Proactiveinvestors United Kingdom Baker Steel Resources Trust https://www.proactiveinvestors.co.uk Proactiveinvestors United Kingdom Baker Steel Resources Trust RSS feed en Wed, 22 May 2019 21:52:04 +0100 http://blogs.law.harvard.edu/tech/rss Genera CMS action@proactiveinvestors.com (Proactiveinvestors) action@proactiveinvestors.com (Proactiveinvestors) <![CDATA[News - Baker Steel Resources Trust to buy back shares through tender offer ]]> https://www.proactiveinvestors.co.uk/companies/news/219958/baker-steel-resources-trust-to-buy-back-shares-through-tender-offer-219958.html Baker Steel Resources Trust PLC (LON:BSRT) has a launched a tender offer to buy back around 8% of its share capital.

The offer is at fixed price of 51p for 9,677,498 shares or roughly one in 12 of the amount currently in issue.

WATCH: Baker Steel Resources Trust - Mining Capital May 2019

The tender price is a premium of 10.9% to the market price and a discount of 10.2% discount to the unaudited NAV on 30 April.

Shareholders need to approve a special resolution at the AGM for the tender offer to proceed.

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Thu, 09 May 2019 08:53:00 +0100 https://www.proactiveinvestors.co.uk/companies/news/219958/baker-steel-resources-trust-to-buy-back-shares-through-tender-offer-219958.html
<![CDATA[Media files - Baker Steel Resources Trust - Mining Capital May 2019 ]]> https://www.proactiveinvestors.co.uk/companies/stocktube/13278/baker-steel-resources-trust---mining-capital-may-2019-13278.html Thu, 09 May 2019 07:55:00 +0100 https://www.proactiveinvestors.co.uk/companies/stocktube/13278/baker-steel-resources-trust---mining-capital-may-2019-13278.html <![CDATA[RNS press release - Tender Offer ]]> https://www.proactiveinvestors.co.uk/companies/rns/3685/LSE20190509070006_14067366/ Thu, 09 May 2019 07:00:06 +0100 https://www.proactiveinvestors.co.uk/companies/rns/3685/LSE20190509070006_14067366/ <![CDATA[RNS press release - Net Asset Value(s) ]]> https://www.proactiveinvestors.co.uk/companies/rns/3685/LSE20190507070009_14063558/ Tue, 07 May 2019 07:00:09 +0100 https://www.proactiveinvestors.co.uk/companies/rns/3685/LSE20190507070009_14063558/ <![CDATA[News - Baker Steel completes on US$3mln investment into Azarga Metals ]]> https://www.proactiveinvestors.co.uk/companies/news/218560/baker-steel-completes-on-us3mln-investment-into-azarga-metals-218560.html Baker Steel Resources Trust Ltd (LON:BSRT) has completed on its agreement to invest into Azarga Metals Corp (CVE:AZR)

The deal was previously announced on 14 February.

Baker Steel will invest US$3mln into Canadian-listed Azarga Metals via an 8% secured convertible loan due 31 December 2022.

WATCH: Baker Steel Resources details 2019 investments and ambitions

The loan is convertible at C$0.14.

The first tranche of US$1mln of the US$3mln convertible Loan has been drawn, with the second tranche of US$2mln to be drawn no later than six months from now

 Azarga Metals will use the convertible Loan proceeds to undertake a second-phase drilling and exploration programme at the Unkur copper-silver project in Russia.

An existing preliminary economic assessment on Unkur gives the project a post-tax net present value at an 8% discount rate of US$147.5mln.

In addition to the loan, Baker Steel has been issued with 13.49mln warrants with an exercise price of C$0.17 per share. 

 It also gets an option to acquire a 2% net smelter revenue royalty on the Unkur Project from Azarga Metals for US$5mln.

Unkur currently has an NI 43-101 compliant resource of 724mln pounds of copper and 76.8mln ounces of silver, equating to a total silver equivalent resource of 182mln ounces.

