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14 Jan 2021 07:00
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 2021
31 December 2020 Unaudited NAV Statement
Net Asset Value
Baker Steel Resources Trust Limited (the "Company") announces its unaudited net asset value per share at 31 December 2020:
Net asset value per Ordinary Share: 95.5 pence
The NAV per share has increased by 27.5% against the NAV at 30 November 2020, primarily due to changes following the usual review of unlisted positions at the year end. Over the full year 2020, the NAV has risen by 29.2% compared to a 22.2% 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 2020.
Investment Update
The Company's top 12 investments were as follows as a percentage of NAV:
31 December 2020 | 31 December 2019 | |
Bilboes Gold Limited | 16.9% | 15.9% |
Futura Resources Ltd | 16.5% | 15.0% |
Cemos Group plc | 14.6% | 10.0% |
Tungsten West Limited | 12.6% | 8.0% |
Polar Acquisition Ltd | 11.2% | 11.3% |
Mines & Metals Trading Peru PLC | 4.5% | 4.4% |
Anglo Saxony Mining Limited | 4.0% | 4.6% |
Nussir ASA | 3.5% | 4.1% |
Azarga Metals Corp | 2.8% | 2.7% |
Sarmin Minerals Exploration | 2.7% | 3.7% |
Metals Exploration plc | 1.9% | 1.8% |
Black Pearl Limited Partnership | 1.3% | 3.4% |
Listed Precious Metal Shares | 3.9% | 6.1% |
Other Investments | 2.8% | 3.9% |
Net Cash, Equivalents and Accruals | 0.8% | 2.3% |
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 2020 following the year end review:
· Now that Cemos's cement plant in Morocco has reached full production capacity and is generating significant cashflow the valuation methodology has been changed from one based on historic cost adjusted for market movements, to one based on a multiple of EBITDA. This has resulted in a 92.9% increase in the carrying value of Cemos in Sterling terms (equivalent to an 8.9% increase in NAV).
· The valuation of Tungsten West Ltd has been increased to take account of the first closing of a fund raising at the end of 2020. This has resulted in a 99.0% increase in the carrying value of the investment (equivalent to an 8.0% increase in NAV).
· The economic model for the royalty held by PAL has been updated using the production profile from the Pre-Feasibility Study completed in September 2020 by Polymetal International PLC ("Polymetal"), the owner of the Prognoz Silver project in far eastern Russia. Together with the increase in the silver price since 30 June 2020 (+52% in US$), this has led to a 31.3% increase in the carrying value of PAL in Sterling terms (equivalent to a 3.4% increase in NAV).
· The carrying value of Mines & Metals Trading (Peru) Ltd has been increased by 48.2% to take account of a successful pre-IPO fund raising at the end of 2020 with the IPO planned for the first half of 2021. This is equivalent to a 1.9% increase in NAV.
· The carrying value of Bilboes Gold Limited ("Bilboes") has been increased slightly and is now being held at a discount to a cash offer for that company which remains subject to ongoing negotiation. Further details will be released should final terms be agreed.
One of the Company's smaller holdings, Akora Resources Ltd (formerly Indian Pacific Resources Ltd), completed a successful IPO on the Australian Stock Exchange during December 2020. This has led to a 208% increase in the carrying value of Akora which now accounts for approximately 1% of NAV. Akora holds prospective iron ore exploration licences in Madagascar.
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 JohnstoneTrevor 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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