 8% interest in the Platreef Project to a consortium of Japanese investors. The bulk-sample shaft will also reduce the timeline for first production as it will be able to be converted to a production shaft in due course following a feasibility study and issue of a mining licence.
Ferrous Resources Limited ("Ferrous")
During September, Ferrexpo plc, the London listed, Ukraine based iron ore producer, announced that it had acquired a 14.4% "strategic" stake in Ferrous for approximately US$80 million. This acquisition is a strong recognition of the quality of Ferrous' iron ore assets in Brazil and will give Ferrous additional options for financing the expansion of its Viga mine to 15 million tonnes per annum. The price paid is in line with the Company's carrying value of Ferrous.
A further indication of renewed interested in the iron ore sector, outside the Company's portfolio, is the proposed investment of US$990 million by Tianjin Materials and Equipment Group Corporation into African Minerals Limited, valuing its Tonkoli iron ore project in Sierra Leone at US$6 billion.
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)
Pelham Bell Pottinger
Lorna Spears +44 20 7861 3883
Joanna Boon +44 20 7861 3867
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.