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Mon, 15 Apr 2019 08:04:00 +0100 https://www.proactiveinvestors.co.uk/companies/news/218560/baker-steel-completes-on-us3mln-investment-into-azarga-metals-218560.html
<![CDATA[RNS press release - Completion of investment into Azarga Metals Corp ]]> https://www.proactiveinvestors.co.uk/companies/rns/3685/LSE20190415070004_14040258/ Mon, 15 Apr 2019 07:00:04 +0100 https://www.proactiveinvestors.co.uk/companies/rns/3685/LSE20190415070004_14040258/ <![CDATA[RNS press release - Annual Financial Report ]]> https://www.proactiveinvestors.co.uk/companies/rns/3685/LSE20190410070002_14035101/ Wed, 10 Apr 2019 07:00:02 +0100 https://www.proactiveinvestors.co.uk/companies/rns/3685/LSE20190410070002_14035101/ <![CDATA[RNS press release - Net Asset Value(s) ]]> https://www.proactiveinvestors.co.uk/companies/rns/3685/LSE20190404070011_14028189/ Thu, 04 Apr 2019 07:00:11 +0100 https://www.proactiveinvestors.co.uk/companies/rns/3685/LSE20190404070011_14028189/ <![CDATA[Media files - Baker Steel Resources details 2019 investments and ambitions ]]> https://www.proactiveinvestors.co.uk/companies/stocktube/12770/baker-steel-resources-details-2019-investments-and-ambitions-12770.html Thu, 28 Mar 2019 14:49:00 +0000 https://www.proactiveinvestors.co.uk/companies/stocktube/12770/baker-steel-resources-details-2019-investments-and-ambitions-12770.html <![CDATA[RNS press release - Net Asset Value(s) ]]> https://www.proactiveinvestors.co.uk/companies/rns/3685/LSE20190306070007_13991489/ Wed, 06 Mar 2019 07:00:07 +0000 https://www.proactiveinvestors.co.uk/companies/rns/3685/LSE20190306070007_13991489/ <![CDATA[Media files - Bellwether copper mirrors concerns over the global economy ]]> https://www.proactiveinvestors.co.uk/companies/stocktube/12250/bellwether-copper-mirrors-concerns-over-the-global-economy-12250.html Fri, 15 Feb 2019 10:52:00 +0000 https://www.proactiveinvestors.co.uk/companies/stocktube/12250/bellwether-copper-mirrors-concerns-over-the-global-economy-12250.html <![CDATA[News - Baker Steel Resources Trust agrees to invest in Azarga Metals ]]> https://www.proactiveinvestors.co.uk/companies/news/214704/baker-steel-resources-trust-agrees-to-invest-in-azarga-metals-214704.html Baker Steel Resources Trust Ltd (LON:BRST), in a statement after Thursday’s close, revealed an agreement to invest US$3mln into Azarga Metals Corp, a company listed on the Toronto Ventures Exchange.

It is investing via a 4-year term 8% secured convertible loan.

Azarga intends to use the injection of funds to support a second-phase drilling and exploration programme, aimed at increasing resources at its wholly owned Unkur copper-silver project, in Russia.

WATCH:  Baker Steel's new coal royalty should provide 'long-term and significant cash flow'

BSRT will also receive share warrants and it will secure an option to acquire a net smelter royalty (of up to 2%) for US$5mln.

The company highlighted that the investment valued Azarga at US$9mln on a pre-money basis.

It also noted that a preliminary economic assessment last year valued the project at US$206mln, based on an 8-year open pit mining operation producing 13,200 tonnes of copper and 3.7mln ounces of silver per year.

“A significant increase in the resource is anticipated to lead to further improvement on the initial positive PEA results,” BSRT said in the statement.

“The project benefits from good existing infrastructure such as grid power, road access and nearby rail and is located around 20km from Udokan, one of the world's largest copper development projects.”

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Fri, 15 Feb 2019 08:24:00 +0000 https://www.proactiveinvestors.co.uk/companies/news/214704/baker-steel-resources-trust-agrees-to-invest-in-azarga-metals-214704.html
<![CDATA[RNS press release - Agreement to Invest US$3M into Azarga Metals Corp ]]> https://www.proactiveinvestors.co.uk/companies/rns/3685/LSE20190214172614_13970163/ Thu, 14 Feb 2019 17:26:14 +0000 https://www.proactiveinvestors.co.uk/companies/rns/3685/LSE20190214172614_13970163/ <![CDATA[RNS press release - Net Asset Value(s) ]]> https://www.proactiveinvestors.co.uk/companies/rns/3685/LSE20190205070009_13957912/ Tue, 05 Feb 2019 07:00:09 +0000 https://www.proactiveinvestors.co.uk/companies/rns/3685/LSE20190205070009_13957912/ <![CDATA[Media files - Baker Steel's new coal royalty should provide 'long-term and significant cash flow' ]]> https://www.proactiveinvestors.co.uk/companies/stocktube/12069/baker-steel-s-new-coal-royalty-should-provide--long-term-and-significant-cash-flow--12069.html Fri, 01 Feb 2019 11:22:00 +0000 https://www.proactiveinvestors.co.uk/companies/stocktube/12069/baker-steel-s-new-coal-royalty-should-provide--long-term-and-significant-cash-flow--12069.html <![CDATA[News - Polymetal’s strong operating and share price performance should bode well for Baker Steel ]]> https://www.proactiveinvestors.co.uk/companies/news/213801/polymetals-strong-operating-and-share-price-performance-should-bode-well-for-baker-steel-213801.html Shares in Russian gold miner Polymetal International PLC (LON:POLY) have performed very strongly over the past six months, rising from a low of 597p in September to the current 871p.

That’s a chunky 45% rise for a company that’s now capitalised in London at over £4bn.

So Polymetal’s share price weakness of 2018 is now a thing of the past, although there is still ground to be made up on 2017 and 2016 when the shares often traded above the 1,000p mark.

Still, the ongoing recovery is a positive sign. And there two reasons for the recent uptick.

Improvements

First, sentiment towards gold has been steadily improving as the US Federal Reserve has grown more cautious about its interest rate outlook in the face of ongoing uncertainties in the global economy.

Second, Polymetal’s own operating performance is also improving.

Full year gold equivalent production for the year to 31 December 2018 rang in at a healthy 1.5mln ounces, ahead of guidance, helped by a 22% increase in gold equivalent production in the final quarter, as against the corresponding period a year ago.

