Baker Steel Resources Trust Ltd Net Asset Value(s) (1835S)
July 07 2020 - 01:00AM
UK Regulatory
TIDMBSRT
RNS Number : 1835S
Baker Steel Resources Trust Ltd
07 July 2020
BAKER STEEL RESOURCES TRUST LIMITED
(Incorporated in Guernsey with registered number 51576 under the
provisions of The Companies (Guernsey) Law, 2008 as amended)
7 July 2020
30 June 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 June 2020:
Net asset value per Ordinary Share: 77.2 pence
The NAV per share increased by 10.3% against the NAV per share
at 29 May 2020, following the mid year review of unlisted positions
discussed below.
The Company had a total of 106,462,502 Ordinary Shares in issue
with a further 700,000 shares held in treasury as at 30 June 2020
.
Portfolio Update
The Company's top 12 investments at 30 June 2020 were as follows
as a percentage of NAV:
Bilboes Gold Limited 21.5%
Futura Resources Ltd 16.2%
Polar Acquisition Ltd 11.4%
Cemos Group plc 8.9%
Tungsten West Limited 8.1%
Azarga Metals Corp 4.9%
Anglo Saxony Mining Limited 4.3%
Mines & Metals Trading Peru PLC 4.1%
Nussir ASA 3.9%
Black Pearl Limited Partnership 3.4%
Sarmin Minerals Exploration 2.7%
PRISM Diversified 2.0%
Listed Liquid Precious Metal Shares 5.8%
Other Investments 1.2%
Net Cash, Equivalents and Accruals 1.6%
Investment Update
Half Year Review of Unlisted Investments
The Company has carried out its normal half yearly review of
general market movements in mining equities, taking into
consideration company-specific factors, as well as an assessment of
whether these should impact the carrying values of its unlisted
holdings. A preliminary valuation had also been undertaken in March
2020 in the light of the market volatility experienced due to the
COVID-19 pandemic.
The Investment Manager maintains an index of comparable listed
companies for each unlisted investment, for comparisons sake and as
a benchmark against which the valuation of a particular unlisted
stock might have moved during the period had it been listed. In
accordance with this assessment the carrying value of Bilboes Gold
Limited which completed a definitive feasibility study on its
Isabella/McCays/Bubi gold mine in Zimbabwe, in January 2020, has
been increased by 31% in line with the rise in listed African gold
mining shares following the increased gold price. CEMOS Group plc
carrying value has increased by 12% (partially reversing a decrease
in March 2020) and Mines & Metals Trading (Peru) Ltd which has
been reduced by 14% following disruption to its operations due to
the lockdown in Peru as a result of COVID-19.
In addition, the carrying value of Polar Acquisition Limited has
been increased by 27.1%, which represents almost a complete
recovery to of its valuation at the beginning of the year, This
reflects the rise in the silver price during the period which
resulted in a revaluation of its net smelter royalty over the
Prognoz silver project in Russia owned by Polymetal
International.
Tungsten West Limited ("TWL")
During June 2020, TWL completed a technical and economic update
on its Hemerdon tungsten mine in Devon, UK.
Prior to the acquisition of Hemerdon in November 2019, TWL
undertook a rigorous due diligence process of technical work which
included an updated JORC (2012) Mineral Resource Estimate (MRE) and
a series of metallurgical test work programmes which demonstrated
the significant potential of X-Ray transmission ore-sorting and
magnetic separation to form a key driver of a future flowsheet.
Post-acquisition, TWL commenced a second phase of work programmes
that has enhanced TWL's technical knowledge of the mine and has
allowed an improved assessment of the project's value. While work
continues on completion of a comprehensive feasibility study, TWL
considered the step-change in knowledge of the project to warrant
an update on progress.
The technical update has supported a financial model for a mine
producing a post-tax NPV (5%) of GBP306m, based on capital costs to
restart the mine of GBP35m and a project IRR of 111%. The project
has a mine life of 23 years with the potential for this to be
extended, which produces an estimated EBITDA of GBP35 million per
annum with a project breakeven of US$135/metric tonne unit APT
(ammonium paratungstate) which would position it in the lowest cost
quartile of tungsten mines globally.
Although this review is only preliminary and requires
confirmation from the definitive feasibility study planned for the
first quarter of 2021, the findings are highly encouraging. On a
fully diluted basis, the Company owns approximately 28.6% of TWL.
The carrying value of TWL has not been adjusted at this stage
pending a potential fundraising.
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.
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
END
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