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

Baker Steel Resources TrustAnnouncement

08/03/2024 07:00

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RNS Number : 0765G  Baker Steel Resources Trust Ltd  08 March 2024

BAKER STEEL RESOURCES TRUST LIMITED

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

 

8 March 2024

29 February 2024 Unaudited NAV Statement

Net Asset Value

Baker Steel Resources Trust Limited (the "Company") announces its unaudited
net asset value per share at 29 February 2024.

Net asset value per Ordinary Share: 75.3 pence.

The NAV per share was unchanged versus the unaudited NAV at 31 January 2024
with declines in the listed prices of Caledonia Mining and Silver X shares
balanced by an increase in the share price of Metals Exploration.

 

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 February 2024.

 

Investment Update

 

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

 

                                     29 February 2024  29 December 2023
 Futura Resources Ltd                35.8%             36.3%
 Cemos Group plc                     29.8%             29.3%
 Bilboes Royalty                     7.4%              7.2%
 Caledonia Mining Corporation Plc    4.5%              5.4%
 Nussir ASA                          4.1%              4.1%
 Metals Exploration Plc              3.9%              3.0%
 Kanga Investments Ltd               3.8%              3.6%
 Silver X Mining Corporation         2.8%              3.5%
 First Tin plc                       2.0%              2.1%
 Tungsten West Plc                   1.8%              1.7%
 Other Investments                   3.5%              3.4%
 Net Cash, Equivalents and Accruals  0.6%              0.4%

 

 

 

 

Futura Resources Ltd ("Futura")

 

During February Futura Resources achieved the milestone of first production of
steel making (or coking) coal from its Wilton Mine in Queensland Australia.
This marked the culmination of many years' work from initial exploration,
resource drilling and definition, feasibility studies and permitting through
to completion of the A$30 million convertible financing last year to support
the commencement of operations. A total of around A$100m is estimated to have
been spent in today's money terms to get to this point over the last decade or
so.

 

Although the targeted date for first coal production from Wilton slipped by
around a month primarily due to unusually heavy rains in Queensland causing
localised logistic issues with mobile equipment, the mine has otherwise been
commissioned on plan and on budget.

 

The initial 10,000 tonnes of run of mine coal from Wilton has been trucked to
the nearby Gregory Crinum Coal Handling and Preparation Plant (CHPP) and will
shortly be batch processed into the final product. It will then be loaded and
railed to the port of Gladstone on the Queensland coast before being shipped
to customers.  Futura anticipates receiving first sale proceeds from this
shipment during March 2024.

 

Futura is in advanced negotiations to secure a A$35m pre-payment debt offtake
and marketing facility with a major coal trading company to fund its second
shovel ready open pit mine, Fairhill, contiguous to Wilton, which will allow
mining to commence in September 2024.

 

Together Wilton and Fairhill, once ramped up to planned production levels will
extract between 3 and 4 million tonnes per annum of run of mine coal which
after processing recoveries at the Gregory CHPP will result in sales of
between 1.5 to 2 million tonnes of final products to the international
markets with industry competitive operating costs of around US$85 per tonne.

 

Steel making coal remains vital to steel production in conventional blast
furnaces which are likely to be the mainstay for primary steel production for
many years to come, particularly in the developing world, with for example
India forecasted to require significantly increased imports of seaborne steel
making coal by 2030.

 

Prices for the benchmark Platts Australian Hard Coking coal have been stable
at above US$300 per tonne over the past few months, somewhat above the
industry consensus of around US$230 per tonne longer term, but well below the
peaks of the mid US$400s per tonne seen in 2022.

 

The Company will own 24.3% of the equity of Futura assuming full conversion of
the convertible loan together with a 1.5% Gross Revenue Royalty over all coal
production from the Wilton and Fairhill licenses.

 

 

 

Further details of the Company and its investments are available on the
Company's website www.bakersteelresourcestrust.com (about%3Ablank)

 

Enquiries:

Baker Steel Resources Trust Limited             +44 20 7389 8237

Francis Johnstone

Trevor Steel

 

Deutsche Numis
 
            +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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