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8 Mar 2024 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)
8 March 2024
29 February 2024 Unaudited NAV Statement
Net Asset Value
Baker Steel Resources Trust Limited (the "Company") announces its unaudited net asset value per share at 29 February 2024.
Net asset value per Ordinary Share: 75.3 pence.
The NAV per share was unchanged versus the unaudited NAV at 31 January 2024 with declines in the listed prices of Caledonia Mining and Silver X shares balanced by an increase in the share price of Metals Exploration.
The Company had a total of 106,462,502 Ordinary Shares in issue with a further 700,000 shares held in treasury as at 29 February 2024.
Investment Update
The Company's top 10 investments were as follows as a percentage of NAV:
29 February 2024 | 29 December 2023 | |
Futura Resources Ltd | 35.8% | 36.3% |
Cemos Group plc | 29.8% | 29.3% |
Bilboes Royalty | 7.4% | 7.2% |
Caledonia Mining Corporation Plc | 4.5% | 5.4% |
Nussir ASA | 4.1% | 4.1% |
Metals Exploration Plc | 3.9% | 3.0% |
Kanga Investments Ltd | 3.8% | 3.6% |
Silver X Mining Corporation | 2.8% | 3.5% |
First Tin plc | 2.0% | 2.1% |
Tungsten West Plc | 1.8% | 1.7% |
Other Investments | 3.5% | 3.4% |
Net Cash, Equivalents and Accruals | 0.6% | 0.4% |
Futura Resources Ltd ("Futura")
During February Futura Resources achieved the milestone of first production of steel making (or coking) coal from its Wilton Mine in Queensland Australia. This marked the culmination of many years' work from initial exploration, resource drilling and definition, feasibility studies and permitting through to completion of the A$30 million convertible financing last year to support the commencement of operations. A total of around A$100m is estimated to have been spent in today's money terms to get to this point over the last decade or so.
Although the targeted date for first coal production from Wilton slipped by around a month primarily due to unusually heavy rains in Queensland causing localised logistic issues with mobile equipment, the mine has otherwise been commissioned on plan and on budget.
The initial 10,000 tonnes of run of mine coal from Wilton has been trucked to the nearby Gregory Crinum Coal Handling and Preparation Plant (CHPP) and will shortly be batch processed into the final product. It will then be loaded and railed to the port of Gladstone on the Queensland coast before being shipped to customers. Futura anticipates receiving first sale proceeds from this shipment during March 2024.
Futura is in advanced negotiations to secure a A$35m pre-payment debt offtake and marketing facility with a major coal trading company to fund its second shovel ready open pit mine, Fairhill, contiguous to Wilton, which will allow mining to commence in September 2024.
Together Wilton and Fairhill, once ramped up to planned production levels will extract between 3 and 4 million tonnes per annum of run of mine coal which after processing recoveries at the Gregory CHPP will result in sales of between 1.5 to 2 million tonnes of final products to the international markets with industry competitive operating costs of around US$85 per tonne.
Steel making coal remains vital to steel production in conventional blast furnaces which are likely to be the mainstay for primary steel production for many years to come, particularly in the developing world, with for example India forecasted to require significantly increased imports of seaborne steel making coal by 2030.
Prices for the benchmark Platts Australian Hard Coking coal have been stable at above US$300 per tonne over the past few months, somewhat above the industry consensus of around US$230 per tonne longer term, but well below the peaks of the mid US$400s per tonne seen in 2022.
The Company will own 24.3% of the equity of Futura assuming full conversion of the convertible loan together with a 1.5% Gross Revenue Royalty over all coal production from the Wilton and Fairhill licenses.
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
Deutsche Numis +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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