RCS - Baker Steel Res Tst - Edison initiates on Baker Steel Resources Trust

Baker Steel Resources TrustAnnouncement

21/06/2019 15:20

RNS Number : 0841D
Baker Steel Resources Trust Ltd
21 June 2019
 


 
London, UK, 21 June 2019
Edison issues initiation on Baker Steel Resources Trust (BSRT)
Baker Steel Resources Trust (BSRT) is unique in offering UK investors access to early-stage (pre-IPO) and specialist listed opportunities in the natural resources sector, which can be higher-risk but offer the prospect of outsize potential returns. The highly experienced investment team is very selective and aims to generate gains through specific risks being mitigated as projects progress along the development curve, rather than relying on commodity price rises. Investments are typically made via convertible loan notes, often in stages, to limit downside risk. BSRT proactively works with investee companies to unlock value and investments can take a number of years to mature. Performance has varied since its launch (although ahead of most peers over one and three years), but BSRT's investment team sees a number of near-term catalysts for potentially significant valuation gains.
 
Recent NAV returns have been positive, and BSRT's 16.4% share price discount to NAV is narrower than its 20.7% one-year average. Under its policy to distribute at least 15% of net realised gains, BSRT conducted a tender offer for 9.7m shares at 51p per share in May 2019, following which it held a 2.0% net cash position. Future distributions could be made via dividends, supported by prospective royalty income.  

Click here to view the full report.
 
Subscribe to Edison's content to receive reports by email.
All reports published by Edison are free-to-access and available on the website.
 
About Edison: Edison is an investment research and advisory company, with offices in North America, Europe, the Middle East and AsiaPac. The heart of Edison is our world-renowned equity research platform and deep multi-sector expertise. At Edison Investment Research, our research is widely read by international investors, advisers and stakeholders. Edison Advisors leverages our core research platform to provide differentiated services including investor relations and strategic consulting.
Edison is authorised and regulated by the Financial Conduct Authority.
Edison is not an adviser or broker-dealer and does not provide investment advice. Edison's reports are not solicitations to buy or sell any securities.
For more information please contact Edison:
Gavin Wood, +44 (0)20 3681 2503
Sarah Godfrey, +44 (0)20 3681 2519
investmenttrusts@edisongroup.com
 
Learn more at www.edisongroup.com and connect with Edison on: 
LinkedIn        https://www.linkedin.com/company/edison-group- 
Twitter           www.twitter.com/Edison_Inv_Res 
YouTube       www.youtube.com/edisonitv 




This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact rns@lseg.com or visit www.rns.com.
 
END
 
 
NRABSGDLXBDBGCB