Last checked at 
6 Oct 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)
6 October 2014
30 September 2014 Unaudited NAV Statement
Net Asset Value
Baker Steel Resources Trust Limited (the "Company") announces its unaudited net asset value per share at 30 September 2014:
Net asset value per Ordinary Share: 52.7 pence
During the month, the NAV per share decreased by 4.5% largely due to falls in the share prices of Ivanhoe Mines (down 21.4%) and Metals Exploration (down 20.6%) on the Toronto Stock Exchange and AIM market respectively.
At 30 September 2014, the Company had a total of 71,703,776 Ordinary Shares in issue.
The Company is fully invested with top 10 investments as follows as a percentage of NAV:
Black Pearl Limited Partnership | 16.0% | |
Polar Silver Resources Ltd | 14.0% | |
Ironstone Resources Limited | 13.3% | |
Ivanhoe Mines Limited | 11.2% | |
Bilboes Gold Limited | 11.2% | |
Metals Exploration plc | 8.0% | |
Ferrous Resources Limited | 7.0% | |
Gobi Coal & Energy Limited | 6.9% | |
Global Oil Shale Group plc | 4.9% | |
China Polymetallic Mining Limited | 4.6% | |
Other Investments | 2.9% | |
Net Cash, Equivalents and Accruals | 0.0% | |
Investment Update
Black Pearl Limited Partnership ("Black Pearl")
The Black Pearl management team has reported that the Black Pearl iron ore beach sands project is close to completing the first phase of development resulting in a capacity of 5 million tonnes per annum of concentrate. Following changes to the Indonesian Mining Regulations in January this year, the project requires a quota permit in order to export concentrates, which Black Pearl's management expect be awarded imminently.
It is planned that the project will be ramped up and expanded in the next few months and is scheduled to produce approximately 8 million tonnes of concentrate in 2015, rising to 15 million tonnes in 2016. The cost of delivering concentrate CIF Chinese Port from the project is forecast to be below US$40 per tonne, therefore, despite the recent fall in the iron ore price, the Black Pearl project is still expected to operate at a healthy margin.
The Company's interest is held via a convertible loan which is repayable in November 2014 and the Company will make a decision at that point whether to be repaid with interest, to roll the debt forward or a combination of the two which would be subject to negotiation.
Metals Exploration ("Metals Ex")
On 17 September 2014, Metals Ex reported that the development of its Runruno gold project in the Philippines was progressing well although, due to late delivery of final engineering drawings, the timetable for the start of commissioning of the mine had slipped from the first quarter to the second quarter 2015. Once in full production the mine is forecast to produce approximately 100,000 ounces of gold per annum at an operating cost of US$474 per ounce.
Following this announcement, the Investment Manager undertook a site visit to Runruno and was pleased that the construction appeared to have been undertaken to a high standard. Management on site were confident that despite this delay, Metals Ex has sufficient funds and facilities to complete the development without the need for further funding.
Metals Ex shares fell 20.6% during September which accounted for 2 percentage points of the fall in the Company's overall NAV.
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.