Last close As at 05/08/2026
GBP1.30
▲ 4.00 (3.17%)
Market capitalisation
GBP137m
Research: Investment Companies
Baker Steel Resources Trust (BSRT) reported a strong monthly NAV uplift of 13.2% in June 2025 (bringing the H125 NAV total return to 16.4%) following its latest interim valuations update, with multiple portfolio drivers across its top 10 assets. Most notable among these was the AIM-listed Tungsten West as its share price rallied by 153% in June, following the designation of its Hemerdon Mine as one of the EU’s Critical Raw Materials Act projects (alongside the copper mining project of Nussir, which BSRT holds through Blue Moon Metals). BSRT also benefited from a valuation uplift on the agreed sale of the net smelter royalty in the Prognoz Silver Mine in Russia by Polar Acquisition (PAL). Finally, the trust enjoyed tailwinds from favourable precious metal prices in the valuation of its gross revenue royalty in the Bilboes Gold project in Zimbabwe and holdings in the listed Metals Exploration, Caledonia Mining Corporation and Silver X. BSRT’s last closing price implies a 36% discount to its end-June 2025 NAV of 104.4p per share.
NAV accretion also came from Cemos Group, a Moroccan cement producer, which was positively revalued by 7.7% as the new compact calcination plant (CCU) is now expected to be commissioned in August 2025. The CCU is expected to significantly reduce the company’s production costs and facilitate its growth strategy, which includes the development and marketing of low-CO2 ‘green cement’. This will enable Cemos Group to produce its own low-CO2 and other hydraulic binders (representing up to 70% of production costs), as well as supplementary cementitious materials that can be used in concrete as low-CO2 binders (see our site visit note published in October 2024 for details). Furthermore, we note that, based on previous statements made by Cemos Group, the company’s second grinding line should be installed in the near term and could lead to a doubling of production. On completion of its two major investment projects, Cemos Group plans to adopt a progressive dividend policy. It is also looking to list on the Casablanca Stock Exchange in the next few years.
NOT INTENDED FOR PERSONS IN THE EEA
In our latest Uncovering Trusts podcast episode on BSRT, we highlighted PAL, in which BSRT holds a 49.99% stake and which owns a
net smelter royalty in the Prognoz Silver Mine in Russia, as a potential additional
NAV kicker. It was largely written off following Russia’s invasion of Ukraine and
the subsequent sanctions on Russia. While the previous owner of the mine, the Kazakhstan-based
Solidcore Resources (formerly known as Polymetal International) sold its Russian assets
(including the Prognoz mine) to Mangazeya Plus in 2024, the obligation to make the
royalty payments to the trust remained with Solidcore Resources. On 2 July 2025, BSRT
announced that PAL had signed a binding agreement to sell its royalty to a private
Omani company for
In May 2025, Tungsten West announced the conclusion of its development and economic
plan to restart mining operations at the tungsten-tin Hemerdon Mine in Devon and released
associated summary economics, resources and reserves ahead of the completion of a
full updated feasibility study (expected in the next few months). The total financing
requirement has been set at
We believe that the designation as a strategic project under the EU Critical Raw Materials Act will support Tungsten West in terms of access to EU-based funding sources and act as a stamp of approval for potential investors from the private sector. Tungsten West expects its fund-raising to be completed by end 2025, with production launch due around 12 months later. The same advantages apply to Nussir, which is part of Blue Moon Metals and also received EU Critical Raw Materials project status in June 2025, and may further benefit from a smoother permitting process, given the raised project profile.
One weaker spot in terms of interim valuations was Futura, where, despite the overall
good progress made by its two coking coal mines in H125 (with both currently ramping
up production), the fair value of BSRT’s equity stake was reduced by 19% to A$1.80
per share. The main reasons for this were potential financial risks due to lower than
anticipated cash flows during the ramp-up stage and a decline in the valuations of
listed peers alongside the recent fall in the price of coking coal. That said, as
discussed in our update note in May 2025, Futura secured a
In March 2025, Blue Moon Metals (which is listed on the TSX Venture Exchange) completed the purchase of Repparfjord Eiendom, a property company that owns and manages land and infrastructure assets in the Repparfjord area, adjacent to Nussir. BSRT highlighted that this provides most of the required infrastructure for the project to be built including a port area with associated ship loading equipment and infrastructure. Furthermore, it mobilised a local mining contractor in May 2025 in preparation for the work, which is expected to provide key inputs for engineering studies that the company in turn expects will lead to a final investment decision for the project in 2026. Blue Moon Metals owns two further projects, one being a zinc-copper-gold-silver project in the volcanogenic massive sulphide (VMS) deposit in Mariposa County, California, for which it announced its preliminary economic assessment in March 2025 and regulatory approval for the construction of a portal and tunnel. This is to enable underground mineral exploration, with the construction of the decline expected in Q325, supporting a feasibility study within the next 24 months. Another Blue Moon Metals project is a copper-zinc brownfield project involving a VMS deposit in Nordland in Norway, for which it announced a maiden mineral resource estimate in April 2025.
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Research: Investment Companies
International Public Partnerships’ (INPP’s) recent portfolio update showed its portfolio is continuing to perform well, with further progress on accretive capital recycling. INPP shares offer an attractive prospective dividend yield of 7.0% with an unbroken record of dividend growth and visibility for at least another 20 years. Active measures to narrow the discount to NAV are having a positive impact, but it remains at c 15%, which in our view offers an attractive opportunity. At this level, the implied total return to an investor, based on projected future portfolio cash flows, is an attractive 10.1% per year, which is c 465bp above the UK 30-year gilt yield.