BAKER STEEL RESOURCES TRUST
LIMITED
(Incorporated in Guernsey with
registered number 51576 under the provisions of The Companies
(Guernsey) Law, 2008 as amended)
9 October
2024
30 September 2024 Unaudited NAV
Statement
Net Asset Value
Baker Steel Resources Trust Limited
(the "Company") announces its unaudited net asset value per share
at 30 September 2024.
Net asset value per Ordinary Share:
79.6 pence.
The NAV per share at 30 September
2024 was unchanged from the NAV at 30 August 2024 with the increase
in the listed prices of Caledonia Mining balanced by the strength
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 30 September 2024.
Investment
Update
The Company's top 10 investments
were as follows as a percentage of NAV:
|
|
30 September
2024
|
31 December
2023
|
|
Futura Resources Ltd
|
34.0%
|
36.3%
|
|
Cemos Group plc
|
30.8%
|
29.3%
|
|
Bilboes Royalty
|
7.6%
|
7.2%
|
|
Caledonia Mining Corporation
Plc
|
5.7%
|
5.4%
|
|
Nussir ASA
|
4.3%
|
4.1%
|
|
Metals Exploration Plc
|
3.9%
|
3.0%
|
|
First Tin PLC
|
3.7%
|
2.1%
|
|
Silver X Mining
Corporation
|
2.8%
|
3.5%
|
|
Tungsten West Plc
|
2.7%
|
1.7%
|
|
Kanga Investments Ltd
|
1.5%
|
3.6%
|
|
Other Investments
|
2.6%
|
3.4%
|
|
Net Cash, Equivalents and
Accruals
|
0.4%
|
0.4%
|
Cemos Group
PLC ("Cemos")
At the beginning of October 2024, the
Investment Manager and certain members of the Company's Board of
Directors joined a group of investors to tour Cemos's cement
production facilities at Tarfaya in Southern Morocco and to meet
with Cemos's local financial advisor. Generally, the group was
impressed by the quality of the operation and local Moroccan
management and reassured by the positive outlook for
Cemos.
Cemos's current grinding facilities have
performed according to budget during 2024 and are on target to
produce approximately 200,000 tonnes of cement during the year,
generating an EBITDA of around €8 million. Apart from the existing
facilities which have now been in production for 5 years, the
on-going construction by Cemos of a Compact Calcine Unit (CCU) at
Tarfaya was also observed. The CCU is due to be completed by the
end of the year and will enable Cemos to produce its own clinker,
which represents up to 70% of the final cement product so by
producing its own clinker, Cemos will ensure security of supply and
considerably reduce the overall production cost from 2025
onwards.
The CCU will also provide for the production of
other supplementary cementatious materials such as
calcinated clay and industrial pozzolans, which when used in
the feed mix can considerably reduce the CO2 emissions associated
with making cement, thereby making a greener cement product.
Additionally, the Moroccan electricity grid which powers Cemos is
substantially based on renewables, principally wind and solar,
unlike the power sources for cement producers in other
countries.
In addition the investor group visited the site
of Cemos's next planned expansion in the
Drâa-Tafilalet region of Morocco and was impressed by the amount of
construction activity and growth potential in the region. A second
compact grinding plant has already been acquired and is due to be
installed during 2025. The management of Cemos is also evaluating
additional opportunities for further growth.
Cemos's financial advisor gave an overview of
the cement industry in Morocco as well as an indicative valuation
of the local Cemos company (Cemos Morocco) were it to list on the
Casablanca Stock Exchange. The cement industry in Morocco is well
positioned given the high rate of construction and development
going on today and with the additional impetus that will accompany
preparations for the hosting of the 2030 World Cup. The local
subsidiaries of Lafarge Holcim and Heidelberg are listed locally
and enjoy considerably higher valuation metrics than seen elsewhere
reflecting prospects for the sector combined with strong appetite
from local institutional investors. The advisor stated that the
Market would be receptive to a stock such as Cemos Morocco and
believed it would command a good rating. The Investment Manager and
the Board are still to receive the detailed valuation report,
albeit the summary was supportive of the current carrying value,
with the potential for a material uplift. The Investment Manager
and the Board intend to review the carrying value of Cemos at the
year-end.
Further details of the Company and
its investments are available on the Baker Steel website
www.bakersteelcap.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.