Baker Steel Resources Trust Ltd Net Asset Value(s) (4132B)
10 January 2018 - 6:00PM
UK Regulatory
TIDMBSRT
RNS Number : 4132B
Baker Steel Resources Trust Ltd
10 January 2018
BAKER STEEL RESOURCES TRUST LIMITED
(Incorporated in Guernsey with registered number 51576 under the
provisions of The Companies (Guernsey) Law, 2008 as amended)
10 January 2018
29 December 2017 Unaudited NAV Statement
Net Asset Value
Baker Steel Resources Trust Limited (the "Company") announces
its unaudited net asset value per share at 29 December 2017:
Net asset value per Ordinary Share: 56.8 pence
Since 30 November 2017 the NAV per share has increased by 14.3%,
primarily due to a rise in the carrying value of Polar Acquisition
Limited and other changes following the usual review of unlisted
positions at the year end.
The Company had a total of 116,139,980 Ordinary Shares in issue
with a further 700,000 shares held in treasury as at 29 December
2017.
Portfolio Update
The Company's top 10 investments are as follows as a percentage
of NAV:
Polar Acquisition Ltd 37.4%
Bilboes Gold Limited 12.6%
Ivanhoe Mines Limited 11.2%
Cemos Group plc 9.1%
Metals Exploration plc 6.8%
SME Inc 4.5%
Queensland Coal Investment
Holdings Ltd 4.4%
Black Pearl Limited Partnership 3.9%
Ironstone Resources Limited 3.8%
Nussir ASA 3.1%
Other Investments 1.8%
Net Cash, Equivalents and
Accruals 1.3%
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 line with this policy and the significant progress of
the Prognoz silver project over the past year, the Board considered
a 41% increase in the carrying value of Polar Acquisition Limited
to be appropriate. The Company expects to be in a position to give
a fuller update on PAL in the next few weeks.
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 in terms of commodity, location and development
for each unlisted investment. As a result of the movement in its
index over the past year, the carrying value of Bilboes Gold
Limited has been increased by 20%, also recognising the positive
pre-feasibility study on its Isabella-McCays-Bubi gold project in
Matabeleland, Zimbabwe completed in November 2017.
CEMOS Group PLC ("CEMOS")
During December 2017, CEMOS successfully completed a EUR6.3
million raising of Convertible Unsecured Loan Stock ("CULS") to
fund the construction of a cement plant at its Tarfaya project in
Morocco. The cement plant will be manufactured, constructed and
initially operated by Loesche GmbH based in Düsseldorf, Germany,
which will also be providing vendor financing for the plant.
The cement plant will have a capacity of up to 270,000 tonnes
per annum and is planned to be in production mid 2018. Total
capital costs are budgeted at under EUR12 million and the operation
is expected to have annual revenues of over EUR25 million and a
payback of less than two years.
The Company participated in the CULS issue, investing EUR3
million, however the pricing of the CULS has led to the Company
reducing the carrying value of CEMOS equity by 16%.
Queensland Coal Investment Holdings Limited ("QCIH")
On 5 October 2017, the Company announced that it had
conditionally committed to investing up to A$10 million in Gateway
Mining Limited ("Gateway"), an Australian Stock Exchange listed
shell company which was in the process of acquiring certain hard
coking coal assets in the Bowen Basin, Queensland, Australia.
During December 2017, the Company agreed with QCIH, the direct
holder of the above assets, to invest directly in QCIH and for QCIH
not to go ahead with the reverse takeover of Gateway and to stay
private for the time being. As part of the agreement the Company
invested A$5 million in convertible loan notes in December 2017 and
has committed to invest a further A$5 million in convertible loan
notes in February 2018.
QCIH owns the Wilton and Fairhill coking coal projects in the
Bowen Basin in Queensland, Australia, which is well known for its
high quality coking mines. The forecast low capital costs to bring
the projects into production together with excellent local
infrastructure means QCIH are targeting first cashflow within 2018.
The recent strength of the international coking coal price should
enable a rapid payback of the capital for the project.
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.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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