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

Baker Steel Resources TrustAnnouncement

09/10/2024 07:00

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RNS Number : 4079H  Baker Steel Resources Trust Ltd  09 October 2024

BAKER STEEL RESOURCES TRUST LIMITED

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

 

9 October 2024

30 September 2024 Unaudited NAV Statement

Net Asset Value

Baker Steel Resources Trust Limited (the "Company") announces its unaudited
net asset value per share at 30 September 2024.

Net asset value per Ordinary Share: 79.6 pence.

The NAV per share at 30 September 2024 was unchanged from the NAV at 30 August
2024 with the increase in the listed prices of Caledonia Mining balanced by
the strength of Sterling against the US Dollar.

 

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 September 2024.

 

Investment Update

 

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

 

                                     30 September 2024  31 December 2023
 Futura Resources Ltd                34.0%              36.3%
 Cemos Group plc                     30.8%              29.3%
 Bilboes Royalty                     7.6%               7.2%
 Caledonia Mining Corporation Plc    5.7%               5.4%
 Nussir ASA                          4.3%               4.1%
 Metals Exploration Plc              3.9%               3.0%
 First Tin PLC                       3.7%               2.1%
 Silver X Mining Corporation         2.8%               3.5%
 Tungsten West Plc                   2.7%               1.7%
 Kanga Investments Ltd               1.5%               3.6%
 Other Investments                   2.6%               3.4%
 Net Cash, Equivalents and Accruals  0.4%               0.4%

 

 

 

 

Cemos Group PLC ("Cemos")

 

At the beginning of October 2024, the Investment Manager and certain members
of the Company's Board of Directors joined a group of investors to tour
Cemos's cement production facilities at Tarfaya in Southern Morocco and to
meet with Cemos's local financial advisor. Generally, the group was impressed
by the quality of the operation and local Moroccan management and reassured by
the positive outlook for Cemos.

 

Cemos's current grinding facilities have performed according to budget during
2024 and are on target to produce approximately 200,000 tonnes of cement
during the year, generating an EBITDA of around €8 million. Apart from the
existing facilities which have now been in production for 5 years, the
on-going construction by Cemos of a Compact Calcine Unit (CCU) at Tarfaya was
also observed. The CCU is due to be completed by the end of the year and will
enable Cemos to produce its own clinker, which represents up to 70% of the
final cement product so by producing its own clinker, Cemos will ensure
security of supply and considerably reduce the overall production cost from
2025 onwards.

 

The CCU will also provide for the production of other supplementary
cementatious materials such as calcinated clay and industrial pozzolans, which
when used in the feed mix can considerably reduce the CO2 emissions associated
with making cement, thereby making a greener cement product. Additionally, the
Moroccan electricity grid which powers Cemos is substantially based on
renewables, principally wind and solar, unlike the power sources for cement
producers in other countries.

 

In addition the investor group visited the site of Cemos's next planned
expansion in the

Drâa-Tafilalet region of Morocco and was impressed by the amount of
construction activity and growth potential in the region. A second compact
grinding plant has already been acquired and is due to be installed during
2025. The management of Cemos is also evaluating additional opportunities for
further growth.

Cemos's financial advisor gave an overview of the cement industry in Morocco
as well as an indicative valuation of the local Cemos company (Cemos Morocco)
were it to list on the Casablanca Stock Exchange. The cement industry in
Morocco is well positioned given the high rate of construction and development
going on today and with the additional impetus that will accompany
preparations for the hosting of the 2030 World Cup. The local subsidiaries of
Lafarge Holcim and Heidelberg are listed locally and enjoy considerably higher
valuation metrics than seen elsewhere reflecting prospects for the sector
combined with strong appetite from local institutional investors. The advisor
stated that the Market would be receptive to a stock such as Cemos Morocco and
believed it would command a good rating. The Investment Manager and the Board
are still to receive the detailed valuation report, albeit the summary was
supportive of the current carrying value, with the potential for a material
uplift. The Investment Manager and the Board intend to review the carrying
value of Cemos at the year-end.

 

 

Further details of the Company and its investments are available on the Baker
Steel website www.bakersteelcap.com (http://www.bakersteelcap.com)

 

 

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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