London, UK, 1 August 2023
Edison issues review on Baker Steel Resources Trust (BSRT)
Baker Steel Resources Trust has been affected by the challenging funding environment for mining development projects, especially for single-project junior mining companies. The funding environment led Tungsten West to carry out an interim fund-raising at a depressed valuation. BSRT's key potential NAV trigger for this year remains a possible successful funding by Futura Resources to launch production at its two coking coal mines in Australia. While the fund-raising has again been delayed and the demand for coking coal may be affected by a global economic slowdown, the project's economics remain favourable at current coking coal prices.
BSRT is more than a simple beta play on commodity prices, given its focus on realising the valuation upside from project development and its investment in projects that offer a solid safety margin in terms of an internal rate of return based on consensus price forecasts. The majority of BSRT's current portfolio is held either in producing assets - Cemos, Caledonia Mining Corporation (CMCL), Silver X - where further production ramp-up/expansion offers re-rating potential, or in projects approaching mine construction (eg Tungsten West) and production (Futura Resources) whose valuations may benefit from project de-risking in the case of successful progress. We believe that, once the fund-raising/M&A environment improves, this portfolio may experience several positive NAV catalysts from project progress, leading to a potential asset sale/IPO and/or recurring royalty/dividend streams. Following the expiry of the lock-up on CMCL shares, BSRT is again looking for potential new investment opportunities.
Click here to view the full report.
All reports published by Edison are available to download free of charge from its website
About Edison: Edison is a leading research and investor relations consultancy, connecting listed companies to the widest pool of global investors. By focusing on the volume and quality of investors reached - across institutions, family offices, wealth managers and retail investors - Edison can create and gauge intent to purchase, even in the darkest pools of capital, and then make introductions via non-deal roadshows, events or virtual meetings.
Having been the first company in-market 17 years ago, Edison has more than 100 employees and covers every economic sector. Headquartered in London, Edison also has offices in New York, Sydney and Wellington.
Edison is authorised and regulated by the Financial Conduct Authority.
Edison is not an adviser or broker-dealer and does not provide investment advice. Edison's reports are not solicitations to buy or sell any securities.
For more information, please contact Edison:
Milosz Papst +44 (0)20 3077 5700 investmenttrusts@edisongroup.com
Learn more at www.edisongroup.com and connect with Edison on:
LinkedIn www.linkedin.com/company/edison-group-/
Twitter www.twitter.com/Edison_Inv_Res
YouTube www.youtube.com/edisonitv