REG - Baker Steel Res.Tst. - Investment Update and 29 August 2025 NAV

Baker Steel Resources TrustAnnouncement

04/09/2025 09:30

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RNS Number : 0303Y  Baker Steel Resources Trust Ltd  04 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)

 

4 September 2025

Investment Update and 29 August 2025 Unaudited NAV

Net Asset Value

Baker Steel Resources Trust Limited (the "Company" or "BSRT") announces its
unaudited net asset value per share as at 29 August 2025.

Net asset value per Ordinary Share: 108.2 pence. Total NAV £115.1 million.

The NAV per share at 29 August 2025 increased by 1.0% from the last published
NAV at 31 July 2025, largely due to increases in the listed share prices of
Tungsten West Plc and Caledonia Mining Corporation Plc.

 

Total Voting Rights

 

The Company had a total of 106,462,502 Ordinary Shares in issue with a further
700,000 shares held in treasury as at 29 August 2025.

 

The Company's top 10 investments were as follows:

 

                                     29 August 2025  29 August 2025  31 December 2024  31 December 2024

                                     £m              %               £m                %
 Cemos Group plc                     31.9            27.7%           30.0              31.4%
 Futura Resources Ltd                29.2            25.3%           31.9              33.4%
 Tungsten West Plc                   10.0            8.7%            3.2               3.4%
 Bilboes Royalty                     9.9             8.6%            8.4               8.8%
 Blue Moon Metals Inc                9.3             8.1%            6.9               7.2%
 Metals Exploration Plc              5.7             5.0%            3.3               3.5%
 Caledonia Mining Corporation Plc    4.9             4.3%            3.2               3.3%
 Silver X Mining Corporation         3.6             3.1%            2.1               2.3%
 First Tin PLC                       2.8             2.5%            2.6               2.8%
 Kanga Investments Ltd               1.5             1.3%            1.4               1.6%
 Other Investments                   0.8             0.7%            2.2               2.0%
 Net Cash, Equivalents and Accruals  5.5             4.7%            0.3               0.3%
 Total                               115.1           100%            95.5              100%

 

Investment Update

 

Blue Moon Metals Inc ("Blue Moon")

 

On 19 August 2025 Blue Moon announced that it had entered into a memorandum of
understanding with Hartree Partners, LP ("Hartree") and funds managed by
Oaktree Capital Management, L.P. ("Oaktree") 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 terms of the finance package include a US$50 million senior secured term
loan; a US$70 million precious metals stream and an equity investment of up to
US$20 million (subject to a 19.9% Oaktree / Hartree combined ownership
limitation). The finance package is subject to customary approvals, diligence
and closing conditions. In addition, Blue Moon has signed a US$25 million
Bridge Loan agreement with Hartree which Blue Moon expects to be able draw in
addition to with the first US$5 million tranche of the equity investment by
Oaktree during September 2025.

 

The initial funds from the Bridge Loan and equity investment will support key
early works and pre-construction activities including detailed engineering,
procurement of long-lead items, underground development, and operational
readiness for Nussir and Blue Moon activities ahead of the full finance
package closing. This is subject to the satisfactory completion of certain
defined conditions by 31 March 2026 including delivery of an updated
feasibility study which is targeted for February 2026.

 

Blue Moon is currently advancing: the Nussir Copper Project in Norway; the
Blue Moon zinc-gold-silver-copper project in the United States; and the NSG
copper-zinc-gold-silver project in Norway.

 

Tungsten West Plc ("Tungsten West")

On 28 August 2025, Tungsten West announced that it had received a non-binding
Letter of Interest from the Export-Import Bank of the United States ("EXIM"),
the official export credit agency of the U.S., outlining its capacity to
provide financial support for Tungsten West's Hemerdon Mine in Devon, UK.
Under EXIM's new Supply Chain Resilience Initiative it may consider financing
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.

In August 2025, Tungsten West announced the results of its updated feasibility
study for the restart of mining operations at Hemerdon which set out a base
case with a 11-year life of mine followed by 4 years of subsequent stockpile
reclaim and an additional 12 years of on-going premium aggregate sales.  In
addition, there remains the potential to extend the operational life of mine
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.

At the current tungsten price of approximately US$500 per Metric Tonne Unit
(MTU) (65% ammonium paratungstate or APT), the economic model estimates an NPV
(7.5%) of US$342 million generating an IRR of 48% on the new US$93 million
investment. The Hemerdon Mine is fully permitted and once in production could
potentially supply some 20% of global supply of primary tungsten from outside
of China.

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 beginning to feed through to higher prices and the
price of tungsten is already up 30% in 2025.

 

First Tin PLC ("First Tin")

First Tin PLC announced that it had received encouraging initial tin assay
results from its ongoing infill and extension drilling programme at its
Taronga Tin Project in Australia. The 10,000 metre drilling programme is
designed to convert Inferred resources to Indicated status and to test several
previously interpreted zones of mineralisation close to the proposed pits. The
Taronga Definitive Feasibility Study noted that approximately 3.6Mt of
Inferred Mineral Resource is located within the current pit designs which is
currently not included in the economic analysis.

As of 18th August 2025, a total of 2,780m of RC drilling had been completed
in 39 drill-holes as part of the resource drilling programme. Assay results
from the first 4 drill-holes have been received, and these confirm similar
grade tin mineralisation to that in the current resource and reserve and are
expected to result in additional resources being added within the
current South Pit outline.

 

 

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

 

"The announcements by Blue Moon and Tungsten West regarding prospective debt
funding packages are very positive for their shareholders not least given
likely significantly reduced equity dilution in putting their mines into
production. The increasing availability of finance for development projects
bodes well for equity valuations in the sector which should benefit the
Company given the nature of its portfolio. EXIM's interest in funding Tungsten
West's Hermerdon tungsten mine highlights the need for western sourced
critical and strategic minerals, which may also be helpful for First Tin in
financing its Taronga tin project in Australia."

 

 

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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