What’s more, net debt fell, although not by as much as some analysts had expected, to US$1.52bn.

At this stage, Polymetal hasn’t released hard data on costs, saying instead that it expects all-in sustaining costs to come in US$875 and US$925 per gold equivalent ounce.

Cost outlook

What’s more, costs next year are likely to fall to between US$800 and US$850 per ounce, with production currently forecast to hit 1.55mln ounces of gold equivalent.

All of which bodes well for Baker Steel Resources Trust LTD (LON:BSRT), the listed investment vehicle run by mining industry professionals Trevor Steel, David Baker, and Francis Johnstone. Fully 28% of the Baker Steel portfolio is accounted for by Polymetal shares, according to a filing of 11 January 2019.

With that in mind, it’s not surprising to see Baker Steel’s shares tracking up in line with Polymetal’s over the past few months, even though the net asset value of Baker Steel itself suffered a recent correction following a steep decline in the value of another holding, Metals Exploration.

In addition, around 9% of the portfolio by value is accounted for by a stake in Polar Acquisition LTD, a vehicle which holds a variable rate royalty over future production from another Polymetal mine, Prognoz.

So, for those whose taste in Russian risk is also tempered by caution, Baker Steel looks like a useful way to gain exposure to the upside that Polymetal is now delivering, whilst also allowing for some hedge on any downside through exposure to gold and other assets elsewhere in the world.

Foremost amongst the jurisdictions represented in the portfolio are Australia, Morocco, Norway, Zimbabwe, Indonesia, Republic of Congo, Canada, Philippines, and the DRC.

And the most recent acquisition, that of a royalty on two Australia coal mines, looks decidedly useful. For a total investment of A$8mln, Baker Steel looks set to reap annual pre-tax cash flow of around A$3.5mln from the royalty for upwards of 25 years.

It’s a deal that will pay for itself many times over and is a testament to the ability of the Baker Steel team to unearth value in what remains a very tough market.

So, the non-Russian assets provide extra upside to a portfolio that’s solidly anchored around a stake in one of the world’s major producing precious metals miners.

And if the Polymetal upside does begin to taper off, a big boost from one of these other development projects could still put wind in Baker Steel’s sails. In the medium-term, there’ll be useful cash flow from the Australian coal projects.

For the meantime though, watch as Polymetal’s ongoing strong performance continues to feed through into the Baker Steel share price.

 

 

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Fri, 01 Feb 2019 10:13:00 +0000 https://www.proactiveinvestors.co.uk/companies/news/213801/polymetals-strong-operating-and-share-price-performance-should-bode-well-for-baker-steel-213801.html
<![CDATA[News - Baker Steel acquires Australian coal royalty, likely to be highly cash generative ]]> https://www.proactiveinvestors.co.uk/companies/news/213791/baker-steel-acquires-australian-coal-royalty-likely-to-be-highly-cash-generative-213791.html Baker Steel Resources Trust LTD (LON:BSRT) has acquired a 0.75% gross revenue royalty on future coal production from the Wilton and Fairhill projects in Queensland, Australia.

The consideration is A$6mln. For an additional A$2mln, Baker Steel can also acquire an additional 0.25% once production reaches 2mln tonnes.

READ: Baker Steel Resources looks to new investment

The properties subject to the royalties contain 2.6bn tonnes of coal, of which 738mln tonnes are less than 100 metres below the surface. Production from Wilton is expected to commence mid-2019, with first royalty payments to be made on a quarterly basis thereafter, by the owner Futura Resources.

Baker Steel invested A$10mln in Futura via a convertible loan note back in December 2017 and has kept a close eye on developments ever since. Discussions are now well advanced with lenders to provide finance to bring the properties into production.

Production from Fairhill is scheduled to commence in 2020. Aggregate coal production will then ramp-up to 2.5mln tonnes of coal per annum by 2021 or 2022 and run at that rate for at least 25 years.

Assuming the option is exercised and using consensus forecasts, the royalties are anticipated to generate around A$3.5mln per year before tax.

The coal royalty is the second significant royalty asset to be acquired by Baker Steel after the net smelter royalty on the Prognoz silver asset held through Polar Acquisition Limited.

Pro-forma 31 December 2018, the initial Futura Royalty holding would represent 4.9% of Baker Steel’s net asset value.

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Fri, 01 Feb 2019 08:08:00 +0000 https://www.proactiveinvestors.co.uk/companies/news/213791/baker-steel-acquires-australian-coal-royalty-likely-to-be-highly-cash-generative-213791.html
<![CDATA[RNS press release - Acquisition of Gross Revenue Royalty ]]> https://www.proactiveinvestors.co.uk/companies/rns/3685/LSE20190201070001_13954441/ Fri, 01 Feb 2019 07:00:01 +0000 https://www.proactiveinvestors.co.uk/companies/rns/3685/LSE20190201070001_13954441/ <![CDATA[RNS press release - Net Asset Value(s) ]]> https://www.proactiveinvestors.co.uk/companies/rns/3685/LSE20190111070004_13931239/ Fri, 11 Jan 2019 07:00:04 +0000 https://www.proactiveinvestors.co.uk/companies/rns/3685/LSE20190111070004_13931239/ <![CDATA[News - Baker Steel Resources eyeing valuation uplifts in four significant investments ]]> https://www.proactiveinvestors.co.uk/companies/news/199607/baker-steel-resources-eyeing-valuation-uplifts-in-four-significant-investments-199607.html Flushed with the success of its investment in the Prognoz silver mine, Baker Steel Resources Trust Limited (LON:BSRT) is hoping to repeat the trick.

