12th May 2014 11:48
LONDON (Alliance News) - Baker Steel Resources Trust Ltd Monday said its net asset value per share slightly underperformed the general mining market, falling 2.9% during the four months to end of April to 60.2 pence.
The trust said the fall in its net asset value at the end of the period was largely due to weakness in the share price of China Polymetallic Mining on the Hong Kong Stock Exchange.
The trust's investment strategy is to seek capital growth over the long term through a focused global portfolio consisting principally of the equities, or related instruments, of natural resources companies.
It said that during the first four months of its new financial year, there was no realisations or acquisitions of new assets.
"Although there was little corporate activity in the companies in the portfolio during the period, good progress is generally being made at their underlying projects," the trust said in a statement.
"2014 appears to be a year of consolidation for mining shares with the bulk of the poor sentiment towards the sector factored into prices after the weak markets of the past two years," it said.
The trust said that it will continue to look for attractive opportunities, and said that it is well placed when sentiment towards the sector turns.
"There is already evidence of a change in sentiment in the gold sector with increasing merger and acquisition activity and selective fund raisings," it said.
Shares in Baker Steel Resources Trust were trading 2.4% lower Monday midday at 41.00 pence.
By Rowena Harris-Doughty; [email protected]; @rharrisdoughty
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