BAKER STEEL RESOURCES TRUST LIMITED
(Incorporated in Guernsey with registered number 51576 under the provisions of The Companies (Guernsey) Law, 2008 as amended)
3 June 2021
28 May 2021 Unaudited NAV Statement
Net Asset Value
Baker Steel Resources Trust Limited (the "Company") announces its unaudited net asset value per share at 28 May 2021:
Net asset value per Ordinary Share: 98.6 pence
The NAV per share has increased by 2.0% against the unaudited NAV at 30 April 2021, with an increase in the valuation of Tungsten West and increases in the share prices of the listed precious metals investments outweighing an increase in the exchange rate of Sterling against the US Dollar.
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 May 2021.
Investment Update
The Company's top 12 investments were as follows as a percentage of NAV:
| | 28 May 2021 | 31 December 2020 |
| Bilboes Gold Limited | 18.5% | 19.5% |
| Futura Resources Ltd | 15.6% | 16.2% |
| Tungsten West Limited | 15.2% | 13.2% |
| Cemos Group plc | 13.5% | 14.5% |
| Polar Acquisition Ltd | 8.4% | 8.9% |
| Anglo Saxony Mining Limited | 5.1% | 3.9% |
| Mines & Metals Trading Peru PLC | 4.0% | 4.5% |
| Azarga Metals Corp | 3.7% | 2.7% |
| Nussir ASA | 3.3% | 3.4% |
| Sarmin Minerals Exploration | 2.6% | 2.7% |
| Metals Exploration plc | 2.6% | 1.9% |
| Black Pearl Limited Partnership | 1.2% | 1.2% |
| Listed Precious Metal Shares | 3.4% | 3.9% |
| Other Investments | 2.4% | 2.7% |
| Net Cash, Equivalents and Accruals | 0.5% | 0.8% |
Tungsten West Limited ("Tungsten West")
During May 2021, Tungsten West undertook a pre-IPO equity fundraising at a 33% premium to the previous raising at the beginning of this year, which it expanded from £2 million to approximately £4 million due to very high demand. The proceeds of the raising will enable Tungsten West to commence the refurbishment of the Hemerdon processing plant and fund down payments for long lead capital items. In consideration of this raising and the expectation that the Company's convertible loans will be converted on the IPO, the Company has adjusted its current carrying value of both its shares and convertible loans in Tungsten West.
Tungsten West has appointed VSA Capital and Hannam & Partners as joint brokers to a planned IPO on the AIM market of the London Stock Exchange in the third quarter 2021 and are in advanced negotiations for the project finance debt raising. Tungsten West's objective is to commence work in the second half of this year, targeting commercial production in approximately 18 months.
During March 2021 Tungsten West released the findings of its Bankable Feasibility Study (BFS) which covers the restart of its Hemerdon tungsten mine in Devon, UK. The BFS shows a £45m initial capital requirement for a mine expected to produce on average £34 million of EBITDA per annum for over 20 years. This results in an after tax NPV5% of £272 million based on current tungsten prices with an IRR of 33%. The ore reserve estimate in the BFS is 63.3 million tonnes at 0.18% WO3, such that Hemerdon has the second largest JORC compliant tungsten ore reserve in the world outside China.
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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