Last close As at 05/08/2026
GBP1.30
▲ 4.00 (3.17%)
Market capitalisation
GBP137m
Research: Investment Companies
Baker Steel Resources Trust (BSRT) has reported a strong 16.3% NAV increase in its end-December 2023 monthly update (reducing the FY23 NAV decline to 6.3%), following its year-end portfolio valuations update. The key driver was a c 47% revaluation of Futura Resources, BSRT’s largest holding, which owns two coking coal mines in Australia. This follows the successful financing in September 2023, which allowed Futura to advance its Wilton mine to production. At the last closing price, BSRT shares are trading at a 44% discount to its unaudited end-2023 NAV.
Baker Steel Resources Trust |
Strong revaluation boost from Futura |
Investment trusts |
23 January 2024 |
Analyst
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Baker Steel Resources Trust (BSRT) has reported a strong 16.3% NAV increase in its end-December 2023 monthly update (reducing the FY23 NAV decline to 6.3%), following its year-end portfolio valuations update. The key driver was a c 47% revaluation of Futura Resources, BSRT’s largest holding, which owns two coking coal mines in Australia. This follows the successful financing in September 2023, which allowed Futura to advance its Wilton mine to production. At the last closing price, BSRT shares are trading at a 44% discount to its unaudited end-2023 NAV.
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Futura now makes up c 36% of BSRT’s NAV |
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Source: BSRT. Note: *Including cash equivalents and accruals. |
Wilton on track, Fairhill could start production soon
BSRT highlighted that the Wilton mine is making progress largely according to plan, with first coal expected to be shipped to the Gregory Crinum site for processing and inaugural coal sales in the first half of February 2024. Moreover, Futura is in advanced negotiations for A$35m in offtake finance for the development of Fairhill (its second mine), which could be concluded soon, with a potential production start within six months of Wilton coming onstream. See our earlier note for project details.
Futura offering healthy income prospects
The production start at Wilton (and later at Fairhill) will trigger first payments to BSRT from its 1.5% gross revenue royalty. BSRT’s management earlier indicated pre-tax royalty income potential for Futura of A$4m (c £2m) pa, assuming full production ramp-up to 2m tonnes and forward curve prices which are well below the current spot price of US$330/tonne. In addition, BSRT has a convertible loan from Futura (with a coupon rate of 21% pa) and a 23.4% equity stake (offering the prospect of regular, sizeable dividend payments in the medium term).
Cemos proceeding with its new clinker line
The cement producer Cemos was revalued by 14% to reflect part of the expected benefit from commencing a compact calcination unit to produce its own clinker (a key input, making up c 70% of production costs) later this year. Cemos believes that this could potentially double the company’s EBITDA while providing better security of clinker supply. Other major portfolio changes include a 37% reduction in the fair value of Kanga Potash and a c 19% upward revaluation of Nussir based on the change in comparable listed companies.
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Research: TMT
Boku expects to report FY23 revenue and adjusted EBITDA ahead of our and consensus forecasts, helped by strength from both the core direct carrier billing (DCB) business and rapid growth in adoption of local payment methods (LPM). The strong finish to FY23 highlights positive momentum going into FY24 and we have upgraded our forecasts, with adjusted EBITDA up 7.6% for FY23, 5.3% for FY24 and 4.8% for FY25.