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 Johnstone
Trevor 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.