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

Baker Steel Resources TrustAnnouncement

09/12/2024 07:00

For best results when printing this announcement, please click on link below:
https://newsfile.refinitiv.com/getnewsfile/v1/story?guid=urn:newsml:reuters.com:20241209:nRSI2341Pa&default-theme=true

RNS Number : 2341P  Baker Steel Resources Trust Ltd  09 December 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 December 2024

30 November 2024 Unaudited NAV Statement

Net Asset Value

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

Net asset value per Ordinary Share: 81.6 pence.

The NAV per share at 30 November 2024 increased by 1.0% from the last
published NAV at 31 October 2024 largely due to an increase in the carrying
value of Nussir ASA outweighing falls in the share prices of listed precious
metals stocks Caledonia Mining, Metals Exploration and Silver X.

 

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 November 2024.

 

Investment Update

 

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

 

                                     30 November 2024  31 December 2023
 Futura Resources Ltd                32.8%             36.3%
 Cemos Group plc                     30.4%             29.3%
 Bilboes Royalty                     7.8%              7.2%
 Nussir ASA                          7.8%              4.1%
 Caledonia Mining Corporation Plc    4.4%              5.4%
 Metals Exploration Plc              4.1%              3.0%
 First Tin PLC                       2.9%              2.1%
 Silver X Mining Corporation         2.8%              3.5%
 Tungsten West Plc                   2.6%              1.7%
 Kanga Investments Ltd               1.5%              3.6%
 Other Investments                   2.5%              3.4%
 Net Cash, Equivalents and Accruals  0.4%              0.4%

 

 

 

 

Nussir ASA ("Nussir")

As announced on 29 November 2024 the Company and the other 3 main shareholders
of Nussir together representing 70.8% of Nussir's issued share capital, have
agreed to sell their shares in Nussir to Blue Moon Metals Inc ("Blue Moon"), a
company listed on the TSX-V stock exchange. The transaction values Nussir at
US$55.3 million and assuming the conditions of the transaction are achieved in
particular the raising of at least C$30 million of new equity capital,
completion is expected around the end of February 2025.

This deal strengthens the immediate prospects for our investment in Nussir by
combining it with two other prospective projects, along with financing it
needs, experienced mine and project builders, and a TSX-V listing. It is a
major milestone towards bringing the Nussir project into production. Depending
on the final amount to be raised by Blue Moon, the Company is expected to own
between 10 and 12% of the enlarged Blue Moon share capital on completion.

The Company currently holds 21.6% of the issued share capital of Nussir which,
on the basis of the 31 October 2024 net asset value ("NAV"), represented
approximately 4.1% of NAV with a carrying value of £3.6 million. In light of
the proposed transaction, the Company has reviewed its carrying value of
Nussir noting that its shares in Blue Moon will be subject to lock-up
arrangements following completion. Accordingly, the Company has increased its
carrying value to £6.8 million which represents a 30% discount to the
ascribed value of the transaction which results in a 91% increase on the
valuation as at 31 October 2024.

 

Metals Exploration Plc ("Metals Ex")

 

On 4 December 2024 Metals Ex announced a recommended offer for Condor Gold plc
for an initial consideration of £67.5 million (70% shares, 30% cash) plus a
contingent consideration of US$18.00 per ounce for additional contained gold
resources discovered in excess of Condor's base case Mineral Resource
Estimate at the Condor Group's La India, Rio Luna and Estrella
projects (the "Gold Projects"). The maximum additional consideration would
amount to US$28.8 million (£22.6 million). Accordingly, the maximum total
consideration would amount to approximately £90.1 million.

 

Condor's main project is the La India gold project in Nicaragua which has an
estimated 9.7mt of ore at 3.5g/t Au Indicated Mineral Resource and 8.6mt at
4.3g/t Au Inferred Mineral Resource for an overall resource of 2.3moz. In
2022, Condor published the results of a feasibility study into an open pit
gold mine producing 81,000 ounces per annum over a 6 year life. At a gold
price of US$2,400 per ounce the economic model determined an NPV5% of US$320
million with an IRR of 60.8%. Initial capex was indicated at US$105 million.
Condor's other two projects, Rio Luna and Estrella are still at the early
exploration stage.

 

The acquisition of Condor will provide Metals Ex with a project ready for
development in La India to replace the cashflow from Metals Ex's Runruno gold
mine in the Philippines as it approaches the end of its life of mine in the
next two years.

 

 

 

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

 

 

Enquiries:

Baker Steel Resources Trust Limited             +44 20 7389 8237

Francis Johnstone

Trevor Steel

 

Shore Capital
                       +44 020 7408 4050

Henry Willcocks (Corporate Broking)

Gillian Martin, Daphne Zhang (Corporate)

Adam Gill (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  NAVUPGCUPUPCGQR