BAKER STEEL RESOURCES TRUST
LIMITED
(Incorporated in Guernsey with
registered number 51576 under the provisions of The Companies
(Guernsey) Law, 2008 as amended)
9 July
2024
30 June 2024 Unaudited NAV
Statement
Net Asset Value
Baker Steel Resources Trust Limited
(the "Company") announces its unaudited net asset value per share
at 30 June 2024.
Net asset value per Ordinary Share:
81.0 pence.
The NAV per share at 30 June 2024
increased by 1.8% versus the unaudited NAV at 31 May 2024 largely
due to increases in the carrying values of Cemos Group plc and the
Bilboes royalty as a result of the half year review of unlisted
holdings summarised below. These increases outweighed falls in the
listed prices of Caledonia Mining and Silver X and a reduction in
the carrying value of Kanga Investments.
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 2024.
Investment
Update
The Company's top 10 investments
were as follows as a percentage of NAV:
|
|
30 June
2024
|
31 December
2023
|
|
Futura Resources Ltd
|
34.2%
|
36.3%
|
|
Cemos Group plc
|
30.6%
|
29.3%
|
|
Bilboes Royalty
|
7.9%
|
7.2%
|
|
Tungsten West Plc
|
4.4%
|
1.7%
|
|
Caledonia Mining Corporation
Plc
|
4.1%
|
5.4%
|
|
Nussir ASA
|
3.8%
|
4.1%
|
|
Metals Exploration Plc
|
3.5%
|
3.0%
|
|
Silver X Mining
Corporation
|
3.4%
|
3.5%
|
|
First Tin PLC
|
2.1%
|
2.1%
|
|
Kanga Investments Ltd
|
1.5%
|
3.6%
|
|
Other Investments
|
2.7%
|
3.4%
|
|
Net Cash, Equivalents and
Accruals
|
1.8%
|
0.4%
|
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, Bilboes Holdings and Polar
Acquisition Limited to take account of the latest estimated
production profiles of the underlying projects and consensus
commodity prices. The net present values produced by these royalty
models are then discounted for development risk to arrive at a
valuation.
Cemos Group
plc ("Cemos")
The shares in Cemos are valued on the basis of
a multiple of EBITDA when compared to listed Moroccan cement
producers, suitably discounted. Sales in 2023 were down largely due
to decreased economic activity in the area that Cemos operates.
2024 has seen a recovery in sales and together with Cemos being
well underway in constructing its own compact
calcination unit (CCU), has resulted in an 11% increase in the
carrying value of Cemos.
The CCU will enable Cemos to produce its own
clinker and supplementary cementitious materials, the principal raw
materials in cement production. This will not only provide security
of supply of clinker but should materially reduce costs as well as
lowering the carbon footprint associated with cement production.
Commissioning of the calcination plant is expected to take place in
the fourth quarter of 2024 with the full benefit realised from 2025
onwards.
Futura
Resources Ltd ("Futura")
Futura commenced production from its Wilton
mine in March 2024. Results on steel making coal quality and
recoveries have been encouraging but more data is required before
reducing the development risk discounts applied to the models can
be considered. Accordingly, the valuations of both the equity and
royalty for Futura have been left unchanged.
Subsequent to the period end, Futura has agreed
an A$35 million offtake finance arrangement with an international
trading company. This will enable Futura to start the development
of its second mine, Fairhill, which is expected to be in production
in the fourth quarter of 2024. As this agreement was signed after
the end of June 2024, it was not taken into account in the mid-year
valuation which will be reviewed once more at the year-end in
anticipation of both mines reaching full production in
2025.
Other
The model for the Bilboes net smelter gold
royalty has been updated to reflect the revised gold production
profile announced by Caledonia Mining at the beginning of June 2024
as well as the increase in the gold price during the year. This
resulted in a 16% increase in the carrying value of the Bilboes
royalty. Kanga Investments has continued to have good interest in
attracting potential partners to acquire or finance the Kanga
potash project but has struggled to attract short term financing to
fund working capital and as a result the carrying value has been
reduced by 46% until such time as a definitive transaction is
achieved.
Further details of the Company and
its investments are available on the Baker Steel website
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.
