TIDMBSRT

RNS Number : 9238Q

Baker Steel Resources Trust Ltd

03 March 2021

BAKER STEEL RESOURCES TRUST LIMITED

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

3 March 2021

26 February 2021 Unaudited NAV Statement

Net Asset Value

Baker Steel Resources Trust Limited (the "Company") announces its unaudited net asset value per share at 26 February 2021:

   Net asset value per Ordinary Share:   95.2 pence 

The NAV per share has increased by 0.4% against the NAV at 31 January 2021, with the increase in the carrying value of Anglo Saxony Mining Limited offset by falls in the listed precious metal shares held in the portfolio and by increases in the Sterling exchange rates against the currencies in which the Company's investments are held.

The Company had a total of 106,462,502 Ordinary Shares in issue with a further 700,000 shares held in treasury as at 26 February 2021 .

Investment Update

The Company's top 12 investments were as follows as a percentage of NAV:

 
                                    26 February   31 December 2020 
                                        2021 
 Bilboes Gold Limited                  16.7%           16.9% 
 Futura Resources Ltd                  16.2%           16.5% 
 Cemos Group plc                       14.2%           14.6% 
 Tungsten West Limited                 13.1%           12.6% 
 Polar Acquisition Ltd                 11.0%           11.2% 
 Anglo Saxony Mining Limited           5.2%             4.0% 
 Mines & Metals Trading 
  Peru PLC                             4.6%             4.5% 
 Nussir ASA                            3.4%             3.5% 
 Azarga Metals Corp                    2.8%             2.8% 
 Sarmin Minerals Exploration           2.7%             2.7% 
 Metals Exploration plc                2.0%             1.9% 
 Black Pearl Limited Partnership       1.3%             1.2% 
 Listed Precious Metal Shares          3.2%             3.9% 
 Other Investments                     2.8%             2.8% 
 Net Cash, Equivalents and 
  Accruals                             0.8%             0.8% 
 

Anglo Saxony Mining Limited ("ASM")

On 26 February 2021, Panthera Resources Plc announced that it had sold its entire interest in ASM representing approximately 14% of the company to a new investor at a 50% premium to the Company's carrying value at 31 January 2021. The Company has therefore increased the carrying value of the ASM equity and convertible loans that it holds. At the uplifted the whole of ASM is valued at approximately EUR14 million on a fully diluted basis. The Company would own approximately 25% of ASM should it exercise its right to convert its convertibles.

This sale paves the way for ASM to raise new equity to fund the definitive feasibility study on its Telehauser tin project in Saxony, Germany. During 2020, ASM completed a pre-feasibility study (PFS) on Telehauser into a mine producing approximately 3,000 tonnes of tin per annum in concentrate over a 12-year mine life with an after tax NPV(5%) of EUR11M and an IRR of 6.7% using a US$20,500/tonne tin price. Tin has long been identified as one of the principal beneficiaries of the global move towards electrification due to its use as solder for electrical connections, and a tin mine in the heart of Europe is likely to be of strategic importance. The price of tin has risen approximately 70% over the past year to US$27,500/tonne at the end of February 2021. Applying this tin price to the pre-feasibility study economic model would give an after tax NPV(5%) of EUR90M and an IRR of 18.9%.

The PFS recommended additional drilling to improve confidence in and the potential size of the mineral resources at Telehauser and the likely significant reduction in mining dilution once more accurate information is available on the geometry of the orebodies as well additional metallurgical testwork in order improve recoveries of by-product metals in particular Indium, as meaningful sources of upside potential for the final DFS outcome.

Mines & Metals Trading (Peru) PLC ("MMTP")

On 11 February 2021 MMTP announced a business combination with TSX-V listed mineral exploration company Oro X Mining Corp. Pursuant to the 50:50 merger Oro X will acquire 100% of the shares of MMTP with the resultant merged company called Silver X. Oro X's flagship asset is the Coriorcco gold exploration project in Ayacucho, Peru. The combination of Oro X's and MMTP's teams, assets and operational experience creates a growth-focused platform primed to consolidate the fragmented Peruvian silver landscape.

As a condition of the business combination transaction, Echelon Wealth Partners Inc. and Red Cloud Securities Inc. have been engaged to raise a minimum of C$14 million. Trading in Oro X has been halted pending pricing of the share placing and completion of the transaction. The proceeds are planned to be used for mine development and exploration activities at MMTP's Recuperada Mine in Peru, and for general working capital. The offering is expected to close around 31 March 2021.

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.

RNS may use your IP address to confirm compliance with the terms and conditions, to analyse how you engage with the information contained in this communication, and to share such analysis on an anonymised basis with others as part of our commercial services. For further information about how RNS and the London Stock Exchange use the personal data you provide us, please see our Privacy Policy.

END

NAVKZGGFVZNGMZM

(END) Dow Jones Newswires

March 03, 2021 02:00 ET (07:00 GMT)