REG - Baker Steel Res Tst - Net Asset Value(s)

Baker Steel Resources TrustAnnouncement

06/02/2023 08:30

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RNS Number : 0125P  Baker Steel Resources Trust Ltd  06 February 2023

 

BAKER STEEL RESOURCES TRUST LIMITED

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

 

6 February 2023

LEI: 213800JUXEVF1QLKCC27

31 January 2023 Unaudited NAV Statement

Net Asset Value

Baker Steel Resources Trust Limited (the "Company") announces its unaudited
net asset value per share at 31 January 2023.

Net asset value per Ordinary Share: 83.9 pence.

The NAV per share has increased by 1.8% against the unaudited NAV at 31
December 2022 largely as a result of a partial recovery in the share price of
First Tin plc on the London Stock Exchange.

 

The Company had a total of 106,462,502 Ordinary Shares in issue with a further
700,000 shares held in treasury as at 31 January 2023.

 

Investment Update

 

The Company's top 10 investments were as follows as a percentage of NAV:

 

                                     31 January 2023  31 December 2022
 Futura Resources Ltd                26.6%            26.7%
 Cemos Group plc                     21.5%            22.0%
 Caledonia Mining Corporation Plc    9.2%               8.9%*
 Bilboes Royalty                     6.4%               6.7%*
 First Tin plc                       5.9%             4.6%
 Tungsten West Plc                   5.3%             5.2%
 Kanga Investments Ltd               5.2%             5.4%
 Polar Acquisition Ltd               4.8%             4.9%
 Silver X Mining Corporation         4.7%             5.2%
 Nussir ASA                          3.8%             4.0%
 Listed Precious Metal Shares        2.7%             2.4%
 Other Investments                   3.4%               3.8%*
 Net Cash, Equivalents and Accruals  0.5%             0.2%

*pro forma

 

 

First Tin Plc ("First Tin")

 

First Tin rose 28% on the London Stock Exchange during January 2023 as it
reported good progress on both its advanced tin projects and in particular at
its Taronga tin project in Australia where drilling has outlined a 350 metre
extension to the southwest of the current resource area. Four lines of reverse
circulation (RC) exploration drilling have been completed at approximately
100m spacing and in addition 8 diamond drillholes and one RC hole have been
drilled as twins of the drilling previously undertaken by Newmont in order to
confirm the existing mineral resource. First Tin will follow up with an
increased drilling programme with the aim of bringing this southwest extension
up to Indicated Resource standard so it can be included in the Feasibility
Study on the project. As a result of this additional drilling the Feasibility
Study on Taronga will be slightly delayed but both it and the Feasibility
Study on its other project, the Tellerhauser tin project in Germany are still
on track to be completed before the end of 2023.

 

Over the last few months the price of tin has recovered significantly from a
low of below US$18,000 per tonne in October 2022 to around US$30,000 per
tonne. The economic models in the pre-feasibility studies using a
US$30,000/tonne price for tin on First Tin's two tin projects together
totalled pre-tax Net Present Value (NPV(8%)) of US$433 million which compares
with a current market capitalisation of £40 million (US$49 million). The
Company holds its First Tin shares at a 6% discount to the market price due to
the lock-up on its shares which expires on 8 April 2023.

 

Tungsten West Plc ("Tungsten West")

 

On 16 January 2023 Tungsten West announced the results of its updated
feasibility study on the Hemerdon tungsten and tin mine in Devon, UK. The
feasibility study detailed a mine with average annual production of 2,900
tonnes of WO3 and 310 tonnes of Tin ("Sn") in concentrate over 27 years.

 

The economics showed a post-tax Net Present Value (NPV(5%)) of £297 million
with an Internal Rate of Return (IRR) of 25%. It also highlighted an Upside
Case post-tax NPV(5%) of £416 million with an IRR of 32%. Total
pre-production capex, corporate commitments and working capital is estimated
at £54.9 million. The current market capitalisation of Tungsten West is
approximately £27 million.

 

Key to the improved economics following a reworking of the development due to
higher energy costs has been a complete redesign of the front-end crushing
circuit which has considerably reduced capex. In addition the optimisation of
XRT ore-sorting operational parameters has significantly reduced opex by
allowing the re-purposing of the dense media separation circuits and the
removal of the refinery kiln from the circuit reducing diesel consumption by
1.3 million litres per annum.

 

Further details of the Company and its investments are available on the
Company's website www.bakersteelresourcestrust.com
(http://www.bakersteelresourcestrust.com)

 

Enquiries:

Baker Steel Resources Trust Limited             +44 20 7389 8237

Francis Johnstone

Trevor Steel

 

Numis Securities
Limited                               +44 20
7260 1000

David Benda (corporate)

James Glass (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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