TIDMBSRT
RNS Number : 3020E
Baker Steel Resources Trust Ltd
05 November 2020
BAKER STEEL RESOURCES TRUST LIMITED
(Incorporated in Guernsey with registered number 51576 under the
provisions of The Companies (Guernsey) Law, 2008 as amended)
5 November 2020
30 October 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 October 2020:
Net asset value per Ordinary Share: 76.2 pence
The NAV per share increased by 1.5% against the NAV per share at
30 September 2020 as the increase in price of Metals Exploration
plc following the resumption of trading in its shares on AIM,
outweighed decreases in other parts of the quoted portion of the
portfolio.
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 October
2020 .
Portfolio Update
The Company's top 12 investments were as follows as a percentage
of NAV:
30 October 2020 31 December 2019
Bilboes Gold Limited 20.8% 15.9%
Futura Resources Ltd 16.6% 15.0%
Polar Acquisition Ltd 11.0% 11.3%
Cemos Group plc 9.6% 10.0%
Tungsten West Limited 8.0% 8.0%
Anglo Saxony Mining Limited 4.3% 4.6%
Mines & Metals Trading
Peru PLC 4.0% 4.4%
Azarga Metals Corp 3.9% 2.7%
Nussir ASA 3.8% 4.1%
Metals Exploration plc 3.6% 1.8%
Black Pearl Limited Partnership 3.3% 3.4%
Sarmin Minerals Exploration 2.6% 3.7%
Listed Precious Metal Shares 5.4% 6.1%
Other Investments 2.6% 3.9%
Net Cash, Equivalents and
Accruals 0.5% 2.3%
Investment Update
Metals Exploration plc
On 8 September 2020 Metals Ex announced details of a debt
restructuring of both the Senior Facility and various pre-existing
Mezzanine debt facilities. As at 31 August 2020, the total amount
owing to the respective Lenders was approximately US$72 million for
the Senior Facility and approximately US$65 million under the
Mezzanine Facilities. During September a US$4 million repayment of
the Senior debt was made leaving an aggregate of approximately
US$134 million at the end of September 2020.
During the third quarter 2020, Metals Ex sold 16,094 ounces of
gold from its Runruno gold mine in the Philippines, generating free
cashflow of US$8.66 million. This was a significant improvement on
previous quarters due to higher gold recoveries and the increased
gold price.
On 23 October 2020 Metals Ex announced it had completed the debt
restructuring following an extraordinary general meeting of
shareholders. Importantly this debt restructuring did not include a
debt for equity swap which would have been highly dilutive if
enacted at close to the price of 0.75 pence per share at which
Metals Ex's shares were suspended in March 2020.
Once the debt restructuring was completed Metals Ex's shares
resumed trading on the AIM market on 26 October 2020 closing at 2.4
pence per share on 30 October 2020. At 30 September 2020 the
Company held Metals Ex shares at the discounted price of 0.5 pence
per share and the resumption of trading boosted the Company's NAV
by 2.9%.
Although all Metals Ex's cashflow in the near term will be
deployed towards paying down the debt, any further improvement in
production performance towards the targeted 100,000 ounces per
annum, or increase in the gold price, could result in the debt
being paid down more rapidly which would have a significant effect
on the value of Metals Ex.
Sarmin Minerals Exploration ("Sarmin")
On 28 September 2020 the Definitive Feasibility Study (DFS) into
Sarmin's Kanga Potash project in the Republic of Congo was issued
by Novopro a leading independent consultant in the potash
sector.
The pre-feasibility study completed in September 2018 adopted a
modular approach with phased development configuration from 400,000
tonnes per annum (tpa) to 2.4M tpa of Muriate of Phosphate (MOP)
whilst the DFS focussed on the most financially attractive scenario
of 600,000 tpa MOP.
The key results of the DFS based on an average MOP sales price
of US$282 per tonne are summarised as follows:
Capital Cost: US$ 457 million
Operating Cost: US$ 66.3 per tonne MOP (FOB Pointe Noire)
All-in Sustaining Cost: US$ 75.9 per tonne MOP (FOB Pointe Noire)
Post tax NPV (10%): US$ 511 million
Post tax IRR: 22.3%
The Kanga project's key advantages apart from its exceptional
geological characteristics are its proximity to the coast,
minimising the cost of product transport as well as access to long
term competitively priced natural gas. This results in both capital
and operating costs in the lowest part of the industry cost curve
making Kanga one of the most competitive MOP projects globally. It
also has the potential to be expanded on a modular basis up to 2.4M
tpa over 30 years.
Sarmin will now seek partners to finance the construction of the
project. The carrying value of Sarmin will be reviewed together
with those of the other unlisted positions at 31 December 2020 in
line with the Company's policy.
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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