TIDMBSRT

RNS Number : 3966D

Baker Steel Resources Trust Ltd

03 March 2022

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 2022

31 January 2022 Unaudited NAV Statement

Net Asset Value

Baker Steel Resources Trust Limited (the "Company") announces its unaudited net asset value per share at 28 February 2022:

Net asset value per Ordinary Share: 91 pence

The NAV per share has decreased by 4.7% against the unaudited NAV at 31 January 2022, largely due to a reduction in the carrying values of Polar Acquisition Limited and Azarga Metals Corporation following the Russian invasion of Ukraine as explained in more detail 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 28 February 2022.

Investment Update

The Company's top 10 investments were as follows as a percentage of NAV:

 
                                 28 February   31 December 2021 
                                     2022 
 Cemos Group plc                    20.0%           18.6% 
 Futura Resources Ltd               19.7%           18.1% 
 Bilboes Gold Limited               14.3%           13.1% 
 Tungsten West Plc                  13.4%           14.7% 
 First Tin Ltd                      8.3%             7.7% 
 Kanga Potash                       4.4%             4.1% 
 Polar Acquisition Ltd              4.1%             7.5% 
 Nussir ASA                         3.9%             3.6% 
 Silver X Mining Corporation        2.9%             2.8% 
 Azarga Metals Corp                 1.4%             2.1% 
 Listed Precious Metal Shares       3.3%             3.2% 
 Other Investments                  3.7%             3.3% 
 Net Cash, Equivalents and 
  Accruals                          0.6%             1.1%

Write down of Russian based assets

Following the recent invasion of Ukraine by Russian forces and the imposition of sanctions on certain Russian individuals and institutions, the Company has reviewed the carrying value of Polar Acquisition Limited ("PAL) which holds a royalty over the Prognoz silver project in far eastern Russia, owned by Polymetal International PLC (Polymetal).

Although Polymetal is a Jersey registered company and is a constituent of the FTSE 100 Index of the London Stock Exchange, the majority of its assets are situated in Russia and Kazakhstan. Polymetal has stated that it believes that targeted sanctions are unlikely to be imposed directly on the company, however the past few days have seen significant volatility and major falls in Polymetal's share price. First payable production from the Prognoz Mine is not due until the second half of 2023, however the fall in the share price of Polymetal and other companies with projects in Russia is an indication of the market's view of increased risk in relation to investments in that country. Accordingly the Company has decided to reduce the carrying value of PAL by 50%.

The Company also has a convertible loan to TSX-V listed Azarga Metals Corporation whose principal asset is the Unkur Copper-Silver Project in the Zabaikalsky province in eastern Russia. Likewise it has been decided to decrease the carrying value of the convertible loan by 50%.

The carrying values of both companies will continue to be reviewed in the light of events in Ukraine and the application of sanctions. Following this write down the Company's exposure to Russian projects is approximately 5% of NAV.

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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