BAKER STEEL RESOURCES TRUST LIMITED
(Incorporated in Guernsey with registered number 51576 under the provisions of The Companies (Guernsey) Law, 2008 as amended)
7 August 2023
LEI: 213800JUXEVF1QLKCC27
31 July 2023 Unaudited NAV Statement
Net Asset Value
Baker Steel Resources Trust Limited (the "Company") announces its unaudited net asset value per share at 31 July 2023.
Net asset value per Ordinary Share: 66.8 pence.
The NAV per share has decreased by 0.7% versus the unaudited NAV at 30 June 2023 largely as a result of falls in the share prices of Silver X and Caledonia Mining on the TSX-V and AIM stock markets respectively.
The Company had a total of 106,462,502 Ordinary Shares in issue with a further 700,000 shares held in treasury as at 31 July 2023.
Investment Update
The Company's top 10 investments were as follows as a percentage of NAV:
| | 31 July 2023 | 31 December 2022 |
| Cemos Group plc | 29.4% | 22.8% |
| Futura Resources Ltd | 25.6% | 27.8% |
| Caledonia Mining Corporation Plc | 9.5% | 9.2%* |
| Bilboes Royalty | 7.9% | 6.9%* |
| Kanga Investments Ltd | 5.1% | 5.6% |
| Nussir ASA | 4.1% | 4.1% |
| First Tin plc | 3.8% | 4.8% |
| Silver X Mining Corporation | 3.7% | 5.4% |
| Metals Exploration Plc | 2.8% | 1.7% |
| Tungsten West Plc | 2.2% | 5.4% |
| Other Investments | 5.0% | 6.1% |
| Net Cash, Equivalents and Accruals | 0.9% | 0.2% |
*pro forma
Metals Exploration Plc (Metals Ex)
Metals Ex announced record half-year and second quarter 2023 gold sales from its Runruno gold mine in the Philippines. In the second quarter 2023 it sold 24,744 ounces of gold taking the total for the half year to 46,186 ounces, an approximate 50% increase on the 30,676 ounces sold in the first half of 2022. This resulted in record half-year gold revenue of US$89.6 million (H1 2022: US$57.6 million) and record half-year positive free cash flow of US$41.9 million (H1 2022: US$13.6 million).
This strong performance enabled Metals Ex to accelerate debt repayments to US$35.05 million during the half year, leaving net debt at US$48.3 million at 30 June 2023.
As the Runruno mine only has around 2-3 years of remaining production, if this sort of production performance can be repeated it could have a significant effect on the value of the company which at 31 July 2023 had a market value of some £40 million.
Silver X Mining Corporation ("Silver X")
In June 2023 Silver X announced the appointment of Enrique Garay, (Professional Geoscientist), as Chief Operating Officer as part of its strategy to ensure the growth potential at the Nueva Recuperada silver, lead, zinc and gold project in Peru. Mr. Garay is a seasoned senior exploration and mine geologist with almost 30 years of experience in maximizing the potential of operating assets and bringing new mines into production including three mines in Peru.
Since declaring commercial production at the beginning of 2023, the Nueva Recuperada Project has experienced lower production than budgeted partly due to an unexpected drop in grades in some mineralized areas.
On 26 July 2023 Silver X announced the implementation of an operational performance enhancing plan at Nueva Recuperada which has involved placing the operations on hold for an estimated period of between 30 and 45 days. The main objectives of the new operational plan developed by Mr Garay are:
· 50% metal throughput increase
· 20% cost reduction
· Accelerated in-fill drilling program to better define resources
· Rationalization of mine operations
· Implementation of sublevel stoping mining method and mill maintenance program
· Negotiation with local communities for the extension of social agreement for a minimum of 10 additional years
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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