TIDMBSRT
RNS Number : 5169K
Baker Steel Resources Trust Ltd
06 May 2022
BAKER STEEL RESOURCES TRUST LIMITED
(Incorporated in Guernsey with registered number 51576 under the
provisions of The Companies (Guernsey) Law, 2008 as amended)
6 May 2022
29 April 2022 Unaudited NAV Statement
Net Asset Value
Baker Steel Resources Trust Limited (the "Company") announces
its unaudited net asset value per share at 29 April 2022:
Net asset value per Ordinary Share: 91.9 pence.
The NAV per share has decreased by 5.7% against the unaudited
NAV at 31 March 2022 largely due to falls in the share prices of
the listed portion of the portfolio, in particular that of Tungsten
West Plc, which outweighed an increase in the carrying value of
Futura due to the conversion of a bridging loan into an additional
royalty interest.
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 April
2022.
Investment Update
The Company's top 10 investments were as follows as a percentage
of NAV:
29 April 2022 31 December 2021
Futura Resources Ltd 23.7% 18.1%
Cemos Group plc 19.6% 18.6%
Bilboes Gold Limited 15.1% 13.1%
Tungsten West Plc 9.3% 14.7%
First Tin plc 7.3% 7.7%
Kanga Potash 4.7% 4.1%
Polar Acquisition Ltd 4.3% 7.5%
Nussir ASA 3.9% 3.6%
Silver X Mining Corporation 3.6% 2.8%
Azarga Metals Corp 1.5% 2.1%
Listed Precious Metal Shares 2.8% 3.2%
Other Investments 3.8% 3.3%
Net Cash, Equivalents and
Accruals 0.4% 1.1%
Tungsten West PLC ("Tungsten West")
On 21 April 2022, Tungsten West announced that it is pausing the
redevelopment of its Hemerdon tungsten project to evaluate
alternative lower cost approaches due to significant recent
inflation in key consumables in particular steel, cement, ammonium
nitrate (explosives), electricity and diesel. Although the tungsten
price has increased modestly over the past year this has not been
to the same extent as the rise in input prices, and we have seen
other tungsten projects facing similar challenges.
Although clearly a setback, Tungsten West is in the fortunate
position that it hadn't yet committed to the major part of the cost
of the redevelopment so is able to adjust its plans whilst it still
retains GBP28 million from its IPO in October 2021 and has not
drawn down on its debt facility with Orion. In addition, it has
taken delivery of 7 Tomra ore sorters which are a key capital item
and were ordered mid 2021, before recent inflationary impacts.
It is expected Tungsten West will now look to restart the
Hemerdon mine on a smaller scale based on lower capital and
operating costs whist retaining the optionality to move back to the
larger scale operation should market conditions warrant it. A
revised development plan on this basis is expected in the third
quarter this year.
The reduction in the share price of Tungsten West on the AIM
market of the London Stock Exchange has reduced the NAV by
approximately 8.9% from 31 March 2022, albeit the quoted share
price remains at an approximate 85% premium to the Company's cost
price.
Futura Resources Ltd ("Futura")
During April 2022, the Company exercised its option to convert
the A$2.2 million bridging loan it had provided to Futura into a
further 0.5% gross revenue royalty ("GRR") over Futura's Wilton and
Fairhill coking coal projects in Australia. The Company had this
option as Futura had been unable to complete its development
financing by 31 March 2022. Futura is currently in advanced
discussions with a number of potential financiers and is hoped that
they can agree a satisfactory finance package this quarter.
The 0.5% GRR is in addition to the Company's existing 1% GRR
which is valued at A$16 million. Conversion of the bridging loan
has therefore added GBP3.1 million (approximately 3%) to the
Company's NAV.
First Tin PLC ("First Tin")
As discussed in the Company's 31 March 2022 NAV update, First
Tin successfully completed its IPO and listing on the London Stock
Exchange on 8 April 2022, raising GBP20m before expenses. As the
Company's shares are subject to a one-year lock-up the shares are
being carried at a 23.4% discount to the closing bid price on 29
April 2022, in a similar way to the holding in Tungsten West
Plc.
The proceeds of the IPO will be used primarily to complete
Definitive Feasibility Studies on First Tin's Tellerhauser tin
project in Germany and its Taronga tin project in Australia.
Azarga Metals Ltd ("Azarga")
During April 2022 the Company agreed to convert its US$3.5
million loan to Azarga into equity at a conversion price of C$0.10
per share. In exchange for BSRT converting the loan Azarga has also
agreed to grant BSRT the option to acquire Azarga's Unkur copper
silver project in far east Russia until 31 December 2023, whilst
Azarga concentrates on its copper-rich VMS Marg project in the
Yukon. Azarga will use its best efforts (while recognising that
sanctions and other force majeure circumstances may hinder these
efforts), to maintain the corporate existence of its subsidiaries
and its licences, including the Unkur project, on a care and
maintenance basis during the option period.
The transaction is subject to definitive agreements and
regulatory approvals including, if necessary, Azarga shareholder
approval. Upon completion the Company will hold approximately 36%
of Azarga. The effect of the transaction is not material to the
Company's NAV.
Silver X Resources Ltd ("Silver X")
During April 2022 the Company agreed to convert the US$4.2
million of capital and interest due under its convertible debenture
to Silver X into common shares of Silver X at a deemed price of
C$0.30 per share (approximately 48% discount to the original
conversion price). The conversion (subject to final TSX approval)
will result in the Company becoming Silver X's largest shareholder
with 13.9% of the enlarged share capital and the Company will have
the right to appoint a director. The effect of the conversion is
not material to the Company's NAV.
During 2022 Silver X has made significant progress towards
becoming one of the few listed producing silver juniors. The recent
completion of the Nueva Recuperada processing plant expansion and
continued positive mine development results have built a strong
foundation for the future.
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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END
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