The mineral resources-focused trust’s largest investment, Polar Acquisition Limited (PAL), agreed in February to sell Polar Silver Resources, which owns 50% of the Prognoz silver mine in Russia, for US$72mln worth of Polymetal International PLC (LON:POLY) shares.

READ Baker Steel Resources Trust boosts NAV with US$72 mln sale of Prognoz silver mine

“We made three times our money on Prognoz over a period when the silver price halved,” Trevor Steel, the chief investment officer and co-founder of Baker Steel, told Proactive Investors.

“10% is retained in terms of a revenue royalty on Prognoz so … that sets us up in terms of having more liquidity in the portfolio to pursue new ideas if we wish,” he added.

Having said that, he thinks Polymetal shares, which now form 30% of the trust’s portfolio, are attractively priced right now.

“They offer a good yield of 5% or 6%; they’ve got organic growth plus they’ve got good exposure into the hopefully higher silver and gold prices,” Steel said.

Chief investment officer highlights four investments that have revaluation potential

Lest any shareholders think the trust is ready to rest on its laurels, Steel’s message is that it has four stocks that it thinks could provide significant uplifts to the trust’s net asset value (NAV) in the near term. .

“Futura, if you like, is the next cab off the rank,” Steel said.

Futura has two advanced coking coal developments in the Bowen Basin in Australia.

Capital costs to bring the projects into production are likely to be low, as excellent local infrastructure plays a part. Futura is targeting first positive cash flows shortly.

Another investment that could see a valuation catalyst before the year is out is Sarmin, a world-class potash discovery in what Steel termed as “the good Congo”, i.e. the Republic of Congo.

“They’re both quite substantial investments in the portfolio. Futura is 10% of NAV and Sarmin is seven or eight per cent of NAV,” Steel revealed.

But as 2019 gets underway, attention is likely switch to Bilboes, a Zimbabwean gold mine, and Cemos, a private company that is about to start producing cement from its Moroccan operations.

Bilboes is due to complete a feasibility study in the first quarter of next year, at which point Steel thinks there could be a re-rating of the investment, either through a trade transaction of the pursuit of a market listing.

Steel observed that the trust is carrying that investment on its books at US$10 per ounce whereas comparative projects in Africa are valued at US$100 an ounce or so.

“Of course, this is in Zimbabwe, where you may have said US$10 was the right price,” Steel quipped, “but with the positive changes there we feel very optimistic that there’s plenty of scope for a re-rating.”

Bilboes currently represents 13% of Baker Steel’s portfolio.

As for Cemos, that is currently being carried at book cost but Steel thinks that valuation will need to be revised next year.

“We anticipate the company will make US$10 million a year of Ebitda for next year and we’re carrying that at a valuation of around US$20mln so we think there’s meaningful upside potentially there,” Steel revealed.

The shares have been whittling away an absurdly large discount to NAV

As Cosmo Sturge, the company’s director of marketing, outlined for Proactive Investors, the company’s shares have been on a roll over the last year, rising from around 34p to 44.5p.

The share price has still got some way to go before it catches up with the NAV – and that’s before the NAV uplifts Trevor Steel is expecting – but the discount to NAV has come down to about 18% compared to around 30% a year ago.

Sturge thinks now is a very interesting time to be looking at the mining sector.

“If you look at where we are in the natural resources cycle, most fundamentally, the return of inflation has been a very influential point for the resources sector and, of course, current robust levels of economic growth are positive for us,” Sturge said.

Of course the US tariffs – “Trump’s tariffs”, Sturge calls them – are potentially highly inflationary.

“There’s a varied impact at the moment but given the escalation which we’ve seen in recent weeks we think higher prices are very much the likely outcome there,” Sturge said.

“We believe the longer-term outlook is very much supported by strong growth from China’s ambitious infrastructure plans,” Sturge added.

Tit-for-tat tariffs may have a short-term effect but it is important to take a longer-term view

Steel concedes that there is a risk that the trade war could escalate but emphasised – as just about all investment officers do – that the company takes a longer-term view on commodity prices.

For instance, the company has some exposure to copper through its investment in Nussir, which is moving forward with a definitive feasibility study on its Nussir/Ulveryggen copper project in Norway, and sentiment towards the metal might take a short-term hit from the wrangling between the US and China.

“In the case of copper, we feel that the medium to longer-term fundamentals are really excellent with the demand and prospects from electric vehicles. I think that’s actually the more important driver than potentially the tariffs,” Steel opined.

About half of the company’s current portfolio is currently in precious metals but this is largely a by-product of the company’s successful investment in the Prognoz asset.

Steel clearly likes the battery metals but it steers clear of what Steel calls “the more esoteric metals” that are not traded on an exchange; geographically, it also steers clear of projected in “risky countries like the Democratic Republic of Congo”, so do not expect to see the trust taking a punt on cobalt any time soon.


