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5 Jul 2019 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 July 2019
28 June 2019 Unaudited NAV Statement
Net Asset Value
Baker Steel Resources Trust Limited (the "Company") announces its unaudited net asset value per share at 28 June 2019:
Net asset value per Ordinary Share: 66.8 pence
The NAV per share has increased by 13.0% against the NAV at 31 May 2019, primarily due to a 17% rise in the share price of Polymetal International plc on the London Stock Exchange and the usual half yearly revaluation review of the unlisted investments in the portfolio, in particular the increase in the carrying value of the royalty over Futura's mines acquired at the beginning of the year.
The Company has a total of 106,462,502 Ordinary Shares in issue with a further 700,000 shares held in treasury as at 28 June 2019.
Portfolio Update
The Company's top 10 investments are as follows as a percentage of NAV:
Futura Resources Ltd | 17.6% | |
Polymetal International Plc | 15.4% | |
Bilboes Gold Limited | 14.6% | |
Cemos Group plc | 11.1% | |
Polar Acquisition Ltd | 9.2% | |
Sarmin Minerals Exploration | 4.9% | |
Mines & Metal Trading Peru PLC | 4.4% | |
Anglo Saxony Mining Limited | 4.0% | |
Black Pearl Limited Partnership | 3.9% | |
Ivanhoe Mines Ltd | 3.5% | |
Other Investments | 9.3% | |
Net Cash, Equivalents and Accruals | 2.1% | |
Half Year Review of Unlisted Investments
The Company has carried out its normal half yearly review of 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. The Investment Manager maintains an index of comparable listed companies for each unlisted investment, in order to quantify how the share price of a particular unlisted stock might have moved during the period had it been listed. In accordance with this assessment the carrying value of Bilboes Gold Limited has been increased by 14.7% and that of CEMOS Group plc increased by 14.3%. The carrying value of Anglo Saxony Mining Limited has been increased by 44% in line with a recent issue of new shares in that company.
In addition the valuation of the gross revenue royalty over Futura's two coking coal mines in Australia, acquired earlier this year, has been reassessed in the light of the progress of the projects and the Company's royalty model. As a result, the carrying value of the royalty has been increased by 98%.
Mines & Metals Trading Peru PLC ("MMTP")
During June 2019 the Company invested US$4 million in a convertible debenture with MMTP, a private Isle of Man company with operations in Peru. The debenture has an interest rate of 10% per annum and is repayable within 3 years and is convertible at the Company's option into 20% of MMTP.
MMTP's Recuperada project in Peru comprises 11,261 Ha of mining concessions centered around a 600 tonne per day processing plant acquired from Compañia de Minas Buenaventura S.A.A in 2017. MMTP is currently treating silver/lead/zinc ore from third party miners but is moving towards processing ore from its concessions during the second half of 2019. The Recuperada project is located within the Huachocolpa quadrangle, in the Huancavelica region within the central zone of the Western Andean Cordillera of Peru.
From historic exploration at Recuperada, total mineral resources for the project have been estimated at 7,336,633 of ore grading 4.77 oz silver per tonne, 3.91% lead, and 2.53% zinc for the 54 vein systems identified. Significant additional exploration work is required to further delineate these resources on the properties with drilling underway.
In January 2019, MMTP signed a letter of intent with Zincore Metals Inc. (NEX: ZNC.H) ("Zincore") whereby Zincore will acquire all of the issued and outstanding securities of MMTP and shareholders in MMTP will hold 95% of the enlarged group. Upon successful completion of the transaction it is anticipated that the combined company will be listed on the TSX Venture Exchange under the name of Latitude Base Metals Inc.
Interim Accounts
In accordance with the change in regulations for the publishing of interim financial statements from two months after the period end to three months, the Company will in future send to shareholders a copy of its interim report for the six months to 30 June by the end of September each year.
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 are set out in the Company's Prospectus dated 26 January 2015.
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