Baker Steel Resources Trust Ltd Net Asset Value(s) (4366Y)
December 06 2017 - 1:00AM
UK Regulatory
TIDMBSRT
RNS Number : 4366Y
Baker Steel Resources Trust Ltd
06 December 2017
BAKER STEEL RESOURCES TRUST LIMITED
(Incorporated in Guernsey with registered number 51576 under the
provisions of The Companies (Guernsey) Law, 2008 as amended)
6 December 2017
30 November 2017 Unaudited NAV Statement
Net Asset Value
Baker Steel Resources Trust Limited (the "Company") announces
its unaudited net asset value per share at 30 November 2017:
Net asset value per Ordinary Share: 49.7 pence
Since 31 October 2017 the NAV per share has decreased by 3.3%,
primarily due to a rise in the exchange rate of Sterling against
the currencies in which the Company's investments are denominated
as well as falls in the share prices of Ivanhoe Mines Limited and
Metals Exploration on the Toronto Stock Exchange and AIM market
respectively.
The Company had a total of 116,139,980 Ordinary Shares in issue
with a further 700,000 shares held in treasury as at 30 November
2017.
Portfolio Update
The Company's top 10 investments are as follows as a percentage
of NAV:
Polar Acquisition Ltd 30.2%
Ivanhoe Mines Limited 13.0%
Bilboes Gold Limited 12.1%
Cemos Group plc 11.0%
Metals Exploration plc 6.7%
SME Inc 5.1%
Black Pearl Limited Partnership 4.5%
Ironstone Resources Limited 4.2%
Nussir ASA 3.6%
Archipelago Metals Limited 1.1%
Other Investments 1.2%
Net Cash, Equivalents and
Accruals 7.3%
Investment Update
Ivanhoe Mines Limited ("Ivanhoe")
On 27 November 2017, Ivanhoe announced the results of an updated
Preliminary Economic Assessment ("PEA") for its Kamoa-Kakula joint
venture in the Democratic Republic of Congo.
The PEA states that an initial six million-tonne-per-annum
copper mine at Kakula can be developed for an estimated US$1.2
billion with a subsequent expansion to 12 million-tonnes-per-annum
with the opening of a separate mine at Kamoa, sending ore to a
central processing facility funded from cash flows or project
finance.
The PEA investigates the potential development of an initial six
million-tonne-per-annum mine at Kakula at an average grade of 5.5%
over a 24 year mine life producing an average annual production
rate of 246,000 tonnes of copper. Mine site cash cost of US$0.45/lb
copper and total cash cost of US$1.08/lb copper for the first five
years of operations will make it one of the lowest cost copper
mines globally.
The 12 Mtpa expansion scenario would deliver average annual
production of 370,000 tonnes of copper at a total cash cost of
US$1.02/lb copper during the first 10 years of operations and
production of 542,000 tonnes by year nine. The economics for this
scenario forecast a net present value (8%) of US$7.2 billion with
an internal rate of return of 33%.
The PEA does not include the Kakula West discovery which is
currently being drilled and could form the basis for a further
modular expansion to 18 million tonnes of ore per annum.
The results and studies on Kamoa-Kakula published over the past
year have shown remarkable progress and demonstrate the project's
potential to become one of the worlds top 5 copper mines.
Bilboes Gold Limited ("Bilboes")
Bilboes has completed a pre-feasibility study (PFS) on its
Isabella-McCays-Bubi gold project in Matabeleland, Zimbabwe.
Indicated resources totalled 48 million tonnes grading 2.42 g/t
containing 3.7 million ounces of gold. In addition, a further 1.1
million ounces of inferred resources were identified.
The PFS envisages a two phase open pit development at a pre-cash
flow capital cost of US$109 million for an initial production rate
of 100,000 ounces gold per annum, increasing to 200,000 ounces of
gold per annum in 3 years. Average cash costs for the twelve year
mine life are forecast at US$703/ounce gold with the economics
giving an NPV(10%) of US$167 million with an internal rate of
return of 34%.
Bilboes is now moving forward with a bankable feasibility study
for the project for which it is fully funded and is expected to be
completed in early 2019. The robust economics of Bilboes's PFS
suggest that the Isabella-McCays-Bubi gold project has the strong
potential to become Zimbabwe's largest gold mine. It is hoped that
the recent changes in government in Zimbabwe will provide a
stronger economic environment for the development of the project in
due course.
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 is 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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