Shares in Baker Steel Resources Trust Ltd (LSE:BSRT) rose 8% to 89.75p after the investment trust reported a sharp increase in net asset value, driven by stronger commodity prices and improved valuations across its portfolio.
The trust said its unaudited net asset value stood at 136.0p per share at the end of December, up 17.7% from the previous month and more than 50% higher over the year. Total NAV rose to £144.7 million, reflecting gains in both listed and unlisted holdings.
December’s uplift was led by an 83% rise in the share price of Silver X Mining and a significant revaluation of the Bilboes royalty, which benefited from higher gold prices and renewed development plans.
The trust said improved market conditions also boosted valuations across a range of commodities including copper, tin and tungsten, helping to rebalance the portfolio away from its largest unquoted positions.
A key factor was the refinancing of Queensland metallurgical coal producer Futura Resources through a US$90 million Nordic bond issue, which removed refinancing risk and coincided with a recovery in coal prices.
This allowed Baker Steel to lift the carrying value of its Futura investment and royalty interests.
Chair Fiona Perrott-Humphrey said the board remained focused on addressing the persistent discount to NAV and plans to set out a detailed capital allocation strategy alongside full-year results in April.