REG - Baker Steel Res.Tst. - Half-year Report
30/09/2025 07:00
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RNS Number : 2915B Baker Steel Resources Trust Ltd 30 September 2025
BAKER STEEL RESOURCES TRUST LIMITED
(Incorporated in Guernsey with registered number 51576 under the provisions of
The Companies (Guernsey) Law, 2008 as amended)
30 September 2025
BAKER STEEL RESOURCES TRUST LIMITED
(the "Company")
LEI: 213800JUXEVF1QLKCC27
Half-Yearly Report and Unaudited Condensed Interim Financial Statements for
the period 1 January 2025 to 30 June 2025
The Company has today, in accordance with DTR 6.3.5, released its Half-Yearly
Report for the period ended 30 June 2025. The Report is shown below and is
available via www.bakersteelcap.com/baker-steel-resources-trust/
(http://www.bakersteelcap.com/baker-steel-resources-trust/) and the National
Storage Mechanism.
Further details of the Company and its investments are available on the Baker
Steel Capital website www.bakersteelcap.com
(https://url.avanan.click/v2/___http:/www.bakersteelcap.com___.YXAxZTpzaG9yZWNhcDphOm86MjdlZGQ1NzE1MDA2OWIwMWI0NzUxYWYwYjc5OWUzNTk6NjpiYzEwOjkzMDBjNGMzNDY1MGVhOGQwZjg2Yjk0OWEzY2U2ODYwZDI0MDYxY2Y3MmU3MDM0OWJkOTAyZWZhZWViMDM0NTI6cDpUOk4)
Enquiries:
Baker Steel Resources Trust Limited +44 20 7389 8237
Francis Johnstone
Trevor Steel
Shore Capital
+44 20 7408 4050
Henry Willcocks (Corporate Broking)
Gillian Martin, Daphne Zhang (Corporate)
Adam Gill (Sales)
Aztec Financial Services (Guernsey) Limited
Company
Secretary
+44 1481 749771
BAKER STEEL RESOURCES TRUST LIMITED
Half-Yearly Report and Unaudited Condensed Interim Financial Statements
For the period from 1 January 2025 to 30 June 2025
CONTENTS PAGE
Chairman's Statement 2
Investment Manager's Report 5
Directors' Report 14
Unaudited Portfolio Statement 17
Unaudited Condensed Interim Statement of Financial Position 19
Unaudited Condensed Interim Statement of Comprehensive Income 20
Unaudited Condensed Interim Statement of Changes in Equity 22
Unaudited Condensed Interim Statement of Cash Flows 23
Notes to the Unaudited Condensed Interim Financial Statements 24
Management and Administration 36
CHAIRMAN'S STATEMENT
FOR THE PERIOD FROM 1 JANUARY 2025 TO 30 JUNE 2025
THE PORTFOLIO
The first half of 2025 has been in large part a positive one for the Company.
Our NAV increased by 16%, and the share price by 11%. This compares with a
rise of 3.6% in the MSCI World Metals and Mining Index. Notably, this was
against a macro background of significant uncertainty around pricing, and in
some cases actual disruption of trade flows, in commodity markets. Both of
these reflected the widespread ripples from the global tariff wars unleashed
by the US government. Pleasingly the NAV has continued to grow since 30 June
2025 with some positive developments in the portfolio. Over the past five
years the NAV has grown by some 35% but with the share price improvement
lagging that (at a 14% rise), the shares continue to trade at a
disappointingly wide discount.
Key developments affecting the Company's holdings over the past six months are
discussed in detail in the Investment Managers Report (pages 5 to 13 ). Even
though the portfolio is currently somewhat skewed to our two main investments,
Cemos and Futura, it is pleasing to note that the increase in the NAV
reflected improvements in a broader spread of our holdings, underlining the
value of the diversity in our portfolio as commodity prices moved in
uncorrelated directions.
In addition, two of the projects in our smaller holdings were deemed
"strategic" by the EU, and following the period end, the US government also
became involved as both regions pursue resilience of critical minerals supply
chains to counter Chinese dominance. The two were Tungsten West and Nussir
(copper project in Norway now absorbed into Blue Moon Metals). Tungsten West
moved up from 3.3% of NAV six months ago to 8.5%, boosted additionally by a
rising tungsten price (+31% in the first half of 2025) and a revised
operational plan.
A short overview of our portfolio highlights that Cemos, a cement producer
operating in economically buoyant Morocco, moved up to become our largest
investment at £32.3 million (29.1% of NAV). In the first half of 2025, it
continued the process of constructing a new Compact Calcination Unit to
produce its own clinker which is expected to be in operation during September
2026 and has been funded largely by internal cashflows.
Futura, at 26% of NAV our second largest investment, faced a very challenging
coal pricing environment as it continued to ramp up the Wilton and Fairhill
mines which produce metallurgical coal in Queensland, Australia. Although
Futura's mining operations are some of the lowest cost in Australia due to
their shallow depth, the depressed coal prices have been particularly
unhelpful during the ramp-up period when working capital is always tight, and
in April 2025 the Company extended a bridging loan of A$1.4 million.
Uncertainty around steel demand in key consumer countries China and India,
engendered by tariff wars and their possible outcomes, could not have been
foreseen a year ago, when Futura was forecasting useful cash flows and
royalties by mid to late 2025. Futura could continue to face challenging
short-term working capital pressures in the second half of this year, and we
believe positive free cash flow is now unlikely to be achieved before 2026 at
the earliest. Against this background it is currently engaged with third
parties to shift its debt onto a longer-term footing.
With the coal industry in general experiencing pressure on margins, there have
already been some production cutbacks at higher cost operations in Australia,
and intensifying pressure for consolidation in the sector as a whole. The
latter was reflected in the option signed with International Resources
Holdings (IRH) in May, which gave IRH the right to acquire the shares held by
the Company and other shareholders making up at least 50% of Futura's equity
within 9 months. At 30 June 2025, we considered it prudent to reduce the
carrying value of the Futura equity to reflect the current difficult trading
conditions in the coal markets. Should IRH exercise its option it would
represent a 75% premium to the value at which we are carrying the investment.
Should IRH take control of Futura, it would not affect the Company's 1.5%
Gross Revenue Royalty over production from Futura's mines, albeit the
valuation thereof will need to be kept under review as long as adverse
conditions in the coal markets persist.
Elsewhere across the commodity spectrum, there was significantly better price
performance in the first half of the year coming mainly from precious metals,
driven by heightened geopolitical and global economic uncertainties (gold up
by 26% and silver by 25%). That, combined with improved operational delivery
at the Blanket mine in Zimbabwe, underpinned strong returns from Caledonia
Mining. The combined value of the Bilboes royalty and the Caledonia shares
held by the Company accounted for just over 13% of NAV at period end (vs 12%
six months ago). Although the increased value of these has been pleasing, we
have sold down a portion of our Caledonia holding to maintain our exposure to
Zimbabwe at a level appropriate to the country's risk profile. Additional
gold exposure in the portfolio comes from the holding in Metals Exploration
plc (approximately 5% of NAV).
CHAIRMAN'S STATEMENT
FOR THE PERIOD FROM 1 JANUARY 2025 TO 30 JUNE 2025 (CONTINUED)
CORPORATE ACTIVITY
PAL, a private company (49.9% owned by BSRT) previously held a net smelter
royalty over the Prognoz silver project in Russia. At the end of June 2025, it
agreed to divest the royalty for US$11m and a net US$5.16m was paid to BSRT in
July (approximately 4 times the carrying value of the PAL stake as at 31
December 2024).
Despite the exponential increase in Russian risk following the invasion of
Ukraine in 2022 undermining the full potential long-term benefits, we are
pleased to have been able to exit successfully as the geopolitical situation
continues to deteriorate. The investment in the Prognoz project has
nevertheless been rewarding for BSRT shareholders; these proceeds combined
with the previous sale of Polymetal shares will have provided a total return
to BSRT of US$48.9m, or 3 times the total US$15.9m originally invested.
All credit to the Investment Manager for continuing to deliver such outcomes
in challenging environments.
CAPITAL ALLOCATION POLICY
The portfolio is starting to mature to a stage in which several investee
companies are expected to be able to pay dividends and royalty payments. In
addition, the Investment Management team is focused on selective asset
disposals where they see attractive opportunities to crystalise good returns.
The Board remains disappointed with the Company's share price's persistent
large discount to NAV and considers this to be unwarranted in the light of
recent performance and relative to the prospects of the portfolio.
As such, the Board has reviewed its capital allocation policy to better
reflect the Company's current position and expectations going forward.
Recent cash receipts from the sale of the Prognoz royalty should allow the
Company to commit capital to a share buyback programme commensurate with the
level of discount at which the shares are trading. Although our policy
regarding distributions to shareholders is of not less than 15% of net
realised cash gains (as explained in more detail in the Directors' Report on
page 14), whilst the discount is at its current level, up to 50% of such cash
realisations may be applied to such distributions.
Accordingly, and within the constraints of financial viability and near-term
liquidity issues as Futura undertakes a refinancing of its debt profile, the
Board intends to authorise a programme to actively buy back shares in
order to enhance shareholder returns.
We cannot predict the impact that buy backs will have on the level of discount
at which the shares trade, but they should be highly accretive to the NAV per
share at the current share price. At the most recent AGM held on 24 September
2025, shareholders authorised the Company to repurchase up to 14.99% of its
shares and the Board intends to seek a renewal of the authority at each AGM.
Future capital allocation decisions will be driven by cash generated by
dividend and royalty income from the investee companies, as well as selective
asset realisations. The Board will retain discretion for determining the most
appropriate manner by which to make such distributions, mindful of differing
preferences across our shareholder base.
Finally, this statement regarding capital allocation does not result in a
change to the Company's investment approach and strategy, which aims to
continuously evaluate the best returns for shareholders over the medium term.
This would point to a balanced approach between capital returns and targeting
increased net asset value via selective investment in attractive high growth
natural resources opportunities that have the potential to broaden the
diversification and increase the critical mass of the portfolio.
CHAIRMAN'S STATEMENT
FOR THE PERIOD FROM 1 JANUARY 2025 TO 30 JUNE 2025 (CONTINUED)
OUTLOOK
Following another six months dominated by aggressive moves and counter moves
in the tariff wars, we are starting to see key players in commodity markets
like China and India focus on calibrating the direction of their future trade
flows, both inward and outward bound. The macro implications for such seismic
shifts in international trade will take time to unfold but will undoubtedly
continue to engender high levels of uncertainty around global growth
forecasts, currency trends and inflationary pressures.
Despite a highly opaque macro environment, the Company will continue to focus
inwards on supporting and moving its development projects towards fruition,
just as it did in the first half of 2025. At the investee company level, coal
prices will be the key determinant of Futura's prospects and hence of key
importance to the short-term value and liquidity of the Company's portfolio.
Finally, I continue to welcome and value dialogue with all of our
shareholders, within which context our company secretary serves as an initial
point of contact.
Fiona Perrott-Humphrey
Chairman
29 September 2025
INVESTMENT MANAGER'S REPORT
FOR THE PERIOD FROM 1 JANUARY 2025 TO 30 JUNE 2025
Financial Performance
The unaudited Net Asset Value per Ordinary Share ("NAV") as at 30 June 2025
was 104.4 pence (31 December 2024:89.7 pence), an increase of 16.4% in the
period compared with the increase in the MSCI World Metals and Mining Index of
3.6% in Sterling terms.
