REG - Baker Steel Res.Tst. - Investment Update and 27 February 2026 NAV

Baker Steel Resources TrustAnnouncement

09/03/2026 07:00

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RNS Number : 7326V  Baker Steel Resources Trust Ltd  09 March 2026

 

BAKER STEEL RESOURCES TRUST LIMITED

(Incorporated in Guernsey with registered number 51576 under the provisions of
The Companies (Guernsey) Law, 2008 as amended)

 

9 March 2026

Investment Update and 27 February 2026 Unaudited NAV

Net Asset Value

Baker Steel Resources Trust Limited (the "Company" or "BSRT") announces its
unaudited net asset value per share as at 27 February 2026.

Net asset value per Ordinary Share: 174.3 pence. Total NAV: £185.0 million.

The NAV per share at 27 February 2026 increased by 22.1p, up 14.5% from the
last published NAV at 30 January 2026 due to increases in the share prices of
the listed shares in the portfolio particularly Tungsten West which rose 69%
during the month. Recent events in the Middle East have created new levels of
uncertainty but as things stand we are not aware of any meaningful negative
impact on our portfolio companies.

 

During the month the Company commenced a share buy back programme and bought
back a total of 348,400 shares at a weighted average price of 109.82 pence per
share which were cancelled. As a result, the Company had a total of
106,114,102 Ordinary Shares in issue with a further 700,000 shares held in
treasury as at 27 February 2026.

 

Investment Update

 

The Company's top 10 investments were as follows:

 

                                     27 February 2026  27 February 2026  31 December 2025  31 December 2025

                                     £m                %                 £m                %
 Tungsten West Plc                   39.5              21.4%             12.5              8.6%
 Futura Resources Ltd                35.2              19.0%             35.2*             24.3%*
 Cemos Group plc                     33.5              18.1%             33.5              23.1%
 Blue Moon Metals Inc                18.4              10.0%             13.6              9.4%
 Bilboes Royalty                     15.7              8.5%              15.7              10.9%
 Silver X Mining Corporation         9.9               5.4%              11.4              7.9%
 First Tin PLC                       9.6               5.2%              5.1               3.5%
 Metals Exploration Plc              7.1               3.8%              6.8               4.7%
 Caledonia Mining Corporation Plc    4.7               2.5%              4.6               3.2%
 Chancery Royalty Ltd                1.5               0.8%              n/a               n/a
 Other Investments                   1.9               1.0%              1.7               1.2%
 Net Cash, Equivalents and Accruals  8.0               4.3%              4.6               3.2%
 Total                               185.0             100%              144.7             100%

* Including bridging loans repaid during January 2026

 

Tungsten West Plc ("Tungsten West")

 

During February 2026, Tungsten West completed an equity raising of £43
million at a price of 18 pence per share, forming the equity portion of the
US$93 million required to restart the Hemerdon open pit tungsten mine in
Devon. The debt portion of up to US$75 million is expected to be finalised in
the next few weeks. This will enable production to restart in the second half
of this year with full production in 2027.

 

At current tungsten prices, Tungsten West could make well in excess of £200
million in EBITDA per annum once in full production, with an NPV(7.5%) of
£1.3 billion.

 

The Company acquired a further 9.4 million shares of Tungsten West in the
placing and accompanying secondary sales at an average of 18.4p per share and
now owns 7.8% of the issued shares. During February 2026 the shares in
Tungsten West rose 69% and have risen 192% since the beginning of the year.
Notwithstanding this rise, its market capitalisation of some £480 million
does not look challenging when compared to its potential cashflow generation
or its closest comparable Almonty Industries which owns the Sandong
underground mine in South Korea with a similar size resource and production
profile to Hemerdon. Almonty Industries is  Nasdaq listed and has a market
capitalisation of close to £4 billion.

 

Blue Moon Metals Inc ("Blue Moon")

On 10 February 2026 Blue Moon completed the previously announced acquisition
of the Springer tungsten mine and processing plant, in Pershing County,
Nevada, formerly operated by General Electric. This includes mineral claims
containing a historically mined tungsten deposit with significant historical
resources, together with a flotation mill previously utilised for tungsten ore
processing. The mill is equipped with an Ammonium Paratungstate ("APT")
circuit incorporating an autoclave and associated reagent systems, which has
additional strategic value. The aggregate consideration paid by Blue Moon for
completion of the transaction consisted of an initial deposit of US$500,000
and a final cash payment of US$18 million. Blue Moon plan to advance Springer
through a multi-phase work programme in 2026. The initial phase will focus on
a detailed review of available historical information, to refine the current
geological interpretation and to guide the design of a follow-up drilling
programme later this year.

