Baker Steel Resources Trust Ltd (LSE:BSRT) said the outlook for the remainder of this year remains uncertain but its portfolio is generally well-positioned to weather a storm in the short term.
Closing of the financing required to see Queensland-based metallurgical coal business Futura Resources into production will be an important value driver, it said, although the uncertainty around the timing of this has increased somewhat due to the recent increase in state royalty rates.
Two other holdings, Nussir and Kanga, had planned listings during the year but the timing of those could be reviewed owing to current market conditions.
At Bilboes in Zimbabwe, negotiating a royalty was an important factor of the sale to Caledonia, it added, and a further step in the company's strategy to achieve a regular cashflow from royalties adding to those of Futura and Polar Acquisition.
Assuming the Bilboes transaction closes, a significant portion of the company's portfolio will be listed and concentrated in a few major holdings.
“Depending on market conditions we will look to diversify the portfolio into new investments in 2023 as well as considering the potential for another tender offer in accordance with our returns policy,” said Baker Steel chairman Howard Myles.
NAV in the first six months of 2022 fell by 18.3% to 80.4p.