Baker Steel Resources Trust Ltd Net Asset Value(s) (4000Y)
January 14 2022 - 1:00AM
UK Regulatory
TIDMBSRT
RNS Number : 4000Y
Baker Steel Resources Trust Ltd
14 January 2022
BAKER STEEL RESOURCES TRUST LIMITED
(Incorporated in Guernsey with registered number 51576 under the
provisions of The Companies (Guernsey) Law, 2008 as amended)
14 January 2022
31 December 2021 Unaudited NAV Statement
Net Asset Value
Baker Steel Resources Trust Limited (the "Company") announces
its unaudited net asset value per share at 31 December 2021:
Net asset value per Ordinary Share: 98.4 pence
The NAV per share has increased by 1.0% against the unaudited
NAV at 30 November 2021, albeit there were some significant changes
in individual positions following the usual review of unlisted
holdings at the year end as outlined below. Over the full year
2021, the NAV per share has risen by 1.2% compared to a 5.0% rise
in the EMIX Global Mining Index in Sterling terms.
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 December
2021 .
Investment Update
The Company's top 12 investments were as follows as a percentage
of NAV:
31 December 31 December 2020
2021
Cemos Group plc 18.6% 14.5%
Futura Resources Ltd 18.1% 16.2%
Tungsten West Plc 14.7% 13.2%
Bilboes Gold Limited 13.1% 19.5%
First Tin Ltd 7.7% 3.9%
Polar Acquisition Ltd 7.5% 8.9%
Kanga Potash 4.1% 2.7%
Nussir ASA 3.6% 3.4%
Silver X Mining Corporation 2.8% 4.5%
Azarga Metals Corp 2.1% 2.7%
Metals Exploration plc 1.6% 1.9%
Prism Diversified 1.1% 1.5%
Listed Precious Metal Shares 1.7% 3.9%
Other Investments 2.1% 2.4%
Net Cash, Equivalents and
Accruals 1.1% 0.8%
Full Year Adjustments to Carrying Values
The Company has carried out its normal review of its unlisted
holdings, which it performs at the half-year and full year-ends.
This review takes into account general market movements in mining
equities, as well as specific factors, and an assessment of whether
these should impact the carrying values of the Company's unlisted
holdings. In addition, the Investment Manager updates its royalty
models for the royalty interests it owns in Futura Resources and
Polar Acquisition Limited ("PAL") to take account of the latest
estimated production profiles of the underlying projects and
commodity prices. The net present values produced by these royalty
models are then discounted for development risk to arrive at a
valuation.
The following are the main changes to carrying values since 30
November 2021 following the year end review:
-- The carrying value of Bilboes Gold Limited ("Bilboes") has
been reduced by 34% in Sterling terms to take account of the fall
in the value of listed African gold developers and producers during
the year as well as the failure of the previous cash offer for
Bilboes to be completed at which valuation the investment in
Bilboes was previously carried. An updated feasibility study on
Bilboes's 170,000 ounce per annum gold project in Zimbabwe is due
to be completed in January 2022.
-- The royalty model for Futura's two metallurgical coal
projects in Australia has been updated for management's latest
production forecasts and revised medium and long term price
forecasts and the share price adjusted for the expected equity
financing for the development of the mines. Together this results
in a 14% increase in the Company's carrying value of Futura in
Sterling terms.
-- Now that Cemos's cement plant in Morocco has achieved a
second year of profitability slightly above that of 2020, it has
been decided to reduce the discount applied compared to the rating
of its Moroccan listed peers. It has now been valued on the basis
of 7 times EBITDA for 2021, compared to 5.1 times a blend of 2020
and 2021 forecast EBITDA, due to greater confidence in Cemos's
profitability and forecasting. This has resulted in a 35% increase
in the carrying value of Cemos in Sterling terms.
-- The economic model for the royalty held by PAL has been
updated using the lower production rate from the accelerated
development programme for the open-pit mine at the Prognoz silver
project announced by Polymetal International PLC ("Polymetal") in
August 2021. In addition the potential for a later expansion of the
mine as originally envisaged in the 2020 pre-feasibility study has
been taken into account. Together with the decrease in the silver
price over the year this has led to a 16% decrease in the carrying
value of PAL in Sterling terms.
-- In November 2021 First Tin announced its intention to
undertake an IPO on the London Stock Exchange early in 2022 raising
at least GBP20 million at an issue price of not less than 30p per
share. The Company's valuation has been adjusted to take account of
this at an appropriate discount resulting in a 50% increase in
carrying value.
-- The carrying value of Kanga Potash has been increased by 48%
in Sterling terms to take account of the increase in global potash
prices and shares.
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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