BAKER STEEL RESOURCES TRUST LIMITED
(Incorporated in Guernsey with registered number 51576 under the provisions of The Companies (Guernsey) Law, 2008 as amended)
11 July 2023
LEI: 213800JUXEVF1QLKCC27
30 June 2023 Unaudited NAV Statement
Net Asset Value
Baker Steel Resources Trust Limited (the "Company") announces its unaudited net asset value per share at 30 June 2023.
Net asset value per Ordinary Share: 67.3 pence.
The NAV per share has decreased by 5.2% versus the unaudited NAV at 31 May 2023 largely as a result of the half year review of unlisted holdings detailed below, reflecting the weak market for mining development shares during the first half of the year.
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 2023.
Investment Update
The Company's top 10 investments were as follows as a percentage of NAV:
| | 30 June 2023 | 31 December 2022 |
| Cemos Group plc | 29.2% | 22.8% |
| Futura Resources Ltd | 25.4% | 27.8% |
| Caledonia Mining Corporation Plc | 10.3% | 9.2%* |
| Bilboes Royalty | 7.9% | 6.9%* |
| Kanga Investments Ltd | 5.1% | 5.6% |
| Silver X Mining Corporation | 4.5% | 5.4% |
| First Tin plc | 3.8% | 4.8% |
| Nussir ASA | 3.7% | 4.1% |
| Metals Exploration Plc | 2.6% | 1.7% |
| Tungsten West Plc | 2.1% | 5.4% |
| Other Investments | 5.5% | 6.1% |
| Net Cash, Equivalents and Accruals | 1.0% | 0.2% |
*pro forma
Half Year Review of Unlisted Investments
The Company has carried out its usual 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.
The Investment Manager maintains an index of comparable listed companies for each unlisted investment for comparison purposes and as a benchmark against which the valuation of a particular unlisted stock might have moved during the period had it been listed which it terms "IndexVal". In addition, the Investment Manager has updated its royalty models for the royalty interests it owns in Futura Resources and Polar Acquisition Limited ("PAL") and Bilboes Holdings to take account of the latest estimated production profiles of the underlying projects and commodity prices. The net present values produced by these royalty models are then discounted for development risk to arrive at a valuation.
Futura Resources Ltd ("Futura")
Futura is currently in the process of raising the finance to start production at its two steel making coal projects in Queensland, Australia following the award of the mining licences in November 2022. The success or otherwise of such financing during the third quarter of 2023 could have a material impact on the valuation of Futura. As none of the financing options being pursued had been completed by 30 June 2023, the Company has decided to reduce the valuation of its equity position by an amount equal to the 24% decline in IndexVal for Futura during the first half of 2023. This has been the result of a decrease in spot and near-term forward steel making coal prices which has also been reflected in a 12% reduction in the carrying value of the Company's gross revenue royalties over Futura's two mines.
Other Significant Adjustments
The carrying value of Cemos Group plc has been increased by 9% due to an increase in the market values of local cement companies and taking into account the updated forecast production and earnings for 2023. The valuations of Kanga Investments and Nussir have been reduced by 21% and 11% respectively in accordance with the fall in IndexVal during the period.
Further details of the Company and its investments are available on the Company's website www.bakersteelresourcestrust.com
Enquiries:
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.
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