viewBaker Steel Resources Trust Ltd

Baker Steel Res Tst - Net Asset Value(s)

RNS Number : 1835S
Baker Steel Resources Trust Ltd
07 July 2020




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


7 July 2020

30 June 2020 Unaudited NAV Statement

Net Asset Value ("NAV")

Baker Steel Resources Trust Limited (the "Company") announces its unaudited net asset value per share at 30 June 2020:

Net asset value per Ordinary Share:   77.2 pence

The NAV per share increased by 10.3% against the NAV per share at 29 May 2020, following the mid year review of unlisted positions discussed below.


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 2020.


Portfolio Update


The Company's top 12 investments at 30 June 2020 were as follows as a percentage of NAV:

Bilboes Gold Limited


Futura Resources Ltd


Polar Acquisition Ltd


Cemos Group plc


Tungsten West Limited


Azarga Metals Corp


Anglo Saxony Mining Limited


Mines & Metals Trading Peru PLC


Nussir ASA


Black Pearl Limited Partnership


Sarmin Minerals Exploration


PRISM Diversified


Listed Liquid Precious Metal Shares


Other Investments


Net Cash, Equivalents and Accruals





Investment Update


Half Year Review of Unlisted Investments


The Company has carried out its normal 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. A preliminary valuation had also been undertaken in March 2020 in the light of the market volatility experienced due to the COVID-19 pandemic.


The Investment Manager maintains an index of comparable listed companies for each unlisted investment, for comparisons sake and as a benchmark against which the valuation of a particular unlisted stock might have moved during the period had it been listed. In accordance with this assessment the carrying value of Bilboes Gold Limited which completed a definitive feasibility study on its Isabella/McCays/Bubi gold mine in Zimbabwe, in January 2020, has been increased by 31% in line with the rise in listed African gold mining shares following the increased gold price. CEMOS Group plc carrying value has increased by 12% (partially reversing a decrease in March 2020) and Mines & Metals Trading (Peru) Ltd which has been reduced by 14% following disruption to its operations due to the lockdown in Peru as a result of COVID-19.


In addition, the carrying value of Polar Acquisition Limited has been increased by 27.1%, which represents almost a complete recovery to of its valuation at the beginning  of the year, This reflects the rise  in the silver price during the period which resulted in   a revaluation of its net smelter royalty over the Prognoz silver project in Russia owned by Polymetal International.  

Tungsten West Limited ("TWL")

During June 2020, TWL completed a technical and economic update on its Hemerdon tungsten mine in Devon, UK.

Prior to the acquisition of Hemerdon in November 2019, TWL undertook a rigorous due diligence process of technical work which included an updated JORC (2012) Mineral Resource Estimate (MRE) and a series of metallurgical test work programmes which demonstrated the significant potential of X-Ray transmission ore-sorting and magnetic separation to form a key driver of a future flowsheet. Post-acquisition, TWL commenced a second phase of work programmes that has enhanced TWL's technical knowledge of the mine and has allowed an improved assessment of the project's value. While work continues on completion of a comprehensive feasibility study, TWL considered the step-change in knowledge of the project to warrant an update on progress.

The technical update has supported a financial model for a mine producing a post-tax NPV (5%) of £306m, based on capital costs to restart the mine of £35m and a project IRR of 111%. The project has a mine life of 23 years with the potential for this to be extended, which produces an estimated EBITDA of £35 million per annum with a project breakeven of US$135/metric tonne unit APT (ammonium paratungstate) which would position it in the lowest cost quartile of tungsten mines globally.

Although this review is only preliminary and requires confirmation from the definitive feasibility study planned for the first quarter of 2021, the findings are highly encouraging.  On a fully diluted basis, the Company owns approximately 28.6% of TWL. The carrying value of TWL has not been adjusted at this stage pending a potential fundraising.



Further details of the Company and its investments are available on the Company's website www.bakersteelresourcestrust.com 



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 [email protected] or visit www.rns.com.

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