REG - Baker Steel Res Tst - Net Asset Value(s)

Baker Steel Resources TrustAnnouncement

11/01/2019 07:05

RNS Number : 8083M
Baker Steel Resources Trust Ltd
11 January 2019
 


 
 
BAKER STEEL RESOURCES TRUST LIMITED
(Incorporated in Guernsey with registered number 51576 under the provisions of The Companies (Guernsey) Law, 2008 as amended)
 
11 January 2019
31 December 2018 Unaudited NAV Statement
Net Asset Value
Baker Steel Resources Trust Limited (the "Company") announces its unaudited net asset value per share at 31 December 2018:
Net asset value per Ordinary Share:    58.3 pence
Since 30 November 2018 the NAV per share has decreased by 1.8%, primarily due to a fall in the carrying value of Metals Exploration PLC on the AIM market of the London Stock Exchange and other changes following the usual review of unlisted positions at the year end. Over the full year 2018, the NAV has risen by 2.7% compared to a 10.7% fall in the EMIX Global Mining Index in Sterling terms.
 
The Company had a total of 116,139,980 Ordinary Shares in issue with a further 700,000 shares held in treasury as at 31 December 2018.
 
 
Portfolio Update
 
The Company's top 10 investments are as follows as a percentage of NAV:
 




Polymetal International Plc


28.2%


 




Bilboes Gold Limited


13.3%


 




Futura Resources Ltd


12.5%


 




Cemos Group plc


10.3%


 




Polar Acquisition Ltd


9.1%


 




Sarmin Minerals Exploration


5.1%


 




Black Pearl Limited Partnership


4.0%


 




Nussir ASA


3.3%


 




Ivanhoe Mines Limited


2.2%


 




PRISM Diversified Ltd


2.2%


 




Other Investments


3.3%


 




Net Cash, Equivalents and Accruals


5.9%


 




 
 


 


 




Investment Update
 
 
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 full 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 the Company's 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.
In line with this policy, the carrying value of the Futura Resources loan notes has been increased by 42%. Futura's coking coal projects in Queensland, Australia have progressed well and production is forecast to start in the second quarter of this year.
 
In June 2018, the carrying value of Bilboes Gold Limited ("Bilboes") was increased in line with the movement in its index, however this fell in the second half such that the index was broadly even on the full year. Accordingly, the mid-year increase in the carrying value of Bilboes has been reversed so the value of Bilboes is unchanged on the year. A revised mineral resource report on Bilboes' potential 200,000 ounce per annum Isabella/Bubi gold project in Zimbabwe is expected during the first quarter of 2019, with completion of the definitive feasibility study due mid-year.
 
Polar Acquisition Limited ("PAL") holds a 0.9% to 1.8% royalty over future production on the Prognoz Silver Project in far east Russia. During 2018, Polymetal International announced a revised resource on Prognoz following its drilling programmes in 2017 and 2018. Until Polymetal publishes its pre-feasibility study on how it plans to develop Prognoz, it is not practical to adjust the royalty model and therefore the valuation of the royalty was adjusted in line with the 8.6% fall in the silver price during the year.
 
In addition, the carrying value of PRISM Diversified was reduced 30% in accordance with the fall in its index.
 
 
Metals Exploration PLC ("Metals Ex")
 
During December 2018 Metals Exploration Plc fell 73% on the AIM market of the London Stock Exchange as it appeared that a major investor had lost patience in waiting for the company to refinance its loans and liquidated its position. News on the refinancing together with an update on operations during the fourth quarter is expected in the next month.
 
 
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 Johnstone

Trevor 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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