Net Asset Value(s)

Baker Steel Resources Trust Ltd

06 October 2023

 

BAKER STEEL RESOURCES TRUST LIMITED

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

6 October 2023

LEI: 213800JUXEVF1QLKCC27

29 September 2023 Unaudited NAV Statement

Net Asset Value

Baker Steel Resources Trust Limited (the "Company") announces its unaudited net asset value per share at 29 September 2023.

Net asset value per Ordinary Share: 66.3 pence.

The NAV per share has increased by 0.3% versus the unaudited NAV at 31 August 2023 with exchange rate movements offsetting the fall in the share price of Tungsten West on the AIM market when it confirmed it would need to raise further financing before the end of 2023 to remain a going concern.

The Company had a total of 106,462,502 Ordinary Shares in issue with a further 700,000 shares held in treasury as at 29 September 2023.

Investment Update

The Company's top 10 investments were as follows as a percentage of NAV:

	29 September 2023	31 December 2022
Cemos Group plc	30.0%	22.8%
Futura Resources Ltd	29.2%	27.8%
Bilboes Royalty	8.4%	6.9%*
Caledonia Mining Corporation Plc	5.5%	9.2%*
Kanga Investments Ltd	5.4%	5.6%
Nussir ASA	4.2%	4.1%
Silver X Mining Corporation	3.9%	5.4%
First Tin plc	3.3%	4.8%
Metals Exploration Plc	2.8%	1.7%
Tungsten West Plc	2.2%	5.4%
Other Investments	5.1%	6.1%
Net Cash, Equivalents and Accruals	0.0%	0.2%

*pro forma

Futura Resources Limited ("Futura")

On 11 September 2023 the Company announced that Futura had made a first closing of a financing package sufficient to fund the commencement of production of steel-making coals at its Wilton Mine in Queensland, Australia by the end of 2023. The funding package comprised a A$22 million 3-year term unsecured redeemable convertible note issue, accompanied by in-kind commitments from a number of contractors and suppliers to the value of c. A$5 million.  Since that date Futura received further subscriptions for the convertible note such that it has closed at approximately its maximum level of A$30 million.

The Company invested A$4.7 million (£2.40 million) in the convertible note, rolling its existing outstanding A$0.7 million bridging loan together with a further investment of A$4 million. As a result of the additional subscriptions, the Company's equity interest in Futura will reduce from the current 26.9% to 24.3%, assuming full conversion by noteholders. The Company also holds a 1.5% gross revenue royalty from future production from both Futura's mines.

It is currently expected that Futura's second mine, Fairhill, can be commissioned utilising cash generated by Wilton. However, this might be accelerated should Futura decide to raise further finance (likely to be debt) once Wilton is in production. A total of some A$50 million is required to fund development of both the Wilton and Fairhill mines. The additional subscriptions will therefore not only provide Futura with additional contingency for the reopening of the Wilton Mine but will also move forward the start of production at Fairhill.

According to Futura management forecasts, the combined Wilton and Fairhill mines are expected to produce around 2 million tonnes per annum of saleable product when they are in full production in 2025, generating an EBITDA of A$92m, based on forward coal price expectations.

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.

 

END