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

Baker Steel Resources TrustAnnouncement

11/07/2023 07:00

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RNS Number : 5502F  Baker Steel Resources Trust Ltd  11 July 2023

 

BAKER STEEL RESOURCES TRUST LIMITED

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

 

11 July 2023

LEI: 213800JUXEVF1QLKCC27

30 June 2023 Unaudited NAV Statement

Net Asset Value

Baker Steel Resources Trust Limited (the "Company") announces its unaudited
net asset value per share at 30 June 2023.

Net asset value per Ordinary Share: 67.3 pence.

The NAV per share has decreased by 5.2% versus the unaudited NAV at 31 May
2023 largely as a result of the half year review of unlisted holdings detailed
below, reflecting the weak market for mining development shares during the
first half of the year.

 

The Company had a total of 106,462,502 Ordinary Shares in issue with a further
700,000 shares held in treasury as at 30 June 2023.

 

Investment Update

 

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

 

                                     30 June 2023  31 December 2022
 Cemos Group plc                     29.2%         22.8%
 Futura Resources Ltd                25.4%         27.8%
 Caledonia Mining Corporation Plc    10.3%           9.2%*
 Bilboes Royalty                     7.9%            6.9%*
 Kanga Investments Ltd               5.1%          5.6%
 Silver X Mining Corporation         4.5%          5.4%
 First Tin plc                       3.8%          4.8%
 Nussir ASA                          3.7%          4.1%
 Metals Exploration Plc              2.6%          1.7%
 Tungsten West Plc                   2.1%          5.4%
 Other Investments                   5.5%          6.1%
 Net Cash, Equivalents and Accruals  1.0%          0.2%

*pro forma

 

 

 

Half Year Review of Unlisted Investments

 

The Company has carried out its usual half yearly review of general market
movements in mining equities, taking into consideration company-specific
factors, as well as an assessment of whether these should impact the carrying
values of its unlisted holdings.

 

The Investment Manager maintains an index of comparable listed companies for
each unlisted investment for comparison purposes and as a benchmark against
which the valuation of a particular unlisted stock might have moved during the
period had it been listed which it terms "IndexVal". In addition, the
Investment Manager has updated its royalty models for the royalty interests it
owns in Futura Resources and Polar Acquisition Limited ("PAL") and Bilboes
Holdings to take account of the latest estimated production profiles of the
underlying projects and commodity prices. The net present values produced by
these royalty models are then discounted for development risk to arrive at a
valuation.

 

Futura Resources Ltd ("Futura")

 

Futura is currently in the process of raising the finance to start production
at its two steel making coal projects in Queensland, Australia following the
award of the mining licences in November 2022. The success or otherwise of
such financing during the third quarter of 2023 could have a material impact
on the valuation of Futura. As none of the financing options being pursued had
been completed by 30 June 2023, the Company has decided to reduce the
valuation of its equity position by an amount equal to the 24% decline in
IndexVal for Futura during the first half of 2023. This has been the result of
a decrease in spot and near-term forward steel making coal prices which has
also been reflected in a 12% reduction in the carrying value of the Company's
gross revenue royalties over Futura's two mines.

 

Other Significant Adjustments

 

The carrying value of Cemos Group plc has been increased by 9% due to an
increase in the market values of local cement companies and taking into
account the updated forecast production and earnings for 2023. The valuations
of Kanga Investments and Nussir have been reduced by 21% and 11% respectively
in accordance with the fall in IndexVal during the period.

 

 

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

 

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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