For the purpose of calculating the NAV per share, unquoted investments were
carried at fair value as at 30 June 2025 as determined by the Directors, based
on reports received from the Investment Manager following a process detailed
in the Annual Report and Accounts. Quoted investments were carried at their
quoted prices as at that date.
Net assets comprised the following: 30 June 2025 31 December 2024
£m % of NAV £m % of NAV
Unquoted Investments 83.0 74.6 82.2 86.1
Quoted Investments 27.1 24.4 13.0 13.6
Cash and other net assets 1.0 1.0 0.3 0.3
111.1 100.0 95.5 100.0
Investment Update 30 June 2025 31 December 2024
Largest Holdings £m % of NAV £m % of NAV
Cemos Group plc 32.3 29.1 30.0 31.4
Futura Resources Ltd 28.9 26.0 31.9 33.4
Bilboes Royalty 9.8 8.8 8.4 8.8
Tungsten West Plc 9.5 8.5 3.2 3.3
Blue Moon Metals Inc* 8.6 7.8 0.4 0.4
Metals Exploration Plc 5.2 4.6 3.3 3.5
Caledonia Mining Corporation Plc 4.6 4.1 3.2 3.4
Polar Acquisition Limited 3.8 3.4 1.0 1.0
First Tin plc 2.8 2.5 2.6 2.8
Silver X Mining Corporation 2.4 2.2 2.1 2.3
Kanga Investments Ltd 1.5 1.4 1.4 1.6
Nussir ASA* - - 6.9 7.2
109.4 98.4 94.4 99.1
Other Investments 0.7 0.6 0.8 0.6
Cash and other net assets 1.0 1.0 0.3 0.3
111.1 100.0 95.5 100.0
*During the year Blue Moon Metals Inc acquired Nussir ASA
INVESTMENT MANAGER'S REPORT
FOR THE PERIOD FROM 1 JANUARY 2025 TO 30 JUNE 2025 (CONTINUED)
Review
At 30 June 2025, the Company was fully invested, holding 15 investments of
which the top 10 holdings comprised 97% of the portfolio by value. In terms of
commodity, the portfolio has exposure to cement, copper, gold, iron, lead,
lithium, potash, silver, steel making coal, tin, tungsten, vanadium, and zinc.
Its projects were located in Australia, Canada, Germany, Indonesia,
Madagascar, Morocco, Norway, Peru, the Philippines, Republic of Congo, Russia,
the UK and Zimbabwe.
During the first six months of 2025, the market for development stage projects
appeared to be showing some signs of recovery with a limited amount of funding
starting to become available again to junior developers and to some extent for
exploration. The MSCI World Metals and Mining Index composed of large and
mid-cap companies rose 3.6% in Sterling terms. The Company's NAV rose 16.4%
during the period.
Precious metals were the best performing commodities during the first half of
2025 with gold rising 25.9% and silver by 24.9%. Base metals prices were also
strong, with copper up 16.2%, tin up 17.3%, and tungsten up 31.2%. However,
steel-making mineral prices declined further after falling heavily in 2024
with iron ore falling by 6.5% and metallurgical coal decreasing by 5.6% (all
expressed in US dollar terms).
Of note during the period was the addition by the European Union of 13
Strategic Projects located outside the EU to add to the 47 Strategic Projects
in the EU adopted on 25 March 2025. The Nussir Copper Project in Norway (owned
by Blue Moon Metals Inc) and Tungsten West's Hemerdon Project in Devon, UK
were two of the 13 projects selected. Those projects are the first results of
the implementation of the EU Critical Raw Materials Act ("CRMA") which came
into force in May 2024. The list of selected Strategic Projects was compiled
following an assessment by independent experts to ensure that they meet the
criteria established in the Critical Raw Materials Act, notably regarding
environmental, social and governance standards as well as technical
feasibility. The projects on the list will benefit from coordinated support by
the EU Commission, better access to public and private financing through
various funding programs, and political support for the advancement of the
project, among other benefits. Addition to the EU Strategic Projects list will
undoubtedly be a significant help in Tungsten West's efforts to finance the
restart of the Hemerdon Mine in the second half of 2025, as already evidenced
by potential US funding referred to later in this report.
The Company's NAV rose 16.4% in Sterling terms during the first half of the
year with key contributors being the 203% increase in the listed share price
of Tungsten West Plc and the revaluation of PAL following the sale of its
Prognoz silver royalty as described below.
INVESTMENT MANAGER'S REPORT
FOR THE PERIOD FROM 1 JANUARY 2025 TO 30 JUNE 2025 (CONTINUED)
Review (continued)
The imposition of a new tariff-based world order brought in by the Trump
administration has introduced a heightened level of uncertainty, especially
regarding trade with China in which the circumstances can change on almost a
daily basis. Whilst the ultimate impact of tariffs will only become clearer
over the next few years, the widespread concerns that they will lead to
reduced international trade and lower global economic growth represent a risk
to industrial commodity prices. Conversely, President Trump's drive for a
weaker dollar to boost the US terms of trade would, if successful, be
supportive of commodity prices denominated in US$. Precious metals would seem
to be best placed to prosper in either scenario, against a backdrop of
increased geopolitical uncertainty.
The Company's main investments at the end of the period:
Cemos Group Plc ("Cemos")
CEMOS is a private cement producer with production operations at Tarfaya in
Morocco.
Investment: 50,129,247 ordinary shares
(31.3%) valued at £32.3 million
Value at 31 December 2024: £30.0 - increased due to progress on construction
of compact calcination unit.
The cement market in Cemos' southern area of Morocco was stable in 2024, with
Cemos' sales for the year totalling 209,000 tonnes, approximately 15% higher
than the 182,000 tonnes achieved in 2023. As a result, the EBITDA for the year
was €9.2 million (2023: €6 million).
Cemos is currently commissioning a new Compact Calcination Unit at the Tarfaya
cement plant site which will in future produce its own clinker and
supplementary cementitious materials, the principal raw materials in cement
production representing approximately 70% of cost of the cement. This will not
only provide security of supply of clinker but should materially reduce costs
as well as providing the potential to lower the carbon footprint associated
with cement production through the use of natural supplementary cementitious
materials such as pozzolan.
During 2024, Cemos identified a suitable site and commenced the permitting
process for its second grinding plant, acquired in 2022 and essentially
identical to the existing plant at Tarfaya. Cemos plans to start construction
of this second plant before the end of 2025 which will allow it to double its
production rate from late 2026 onwards.
Major Moroccan Government and foreign investment and development initiatives
(including but not limited to the football World Cup in 2030) are expected to
provide a boost to the Moroccan cement market over the coming years. Cemos
expects increased profitability in 2026 following the commencement of
production from the clinker plant and thereafter once the second grinding line
is installed. It continues to evaluate a listing of the local company on the
Casablanca Stock Exchange potentially in 2027/2028.
Futura Resources Ltd ("Futura")
Futura owns the Wilton and Fairhill steel making/metallurgical coal projects
in the Bowen Basin in Queensland, Australia which hold Measured and Indicated
resources of 843 million tonnes of coal.
Investment: 11,309,005 ordinary shares
(26.9%) valued at £9.8 million
1.5% Gross Revenue Royalty valued at £16.2 million
A$4.7 million convertible loan valued at £2.3 million
A$1.4 million bridging loan valued at £0.6 million
200,000 options exercisable at A$2.00 per share valued at £0.02 million
Total Value: £28.9 million (31 December 2024 - £31.9). Overall value of
investment decreased despite increased investment through an additional
bridging loan. Equity value decreased due to lower near term coal price
forecasts and refinancing risks offset partially by interest in acquisition
from third parties.
INVESTMENT MANAGER'S REPORT
FOR THE PERIOD FROM 1 JANUARY 2025 TO 30 JUNE 2025 (CONTINUED)
Futura Resources Ltd ("Futura") (continued)
Futura commenced mining coal from its second project the Fairhill mine in
April 2025 adding to its Wilton mine which had commenced in February 2024,
immediately to the South of Fairhill.
The Run of Mine ("ROM") production from Fairhill and Wilton combined is
planned to be ramped up to a rate of 145,000 tonnes per month or an annualised
production rate of around 1.75Mtpa by the end of 2025. In the current
challenging coal market environment, mining is now being focused on Fairhill
due to its premium coal quality which commands higher prices than Wilton coal.
ROM production is expected to build up further to 4Mtpa by 2030 based on the
current mine plan. Saleable product coal in CY 2025 is expected to be 0.45
Mtpa, building up to 0.96 Mtpa in CY 2026, increasing further to 1.9Mtpa by
2030. In May 2025 Futura and International Resources Holdings RSC LTD ("IRH")
completed an agreement for a US$15m loan to Futura. Separately, the Company
and other Futura shareholders, representing in excess of 50.1% of the fully
diluted share capital of Futura, signed option agreements giving IRH the right
to acquire their respective shares at A$3.15 per Futura share within 9 months,
which would value Futura at an Enterprise Value (EV) of around A$250 million.
The A$3.15 price per share compares with the Company's current carrying value
of A$1.80 per share and its acquisition price of A$1 per share. This
transaction does not affect the Company's 1.5% Gross Revenue Royalty over
production from Futura's mines.
The metallurgical coal market remains subdued due primarily to on-going
economic weakness in China which is the world's largest steel producer.
Metallurgical coal prices declined further during the first half of 2025 to
lows of around US$170/tonne though have since recovered somewhat to around
US$185 per tonne at the end of August but still below the long-term consensus
prices of US$200-225 per tonne. This has put increasing strain on the whole
metallurgical coal industry including Futura particularly during its ramp up
stage which includes the completion of certain infrastructure capex.
Accordingly, Futura is currently considering financing offers which would
provide an additional short-term working capital buffer, whilst the company is
also engaged in refinancing its debt to provide longer term liquidity. The
weakness in the market is viewed by Futura management as a short-term setback,
as some higher cost participants are already cutting back on production.
They believe it should not impact the longer-term positive dynamics for
metallurgical coal, with medium-term supply constraints coupled with forecast
strong demand anticipated for seaborne imports, most notably from India.
Bilboes Gold Royalty
The Company holds a 1% Net Smelter Royalty ("NSR") over future production from
the Bilboes' gold project in Zimbabwe owned by Caledonia Mining Corporation
Plc ("Caledonia").
Investment: 1% NSR valued at £9.8
million
December 2024 valuation: £8.4 million. Valuation increased due to higher gold
price.
The Bilboes properties host a JORC compliant Proved and Probable Reserve
containing 1.8 million ounces of gold out of a total Mineral Resource of 3.8
million ounces of gold.
In June 2024, Caledonia released the results of the Preliminary Economic
Assessment ("PEA") for the Bilboes project, indicating production of 1.5
million ounces of gold over a 10-year period. Caledonia concluded that a
single-phase development of the project would provide the best economic
return, having considered alternative development options, including
multi-phase development and changes to certain other aspects of the project.
At a gold price of US$1,884 per ounce used in the PEA, the economic model
calculated a Net Present Value ("NPV") with a 10% discount rate of US$309
million and an Internal Rate of Return ("IRR") of 34%. Assuming the same
capital and operating costs, at the current gold price of around US$3,500 per
ounce the NPV would rise to well over US$1 billion.
