Net Asset Value(s)

RNS Number : 3350H

Baker Steel Resources Trust Ltd

03 December 2020

 

BAKER STEEL RESOURCES TRUST LIMITED

(Incorporated in Guernsey with registered number 51576 under the provisions of The Companies (Guernsey) Law, 2008 as amended)

3 December 2020

30 November 2020 Unaudited NAV Statement

Net Asset Value ("NAV")

Baker Steel Resources Trust Limited (the "Company") announces its unaudited net asset value per share at 30 November 2020:

Net asset value per Ordinary Share:  74.9 pence

The NAV per share decreased by 1.7% against the NAV per share at 30 October 2020 as a result of decrease in the value of the listed portion of the portfolio due to lower precious metal prices as well as a fall in the value of the US Dollar against Sterling.

Th e Company had a total of 106,462,502 Ordinary Shares in issue with a further 700,000 shares held in treasury as at 30 November 2020 .

Portfolio Update

The Company's top 12 investments were as follows as a percentage of NAV:

	30 November 2020	31 December 2019
Bilboes Gold Limited	21.1%	15.9%
Futura Resources Ltd	17.1%	15.0%
Polar Acquisition Ltd	10.9%	11.3%
Cemos Group plc	9.6%	10.0%
Tungsten West Limited	8.1%	8.0%
Anglo Saxony Mining Limited	4.5%	4.6%
Nussir ASA	4.4%	4.1%
Mines & Metals Trading Peru PLC	3.9%	4.4%
Azarga Metals Corp	3.8%	2.7%
Black Pearl Limited Partnership	3.3%	3.4%
Metals Exploration plc	2.6%	1.8%
Sarmin Minerals Exploration	2.5%	3.7%
Listed Precious Metal Shares	4.9%	6.1%
Other Investments	2.6%	3.9%
Net Cash, Equivalents and Accruals	0.7%	2.3%

Investment Update

Nussir ASA ("Nussir")

During November 2020, Nussir successfully raised NOK 41.5 million (£3.5 million) with a further NOK 40 million committed in 2021 from northern Norwegian investors. The funds will be used for the development of the proposed processing plant site, the access tunnel to the copper deposit as well as to update the definitive feasibility study ("DFS") to incorporate the full electrification of the mine.

Earlier this year, Nussir completed a positive DFS into its Nussir/Ulveryggen copper project in northern Norway.  The DFS was based on a mine producing approximately 15,000 tonnes of copper per annum with a maximum pre-production cash requirement of US$86.7 million. At a long-term copper price of US$6,500 per tonne the economic model gave a net present value using a 6% discount rate of US$132.6 million with an internal rate of return ("IRR") of 23%.

Nussir is aiming for its Nussir copper project to be one of the first fully electrified mines globally with zero CO₂   emissions. In addition, copper is seen as a vital component of the global move towards electrification and away from fossil fuels. This transition helped the copper price reach an 8 year high of US$7,648 per tonne at the end of November 2020.

The fundraising which demonstrates good local support for the project was done at an 8% premium to the previous placing and the carrying value of the shares has been updated accordingly.

Cemos Group PLC ("Cemos")

During September 2020, Cemos achieved full capacity of 24,000 tonnes (t) per month of cement production at its Tarfaya plant in southern Morocco. The installation of two additional 150t capacity silos was completed during the quarter and as part of further de-bottlenecking activities an additional 4-spout bag packing machine was ordered; delivery and installation is scheduled before the end of the year. An 8-spout 'roto packer' bag packing machine was also ordered during the quarter with delivery expected mid 2021. These plant additions will provide greater flexibility and reduced customer waiting times for loading as well as providing sufficient bag packing capability to support a doubling of cement production. Cemos is considering doubling cement grinding capacity by installing a second cement grinding line during 2021.  

Following the achievement of full production at Tarfaya and the strong cashflows being generated, the Company will consider changing its valuation methodology for Cemos from one based on historic cost to one based on EBITDA, at the year end.  

Further details of the Company and its investments are available on the Company's website www.bakersteelresourcestrust.com  

Enquiries:

Baker Steel Resources Trust Limited   [phone]

Francis Johnstone
Trevor Steel

Numis Securities Limited  [phone]

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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