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Quick facts: Baker Steel Resources Trust Ltd
Price: 82.26 GBX
Market Cap: £87.58 m
About the company
Baker Steel Resources Trust seeks capital growth over the long term through a focused global portfolio consisting principally of the equities, or related instruments, of natural resources companies.
BSRT invests predominantly in unlisted companies (i.e. in those companies that have not yet made an initial public offering) but also in listed securities with a view to exploiting value inherent in market inefficiencies and pricing anomalies.
How it is doing
Baker Steel Resources expects two of its portfolio companies to float in the coming months, but expressed disappointment that the sale of its largest holding Bilboes Gold did not go through.
The mining-focused trust increased its NAV by 2.7% to 98.8p over the six months to end June 2021, which it said reflected the mixed backdrop for the sector with precious metals weak and base metals strong.
The portfolio’s total value was £106.2mln, though there were no new core investments pending the expected sale for cash of its investment in Bilboes. Net gains for the half-year were £2.7mln (£3.49mln).
In the short term, Devon-based Tungsten West is expected to IPO in the second half of 2021 and First Tin Ltd (formerly Anglo Saxony Mining Ltd) in the first half of 2022.
“Silver and silver producers have been fundamentally undervalued for many years, despite a supportive macroeconomic environment for precious metals and growing industrial demand for silver,” according to recent commentary put out by Baker Steel Resources Investment Trust Ltd (LON:BSRT).
The UK-based investment company has long had significant exposure to silver through long-standing interests in Russia and an ongoing relationship with Russian mining giant Polymetal (LON:POLY).
Baker Steel Resources Trust Ltd (LON:BRST) recently put out an update which showed that the overall net asset value per share of the company increased by 1.5% during the course of October, to 76.2p.
The value derives from a diverse portfolio of assets that ranges from gold and silver in Russia to coal in Australia, and from cement in North Africa, to tungsten in the UK.
Insight: Baker Steel says transformational bull market for speciality metals is underway
The recovery of economic activity around the world in the wake of the coronavirus crisis offers a return to prosperity for businesses and consumers, as well as a chance for governments to ‘build back better’, according to commentary put out by Baker Steel Resources Trust Ltd (LON:BSRT) this week.
The specialist commodities investor doesn’t think it will all be plain sailing for the global economy though.
What management says
Specialist mining investment people, Baker Steel Resources Trust (LON:BSRT), expects 2020 to be an important period for the sector’s backers and another good year for metals.
Partner Cosmo Sturge and Investment Advisor Francis Johnstone offer Proactive London a take on what's next in the mining space including news on their recent investment in UK-based Tungsten West.
News here too on how Baker Steel focuses on seeking capital growth over the long term through a focused global portfolio and what investors can expect over the coming months.
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