During March 2025 Caledonia also announced that whilst it had been making good
progress on the Feasibility Study for the Bilboes project, (initially targeted
for completion in Q1 2025), it had decided to extend the timeline to fully
explore several material optimisation opportunities. These include engaging
with the authorities to explore the potential for selling concentrate directly
to plants outside Zimbabwe which could potentially reduce up-front capital
expenditures significantly by deferring capital expenditure on a BIOX
(Biological Oxidation) ) processing circuit, at least for the first
INVESTMENT MANAGER'S REPORT
FOR THE PERIOD FROM 1 JANUARY 2025 TO 30 JUNE 2025 (CONTINUED)
Bilboes Gold Royalty (continued)
few years of production.
At the current gold price above US$3,000 per ounce, the Company should receive
in excess of US$4 million per annum after withholding tax from its 1% Net
Smelter Royalty on the Bilboes mine. Caledonia is yet to suggest a date for
commencement of the mine but should development commence in 2026, production
could commence in 2028.
Tungsten West Plc ("Tungsten West")
Tungsten West owns the Hemerdon Tungsten Mine in Devon, United Kingdom and is
quoted on the AIM market of the London Stock Exchange.
Investment: 28,846,515 ordinary shares
(15.4%) valued at £3.3 million
£1,200,000 convertible loan valued at £6.0 million
1,657,195 second options valued at £0.1 million
1,657,195 third options valued at £0.06 million
Total £9.5 million (31 December 2024 - £3.2 million). Share price increased
following release of revised feasibility study and increased tungsten price.
Loan plus accrued interest convertible at 3 pence per share revalued
accordingly.
In August 2025, Tungsten West announced the results of its updated feasibility
study for the restart of mining operations at the Hemerdon Mine in Devon, UK
prepared in accordance with the JORC Code by independent technical consultants
AMC Consultants (UK) Ltd. The feasibility sets out a base case with a 11-year
life of mine, 4 years of subsequent stockpile reclaim and an additional 12
years of on-going premium aggregate sales. There also exists the potential to
extend the operational life of mine, potentially to over 40 years.
The total financing requirement for restarting mining operations at Hemerdon
is estimated at US$93 million, benefitting from approximately US$300 million
of previously invested capital, including significant open pit pre-stripping.
Using a tungsten price of US$400 per Metric Tonne Unit (MTU) (65% ammonium
paratungstate or APT), the economics model estimates an NPV (7.5%) of US$190
million with an IRR of 29.3% and an average cashflow over the first 11 years
of production of US$31.5 million. At the current price of around US$500/ MTU
APT the NPV rises to US$342 million with an IRR of 48%.
The Hemerdon Mine is fully permitted and once in production would supply
approximately 20% of global supply of primary tungsten from outside of China.
Tungsten West states that it is in discussions with several parties regarding
the financing of the Project, and Tungsten West plans to complete its
fundraising by the end of 2025 with production-commencing approximately 12
months from funding. In August 2025, Tungsten West announced that it had
received a non-binding Letter of Interest from the Export-Import Bank of the
United States, the official export credit agency of the U.S., outlining its
capacity to provide financial support for Hemerdon Mine of up to US$95 million
for a maximum repayment term of 15 years. The anticipated financing would not
be tied to specific equipment purchases and is predicated upon offtake
agreements with U.S. buyers. This followed Hemerdon's addition to the EU
Strategic Projects list.
In February 2025 China, which accounts for some 80% of the global supply of
tungsten, announced restrictions to the export of 5 critical minerals
including tungsten. This is starting to feed through to prices with the price
of tungsten up over 30% in the first half of 2025.
INVESTMENT MANAGER'S REPORT
FOR THE PERIOD FROM 1 JANUARY 2025 TO 30 JUNE 2025 (CONTINUED)
Blue Moon Metals Inc ("Blue Moon")
Blue Moon is TSX-V listed company which owns 3 brownfield polymetallic
development projects: the Nussir copper-gold-silver Project in Norway; the
Blue Moon zinc-gold-silver-copper project in the United States and the
Sulitjelma project copper-zinc-gold-silver project in Norway.
Investment: 5,789,555 ordinary shares
(11.2%) valued at £8.6 million
At 31 December 2024 held Nussir ASA valued at £6.86 million and £0.36
million in Blue Moon shares (total £7.2 million). Valuation has increased
largely due reduction of discounts for the risk of the transaction completion
and lock-up of shares.
Following its acquisition of Nussir from the Company and others at the end of
February 2025, Blue Moon has moved forward rapidly on all three of its
projects.
At Nussir, in March 2025 Blue Moon completed the acquisition of a local
company which held the majority of the required infrastructure for the project
to be built including a port area with associated ship loading equipment and
infrastructure. In May 2025 the mining contractor was mobilised and in June
2025, construction of the exploration decline commenced with the first blast
of the portal. The decline will enable Blue Moon to confirm underground mining
parameters and other key inputs for engineering studies that will allow a
final investment decision for the entire project in 2026, including mine,
process plant and tailings infrastructure.
In 2023 a JORC compliant Feasibility Study was completed on Nussir based on a
fully electrified mine producing around 14,000 tonnes of copper per year over
a 14 year mine life. The DFS economics gave a NPV8% of US$191 million with an
IRR of 22% based on a copper price of US$8,000 per tonne (spot price 31 August
2025 US$9,925 per tonne).
In March 2025, Blue Moon announced the results of a Preliminary Economic
Assessment of its volcanogenic massive sulphide deposit, located in Mariposa
County California. This envisaged a mine producing an average of 7.2 million
lbs copper, 62.3 million lbs zinc, 22,566 ounces of gold and 681,764 ounces of
silver per annum in concentrate. Based on an initial capital cost of US$144.5
million, the base case economic model estimates a post-tax NPV (8%) of US$244
million and an IRR of 38%. Following approval from the Bureau of Land
Management, Blue Moon has awarded the contract for the construction of a
portal and decline tunnel to enable further studies and investigations related
to geology, rock mechanics, underground mining conditions, and metallurgical
test work and ultimately to a mine commercialisation decision. Execution
planning and additional engineering work to support construction have
commenced with the start of portal development planned for Q3-Q4 2025 with the
exploration decline expected to be complete by Q3 2026.
In April 2025, Blue Moon announced a maiden mineral resource estimate ("MRE")
on its third project, the Sulitjelma Project located in Nordland, Norway. The
MRE includes 17 million tonnes grading 1.06% Cu and 0.21% Zn in the inferred
category over three deposits. Following receipt of environmental permits from
the Norwegian Environmental Agency, Blue Moon awarded the contract for the
extension of the Rupsi tunnel which will facilitate more efficient and
effective exploration drilling of the Rupsi/Dypet deposits. Blue Moon plans to
complete a 10,000 m exploration drilling program from the tunnel with the
intent to upgrade the resource from the Inferred category to Indicated
category, expand on the current resource and gather geotechnical and
metallurgical data.
In August 2025 Blue Moon announced that it had entered into a memorandum of
understanding with Hartree Partners, LP and funds managed by Oaktree Capital
Management, L.P. for a financing package of up to US$ 140 million which will
be used to continue development and construction of Blue Moon's flagship
Nussir Copper Project in Norway.
The Company's Blue Moon shares are subject to a phased lock up under the rules
of the TSX.V with 25% released every 6 months with the final release in
September 2026 . In accordance with the Company's valuation policy, they were
held at an average 15.5% discount to the listed price at 30 June 2025.
INVESTMENT MANAGER'S REPORT
FOR THE PERIOD FROM 1 JANUARY 2025 TO 30 JUNE 2025 (CONTINUED)
Metals Exploration plc ("Metals Ex")
Metals Ex is an AIM listed company which owns the Runruno gold mine in the
Philippines.
Investment: 47,060,000 ordinary shares
(1.6%) valued at £5.2 million
December 2024 valuation: £3.3 million. The valuation has increased despite
the Company's sale of 15.4 million shares, with the share price increasing
105% during the period following the acquisition of Condor Gold plc and the
stronger gold price.
During the first half of 2025, Metals Ex produced gold sales of 40,985 ounces
from its Runruno gold mine in the Philippines generating positive free cash
flow of US$70.7 million. Metals Ex has forecast production for 2025 of
70,000--75,000 ounces of gold at an AISC of between US$1,225 and US$1,325 per
ounce of gold. The production forecast has been maintained despite a temporary
shutdown announced in August following environmental contamination caused by
the activities of illegal miners.
In August 2025 Metals Ex announced the grant of the Dupax Exploration Tenement
permit in the Philippines and that it had commenced an Induced Polarisation
ground geophysics survey in preparation for a 2,500-metre drill programme. The
newly granted tenement covers approximately 3,100 hectares and is located
approximately 20 km south-west of the Company's existing Runruno ore
processing facility. Should exploration at Dupax discover an economic
resource, the mined ore could extend Runruno operations by several years
beyond the currently modelled depletion of the existing Runruno mine in 2027.
In January 2025, Metals Ex completed the acquisition of Condor Gold plc, whose
main project is the La India gold project in Nicaragua. Metals Ex's internal
studies have suggested that La India could produce an average of 145,000
ounces of gold per annum from open pit and underground over a 12.4 year
period. Initial capex of US$122 million can be covered by projected cashflow
from Runruno. Since taking control of Condor, Metals Exploration has embarked
on an aggressive fast track programme of developing the La India project. This
has included the purchase of a fit for purpose second hand gold ore processing
and concentrating plant (including crushers, conveyors, grinding ball mill,
gravity circuit, elution, smelting equipment and laboratory), including all
component and construction drawings. This plant is being shipped to site from
North America and is scheduled to land in Nicaragua in Q3 2025 with first
production targeted by the end of 2026.
Caledonia Mining Corporation Plc ("Caledonia")
Caledonia is a NYSE, AIM and Victoria Falls Exchange listed gold producer
whose primary assets are the producing Blanket Mine and the Bilboes gold
project (outlined above) both in Zimbabwe.
Investment: 326,000 ordinary shares (1.7%)
valued at £4.6 million
December 2024 valuation: £3.2 million. The valuation has increased despite
the Company's sale of 99,000 shares, with the share price increasing 86%
during the period due to the increased gold price and a strong operating
performance.
Caledonia reported gold production for the first half of 2025 from its Blanket
gold mine in Zimbabwe of 39,741 oz with a further 807 ounces from processing
the old heap leach pads at Bilboes. This prompted Caledonia to increase its
2025-year production guidance from Blanket, from 74,000 to 78,000oz, to 75,500
/ 79,500 ounces, with an all-in sustaining cost forecast in the range of
$1,690/oz to $1,790/oz.
Net cashflow from operations for the half year increased to US$41.3 million
compared to US$23.4 million in the first half of 2024. In April 2025 Caledonia
completed the sale of the company which developed its 12.2MW solar plant, for
US$22.35 million, realising a profit on the US$14.3 million construction cost
while Blanket will retain the exclusive supply of electricity from the plant.
Caledonia currently pays a dividend of US$0.14 per quarter. It is expected
that at least this level of dividend will continue until the Bilboes project
can be brought into production.
INVESTMENT MANAGER'S REPORT
FOR THE PERIOD FROM 1 JANUARY 2025 TO 30 JUNE 2025 (CONTINUED)
Polar Acquisition Limited ("PAL")
PAL is a private company which previously held a net smelter royalty over the
Prognoz silver project ("Prognoz") in Russia.