 

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Sat, 29 Dec 2018 15:24:00 +0000 https://www.proactiveinvestors.co.uk/companies/news/199607/baker-steel-resources-eyeing-valuation-uplifts-in-four-significant-investments-199607.html
<![CDATA[RNS press release - Net Asset Value(s) ]]> https://www.proactiveinvestors.co.uk/companies/rns/3685/LSE20181207130304_13896184/ Fri, 07 Dec 2018 13:03:04 +0000 https://www.proactiveinvestors.co.uk/companies/rns/3685/LSE20181207130304_13896184/ <![CDATA[RNS press release - Net Asset Value(s) ]]> https://www.proactiveinvestors.co.uk/companies/rns/3685/LSE20181106070011_13855940/ Tue, 06 Nov 2018 07:00:11 +0000 https://www.proactiveinvestors.co.uk/companies/rns/3685/LSE20181106070011_13855940/ <![CDATA[RNS press release - Director Declaration ]]> https://www.proactiveinvestors.co.uk/companies/rns/3685/LSE20181019082641_13835334/ Fri, 19 Oct 2018 08:26:41 +0100 https://www.proactiveinvestors.co.uk/companies/rns/3685/LSE20181019082641_13835334/ <![CDATA[RNS press release - Net Asset Value(s) ]]> https://www.proactiveinvestors.co.uk/companies/rns/3685/LSE20181005070004_13817500/ Fri, 05 Oct 2018 07:00:04 +0100 https://www.proactiveinvestors.co.uk/companies/rns/3685/LSE20181005070004_13817500/ <![CDATA[RNS press release - Net Asset Value(s) ]]> https://www.proactiveinvestors.co.uk/companies/rns/3685/LSE20180910070007_13783855/ Mon, 10 Sep 2018 07:00:07 +0100 https://www.proactiveinvestors.co.uk/companies/rns/3685/LSE20180910070007_13783855/ <![CDATA[RNS press release - Holding(s) in Company ]]> https://www.proactiveinvestors.co.uk/companies/rns/3685/LSE20180904072431_13777831/ Tue, 04 Sep 2018 07:24:31 +0100 https://www.proactiveinvestors.co.uk/companies/rns/3685/LSE20180904072431_13777831/ <![CDATA[News - Baker Steel Resources looks to new investment ]]> https://www.proactiveinvestors.co.uk/companies/news/203138/baker-steel-resources-looks-to-new-investment-203138.html Investment group Baker Steel Resources Trust Ltd (LON:BSRT), which earlier this year became fully invested, is waiting to cash out of Polymetal and put money into alternative opportunities.

Lock-up agreements prevent Baker Steel from selling the majority Polymetal shares until October.

“Polymetal is a cash generative mid-size producer with a good growth profile and progressive dividend policy but does not fit into the strategy of the company,” Baker Steel Resources said in Friday’s interim results statement.

READ: Baker Steel Resources eyeing valuation uplifts in four significant investments

“The company will therefore utilise the high liquidity of Polymetal's shares to provide funds when the company has a strong investment proposition more in line with its strategy.”

Looking ahead to new investments, the company added that it would seek to invest, via convertible instruments, into projects where it can have a significant interest and be able to proactively influence policy.

Baker Steel also highlighted its existing policy to distribute at least 15% of aggregate realised cash gains.

The shareholding in Polymetal represents 29.8% of all the investment group’s holdings.

Baker Steel reported that its net asset value had reduced by 0.5% in the first six months of 2018, at 57.1p per share.

