BAKER STEEL RESOURCES TRUST LIMITED
(Incorporated in Guernsey with registered number 51576 under the provisions of The Companies (Guernsey) Law, 2008 as amended)
8 September 2023
LEI: 213800JUXEVF1QLKCC27
31 August 2023 Unaudited NAV Statement
Net Asset Value
Baker Steel Resources Trust Limited (the "Company") announces its unaudited net asset value per share at 31 August 2023.
Net asset value per Ordinary Share: 66.1 pence.
The NAV per share has decreased by 1.0% versus the unaudited NAV at 31 July 2023 largely as a result of falls in the share prices of Caledonia Mining on the NYSE and AIM stock markets.
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 August 2023.
Investment Update
The Company's top 10 investments were as follows as a percentage of NAV:
| | 31 August 2023 | 31 December 2022 |
| Cemos Group plc | 29.7% | 22.8% |
| Futura Resources Ltd | 25.3% | 27.8% |
| Bilboes Royalty | 8.1% | 6.9%* |
| Caledonia Mining Corporation Plc | 6.9% | 9.2%* |
| Kanga Investments Ltd | 5.2% | 5.6% |
| Nussir ASA | 4.0% | 4.1% |
| First Tin plc | 3.8% | 4.8% |
| Silver X Mining Corporation | 3.7% | 5.4% |
| Tungsten West Plc | 3.5% | 5.4% |
| Metals Exploration Plc | 3.1% | 1.7% |
| Other Investments | 5.1% | 6.1% |
| Net Cash, Equivalents and Accruals | 1.6% | 0.2% |
*pro forma
Tungsten West Plc (Tungsten)
In June 2023 Tungsten West closed the first tranche of a £6.95 million interim fundraising of convertible loan notes (CLN). The proceeds of the fundraising were used by the company to satisfy the conditions for the remaining funding required to complete the redevelopment of the Hemerdon tungsten and tin mine in Devon, UK. This included low frequency noise trials, which were completed successfully in July 2023, and in August 2023 Tungsten West made a formal submission to the Environment Agency to secure the Mineral Processing Facility permit.
An important factor of the economics and environmental footprint of the project is the production of secondary aggregates, a by-product from mining which, once sold, will provide an early revenue stream and reduce the storage of barren rock and associated operating expenses at site. To enable the delivery of the aggregates business, and to optimise the core tungsten and tin business, Tungsten West has submitted a section 73 application to vary the tonnage cap associated with the existing permission for 50 truck movements per day. Traffic and market studies carried out in conjunction with the application highlight that the Company can plug a gap in the market for high-quality, secondary aggregates in Devon with a minimal increase in overall heavy vehicle traffic.
The positive low frequency noise test and submission of these two licence applications demonstrated sufficient progress for the second tranche of the CLN to be issued. The Company subscribed a further £600,000 in the CLN in August 2023 to take its total subscription in the CLN to £1.2 million which is sufficient for the Company to maintain its approximate 15% interest in Tungsten West prior to the redevelopment fundraising.
It is hoped that these two licences might be awarded in the fourth quarter of 2023, which will enable Tungsten West to move forward with raising the remaining capital required of approximately £55 million to recommence production at Hemerdon. Given that once in full production the project should generate annual cashflow in excess of £20 million a year for over 20 years, we continue to consider that Hemerdon remains an attractive project. The current market capitalisation of Tungsten West is approximately £7 million, and £14 million assuming conversion of the CLN.
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.
RNS may use your IP address to confirm compliance with the terms and conditions, to analyse how you engage with the information contained in this communication, and to share such analysis on an anonymised basis with others as part of our commercial services. For further information about how RNS and the London Stock Exchange use the personal data you provide us, please see our Privacy Policy.