Investment: 16,352 ordinary shares (49.99%)
valued at £3.8 million
December 2024 valuation: £1.0 million. Valuation increased to reflect the
price agreed to sell royalty.
At the end of June 2025, PAL signed a binding agreement to divest its net
smelter royalty related to the Prognoz silver for a cash consideration of
US$11 million. The consideration was received by PAL in early July 2025, which
subsequently distributed to its shareholders the net proceeds after
transaction expenses, accruals and a provision for the subsequent winding up
of the company. As a result, BSRT received US$5.16 million in cash during
July, approximately 4.1 times the US$1.24 million carrying value of its
holding PAL at 31 December 2024.
The Prognoz Royalty was acquired by PAL as part of its sale to Polymetal in
2017 of its 50% interest in the Prognoz Silver asset, the consideration for
which comprised shares in Polymetal and the Prognoz Royalty. BSRT subsequently
disposed of its shares in Polymetal at favourable prices and retained the
Prognoz Royalty through PAL. Despite the unforeseen adverse geopolitical
events materially reducing the valuation of the Prognoz Royalty, the overall
return for BSRT including the earlier sale proceeds will nevertheless have
provided for a total return of US$48.9 million or around 3 times the total
US$15.9 million invested.
First Tin PLC ("First Tin")
First Tin is a company listed on the London Stock Exchange which owns the
Taronga tin project in Australia and the Tellerhäuser and Gottesburg tin
projects in Germany.
Investment: 46,628,014 ordinary shares
(10.3%) valued at £2.8 million
December 2024 valuation: £2.6 million. Share price broadly unchanged pending
information on licensing.
On 2 May 2024, First Tin PLC announced the results of the Feasibility Study
for its 100% owned Taronga open pit tin project located in New South Wales,
Australia. The DFS outlines an open pit mine mining 5 million tonnes of ore
per annum followed by a crushing and a gravity processing facility. This is
forecast to produce an average of 3,600 tonnes of tin per annum at an
All-In-Sustaining costs of US$15,843 per tonne of tin sold. Pre-production
capex is estimated at US$116 million with the economic model based on
US$30,000 per tonne of tin (current price US$34,800) showing a pre-tax NPV8%
of US$ 160 million and an IRR of 34%.
First Tin's focus has been on finalisation of the Environmental Impact
Statement ("EIS"), which is the next major milestone for the development.
Considerable progress has been made with various specialist studies now
completed. The proposed site for the mine camp and upgrades to the access road
will now form part of the EIS and developmental approval. First Tin is
currently undertaking the mandatory community engagement meetings as the
final step before submitting the EIS to the authorities.
In addition, an exploration review has shown a large pipeline of tin projects
close to Taronga. First Tin intends to advance these projects concurrently
with the development of Taronga. This strategy could ultimately position the
proposed processing facility at Taronga as a central processing hub.
INVESTMENT MANAGER'S REPORT
FOR THE PERIOD FROM 1 JANUARY 2025 TO 30 JUNE 2025 (CONTINUED)
Silver X Mining Corporation ("Silver X")
Silver X is a TSX-V listed company whose Nuevo Recuperada silver/lead/zinc
project in Peru comprises 11,261 Ha of
mining concessions centred around a 600 tonne per day processing plant.
Investment: 19,502,695 ordinary shares
(8.8%) valued at £2.4 million
December 2024 valuation: £2.1 million. Increased following higher silver
price.
During the first half of 2025, Silver X produced 448,761 silver equivalent
ounces (AgEq oz) from its Nuevo Recuperada silver/lead/zinc mine in Peru
generating an EBITDA of US$0.8 million.
On 26 February 2025 Silver X announced a significant upgrade to its NI 43-101
mineral resource estimate at its Nueva Recuperada Property in Huancavelica,
Peru. Overall measured and indicated resources grew from 3.60 million tonnes
to 4.26 million tonnes, a +18% increase, and inferred resources increased from
11.89 million tonnes to 17.18 million tonnes, a +45% increase. The updated
resource estimate included the nearby Plata Mining Unit for the first time
which contains 5.81 million ounces of silver in the indicated category and 26
million ounces of silver in the inferred category.
In August 2025 Silver X released the results of a Preliminary Economic
Assessment ("PEA") under Canadian National Instrument 43-101 Standards which
would include the construction of a new plant to process the ore from the
current mining area, Tangana, and the expansion of the existing plant to
process ore from the new Plata area. The PEA outlined a project processing
3,000 tonnes of ore per day producing an average of 5.6 million silver
equivalent ounces per annum over a 14 year period. Initial capital costs are
estimated at US$81.8 million with an All-In-Sustaining Cost of US$15.8/oz
AgEq. The economic model generated a post-tax NPV10% of US$303 million at a
silver price of US$33.2 per ounce.
Kanga Investments Ltd ("Kanga")
Kanga is a private company which holds the Kanga potash project, in the
Republic of Congo.
Investment: 56,042 ordinary shares
(7.8%) valued at £1.5 million
December 2024 valuation: £1.4 million. Valuation increased due to rises in
comparable listed companies following recovery in the potash price.
Kanga completed a positive Feasibility Study in 2020 on its Kanga Potash
project in the Republic of Congo for a mine producing 600,000 tonnes per annum
of Muriate of Phosphate ("MOP"). The DFS economic model gave a NPV at a 10%
discount rate of US$511 million with an IRR of 22% based on an MOP price of
US$282 per tonne compared to the current price of around US$350 per tonne.
Negotiations are ongoing for the sale of the project and are expected to be
concluded during the fourth quarter of 2025.
Baker Steel Capital Managers LLP
Investment Manager
29 September 2025
DIRECTORS' REPORT
FOR THE PERIOD FROM 1 JANUARY 2025 TO 30 JUNE 2025
The Directors of the Company present the Half-Yearly Report and Unaudited
Condensed Interim Financial Statements for the six months ended 30 June 2025.
The Directors' Report contains information that covers this period and the
period up to the date of publication
(http://www.bakersteelcap.com/baker-steel-resources-trust/) of this Report.
Please note that more up to date information is available on the Company's
(http://www.bakersteelcap.com/baker-steel-resources-trust/) website
www.bakersteelcap.com (http://www.bakersteelcap.com) .
Status
Baker Steel Resources Trust Limited (the "Company") is a closed-ended
investment company with limited liability incorporated on 9 March 2010 in
Guernsey under the Companies (Guernsey) Law, 2008 with registration number
51576. The Company is a registered closed-ended investment scheme registered
pursuant to the Protection of Investors (Bailiwick of Guernsey) Law, 2020,
("POI Law") and the Registered Collective Investment Scheme Rules and
Guidance, 2021 issued by the Guernsey Financial Services Commission ("GFSC").
On 28 April 2010 the Ordinary Shares and Subscription Shares of the Company
were admitted to the Official List of the UK Listing Authority and to trading
on the Main Market of the London Stock Exchange.
Investment Objective
The Company's investment objective is to seek capital growth over the
long-term through a focused, global portfolio consisting principally of the
equities, loans or related instruments of natural resources companies. The
Company invests predominantly in unlisted companies (i.e. those companies that
have not yet made an initial public offering ("IPO")) but also in listed
securities (including special situations opportunities and less liquid
securities). It aims to achieve attractive investment returns through the
uplift in value resulting from the development progression of the investee
companies' projects, and through exploiting value inherent in market
inefficiencies and pricing anomalies.
Performance
During the period ended 30 June 2025, the Company's unaudited NAV per Ordinary
Share increased by 16.4% and the share price increased by 11.1 % on the London
Stock Exchange. This compares with a rise in MSCI World Metals and Mining
Index of 3.6% in Sterling terms. A more detailed explanation of the
performance of the Company is provided within the Investment Manager's Report
on pages 5 to 13.
The results for the period are shown in the Unaudited Statement of
Comprehensive Income on pages 20 and 21 and the Company's financial position
at the end of the period is shown in the Unaudited Statement of Financial
Position on page 19.
Dividend and distribution policy
During the year ended 31 December 2015, the Board introduced a capital returns
policy whereby, subject to applicable laws and regulations, it will allocate
cash for distributions to shareholders. The amount to be distributed will be
calculated and paid following publication of the Company's audited financial
statements for each year and will be no less than 15% of the aggregate net
realised cash gains (after deducting losses) in that financial year. The Board
will retain discretion for determining the most appropriate manner to make
such distribution which may include share buybacks, tender offers and dividend
payments. The Board also intends to formulate a more regular dividend policy
once it starts to receive significant income from its investments by way of
dividends and royalty interests.
Directors and their interests
The Directors of the Company who served during the period and up until the
date of signing of the financial statements are:
Fiona Perrott-Humphrey (Chairman)
Charles Hansard
John Falla
Patrick Meier
Biographical details of each of the Directors who were on the Board of the
Company at the time of signing the annual report and financial statements for
the year ended 31 December 2024 ("the Annual Report") are presented on page 18
of that report.
DIRECTORS' REPORT (CONTINUED)
FOR THE PERIOD FROM 1 JANUARY 2025 TO 30 JUNE 2025
Directors and their interests (continued)
Each of the Directors is considered to be independent in character and
judgement.
Each Director is asked to declare their interests at each Board Meeting. No
Director has any material interest in any other contract which is significant
to the Company's business.
John Falla holds 100,000 shares in the Company (31 December 2024: 100,000).
Patrick Meier holds 82,261 shares in the Company (31 December 2024: 82,261).
No other director has a beneficial interest in the Company.
Attendance at the quarterly Board and Audit Committee meetings during the
period was as follows:
Board Meetings Audit Committee
Meetings
Held Attended Held Attended
Fiona Perrott-Humphrey 2 2 2 2
Charles Hansard 2 2 n/a n/a
John Falla 2 2 2 2
Patrick Meier 2 2 2 2
In addition to the quarterly meetings, ad hoc Board and committee meetings are
convened as required. All Directors contribute to a significant ad hoc
exchange of views between the Directors and the Investment Manager on specific
matters, in particular in relation to developments in the portfolio.
The Directors are remunerated for their services at such rate as the Directors
determine provided that the aggregate amount of such fees may not exceed
£200,000 per annum (or such sum as the Company in a general meeting shall
from time to time determine). The Chairman receives a supplement of £10,000
per annum and the Chairman of the Audit Committee a supplement of £5,000 per
annum.
For the period ended 30 June 2025 the total remuneration of the Directors was
£72,500 (30 June 2024: £73,526) of which £nil remains outstanding as at 30
June 2025 (30 June 2024: £1,026).
Authorised share capital
The share capital of the Company on incorporation was represented by an
unlimited number of Ordinary Shares of no-par value. The Company may issue an
unlimited number of shares of a nominal or par value and/or of no-par value or
a combination of both.
Shares in issue
The Company was admitted to trading on the London Stock Exchange on 28 April
2010. The Company has a total of 106,453,335 (31 December 2024: 106,453,335)
ordinary shares outstanding with an additional 700,000 (31 December 2024:
700,000) held in treasury. The Company has 9,167 (31 December 2024: 9,167)
Management Ordinary shares in issue, which are held by the Investment Manager.
Going concern
Having reassessed the principal and emerging risks described on pages 14-15 of
the Annual Report, and the other matters discussed in connection with the
viability statement as set out on page 16 of the said report, the Directors
consider it is appropriate to adopt the going concern basis in preparing these
interim Financial Statements. As at 30 June 2025, approximately 19% of the
Company's assets were represented by cash and unrestricted listed and quoted
investments which are readily realisable. The Board are satisfied that the
Company has the resources to continue in business for at least 12 months
following the signing of these financial statements.
