Last checked at 
7 Feb 2022 07:00
London, UK, 7 February 2022
Edison issues update on Baker Steel Resources Trust (BSRT)
In FY21, Baker Steel Resources Trust (BSRT) reported a modest unaudited NAV total return (TR) of 1.2% (after the strong 31.5% posted in FY20), below the c 11.0% TR recorded by the EMIX Global Mining Index. The positive revaluation of several industrial commodity projects, supported by higher price projections and/or development progress, was mostly offset by writing down its precious metals mining investments, which now make up c 25% of BSRT's portfolio vs c 35% at end 2020. We consider BSRT's portfolio to be reasonably mature, providing scope for value uplifts in the medium term as the projects initiate mine construction and then approach first production.
Following the successful IPO of Tungsten West in October 2021, BSRT now seeks to float three to four holdings this year to fund mine construction (and potentially to recover its initial investment in the case of high investor demand). This may reduce execution risk and in turn facilitate revaluation as these projects move up the development curve and approach first production in the next 24-36 months. As a broad reference point, we estimate that the carrying value of BSRT's unlisted stake in Cemos (a cement production project in Morocco) has been revalued by c 152% since late 2020 following the full ramp-up of its first production line. The expiry of BSRT's lock-ups, agreed as part of the listings, will give it the flexibility to conduct realisations, especially if commodity price inflation continues.
Click here to view the full report or here to sign up to receive research as it is published.
Subscribe to Edison's content to receive reports by email.
All reports published by Edison are free-to-access and available on the website.
About Edison: Edison is an investment research and advisory company, with offices in North America, Europe, the Middle East and AsiaPac. The heart of Edison is our world-renowned equity research platform and deep multi-sector expertise. At Edison Investment Research, our research is widely read by international investors, advisers and stakeholders. Edison Advisors leverages our core research platform to provide differentiated services including investor relations and strategic consulting.
Edison is authorised and regulated by the Financial Conduct Authority.
Edison is not an adviser or broker-dealer and does not provide investment advice. Edison's reports are not solicitations to buy or sell any securities.
For more information, please contact Edison:
Milosz Papst +44 (0) 20 3681 2519 investmenttrusts@edisongroup.com
Michal Mierzwiak +44 (0)20 3077 5700 investmenttrusts@edisongroup.com
Learn more at edisongroup.com and connect with Edison on:
LinkedIn https://www.linkedin.com/company/edison-group-
Twitter www.twitter.com/Edison_Inv_Res
YouTube www.youtube.com/edisonitv