After the close on 27 February 2026, Blue Moon announced the acquisition of
the Apex mine in southern Utah from Teck Resources. Apex is a historic
underground mine that was operational in the mid-1980s and through the 1990s,
and was the largest primary source of US germanium (Ge) and gallium (Ga) when
operational.

Consideration is 7.03 million Blue Moon's shares, equivalent to 8% of the
company's issued shares and a 0.5% Net Smelter Royalty on Apex plus
life-of-mine offtake rights to zinc concentrates produced from the Blue Moon
mine for Teck's Trail smelter in British Columbia.

Apart from the potential economic value of Apex, adding Teck as a strategic
shareholder positions Blue Moon at the forefront of an integrated pipeline of
US critical mineral projects to secure North American supply. This is in
addition to another key shareholder Hartree Partners LP, an important partner
with the US government on their recently announced US$12B critical metals
stockpile.

 

Chancery Royalty Ltd ("Chancery Royalty")

 

With equity markets having re-opened for companies with attractive development
projects the Investment Manager is seeing an increasing number of interesting
new investment opportunities. Given the buoyancy of precious metals this
includes a number of pre-IPO precious metal development companies, some
offering attractive entry valuations relative to their listed counterparts.
 In our view a window for IPOs in the precious metals sector will likely
remain open through at least 2026, given that we anticipate continued
supportive gold and silver pricing. We believe therefore that there is merit
in allocating some limited investment capital to a select few of these
opportunities, on the basis that they have the potential to generate
significant returns upon successful listings. As such, we invested US$2
million in Chancery Royalty, a rapidly growing private precious metals royalty
company, which is seeking to list in Canada in the second half of 2026.

 

Chancery Royalty has existing royalties on assets located in Finland, Brazil
the US and Ethiopia, of which three will come into production in 2026 and the
fourth due to produce from early 2028. Chancery expects to achieve over 3,700
oz of Gold Equivalent Ounces ("GEO") in 2026, over 6,000 oz GEOs in 2027
rising to over 23,000 oz GEO by 2029. At around today's gold price this would
generate gross income of over US$17m in 2026 rising to over US$100m in 2029.
On this base case Chancery's portfolio has an NPV5% at US$3500/oz gold and
US$60/oz silver of US$410m.  Our pre-IPO investment was at a valuation of
around 0.2x base case NPV, which compares to peer listed comparatives that
trade at 1-1.5x NPV and with the leading listed royalty companies
significantly higher. Chancery has also committed to an attractive returns
policy of a 50% distribution of free cashflow, which at our entry price would
equate this to around an initial 15% dividend yield.

 

 

Trevor Steel, Chief Investment Officer of the Investment Manager, Baker Steel
Capital Managers LLP commented:

 

"The successful equity financing for Tungsten West and continued rise in the
tungsten price as a critical mineral has propelled its share price to new
highs and now positions it as the Company's largest holding, which is positive
given the fundamental value that it continues to offer as well as its deep
discount to a number of listed peers. The mining developer space, the focus of
the Company, has come alive with widening interest from investors in the
potential returns to be captured with the backdrop of supportive commodity
prices and government interest in critical minerals supply chains. Within the
precious metals sphere this is generating some interesting opportunities for
the Company resulting in our first new investment for several years in
Chancery Royalty, which we believe will provide superior returns given the
imminent IPO plans.

 

Blue Moon's newly acquired Springer and Apex mines are both historically
established producers with plants on site that can be brought into production
quickly, uniquely positioning it as a potential key supplier of US demand for
three of the most critical minerals on the US list - tungsten, germanium and
gallium - from within the country."

 

 

Further details of the Company and its investments are available on the Baker
Steel Capital Managers website

 

www.bakersteelcap.com (http://www.bakersteelcap.com)

 

 

Enquiries:

Baker Steel Resources Trust Limited             +44 20 7389 8237

Francis Johnstone

Trevor Steel

 

Shore Capital
                       +44 020 7408 4050

Henry Willcocks (Corporate Broking)

Gillian Martin, Daphne Zhang (Corporate)

Adam Gill (Sales)

 

 

The Net Asset Value ("NAV") figure stated is based on unaudited estimated
valuations of the underlying investments and not necessarily based on
observable inputs. Such estimates are not subject to any independent
verification or other due diligence and may not comply with generally accepted
accounting practices or other generally accepted valuation principles. In
addition, some estimated valuations are based on the latest available
information which may relate to some time before the date set out above.

 

Accordingly, no reliance should be placed on such estimated valuations and
they should only be taken as an indicative guide. Other risk factors which may
be relevant to the NAV figure are set out in the Company's Prospectus dated 26
January 2015.

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