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Fri, 17 Aug 2018 11:31:00 +0100 https://www.proactiveinvestors.co.uk/companies/news/203138/baker-steel-resources-looks-to-new-investment-203138.html
<![CDATA[RNS press release - Half-year Report ]]> https://www.proactiveinvestors.co.uk/companies/rns/3685/LSE20180817090652_13759405/ Fri, 17 Aug 2018 09:06:52 +0100 https://www.proactiveinvestors.co.uk/companies/rns/3685/LSE20180817090652_13759405/ <![CDATA[RNS press release - Net Asset Value(s) ]]> https://www.proactiveinvestors.co.uk/companies/rns/3685/LSE20180803070004_13742427/ Fri, 03 Aug 2018 07:00:04 +0100 https://www.proactiveinvestors.co.uk/companies/rns/3685/LSE20180803070004_13742427/ <![CDATA[RNS press release - Net Asset Value(s) ]]> https://www.proactiveinvestors.co.uk/companies/rns/3685/LSE20180705070007_13706328/ Thu, 05 Jul 2018 07:00:07 +0100 https://www.proactiveinvestors.co.uk/companies/rns/3685/LSE20180705070007_13706328/ <![CDATA[Media files - Baker Steel Resources Trust outlines 2018 growth drivers and upcoming milestones ]]> https://www.proactiveinvestors.co.uk/companies/stocktube/9700/baker-steel-resources-trust-outlines-2018-growth-drivers-and-upcoming-milestones-9700.html Tue, 26 Jun 2018 13:48:00 +0100 https://www.proactiveinvestors.co.uk/companies/stocktube/9700/baker-steel-resources-trust-outlines-2018-growth-drivers-and-upcoming-milestones-9700.html <![CDATA[RNS press release - Holding(s) in Company ]]> https://www.proactiveinvestors.co.uk/companies/rns/3685/LSE20180621072649_13688215/ Thu, 21 Jun 2018 07:26:49 +0100 https://www.proactiveinvestors.co.uk/companies/rns/3685/LSE20180621072649_13688215/ <![CDATA[RNS press release - AGM Statement ]]> https://www.proactiveinvestors.co.uk/companies/rns/3685/LSE20180618082727_13683162/ Mon, 18 Jun 2018 08:27:27 +0100 https://www.proactiveinvestors.co.uk/companies/rns/3685/LSE20180618082727_13683162/ <![CDATA[RNS press release - Net Asset Value(s) ]]> https://www.proactiveinvestors.co.uk/companies/rns/3685/LSE20180605070007_13666573/ Tue, 05 Jun 2018 07:00:07 +0100 https://www.proactiveinvestors.co.uk/companies/rns/3685/LSE20180605070007_13666573/ <![CDATA[RNS press release - Notice of AGM ]]> https://www.proactiveinvestors.co.uk/companies/rns/3685/LSE20180503101455_13628769/ Thu, 03 May 2018 10:14:55 +0100 https://www.proactiveinvestors.co.uk/companies/rns/3685/LSE20180503101455_13628769/ <![CDATA[RNS press release - Net Asset Value(s) ]]> https://www.proactiveinvestors.co.uk/companies/rns/3685/LSE20180503070004_13628118/ Thu, 03 May 2018 07:00:04 +0100 https://www.proactiveinvestors.co.uk/companies/rns/3685/LSE20180503070004_13628118/ <![CDATA[RNS press release - Final Results ]]> https://www.proactiveinvestors.co.uk/companies/rns/3685/LSE20180423145252_13614963/ Mon, 23 Apr 2018 14:52:52 +0100 https://www.proactiveinvestors.co.uk/companies/rns/3685/LSE20180423145252_13614963/ <![CDATA[News - Baker Steel Resources Trust well placed to benefit from "battery metals" enthusiasm ]]> https://www.proactiveinvestors.co.uk/companies/news/195581/baker-steel-resources-trust-well-placed-to-benefit-from-battery-metals-enthusiasm-195581.html Natural resources companies backer Baker Steel Resources Trust Ltd (LON:BSRT) saw net asset value (NAV) per share rise by 18.6% in 2017 to 56.8p.

The increase in NAV was marginally lower than the 20.7% rise notched up by the trust’s benchmark index, the Euromoney Global Mining Index, although it is worth noting that 80.6% of Baker Steel’s holdings are in unquoted investments, which are carried at “fair value” - i.e. the directors’ best estimate of what they were worth.

READ Baker Steel Resources Trust boosts NAV with US$72 mln sale of Prognoz Silver mine

The largest 10 holdings were: Polar Acquisition Limited (37.4% of NAV); Bilboes Gold Limited (12.6%); Ivanhoe Mines Limited (11.3%); Cemos Group PLC (9.1%); Metals Exploration Plc (6.8%); Sarmin Minerals Exploration Inc (4.5%); Queensland Coal Investment Holdings Ltd (4.4%); Black Pearl Limited Partnership (3.9%); Ironstone Resources Limited (3.8%) and Nussir ASA (3.1%).

Towards the end of 2017 and early in 2018, the company made its first major new investment for three years, investing AS$10 million in Futura Resources Limited (formerly Queensland Coal Investment Holdings) through a convertible loan, which is the company’s preferred way of investing in companies as it provides a measure of downside protection.

Company chairman Howard Myles noted that the convertible loan to Future was completed before the 73.6% increase in the price of coking coal in the second half of the year.

The portfolio is well diversified both in terms of commodity and the geographical location of the projects, the investment manager said.

WATCH: Baker Steel Resources Trust outlines 2018 growth drivers and upcoming milestones

In terms of commodities the portfolio is concentrated on the large liquid markets of silver, gold, iron ore, coal, copper, platinum group metals and nickel. Its projects are located in Australia, Canada, Democratic Republic of Congo, Germany, Indonesia, Madagascar, Mongolia, Morocco, Norway, the Philippines, Republic of Congo, Russia, South Africa, Vietnam and Zimbabwe.

Myles told shareholders that the mining market moved further along the road to recovery in 2017 and that the current point in the cycle “appears to be an attractive time for investing in mining projects”.

The chairman asserted that the company is not one to jump on the latest bandwagon but noted that hot commodities appear to be those associated with the electrification of motor vehicles and battery technology; copper is likely to be one of the key beneficiaries of electric cars, Myles predicted, and the company already has significant exposure to copper through its investments in Ivanhoe and Nussir.

“On the ‘battery metal’ front the company has exposure to lithium and vanadium through PRISM Diversified Limited (formerly Ironstone Resources Ltd). In addition, the increasing use of silver for photovoltaic reinforces silver as a ‘green’ metal and should drive demand,” Myles predicted.

Shares in Baker Steel currently trade at 45.6p, compared to the most recently published NAV of 54.7p on April 6.


