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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January 14, 2022 02:00 ET (07:00 GMT)

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