22nd Apr 2016 09:16
LONDON (Alliance News) - Baker Steel Resources Trust Ltd on Friday said its net asset value per share slid lower in 2015 amid a rough year for natural resources markets.
The company said its net asset value per share at the end of December was 33.5 pence per share, down 25% over the course of the year and down 66% from its first calculated NAV per share in April 2010.
The trust, which invests in mining and oil and gas sector businesses, said the Euromoney Global Mining Index fell 39% in 2015, while the FTSE Gold Mines index dropped 17%.
The values of iron ore and coking coal stocks were hit hard by the fall in the iron ore price and oversupply in the steel industry, particularly in China, the company said. Oil and energy holdings did not fare much better amid continued declines in the oil price.
Chairman Howard Myles said the downturn in the mining industry is "as severe as most people can remember", but said "it should be borne in mind that mining is a cyclical business."
"It is all but impossible to identify the precise bottom of any bear market at the time, but we know from experience that when the turn comes in the mining sector, the recovery is likely to be sharp," he added.
Baker Steel shares were up 6.9% to 19.25p.
By Sam Unsted; [email protected]; @SamUAtAlliance
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