At the 2024 AGM, the vote to discontinue the Company was not passed and
therefore a vote with regard to continuation will not be proposed by the Board
until the AGM in two years' time as is required by the Company's Articles.
DIRECTORS' REPORT (CONTINUED)
FOR THE PERIOD FROM 1 JANUARY 2025 TO 30 JUNE 2025
The Directors are not aware of any material uncertainties that may cast
significant doubt upon the Company's ability to continue as a going concern.
Related party transactions
Transactions with related parties are based on terms equivalent to those that
prevail in an arm's length transaction.
Principal and emerging risks
The principal and emerging risks facing the Company, which include market and
financial risk and portfolio management and performance risk, are considered
in detail, on pages 14 and 15 of the Annual Report which is available on the
Company's website www.bakersteelcap.com (http://www.bakersteelcap.com) The
Directors do not consider that these risks have materially changed during the
period ended 30 June 2025 and do not expect any changes in the second half of
2025.
Directors' responsibility statement
The Directors confirm that to the best of their knowledge:
- the condensed set of financial statements have been prepared in
accordance with International Financial Reporting Standards ("IFRS") as
adopted by the European Union ("EU") and give a true and fair view of the
assets, liabilities, financial position and profit or loss of the Company; and
- the Interim Report and Accounts includes a fair review of
the information required by 4.2.7R and 4.2.8R of the FCA's Disclosure and
Transparency Rules
Corporate governance compliance
The Company is a member of the Association of Investment Companies.
The Board has therefore considered the Principles and Provisions of the AIC
Code of Corporate Governance (AIC Code). The AIC Code addresses the Principles
and Provisions set out in the UK Corporate Governance Code (the UK Code), as
well as setting out additional Provisions on issues that are of specific
relevance to the Company.
The Board considers that reporting against the Principles and Provisions of
the AIC Code, which has been endorsed by the Financial Reporting Council and
the GFSC, provides more relevant information to shareholders.
The Company has complied with the Principles and Provisions of the AIC Code
and therefore the UK Code except as where explained in the Annual Report on
pages 22 to 26.
There is no change in compliance since the Annual Report.
Signed for and on behalf of the Directors:
Fiona
Perrott-Humphrey
John Falla
Director
Director
29 September 2025
UNAUDITED PORTFOLIO STATEMENT
AS AT 30 JUNE 2025
Shares Investments Fair value % of Net
/Warrants/ £ equivalent assets
Nominal
Listed equity shares
Australian Dollars
4,091,910 Akora Resources Limited 186,335 0.17
Australian Dollars Total 186,335 0.17
Canadian Dollars
6,519,395 Azarga Metals Corporation 183,154 0.16
19,502,695 Silver X Mining Corporation 2,400,332 2.16
5,789,555 Blue Moon Metals Corp 8,644,218 7.78
Canadian Dollars Total 11,227,704 10.10
Great Britain Pounds
46,628,014 First Tin Plc 2,751,053 2.48
47,060,000 Metals Exploration Plc 5,135,070 4.64
28,846,515 Tungsten West Plc 3,274,079 2.95
Great Britain Pounds Total 11,160,202 10.07
United States Dollars
326,000 Caledonia Mining Corporation Plc 4,547,518 4.09
United States Dollars Total 4,547,518 4.09
Total investments in listed equity shares 27,139,759 24.43
Debt instruments
Australian Dollars
94 Futura Resources Limited - Convertible Loan 2,308,751 2.08
1 Futura Bridging Loan 635,739 0.57
Australian Dollars Total 2,944,490 2.65
Great Britain Pounds
1,200,000 Tungsten West Convertible Loan 6,024,720 5.42
Great Britain Pounds Total 6,024,720 5.42
Total investments in debt instruments 8,969,210 8.07
UNAUDITED PORTFOLIO STATEMENT
AS AT 30 JUNE 2025
Shares Investments Fair value % of Net
/Warrants/ £ equivalent assets
Nominal
Unlisted equity shares, warrants and royalties
Australian Dollars
10,100,000 Futura Gross Revenue Royalty 16,158,451 14.54
11,309,005 Futura Resources Limited 9,757,554 8.78
200,000 Futura Resources Option 23,526 0.02
Australian Dollars Total 25,939,531 23.34
Canadian Dollars
666,667 Azarga Metals Warrants 09/15/2025 -
13,083,936 PRISM Diversified 110,117 0.10
40,000 PRISM Diversified Limited Royalty 21,405 0.02
39,533,114 PRISM Royalty Corp 338,478 0.30
324,000 Unkur On-sale Entitlement 43,344 0.04
Canadian Dollars Total 513,344 0.46
Great Britain Pounds
24,004,167 Cemos Group Plc 32,333,364 29.10
1,657,195 Tungsten West Plc Second Option Share Warrants 18/10/2026 102,912 0.09
1,657,195 Tungsten West Plc Third Option Share Warrants 18/10/2026 61,813 0.06
Great Britain Pounds Total 32,498,089 29.25
United States Dollars
- Bilboes Holdings (Private) Limited - Royalty 9,777,640 8.80
56,042 Kanga Investments Limited 1,513,794 1.36
16,352 Polar Acquisition Limited 3,757,120 3.38
United States Dollars Total 15,048,554 13.54
Total Unlisted equity shares, warrants and royalties 73,999,518 66.59
Financial Assets held at fair value through profit or loss 110,108,487 99.09
Other Assets & Liabilities 996,575 0.91
Total Equity 111,105,062 100.00
UNAUDITED CONDENSED INTERIM STATEMENT OF FINANCIAL POSITION
AS AT 30 JUNE 2025
Unaudited Audited
30 June 31 December
2025 2024
Notes £ £
Assets
Cash and cash equivalents 953,205 123,608
Interest and other receivable 189,726 338,156
Financial assets at fair value through profit or loss 3 110,108,487 95,223,891
Total assets 111,251,418 95,685,655
Equity and Liabilities
Liabilities
Directors' fees payable 8 - 9,619
Management fees payable 8 92,046 89,312
Administration fees payable - 51,250
Audit fees payable 45,237 59,100
Other payables 9,073 -
Total liabilities 146,356 209,281
Equity
Management Ordinary Shares 7 9,167 9,167
Ordinary shares 7 75,972,688 75,972,688
Revenue Reserves 7,119,046 7,791,310
Capital Reserves 28,004,161 11,703,209
Total equity 111,105,062 95,476,374
Total equity and liabilities
111,251,418 95,685,655
Net Asset Value per Ordinary Share (in Pence) 4 104.4 89.7
These unaudited condensed financial statements on pages 19 to 35 were approved
by the Board of Directors on 29 September 2025 and signed on its behalf by:
Fiona
Perrott-Humphrey
John Falla
Director
Director
The accompanying notes form an integral part of these unaudited condensed
interim financial statements
UNAUDITED CONDENSED INTERIM STATEMENT OF COMPREHENSIVE INCOME
FOR THE PERIOD FROM 1 JANUARY 2025 TO 30 JUNE 2025
Unaudited Unaudited Unaudited Period ended
Period ended Period ended 30 June 2025
30 June 2025 30 June 2025
Total
Revenue Capital
Notes £ £ £
Income
Interest Income 163,193 163,193
Dividend Income 81,612 - 81,612
Royalty Income 58,147 - 58,147
Net gain on financial assets and liabilities at 3 - 16,296,508 16,296,508
fair value through profit or
loss
Net foreign exchange gain - 4,444 4,444
Net income 302,952 16,300,952 16,603,904
Expenses
Management 6,8 507,753 - 507,753
fees
Administration fees 105,959 - 105,959
Interest receivable written off 88,145 - 88,145
Directors' 8 72,500 - 72,500
fees
Audit fees 50,087 - 50,087
Custody fees 34,891 - 34,891
Other expenses 33,474 - 33,474
Broker fees 30,000 - 30,000
Depositary fees 18,000 - 18,000
Directors' insurance 8,544 - 8,544
Directors' expenses 8,503 8,503
Legal fees 3,360 - 3,360
Total expenses 975,216 - 975,216
Total comprehensive (loss)/ income for the period
(672,264) 16,300,952 15,628,688
Earnings per Ordinary Share for the period:
Basic and Diluted (in 4 (0.63) 15.31 14.68
pence)
In the period ended 30 June 2025, there were no other gains or losses than
those recognised above. The Directors consider all results to derive from
continuing activities.
The format of the Statement of Comprehensive Income follows the
recommendations of the AIC Statement of Recommended Practice.
The accompanying notes form an integral part of these unaudited condensed
interim financial statements
UNAUDITED CONDENSED INTERIM STATEMENT OF COMPREHENSIVE INCOME
FOR THE PERIOD FROM 1 JANUARY 2024 TO 30 JUNE 2024
Unaudited Unaudited Unaudited Period ended
Period ended Period ended 30 June 2024
30 June 2024 30 June 2024
Revenue Capital Total
Notes £ £ £
Income
Interest Income 542,466 - 542,466
Royalty Income 115,038 - 115,038
Dividend Income 25,286 - 25,286
Net gain on financial assets and liabilities at 3 - 4,187,110 4,187,110
fair value through profit or
loss
Net foreign exchange loss - (2,069) (2,069)
Net income 682,790 4,185,041 4,867,831
Expenses
Management 6,8 448,369 - 448,369
fees
Administration fees 102,595 - 102,595
Other expenses 86,344 - 86,344
Directors' 8 73,526 - 73,526
fees
Audit fees 37,500 - 37,500
Custody fees 27,764 - 27,764
Depositary fees 16,200 - 16,200
Directors' insurance 8,615 - 8,615
Legal fees 8,008 - 8,008
Directors' expenses 1,642 - 1,642
Broker fees 856 - 856
Total expenses 811,419 - 811,419
Total comprehensive (loss)/ income for the period
(128,629) 4,185,041 4,056,412
Earnings per Ordinary Share for the period:
Basic and Diluted (in 4 (0.12) 3.93 3.81
pence)
In the period ended 30 June 2024, there were no other gains or losses than
those recognised above. The Directors consider all results to derive from
continuing activities.
The format of the Statement of Comprehensive Income follows the
recommendations of the AIC Statement of Recommended Practice.
