30th Sep 2016 12:33
LONDON (Alliance News) - Global Resources Investment Trust PLC said Friday it still depends on its unsecured loan stock holders not seeking repayment to continue as a going concern, despite an improvement in commodity markets.
Global Resources reported its net asset value per share rose to 27.60 pence in the six months to the end of June, from 20.30p at December 31, 2015. Net assets in total rose to GBP11.0 million from GBP8.1 million. However the company's share price still fell by 7.8% to 5.9p from 6.4p over the same period.
Shares in Global Resources were untraded Friday, last closing at 9.00p.
Global Resources has capitalised on a rise in commodity prices in the first half of the year to sell various holdings, especially in gold companies. The company is looking to repay its cumulative unsecured loan stock to LIM Asia Multi-Strategy Fund, which formally requested repayment when Global Resources' NAV fell below the four to one cover ratio to the principal amount of the loan in March.
LIM and other loan stock holders have indicated an intention to support the company through its realisation of assets to aid repayment of the GBP4.7 million total, with GBP1.0 million already repaid and a further GBP2.6 million to be realised after Global Resource's sale of Merrex Gold.
Chairman Anthony St John said: "Your board greatly appreciates the patience that shareholders have displayed in waiting for the tide to turn in what is a volatile asset class, and I expect to be writing to you again shortly."
By Adam Clark; [email protected]
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