 

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Mon, 23 Apr 2018 11:50:00 +0100 https://www.proactiveinvestors.co.uk/companies/news/195581/baker-steel-resources-trust-well-placed-to-benefit-from-battery-metals-enthusiasm-195581.html
<![CDATA[News - Baker Steel Resources Trust notes completion of Prognoz sale to Polymetal ]]> https://www.proactiveinvestors.co.uk/companies/news/195034/baker-steel-resources-trust-notes-completion-of-prognoz-sale-to-polymetal-195034.html Polar Acquisition Limited has completed the sale of its stake in the Prognoz silver mine in Russia to Polymetal International PLC (LON:POLY).

The consideration was US$72mln in Polymetal shares for the 45% stake, though volatility in the share of the Russian miner has since seen the current value drop to US$59.4mln.

Polar is one of the most significant investments held by Baker Steel Resources Investment Trust (LON:BSRT), which cautioned the volatility in the Polymetal share price will have an impact on the trust’s published NAV.

Over the past year, shares in Polymetal have traded between £10.95 and £5.91.

Polar intends to distribute the Polymetal shares received from Prognoz to its shareholders.

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Mon, 16 Apr 2018 09:34:00 +0100 https://www.proactiveinvestors.co.uk/companies/news/195034/baker-steel-resources-trust-notes-completion-of-prognoz-sale-to-polymetal-195034.html
<![CDATA[RNS press release - Completion of transaction ]]> https://www.proactiveinvestors.co.uk/companies/rns/3685/LSE20180416072504_13604831/ Mon, 16 Apr 2018 07:25:04 +0100 https://www.proactiveinvestors.co.uk/companies/rns/3685/LSE20180416072504_13604831/ <![CDATA[RNS press release - Net Asset Value(s) ]]> https://www.proactiveinvestors.co.uk/companies/rns/3685/LSE20180406070004_13594242/ Fri, 06 Apr 2018 07:00:04 +0100 https://www.proactiveinvestors.co.uk/companies/rns/3685/LSE20180406070004_13594242/ <![CDATA[News - Baker Steel well positioned as resources sector continues to pick up pace ]]> https://www.proactiveinvestors.co.uk/companies/news/193395/baker-steel-well-positioned-as-resources-sector-continues-to-pick-up-pace-193395.html Shares in Baker Steel Resources Trust (LON:BSRT) are currently trading a fraction off their three-year high of 51p.

The price has consolidated at a firm 50.5p following news of a US$72mln transaction on a major silver investment held by the company in Russia.

Under the terms of this transaction Baker Steel will end up coming in for a significant chunk of that US$72mln, which will be payable in shares of Polymetal (LON:POLY), one of Russia’s largest precious metals miners.

READ: Baker Steel Resources Trust boosts NAV with US$72 mln sale of Prognoz Silver mine

In turn, Polymetal consolidates control over the Prognoz silver mine, and its 292mln ounces of silver at 536 grams per tonne.

Trevor Steel, the driving force behind the Trust, is more than happy with this outcome.

“I think it’s a creditable return on an investment period of six or so years,” he says.

“It’s a big tick in the box and it’s not been easy.”

Along the way, markets first recovered before taking a turn for the worse and that necessitated a more hands on approach at Prognoz.

“At that point,” continues Steel, “we rolled up our sleeves and sorted it out. We brought in Polymetal and demonstrated the ability of our team to do quite complex transactions.”

So now Baker Steel gets to exit at a significant return, and retains its exposure to Prognoz via a royalty and via its Polymetal shares, which are likely to reflect the value of Prognoz too, given its size.

Long term?

And is Steel a long-term holder of Polymetal?

Actually, maybe

He’s a man with considerable experience in the Russian resources sector, which is how and why this deal got done in the first place.

And he points out that the benefits of holding Polymetal are there for all to see.

“It has a dividend yield of 3%,” he says, “and since it listed in 2010 it’s paid out more than US$1bn in dividends.”

What’s more, Polymetal is serious about Prognoz, which is good news for Baker Steel since it retains what could turn out to be quite a rich royalty on the project.

Last year, Polymetal undertook 37 kilometres of drilling across the property, and this year a further 40 kilometres is planned.

So all told, although Baker Steel is likely to balance up its portfolio in the long-term and scale back its position in Polymetal, there won’t necessarily be a rush to the door when the lock-in period expires.

After all, 10% of the shares are freely tradeable now, and Baker Steel also has a sizeable position in Ivanhoe Mines (TSE:IVN), a very tradeable asset which it could always sell down if there was a requirement for ready cash.

How likely such a requirement might be remains to be seen.

Certainly there is a more active market in mining now than has prevailed in recent years.

But Baker Steel has already been taking advantage.

Late last year, it took a position in a privately-held coal company in Australia, that needs about A$20mln to get into production and ought to be able to produce at a margin of around US$100 per tonne when it does so.

There’s also Bilboes in Zimbabwe, which has suddenly assumed a greater significance following the recent change of regime there. Baker Steel owns slightly shy of 22% of Bilboes, which boasts a total JORC resource of nearly five million ounces of gold.

The plan is to put together an initial 100,000 ounce per year mining operation, and then to increase production to 200,000 ounces in due course.

And there’s also the possibility that Bilboes could act as consolidator in the Zimbabwean gold industry.

With Zimbabwe coming back and mining on the turn, this could end up providing the perfect combination of maximum upside to Baker Steel.