The accompanying notes form an integral part of these unaudited condensed
interim financial statements
UNAUDITED CONDENSED INTERIM STATEMENT OF CHANGES IN EQUITY
FOR THE PERIOD FROM 1 JANUARY 2025 TO 30 JUNE 2025
Management Ordinary Ordinary Shares Treasury Shares Profit or Profit or Total Equity
shares £ £ Loss Loss £
£ (Revenue) (Capital)
£ £
Balance as at 1 January 2025 9,167 76,113,180 (140,492) 7,791,310 11,703,209 95,476,374
Net (loss)/gain for the period - - - (672,264) 16,300,952 15,628,688
Balance as at 30 June 2025 9,167 76,113,180 (140,492) 7,119,046 28,004,161 111,105,062
UNAUDITED CONDENSED INTERIM STATEMENT OF CHANGES IN EQUITY
FOR THE PERIOD FROM 1 JANUARY 2024 TO 30 JUNE 2024
Management Ordinary Ordinary Shares Treasury Shares Profit or Profit or Total Equity
shares Loss Loss
(Revenue) (Capital)
£ £ £ £ £ £
Balance as at 1 January 2024 9,167 76,113,180 (140,492) 8,235,802 (2,058,078) 82,159,579
Net (loss)/gain for the period - - - (128,629) 4,185,041 4,056,412
Balance as at 30 June 2024 9,167 76,113,180 (140,492) 8,107,173 2,126,963 86,215,991
The accompanying notes form an integral part of these unaudited condensed
interim financial statements
UNAUDITED CONDENSED INTERIM STATEMENT OF CASH FLOWS
FOR THE PERIOD FROM 1 JANUARY 2025 TO 30 JUNE 2025
Unaudited Unaudited
Period ended Period ended
30 June 2025 30 June 2024
£ £
Cash flows from operating activities
Net Income for the period 15,628,688 4,056,412
Adjustments to reconcile net gain for the period to net cash used in operating
activities:
Interest Income (163,193) (542,466)
Dividend Income (81,612) (25,286)
Royalties Income (58,147) (115,038)
Net gain on financial assets at fair value 3 (16,296,508) (4,187,110)
Interest receivable written-off 88,145 -
Net foreign exchange loss 15,504 2,068
Increase in other receivable 12,991 4,262
(Decrease)/increase in other payable (62,925) 67,908
(917,057) (739,250)
Interest received 132,884 147,605
Royalties income received 135,750 115,038
Dividend received 81,612 25,286
Net cash used in operating activities (566,811) (451,321)
Cash flows from investing activities*
Purchase of financial assets at fair value through profit or loss 3 (1,091,780) (117,931)
Sales of financial assets at fair value through profit or loss 3 2,488,188 1,493,217
Net cash generated from investing activities 1,396,408 1,375,286
Net increase in cash and cash equivalents 829,597 923,965
Cash and cash equivalents at the beginning of the period 123,608 277,694
-
Cash and cash equivalents at the end of the period 953,205 1,201,659
* As permitted under IFRS, purchases and sales of financial assets at fair
value through profit or loss are classified as investing activities due the
nature and intention to generate future income and cash flows from these
investments
The accompanying notes form an integral part of these unaudited condensed
interim financial statements
NOTES TO THE UNAUDITED CONDENSED INTERIM FINANCIAL STATEMENTS
FOR THE PERIOD FROM 1 JANUARY 2025 TO 30 JUNE 2025
1. GENERAL INFORMATION
Baker Steel Resources Trust Limited (the "Company") is a closed-ended
investment company with limited liability incorporated and domiciled on 9
March 2010 in Guernsey under the Companies (Guernsey) Law, 2008 with
registration number 51576. The Company is a registered closed-ended investment
scheme registered pursuant to the Protection of Investors (Bailiwick of
Guernsey) Law, 2020 and the Registered Collective Investment Scheme Rules and
Guidance, 2021 issued by the Guernsey Financial Services Commission ("GFSC").
On 28 April 2010 the Ordinary Shares and Subscription Shares of the Company
were admitted to the Official List of the UK Listing Authority and to trading
on the Main Market of the London Stock Exchange.
The final exercise date for the Subscription Shares was 2 April 2013. No
Subscription Shares were exercised at this time and all residual/unexercised
Subscription Shares were subsequently cancelled.
The Company's portfolio is managed by Baker Steel Capital Managers (Cayman)
Limited (the "Manager"). The Manager has appointed Baker Steel Capital
Managers LLP (the "Investment Manager") as the Investment Manager to carry out
certain duties. The Company's investment objective 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. The
Company invests predominantly in unlisted companies (i.e. those companies
which have not yet made an initial public offering ("IPO")) and also in listed
securities (including special situations opportunities and less liquid
securities) with a view to exploiting value inherent in market inefficiencies
and pricing anomalies.
Baker Steel Capital Managers LLP was authorised to act as an Alternative
Investment Fund Manager ("AIFM") of Alternative Investment Funds ("AIFs") on
22 July 2014. On 14 November 2014, the Investment Manager signed an amended
Investment Management Agreement with the Company, to take into account AIFM
regulations. AIFMD focuses on regulating the AIFM rather than the AIFs
themselves, so the impact on the Company is limited.
The Half-Yearly financial report has not been audited or reviewed by the
auditors. However, the Board did procure the independent external auditor to
undertake certain agreed upon procedures to assist the Audit Committee and
Board with its review of this report.
2. MATERIAL ACCOUNTING POLICY INFORMATION
The unaudited condensed interim financial statements in the half year report
for the six months ended 30 June 2025 have been prepared in accordance with
International Accounting Standard (IAS) 34, 'Interim Financial Reporting' as
adopted by the European Union. This half year report and condensed financial
statements should be read in conjunction with the Company's annual report and
financial statements for the year ended 31 December 2024, which have been
prepared in accordance with International Financial Reporting Standards (IFRS)
as adopted by the European Union and are available at the Company's website
(www.bakersteelresourcescap.com (http://www.bakersteelresourcescap.com) ).
The accounting policies adopted and methods of computation followed in the
condensed interim financial statements are consistent with those applied in
the preparation of the Company's annual financial statements for the year
ended 31 December 2024 and are expected to be applied to the Company's annual
financial statements for the year ending 31 December 2025.
NOTES TO THE UNAUDITED CONDENSED INTERIM FINANCIAL STATEMENTS (CONTINUED) FOR
THE PERIOD FROM 1 JANUARY 2025 TO 30 JUNE 2025
3. FINANCIAL ASSETS AT FAIR VALUE THROUGH PROFIT OR LOSS
Period ended 30 Year ended 31
Investment Summary: June 2025 December 2024
£ £
Opening book cost 80,229,991 80,839,379
Purchases at cost 1,091,780 9,455,694
Sale of investments (2,488,188) (9,871,696)
Net realised gains/(losses) 753,646 (193,386)
Closing cost 79,587,229 80,229,991
Net unrealised gains 30,521,258 14,993,900
Financial assets held at fair value through profit or loss 110,108,487 95,223,891
The following table analyses net gains on financial assets at fair value
through profit or loss for the period/year ended 30 June 2025, 31 December
2024 and 30 June 2024.
Period ended Year ended Period ended
30 June 31 December 30 June
2025 2024 2024
£ £ £
Financial assets at fair value through profit or loss
Realised gains/(losses) on:
- Listed equity shares 753,646 (193,386) (197,394)
- Unlisted equity shares - - -
- Debt instruments - - -
753,646 (193,386) (197,394)
Movement in unrealised gains/(losses) on:
- Listed equity shares 13,268,931 1,766,917 2,352,945
- Unlisted equity shares (2,010,656) 15,999,171 (1,015,206)
- Royalties 690,673 3,627,062 1,008,999
- Debt instruments 3,502,699 (7,469,052) 1,977,405
- Warrants 91,215 39,085 60,361
15,542,862 13,963,183 4,384,504
Net gain on financial assets at fair value through profit or loss 16,296,508 13,769,797 4,187,110
NOTES TO THE UNAUDITED CONDENSED INTERIM FINANCIAL STATEMENTS (CONTINUED) FOR
THE PERIOD FROM 1 JANUARY 2025 TO 30 JUNE 2025
3. FINANCIAL ASSETS AT FAIR VALUE THROUGH PROFIT OR LOSS (CONTINUED)
The following table analyses investments by type and by level within the fair
valuation hierarchy at 30 June 2025.
Quoted prices in active markets Quoted market-based observables Unobservable Total
Inputs
Level 1 Level 2 Level 3
£ £ £ £
Financial assets at fair value through profit or loss
Listed equity shares 18,689,198 8,450,561 - 27,139,759
Unlisted equity shares - - 47,471,948 47,471,948
Royalties - - 26,295,973 26,295,973
Warrants - - 231,596 231,596
Debt instruments - - 8,969,211 8,969,211
18,689,198 8,450,561 82,968,728 110,108,487
The following table analyses investments by type and by level within the fair
valuation hierarchy at 31 December 2024.
Quoted prices in active markets Quoted market-based observables Unobservable Total
Inputs
Level 1 Level 2 Level 3
£ £ £ £
Financial assets at fair value through profit or loss
Listed equity shares 12,564,823 68,136 - 12,632,959
Unlisted equity shares - - 51,120,696 51,120,696
Royalties - - 26,248,129 26,248,129
Warrants - - 88,779 88,779
Debt instruments - - 5,133,328 5,133,328
12,564,823 68,136 82,590,932 95,223,891
NOTES TO THE UNAUDITED CONDENSED INTERIM FINANCIAL STATEMENTS (CONTINUED) FOR
THE PERIOD FROM 1 JANUARY 2025 TO 30 JUNE 2025
3. FINANCIAL ASSETS AT FAIR VALUE THROUGH PROFIT OR LOSS (CONTINUED)
The table below shows a reconciliation of beginning to ending fair value
balances for Level 3 investments and the amount of total gains or losses for
the year included in net loss on financial assets and liabilities at fair
value through profit or loss held at 30 June 2025.
30 June 2025 Unlisted Royalties Debt Warrants Total
Equities
£ instruments £ £
£
£
Opening balance 1 January 2025 51,120,696 26,248,129 5,133,327 88,779 82,590,932
Purchases of investments - 350,496 694,127 47,157 1,091,780
Transfer out of level 3 (2,270,071) - - - (2,270,071)
Sales of investments - - (340,995) - (340,995)
Conversion 631,979 (993,324) - - (361,345)
Change in net unrealised (losses)/gains (2,010,656) 690,673 3,482,751 95,659 2,258,427
Closing balance 30 June 2025 47,471,948 26,295,974 8,969,210 231,595 82,968,728
Unrealised gains on investments still held at 30 June 2025
12,305,602 14,838,899 81,322 184,439 27,410,262
The table below shows a reconciliation of beginning to ending fair value
balances for Level 3 investments and the amount of total gains or losses for
the year included in net loss on financial assets and liabilities at fair
value through profit or loss held at 31 December 2024.
31 December 2024 Unlisted Royalties Debt Warrants Total
Equities
£ instruments £ £
£
£
Opening balance 1 January 2024 29,480,068 22,621,067 17,359,694 49,694 69,510,523
Purchases of investments 1,030,941 - 117,067 - 1,148,008
Reclassification 4,610,518 - (4,610,518) - -
Sales of investments - - (263,864) - (263,864)
Movement in net unrealised gains/(losses) 15,999,169 3,627,062 (7,469,052) 39,085 12,196,265
Realised gains - - - - -
Closing balance 31 December 2024 51,120,696 26,248,129 5,133,327 88,779 82,590,932
Unrealised gains/(losses) on investments
still held at 31 December 2024
20,883,117 7,580,841 (3,401,429) 88,779 25,151,308
It is the Company's policy to recognise a change in hierarchy level when there
is a change in the status of the investment, for example when a listed company
delists or vice versa, or when shares previously subject to a restriction have
that restriction released. The transfers between levels are recorded either on
the value of the investment immediately after the event or the carrying value
of the investment at the beginning of the financial year.
NOTES TO THE UNAUDITED CONDENSED INTERIM FINANCIAL STATEMENTS (CONTINUED) FOR
THE PERIOD FROM 1 JANUARY 2025 TO 30 JUNE 2025
3. FINANCIAL ASSETS AT FAIR VALUE THROUGH PROFIT OR LOSS (CONTINUED)
In determining an investment's position within the fair value hierarchy, the
Directors take into consideration the following factors:
Investments whose values are based on quoted market prices in active markets
are classified within Level 1. These include listed equities with observable
market prices. The Directors do not adjust the quoted price for such
instruments, even in situations where the Company holds a large position, and
a sale could reasonably impact the quoted price. The Company does not
currently hold a sufficiently large position in any listed company that it
could impact the quoted price via a sale of its investment.
