BAKER STEEL RESOURCES TRUST LIMITED
(Incorporated in Guernsey with registered number 51576 under the provisions of The Companies (Guernsey) Law, 2008 as amended)
6 September 2021
31 August 2021 Unaudited NAV Statement
Net Asset Value
Baker Steel Resources Trust Limited (the "Company") announces its unaudited net asset value per share at 31 August 2021:
Net asset value per Ordinary Share: 96.6 pence
The NAV per share has decreased by 0.9% against the unaudited NAV at 30 July 2021, mainly due to a decrease in the share price of Azarga Metals Corp on the TSX-V market.
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 August 2021.
Investment Update
The Company's top 12 investments were as follows as a percentage of NAV:
| | 31 August 2021 | 31 December 2020 |
| Bilboes Gold Limited | 19.4% | 19.5% |
| Futura Resources Ltd | 16.0% | 16.2% |
| Tungsten West Limited | 15.7% | 13.2% |
| Cemos Group plc | 13.9% | 14.5% |
| Polar Acquisition Ltd | 8.7% | 8.9% |
| Anglo Saxony Mining Limited | 5.2% | 3.9% |
| Mines & Metals Trading Peru PLC/Silver X Mining Corporation | 4.2% | 4.5% |
| Nussir ASA | 3.9% | 3.4% |
| Azarga Metals Corp | 2.7% | 2.7% |
| Kanga Potash | 2.7% | 2.7% |
| Metals Exploration plc | 1.6% | 1.9% |
| Prism Diversified | 1.5% | 1.5% |
| Listed Precious Metal Shares | 2.0% | 3.9% |
| Other Investments | 2.0% | 2.4% |
| Net Cash, Equivalents and Accruals | 0.5% | 0.8% |
Polar Acquisition Limited ("PAL")
On 26 August 2021 Polymetal International announced that it had approved an accelerated development of the open-pit mine at the Prognoz silver project in the Republic of Sakha (Yakutia), Russia over which PAL holds a 1.8% to 0.9% net smelter royalty with ore processing at its Nezhda concentrator. First production and therefore payment of the royalty is now planned for 2023 approximately three years earlier than previously envisaged
The current plan proposes silver equivalent production of approximately 6.5 million ounces per annum in concentrate over 18 years. This is a lower production rate over a longer period than the previous guidance, however given the excellent exploration potential and additional resources already identified which could be mineable using underground methods, we would expect that the production rate would be increased once the mine was producing positive cashflow.
The Investment Manager will seek further details on the revised production profile from Polymetal prior to reviewing the valuation of PAL's royalty.
Azarga Metals Corporation ("Azarga")
During August 2021, TSX-V listed Azarga released the results of its updated Preliminary Economic Assessment on its Unkur copper/silver project in far eastern Russia. A base case of an initial open-pit mining operation is proposed followed by underground mining with an average annual production of 11.7 thousand tonnes per annum of copper and 2.9 million ounces of silver per annum in concentrates over a 14-year mine life. At long term consensus metal prices (US$3.86/lb copper and US$25/oz silver) the economic model calculated a post tax NPV8% of US$205 million and an IRR of 27%. The market capitalisation of Azarga at 31 August 2021 was approximately C$10.6 million.
The exploration potential at the project remains attractive and a program of additional drilling is planned by the end of the year targeting additional open-pittable resources.
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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