Last checked at 
19 Jan 2017 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)
19 January 2017
30 December 2016 Unaudited NAV Statement
Net Asset Value
Baker Steel Resources Trust Limited (the "Company") announces its unaudited net asset value per share at 30 December 2016:
Net asset value per Ordinary Share: 47.9 pence
Since 30 November 2016, the NAV per share has increased by 11.9% primarily as a result of the reorganisation of the Polar Silver Group and subsequent revaluation.
The Company had a total of 116,139,980 Ordinary Shares in issue with a further 700,000 shares held in treasury as at 30 December 2016.
Portfolio Update
The Company is fully invested with top 10 investments as follows as a percentage of NAV:
Polar Acquisition Ltd | 37.9% | |
Bilboes Gold Limited | 13.6% | |
Ivanhoe Mines Limited | 11.4% | |
Metals Exploration plc | 10.0% | |
Cemos Group plc | 6.8% | |
Black Pearl Limited Partnership | 5.1% | |
Ironstone Resources Limited | 4.5% | |
Nussir ASA | 3.5% | |
China Polymetallic Mining Limited | 2.4% | |
Archipelago Metals Limited | 2.4% | |
Other Investments | 1.5% | |
Net Cash, Equivalents and Accruals | 0.9% | |
Polar Acquisition Limited ("PAL")/ Polar Silver Resources Limited ("Polar Silver")
As announced in the November NAV statement, the reorganisation of the Polar Silver Group was completed in early December 2016. This entailed a conversion of the debt that the Company held in Polar Silver and its 100% owned Russian subsidiary, Argentum, which was immediately followed by the acquisition of Polar Silver for shares issued by a newly formed holding company Polar Acquisition Limited ("PAL"). As a result of this reorganisation, the Company now holds a 64% interest in PAL, which in turn owns 100% of Polar Silver. Argentum owns 50% of the Prognoz silver project.
Following this conversion into equity, the Investment Manager and the Board have considered the carrying value of the Company's interest in PAL, with reference to recent transactions including the sale by Nord Gold of the other 50% of Prognoz, announced in November 2016. The resulting carrying value of PAL has caused an approximately 54% increase in the valuation of the Company's indirect interest in the Prognoz silver project in Sterling terms.
The interest in PAL now represents 37.9% of the Company's net assets although it is the intention to reduce this percentage over time.
Full Year Adjustments to Carrying Values
The Company has carried out its normal review of its unlisted holdings, which it performs at the half-year and year-end. This review takes into account general market movements in mining equities, as well as specific factors, and an assessment of whether these should impact the carrying values of its unlisted holdings. 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.
As a result of the movement in its index, the carrying value of Bilboes Gold has been reduced by 7.3% albeit Bilboes is still up 72% on the year in US Dollar terms following the 86% increase at the end of June 2016. In addition, following recent transactions, the carrying value of Gobi Coal was reduced by 50% in US Dollar terms and Nussir was increased 6% in Norwegian Krone.
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.