As at 30 June 2025, the Investment Manager prepared the valuations and
considered whether there were any changes to performance or the circumstances
of the underlying investments which would affect the fair values. Methods,
assumptions, and data were consistently applied period on period except for
certain private equity investments where a change in assumption is deemed
appropriate to reflect the change in the market conditions or
investment-specific factors. The Investment Manager then made recommendations
to the Board of the fair values as at 30 June 2025.
Investments that trade in markets that are not considered to be active but are
valued based on quoted market prices, dealer quotations or alternative pricing
sources supported by observable inputs, are classified within Level 2. These
include certain less-liquid listed equities. Level 2 investments are valued
with reference to the listed price of the shares should they be freely
tradable after applying a discount for illiquidity if relevant. As Level 2
investments include positions that are not traded in active markets and/or are
subject to transfer restrictions, valuations may be adjusted to reflect
illiquidity and/or non-transferability, which are generally based on available
market information. The Company held two Level 2 investments at 30 June 2025
(31 December 2024: one).
At the end of February 2024, the sale of Nussir ASA was completed, and the
Company received 5,572,888 shares in TSX-V listed Blue Moon Metals Inc. Under
TSX rules, the Blue Moon shares are subject to certain phased lock-up
arrangements. At 30 June 2025, 4,179,666 of the Company's Blue Moon shares
remain locked up and are therefore held at a discount to the listed price.
During the period this has been reclassified from Level 3 to Level 2.
Investments classified within Level 3 have significant unobservable inputs.
They include unlisted debt instruments, royalty rights, unlisted equity shares
and warrants. Level 3 investments are valued using valuation techniques
explained below. The inputs used by the Directors in estimating the value of
Level 3 investments include the original transaction price, recent
transactions in the same or similar instruments if representative in volume
and nature, completed or pending third-party transactions in the underlying
investment of comparable issuers, subsequent rounds of financing,
recapitalisations and other transactions across the capital structure,
offerings in the equity or debt capital markets, and changes in financial
ratios or cash flows. Level 3 investments may also be adjusted with a discount
to reflect illiquidity and/or non-transferability in the absence of market
information.
Valuation methodology of Level 3 investments
The primary valuation technique is of "Latest Recent Transaction" being either
recent external fund raises or transactions. In all cases the valuation
considers whether there has been any change since the transaction that would
indicate the price is no longer fair value. Where an unquoted investment has
been acquired or where there has been a material arm's length transaction
during the past six months it will be carried at transaction value, having
taken into account any change in market conditions and the performance of the
investee company between the transaction date and the valuation date. If it is
assessed that a recent transaction is not at an arm's length or there are
other indicators that it has not been executed at a price that is indicative
of fair value, then the transaction value will not be used as the carrying
value of the investment. Where there has been no Latest Recent Transaction the
primary valuation driver is IndexVal. For each core unlisted investment, the
Company maintains a weighted average basket of listed companies which are
comparable to the investment in terms of commodity, stage of development and
location ("IndexVal").
NOTES TO THE UNAUDITED CONDENSED INTERIM FINANCIAL STATEMENTS (CONTINUED) FOR
THE PERIOD FROM 1 JANUARY 2025 TO 30 JUNE 2025
3. FINANCIAL ASSETS AT FAIR VALUE THROUGH PROFIT OR LOSS (CONTINUED)
Valuation methodology of Level 3 investments (continued)
IndexVal is used as an indication of how an investment's share price might
have moved had it been listed. Movements in commodity prices are deemed to
have been taken into account by the movement of IndexVal.
A secondary tool used by Management to evaluate potential investments as well
as to provide underlying valuation references for the Fair Value already
established is Development Risk Adjusted Value ("DRAV"). DRAVs are not a
primary determinant of Fair Value. The Investment Manager prepares discounted
cash flow models for the Company's core investments annually taking into
account significant new information, and for decision making purposes when
required. From these, DRAVs are derived. The computations are based on
consensus forecasts for long term commodity prices and investee company
management estimates of operating and capital costs. Some market analysts
incorporate development risk into the discount rate in arriving at a net
present value ("NPV"). Instead, the Investment Manager establishes an NPV
discounted purely for cost of capital and country risk and then applies a
further overall discount to the project economics dependent on where such
project sits on the development curve per the DRAV calculations.
The valuation technique for Level 3 investments can be divided into seven
groups:
i. Transactions & Offers
Where there have been transactions within the past 6 months either through a
capital raising by the investee company or known secondary market
transactions, representative in volume and nature and conducted on an arm's
length basis, this is taken as the primary driver for valuing Level 3
investments, having taken into account of any change in market conditions and
the performance of the investee company between the transaction date and the
valuation date. This includes offers, binding or otherwise from third parties
around the year end which may not have completed prior to the year-end but
have a high chance of success and are considered to represent the situation at
year end.
ii. IndexVal
Where there have been no known transactions for 6 months, at the Company's
half year and year end, movements in IndexVal will generally be taken into
account in assessing Fair Value where there has been at least a 10% movement
in IndexVal over at least a six-month period. The IndexVal results are used as
an indication of trend and are viewed in the context of investee company
progress and any requirement for finance in the short term for further
progression.
iii. Royalty Valuation Model
The rights to receive royalties are valued on projected
cashflows taking into account expected time to
production and development risk and adjusted for movement in commodity prices.
iv. EBITDA Multiple
In the case of CEMOS Group plc, which moved to full production during 2020 and
so could reflect maintainable earnings, its main asset is a cement plant with
no defined life like a mining project and therefore has been valued on the
basis of a multiple of a blend of historical and forecast earnings before
interest, tax, depreciation and amortisation ("EBITDA") when compared to
listed comparable cement producers.
v. Market Comparison
In the case of Futura Resources Ltd which moved into production in early 2024,
it was valued with reference to comparable listed coal producers both in terms
of EBITDA multiple and Net Present Value duly discounted for its stage of
development.
vi. Warrants
Warrants are valued using a simplified Black Scholes model taking into account
time to expiry, exercise price and volatility. Where there is no established
market for the underlying shares the average volatility of the companies in
that investment's basket of IndexVal comparable is utilised in the Black
Scholes model.
NOTES TO THE UNAUDITED CONDENSED INTERIM FINANCIAL STATEMENTS (CONTINUED) FOR
THE PERIOD FROM 1 JANUARY 2025 TO 30 JUNE 2025
3. FINANCIAL ASSETS AT FAIR VALUE THROUGH PROFIT OR LOSS (CONTINUED)
vii. Convertible loans
Convertible loans are valued taking into account the value of
the conversion option based on a binomial
model along with the associated credit risk of the
instrument.
Quantitative information on significant unobservable inputs - Level 3
Description Valuation technique Unobservable input Range of unobservable input (weighted average)
30 June 2025
£
Unlisted Equity 3,757,120 Transactions Private transactions n/a
Unlisted Equity 1,623,910 IndexVal Change in Index -34% - 223%
Unlisted Equity 42,090,918 EBITDA Multiple EBITDA Multiple 3x - 8x
Royalties 26,274,568 Royalty Valuation model Development rate risk 15% - 40%
Royalties 21,405 Other n/a n/a
Debt Instruments
Convertible Loans 8,333,471 Valued at fair value with reference to credit risk Rate of Credit Risk 10-20%
Other Loans 635,739 Valued at fair value with reference to credit risk Rate Discount 0-10%
Warrants 164,725 Discount factors to achieve milestones Discount 20% - 40%
Warrants 23,526 Simplified Black Scholes Model Volatility 56%-70%
Contingent Interest 43,344 Discount to external valuation Discount +/-75%
Description Valuation technique Unobservable input Range of unobservable input (weighted average)
31 December 2024
£
Unlisted Equity 8,756,268 Transactions Private transactions n/a
Unlisted Equity 42,364,428 EBITDA Multiple EBITDA Multiple 4x - 14x
Royalties 26,248,129 Royalty Valuation model Commodity price and discount rate risk 15% - 75%
Debt Instruments
Other Convertible Debentures/Loans 5,133,327 Valued at fair value with reference to credit risk Rate of Credit Risk 10%-60%
Warrants 43,750 Simplified Black Scholes Model Volatility 20%-40%
Contingent Interest 45,029 Discount to external valuation Discount +/-75%
NOTES TO THE UNAUDITED CONDENSED INTERIM FINANCIAL STATEMENTS (CONTINUED) FOR
THE PERIOD FROM 1 JANUARY 2025 TO 30 JUNE 2025
3. FINANCIAL ASSETS AT FAIR VALUE THROUGH PROFIT OR LOSS (CONTINUED)
Information on third party transactions in unlisted equities is derived from
the Investment Manager's market contacts. The change in IndexVal for each
particular unlisted equity is derived from the weighted average movements of
the individual baskets for that equity so it is not possible to quantify the
range of such inputs.
The significant unobservable inputs used in the fair value measurement
categorised within Level 3 of the fair value hierarchy together with a
quantitative sensitivity analysis as at 30 June 2025 are as shown below:
Description Input Sensitivity Effect on Fair Value (£)
used
Unlisted Equity Transactions +/-5% +/-187,856
& Expected Transactions
Unlisted Equity IndexVal +228%/-44% +3,702,515/-909,390
Unlisted Equity EBITDA Multiple +/-20% +/-8,418,184
Royalties +/-20% +/-5,254,914
Commodity Price
Royalties +/-20% -2,963,815/+3,526,101
Discount Rate
Debt Instruments
Convertibles/Loans Risk discount rate +20%/-10% -784,673/+559,383
Convertible Loans Volatility of Index Basket +/-20% +319,862/-265,742
Others/Loans Risk discount +/-40% -134,215/+67,108
rate
Warrants Risk +/-40% -68,609/+82,329
of milestones being achieved
Warrants +/-40% +18,872/-19,193
Volatility of Index Basket
Contingent Interest Risk discount rate +/-20% +/-8,669
The significant unobservable inputs used in the fair value measurement
categorised within Level 3 of the fair value hierarchy together with a
quantitative sensitivity analysis as at 31 December 2024 are as shown below:
Description Input Sensitivity Effect on Fair Value (£)
used
Unlisted Equity Transactions +/-20% +/-1,751,254
& Expected Transactions
Unlisted Equity EBITDA Multiple +/-20% +/-8,472,886
Royalties +/-20% +/-5,249,626
Commodity Price
Royalties +/-20% -3,047,666/+3,546,959
Discount Rate
Debt Instruments
Convertibles / Loans Volatility of Index Basket +/-40% -998,527/+586,938
Others/Loans Risk discount +/-20% +437,674/-439,332
rate
Warrants Risk +/-20% -18,163/+21,795
of milestones being achieved
Contingent Interest Risk discount rate +/-20% +/-17,500
NOTES TO THE UNAUDITED CONDENSED INTERIM FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD FROM 1 JANUARY 2025 TO 30 JUNE 2025
4. NET ASSET VALUE PER SHARE AND EARNINGS PER SHARE
Net asset value per share is based on the net assets of £111,105,062 (31
December 2024: £95,476,374) and 106,462,502 (31 December 2024: 106,462,502)
Ordinary Shares, being the number of shares in issue at 30 June 2025, 31
December 2024 and 30 June 2024, excluding 700,000 shares which are held in
treasury. The calculation for basic and diluted NAV per share is as below:
30-Jun-25
31-Dec-24
Net assets at the period end (£)
111,105,062
95,476,374
Number of shares
106,462,502
106,462,502
Net asset value per share (in pence) basic and diluted
104.4
89.7
30-Jun-25
31-Dec-24
Net Profit for the period (£)
15,628,688
4,056,412
Number of shares
106,462,502
106,462,502
Earnings per ordinary share (in pence) basic and diluted
14.68
3.81
There are no outstanding instruments which could result in the issue of new
shares or dilute the issued share capital.
