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

Baker Steel Resources TrustAnnouncement

08/09/2023 07:00

For best results when printing this announcement, please click on link below:
http://newsfile.refinitiv.com/getnewsfile/v1/story?guid=urn:newsml:reuters.com:20230908:nRSH7676La&default-theme=true

RNS Number : 7676L  Baker Steel Resources Trust Ltd  08 September 2023

 

BAKER STEEL RESOURCES TRUST LIMITED

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

 

8 September 2023

LEI: 213800JUXEVF1QLKCC27

31 August 2023 Unaudited NAV Statement

Net Asset Value

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

Net asset value per Ordinary Share: 66.1 pence.

The NAV per share has decreased by 1.0% versus the unaudited NAV at 31 July
2023 largely as a result of falls in the share prices of Caledonia Mining on
the NYSE and AIM stock markets.

 

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 August 2023.

 

Investment Update

 

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

 

                                     31 August 2023  31 December 2022
 Cemos Group plc                     29.7%           22.8%
 Futura Resources Ltd                25.3%           27.8%
 Bilboes Royalty                     8.1%              6.9%*
 Caledonia Mining Corporation Plc    6.9%              9.2%*
 Kanga Investments Ltd               5.2%            5.6%
 Nussir ASA                          4.0%            4.1%
 First Tin plc                       3.8%            4.8%
 Silver X Mining Corporation         3.7%            5.4%
 Tungsten West Plc                   3.5%            5.4%
 Metals Exploration Plc              3.1%            1.7%
 Other Investments                   5.1%            6.1%
 Net Cash, Equivalents and Accruals  1.6%            0.2%

*pro forma

 

 

 

 

Tungsten West Plc (Tungsten)

 

In June 2023 Tungsten West closed the first tranche of a £6.95 million
interim fundraising of convertible loan notes (CLN). The proceeds of the
fundraising were used by the company to satisfy the conditions for the
remaining funding required to complete the redevelopment of the Hemerdon
tungsten and tin mine in Devon, UK. This included low frequency noise trials,
which were completed successfully in July 2023, and in August 2023 Tungsten
West made a formal submission to the Environment Agency to secure the Mineral
Processing Facility permit.

 

An important factor of the economics and environmental footprint of the
project is the production of secondary aggregates, a by-product from mining
which, once sold, will provide an early revenue stream and reduce the storage
of barren rock and associated operating expenses at site. To enable the
delivery of the aggregates business, and to optimise the core tungsten and tin
business, Tungsten West has submitted a section 73 application to vary the
tonnage cap associated with the existing permission for 50 truck movements per
day. Traffic and market studies carried out in conjunction with the
application highlight that the Company can plug a gap in the market for
high-quality, secondary aggregates in Devon with a minimal increase in overall
heavy vehicle traffic.

 

The positive low frequency noise test and submission of these two licence
applications demonstrated sufficient progress for the second tranche of the
CLN to be issued. The Company subscribed a further £600,000 in the CLN in
August 2023 to take its total subscription in the CLN to £1.2 million which
is sufficient for the Company to maintain its approximate 15% interest in
Tungsten West prior to the redevelopment fundraising.

 

It is hoped that these two licences might be awarded in the fourth quarter of
2023, which will enable Tungsten West to move forward with raising the
remaining capital required of approximately £55 million to recommence
production at Hemerdon. Given that once in full production the project should
generate annual cashflow in excess of £20 million a year for over 20 years,
we continue to consider that Hemerdon remains an attractive project. The
current market capitalisation of Tungsten West is approximately £7 million,
and £14 million assuming conversion of the CLN.

 

 

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.

This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact
rns@lseg.com (mailto:rns@lseg.com)
 or visit
www.rns.com (http://www.rns.com/)
.

RNS may use your IP address to confirm compliance with the terms and conditions, to analyse how you engage with the information contained in this communication, and to share such analysis on an anonymised basis with others as part of our commercial services. For further information about how RNS and the London Stock Exchange use the personal data you provide us, please see our
Privacy Policy (https://www.lseg.com/privacy-and-cookie-policy)
.   END  NAVKZGGLDNKGFZM