Last checked at 
6 Jul 2015 08:32
BAKER STEEL RESOURCES TRUST LIMITED
(Incorporated in Guernsey with registered number 51576 under the provisions of The Companies (Guernsey) Law, 2008 as amended)
6 July 2015
30 June 2015 Unaudited NAV Statement
Net Asset Value
Baker Steel Resources Trust Limited (the "Company") announces its unaudited net asset value per share at 30 June 2015:
Net asset value per Ordinary Share: 43.1 pence
Since 29 May 2015, the NAV per share has fallen by 5.3% with a 70% rise in the price of China Polymetallic Mining Limited on the Hong Kong Stock Exchange being outweighed by a write down in the carrying value of Global Oil Shale Group plc following a fundraising at a 11% discount to the previous carrying value; a 25% fall in the price of Ivanhoe Mines on the Toronto Stock Exchange and an appreciation in the exchange rates of Sterling against the US and Canadian Dollars in which the majority of the Company's investments are denominated.
The Company had a total of 115,268,335 Ordinary Shares in issue as at 30 June 2015.
Portfolio Update
The Company is fully invested with top investments as follows as a percentage of NAV:
Polar Silver Resources Ltd | 18.9% | |
Global Oil Shale Group plc | 16.7% | |
Black Pearl Limited Partnership | 13.6% | |
Bilboes Gold Limited | 9.3% | |
Metals Exploration plc | 8.8% | |
Ivanhoe Mines Limited | 7.2% | |
China Polymetallic Mining Limited | 6.2% | |
Gobi Coal & Energy Limited | 5.4% | |
Archipelago Metals Limited | 4.3% | |
Ironstone Resources Limited | 2.9% | |
Other Investments | 3.4% | |
Net Cash, Equivalents and Accruals | 3.3% | |
China Polymetallic Mining Limited ("CPM")
During June 2015, CITIC Dameng Holdings Limited ("CITIC Dameng") announced that it had acquired 442 million shares in CPM (equivalent to approximately 22.2% of CPM's issued share capital) through a series of transactions on the open market and off market. On 29 June 2015 CITIC Dameng further announced that it had conditionally agreed to acquire an additional 150.7 million CPM shares (approximately 7.6%) through a share exchange with another CPM shareholder.
CITIC Dameng is a Hong Kong listed company with four manganese mines in China, whose ultimate major shareholder is CITIC Group Corporation, a company wholly owned by the Chinese state with total assets of RMB 3.6 trillion at the end of 2012.
Black Pearl Limited Partnership ("Black Pearl")
Black Pearl holds an exchangeable loan note issued by a holding company of the mine group, Rui Tong Limited, which is mining the Black Pearl beach placer iron sands project in West Java, Indonesia. As previously reported, the repayment date of the note was extended from November 2014 to March 2015 while negotiations continued with a potential partner for the development of a steel plant in Indonesia. Processing the concentrate in Indonesia became mandatory on the passing of new laws in Indonesia at the beginning of 2014.
On 9 June 2015, Rui Tong signed a framework agreement with Anshan Iron & Steel Group Corporation ("Anshan") for a significant investment into the Black Pearl project and the development of a large scale steel plant in Indonesia. Anshan is one of China's largest steel companies with an annual production capacity of approximately 40 million tonnes. Unlike many of its competitors, Anshan has extensive experience of dealing with vanadium and titanium; both part of Black Pearl's product focus.
The finalisation of agreements with Anshan, government and local organisations will necessarily take some time and therefore Rui Tong has requested a further extension of the loan notes for up to a further six months.
Ferrous Resources Limited ("Ferrous")
During June the Company accepted the previously reported tender offer from Icahn Enterprises Holdings L.P. for all its Ferrous shares at a price of US$0.36 per share and the Company received the proceeds of US$2.06 million at the end of June 2015.
Following the publication of the the Company's Net Asset Value as at 31 July 2015, the Board intends to implement a Discount Management Policy, as outlined in the Company's prospectus dated 26 January 2015. Under this policy, the Company will calculate the aggregate net cash proceeds of realisation over the immediately preceding six month period. If the Ordinary Shares are trading at a discount in excess of 15 per cent. to their Net Asset Value, the Board intends to allocate at least 50% of such realisation proceeds (less the aggregate value of any Ordinary Shares already bought back during the preceding six month period) to buy back its own Ordinary Shares. In accordance with this policy, at least 50% of the proceeds from the sale of the Ferrous investment will be earmarked for the buy-back programme to commence in August 2015.
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.