5. TAXATION
The Company is a Guernsey Exempt Company and is therefore not subject to
taxation in Guernsey on its income under the Income Tax (Exempt Bodies)
(Guernsey) Ordinance, 1989. An annual exemption fee of £1,600 (2024: £1,600)
has been paid. The Company may, however, be exposed to taxes in certain other
territories in which it invests such as withholding taxes on interest
payments, dividends, royalties and taxes on realisations of investments.
6. MANAGEMENT AND PERFORMANCE FEES
The Manager was appointed pursuant to a management agreement with the Company
dated 31 March 2010 (the "Management Agreement"). The Company pays a
management fee which is equal to 1/12th of 1.75 per cent of the total average
market capitalisation of the Company during each month. The management fee is
calculated and accrued as at the last business day of each month and is paid
monthly in arrears.
The management fee for the period ended 30 June 2025 was £507,753 (31
December 2024: £937,153) of which £92,046 (31 December 2024: £ 89,312) was
outstanding at the period end.
The Manager is also entitled to a performance fee. The Performance Period is
each 12-month period ending on 31 December (the "Performance Period"). The
amount of the performance fee is 15 per cent of the total increase in the NAV,
if the Hurdle has been met, at the end of the relevant Performance Period,
over the highest previously recorded NAV as at the end of a Performance Period
in respect of which a performance fee was last accrued, having adjusted for
numbers of Ordinary Shares issued and/or repurchased ("Highwater Mark"). The
Hurdle is the Issue Price multiplied by the shares in issue, increased at a
rate of 8% per annum compounded to the end of the relevant performance period.
In addition, the performance fee will only become payable if there have been
sufficient net realised gains. As at 30 June 2025, the Highwater Mark was the
equivalent of approximately 94 pence per share with the relevant Hurdle being
the equivalent of approximately 198 pence per share.
There were no performance fees earned for the current or prior period.
NOTES TO THE UNAUDITED CONDENSED INTERIM FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD FROM 1 JANUARY 2025 TO 30 JUNE 2025
6. MANAGEMENT AND PERFORMANCE FEES (CONTINUED)
Amendments have been made to the Management Agreement and Investment
Management Agreements with the Manager and Investment Manager respectively,
such that, that proportion of the Management Fee associated with discretionary
fund management is now paid directly to the Investment Manager i.e. the
Manager now receives no income from its appointment as a discretionary fund
manager pursuant to the Management Agreement, and this is paid directly to the
Investment Manager. There is no impact whatsoever on the overall Management
Fee paid by the Company. The amendments were effective from 1 July 2024.
If the Company wishes to terminate the Management Agreement without cause it
is required to give the Manager 12 months prior notice or pay to the
Investment Manager and Manager an amount equal to: (a) the aggregate
investment management fee which would otherwise have been payable during the
12 months following the date of such notice (such amount to be calculated for
the whole of such period by reference to the Market Capitalisation prevailing
on the Valuation Day on or immediately prior to the date of such notice); and
(b) any performance fee accrued at the end of any Performance Period which
ended on or prior to termination and which remains unpaid at the date of
termination which shall be payable as soon as, and to the extent that,
sufficient cash or other liquid assets are available to the Company (as
determined in good faith by the Directors), provided that such accrued
performance fee shall be paid prior to the Company making any new investment
or settling any other liabilities; and (c) where termination does not occur at
31 December in any year, any performance fee accrued at the date of
termination shall be payable as soon as and to the extent that sufficient cash
or other liquid assets are available to the Company (as determined in good
faith by the Directors), provided that such accrued performance fee shall be
paid prior to the Company making any new investment or settling any other
liabilities.
7. SHARE CAPITAL
The share capital of the Company on incorporation was represented by an
unlimited number of Ordinary Shares of no par value. The Company may issue an
unlimited number of shares of a nominal or par value and/or of no par value or
a combination of both.
The Company has a total of 106,453,335 (31 December 2024: 106,453,335)
Ordinary Shares in issue with an additional 700,000 (31 December 2024:
700,000) held in treasury. In addition, the Company has 9,167 (31 December
2024: 9,167) Management Ordinary Shares in issue, which are held by the
Investment Manager.
The Ordinary Shares are admitted to the Official List of the London Stock
Exchange. Holders of Ordinary Shares have the right to receive notice of and
to attend and vote at general meetings of the Company.
Each holder of Ordinary Shares being present in person or by proxy at a
meeting will, upon a show of hands, have one vote and upon a poll each such
holder of Ordinary Shares present in person or by proxy will have one vote for
each Ordinary Share held by him.
The details of issued share capital of the Company are as follows:
30 June 2025 31 December 2024
Amount* No. of shares* Amount* No. of shares*
£ £
Issued and fully paid share capital
Ordinary Shares of no par value** 76,122,347 107,162,502 76,122,347 107,162,502
(including Management Ordinary Shares)
Treasury Shares (140,492) (700,000) (140,492) (700,000)
Total Share Capital 75,981,855 106,462,502 75,981,855 106,462,502
* Includes 9,167 (2023: 9,167) Management Ordinary Shares.
** The value reported for the ordinary shares represents the net of
subscriptions and redemptions (including any associated expenses)
NOTES TO THE UNAUDITED CONDENSED INTERIM FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD FROM 1 JANUARY 2025 TO 30 JUNE 2025
7. SHARE CAPITAL (CONTINUED)
The outstanding Ordinary Shares as at the period ended 30 June 2025 are as
follows:
Ordinary Shares Treasury Shares
Amount* No. of shares* Amount No. of shares
£ £
Balance at 1 January 2025 & 30 June 2025 76,122,347 106,462,502 140,492 700,000
The outstanding Ordinary Shares as at the period ended 31 December 2024 are as
follows:
Ordinary Shares Treasury Shares
Amount* No. of shares* Amount No. of shares
£ £
Balance at 1 January 2024 & 31 December 2024 76,122,347 106,462,502 140,492 700,000
* Includes 9,167 (31 December 2024: 9,167) Management Ordinary Shares.
8. RELATED PARTY TRANSACTIONS
The Investment Manager, Baker Steel Capital Managers LLP, had an interest in
9,167 Management Ordinary Shares at 30 June 2025 (31 December 2024: 9,167).
The Management fees paid and accrued for the year are disclosed under Note 6.
David Baker and Trevor Steel, Directors of the Manager, are interested in the
shares held by Northcliffe Holdings Limited and The Sonya Trust respectively,
which are therefore considered to be Related Parties. Northcliffe Holdings
Limited holds 12,452,177 shares (31 December 2024; 12,452,177) and The Sonya
Trust holds 12,637,350 shares (31 December 2024: 12,637,350).
John Falla holds 100,000 shares in the Company (31 December 2024: 100,000).
Patrick Meier holds 82,261 shares in the Company (31 December 2024: 82,261).
Management fees and Directors' fees paid and accrued during the periods to 30
June were:
2025 2024
£ £
Management fees 507,753 448,369
Directors' fees 72,500 73,526
Directors' expenses 8,503 1,642
The Management fees and Directors' fees outstanding at the periods ended 30
June were:
2025 2024
£ £
Management fees 92,046 85,023
Directors' fees - 1,026
Directors' expenses - -
NOTES TO THE UNAUDITED CONDENSED INTERIM FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD FROM 1 JANUARY 2025 TO 30 JUNE 2025
9. SUBSEQUENT EVENTS
On 2 July 2025, the Company announced that PAL, in which it holds a 49.99%
interest, had signed a binding agreement to divest its net smelter royalty
related to the Prognoz silver project ("Prognoz Royalty") for a cash
consideration of US$11 million (or its Euro equivalent on closing at the
buyer's election).
As a result, the Company received US$5.16 million in cash on 23rd July 2025
from the buy back of shares by PAL.
MANAGEMENT AND ADMINISTRATION
DIRECTORS:
Fiona Perrott-Humphrey (Chairman)
Charles Hansard
John Falla
Patrick Meier
(all of whom are non-executive and independent)
REGISTERED
OFFICE:
East Wing, Trafalgar Court
Les Banques
St. Peter Port
Guernsey, GY1 3PP
Channel Islands
MANAGER: Baker Steel Capital Managers (Cayman) Limited
PO Box 309
George Town
Grand Cayman, KY1-1104
Cayman Islands
INVESTMENT
MANAGER:
Baker Steel Capital Managers LLP
34 Dover Street
London, W1S 4NG
United Kingdom
STOCKBROKERS:
Shore Capital Stockbrokers Limited
Cassini House, 57 St James's Street London, SW1A 1LD
United Kingdom
SOLICITORS TO THE
COMPANY:
Norton Rose Fulbright LLP
(as to English
law)
3 More London Riverside
London, SE1 2AQ
United Kingdom
ADVOCATES TO THE
COMPANY:
Mourant Ozanne
(as to Guernsey
law)
Royal Chambers
St Julian's Avenue
St. Peter Port
Guernsey, GY1 4HP
Channel Islands
MANAGEMENT AND ADMINISTRATION (CONTINUED)
ADMINISTRATOR & COMPANY SECRETARY:
Aztec Financial Services (Guernsey) Limited
East Wing, Trafalgar Court
Les Banques
St. Peter Port
Guernsey, GY1 3PP
Channel Islands
CUSTODIAN TO THE
COMPANY:
Liberum Wealth Limited
1st Floor, Royal Chambers
St Julian's Avenue
St. Peter Port
Guernsey, GY1 2HH
Channel Islands
SAFEKEEPING AND MONITORING
AGENT: Liberum Wealth
Limited
1st Floor, Royal Chambers
St Julian's Avenue
St. Peter Port
Guernsey, GY1 2HH
Channel Islands
INDEPENDENT
AUDITOR:
BDO Limited
P.O. Box 180
Plaza House
2nd Floor, Admiral Park
St. Peter Port
Guernsey, GY1 3LL
Channel Islands
REGISTRAR:
Computershare Investor Services (Guernsey) Limited
2nd Floor, Lefebvre Place
Lefebvre Street
St Peter Port
Guernsey
GY1 2JP
UK PAYING AGENT AND TRANSFER AGENT:
Computershare Investor Services (Jersey) Limited
Queensway House
Hilgrove Street
St Helier
JE11ES
Jersey
MANAGEMENT AND ADMINISTRATION (CONTINUED)
RECEIVING
AGENT:
Computershare Investor Services (Jersey) Limited
Queensway House
Hilgrove Street
St Helier
JE11ES
Jersey
PRINCIPAL BANKER:
HSBC Bank plc
Arnold House
St Julian's Avenue
St. Peter Port
Guernsey, GY1 3NF
Channel Island
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