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18 Jan 2016 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)
18 January 2016
31 December 2015 Unaudited NAV Statement
Net Asset Value
Baker Steel Resources Trust Limited (the "Company") announces its unaudited net asset value per share at 31 December 2015:
Net asset value per Ordinary Share: 33.5 pence
Since 30 November 2015, the NAV per share has decreased by 16.0% largely due to write downs in the carrying values of certain of its unlisted investments in line with the Company's policy of reflecting general listed market movements in the portfolio's unlisted equities at the interim and full year stages.
The Company had a total of 114,568,335 Ordinary Shares in issue with 700,000 shares held in treasury as at 31 December 2015.
Portfolio Update
The Company is fully invested with top 10 investments as follows as a percentage of NAV:
Polar Silver Resources Ltd | 26.2% | |
Black Pearl Limited Partnership | 18.4% | |
Metals Exploration plc | 11.0% | |
Bilboes Gold Limited | 9.4% | |
Global Oil Shale Group plc | 9.1% | |
Ivanhoe Mines Limited | 5.4% | |
Ironstone Resources Limited | 5.1% | |
Gobi Coal & Energy Limited | 3.7% | |
China Polymetallic Mining Limited | 3.5% | |
Archipelago Metals Limited | 2.7% | |
Other Investments | 4.2% | |
Net Cash, Equivalents and Accruals | 1.3% | |
Portfolio Update
The Company has carried out its normal year end review of general market movements in listed mining equities, as well as specific factors, and an assessment of whether these should be reflected in 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.
Due to the continued deterioration in share prices across all resources sectors the carrying values of the Company's unlisted shares were reviewed in line with this policy. The carrying value of Global Oil Shale has been written down by 58% in December, resulting in a 62% write down for the year; Gobi Coal was likewise written down by 51%, Bilboes Gold written down by 29% and a 15% provision made against the loan due from Black Pearl.
During 2015 the Company's NAV has fallen 25.4% which compares with a 39.3% fall in the Euromoney Global Mining Index in Sterling terms over the same period indicating the difficult market for mining shares in which the Company is invested.
Nussir ASA ("Nussir") www.nussir.no
Nussir is a minerals exploration and development company, whose main project is the previously producing Nussir and Ulveryggen copper project in Kvalsund, Norway on which a preliminary economic assessment has been completed. The Nussir project has to date identified JORC classified resources of 74 million tonnes grading 1.1% copper. It is a company that the Investment Manager has followed for several years and the Company acquired a small holding with the Acquisition of Additional Investments for shares in the Company transaction at the beginning of 2015. This position was added to in July 2015 such that the Company owns approximately 9.8% of the shares in Nussir.
On 13 December 2015, Nussir achieved a key milestone in its development plans when the Norwegian Environment Agency granted it the permit to deposit tailings from the project into the Repparfjord. This followed several years of exhaustive environmental studies and consultation and this permission significantly de-risks the project.
The investment in Nussir amounts to some 2% of NAV at the year end and as such represents an "incubator" investment for the fund. With the fall in the copper price being compensated for by the significant fall in the Norwegian Krone exchange rate, the investment has the potential to become one of the Company's core investments.
Polar Silver Resources Ltd ("Polar Silver")
On 4 January 2016, shareholders approved a change in the Company's investment policy to enable it to increase its investment in the Polar Silver group so that such investment may represent up to 35 per cent in aggregate of the value of the Company's gross assets at the time of the relevant transaction. Negotiations are continuing with the other shareholders of Polar Silver and an update will be provided once these negotiations have been concluded.
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.
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