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Tue, 20 Mar 2018 09:00:00 +0000 https://www.proactiveinvestors.co.uk/companies/news/193395/baker-steel-well-positioned-as-resources-sector-continues-to-pick-up-pace-193395.html
<![CDATA[RNS press release - Net Asset Value(s) ]]> https://www.proactiveinvestors.co.uk/companies/rns/3685/LSE20180306070005_13555641/ Tue, 06 Mar 2018 07:00:05 +0000 https://www.proactiveinvestors.co.uk/companies/rns/3685/LSE20180306070005_13555641/ <![CDATA[Media files - Baker Steel excited about potential in new A$10mln coking coal investment ]]> https://www.proactiveinvestors.co.uk/companies/stocktube/8822/baker-steel-excited-about-potential-in-new-a10mln-coking-coal-investment-8822.html Wed, 28 Feb 2018 13:05:00 +0000 https://www.proactiveinvestors.co.uk/companies/stocktube/8822/baker-steel-excited-about-potential-in-new-a10mln-coking-coal-investment-8822.html <![CDATA[News - Baker Steel Resources Trust boosts NAV with US$72 mln sale of Prognoz Silver mine ]]> https://www.proactiveinvestors.co.uk/companies/news/191826/baker-steel-resources-trust-boosts-nav-with-us72-mln-sale-of-prognoz-silver-mine-191826.html One of the most significant investments held by Baker Steel Resources Investment Trust (LON:BSRT), Polar Acquisition Limited, has agreed to sell its interest in the Prognoz silver mine in Russia to Polymetal International PLC.

At the January monthly update, Polar Acquisition represented just under 38% of Baker Steel’s net asset value. But that’s likely to see significant uplift now.

WATCH: Baker Steel Resources Trust boosts NAV with US$72 mln sale of Prognoz Silver mine

The sale of 90 per cent of the silver resources at Prognoz will realise US$72 mln for Polar Acquisition, a boost to its valuation of approximately 25%.

The consideration is payable in shares in Polymetal.

In addition, Polar Acquisition will retain a continued interest through a royalty on future production.

The deal follows the sale in January 2017 of a 10% stake to Polymetal, which then committed to fund and undertake a pre-feasibility study on Prognoz. As part of that agreement Polymetal was granted an option to acquire the remaining 90% of Polar Silver in March 2019 for a price based on silver reserves and the silver price at that time.

READ: Baker Steel Resources investing for long-term in projects with excellent upside potential

But, following a successful field season in 2017, during which 37km of diamond drilling was undertaken, Polar Acquisition and Polymetal have now agreed to accelerate the exercise of the option.

Polar Silver holds a 50% interest in the Prognoz silver project which has JORC-compliant indicated and inferred Resources of 292 million ounces of silver at a grade of 586 grams per tonne.

Taking into account the value of the Polymetal shares to be received by Polar Acquisition and the valuation of the royalty, the Baker Steel’s carrying value of Polar Acquisition can be expected to increase to approximately US$41 million at the next NAV date, a 25% increase on the carrying value at 31 January 2018.

Baker Steel has invested a total of US$14.2mln over the past seven years into Polar Acquisition, realised US$6mln in cash during 2017, resulting in a return on investment of in excess of three times.

 

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Mon, 19 Feb 2018 08:02:00 +0000 https://www.proactiveinvestors.co.uk/companies/news/191826/baker-steel-resources-trust-boosts-nav-with-us72-mln-sale-of-prognoz-silver-mine-191826.html
<![CDATA[RNS press release - Sale of Interest in Prognoz Silver Mine ]]> https://www.proactiveinvestors.co.uk/companies/rns/3685/LSE20180219070002_13537111/ Mon, 19 Feb 2018 07:00:02 +0000 https://www.proactiveinvestors.co.uk/companies/rns/3685/LSE20180219070002_13537111/ <![CDATA[RNS press release - Net Asset Value(s) ]]> https://www.proactiveinvestors.co.uk/companies/rns/3685/LSE20180206070004_13522430/ Tue, 06 Feb 2018 07:00:04 +0000 https://www.proactiveinvestors.co.uk/companies/rns/3685/LSE20180206070004_13522430/ <![CDATA[RNS press release - Net Asset Value(s) ]]> https://www.proactiveinvestors.co.uk/companies/rns/3685/LSE20180110070003_13490850/ Wed, 10 Jan 2018 07:00:03 +0000 https://www.proactiveinvestors.co.uk/companies/rns/3685/LSE20180110070003_13490850/ <![CDATA[RNS press release - Holding(s) in Company ]]> https://www.proactiveinvestors.co.uk/companies/rns/3685/LSE20171213145011_13464398/ Wed, 13 Dec 2017 14:50:11 +0000 https://www.proactiveinvestors.co.uk/companies/rns/3685/LSE20171213145011_13464398/ <![CDATA[RNS press release - Net Asset Value(s) ]]> https://www.proactiveinvestors.co.uk/companies/rns/3685/LSE20171206070006_13455235/ Wed, 06 Dec 2017 07:00:06 +0000 https://www.proactiveinvestors.co.uk/companies/rns/3685/LSE20171206070006_13455235/