1st Jul 2019 13:20
(Alliance News) - Global Resources Investment Trust PLC said Monday that its board has concluded that it is "unrealistic" for the company to continue trading as a going concern, following a difficult year.
As at December 31, the investment trust's net asset value was 3.4 pence per share, down 83% from 19.7p the same date the year before.
Global Resources' share price was 3.25 pence at the end of 2018, reflecting a 4.4% discount to net asset value.
Shares in Global Resources Investment Trust are currently suspended due to missing the deadline to publish its annual results.
For the year, the company's loss per share was 1.38 pence, widened from 1.04p the year before.
Portfolio-wise, Global Resources said that it has had to write down the value of its investment in Anglo-African Minerals PLC to USD600,000, following insufficient progress in refinancing the company.
Siberian Goldfields has also been written down to GBP151,000, as funding the company has proved impossible due to sanctions against Russian and increasing international tension.
Looking ahead, Global Resources is planning to convene a general meeting in which shareholders can vote over if the company should undertake voluntary liquidation.
"Whilst the board continues to believe in the merits of the investment case attaching to each of the company's three significant investments, the fact is that the catalysts to realise value remain elusive and uncertain," said Chair Haruko Fukuda.
"The board has been urgently considering the future direction of the company, and on May 17 appointed Peterhouse Capital Ltd to assist in advising the company as to its future development. The board has since concluded that it is unrealistic to expect the company to continue trading as a going concern," Fukuda added.
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