21st Apr 2020 15:32
(Alliance News) - Baker Steel Resources Trust Ltd on Tuesday reported a rise in assets over 2019, on a "positive" year for mining shares.
At December 31, the company's NAV per share stood at 73.9 pence compared to 56.9p at the same point the year before.
Over 2019, Baker's NAV rose 29.9%, this compares to an 18.1% rise from the EMIX Global Mining Index.
Chair Howard Myles said 2019 was a "positive" year for mining shares.
He continued: "This was assisted by a high proportion of the portfolio being invested in precious metals projects with over 50% invested in gold and silver at the beginning of the year although this had fallen to 38% at December 31 following the sale of a significant proportion of our Polymetal International PLC shares received as consideration from the sale of Polar Silver in 2018."
Precious metals were the best performing metals during 2019 with gold up 18.8% and silver up 15.9% with base metals such as copper and zinc lagging on fears of a global slowdown particularly in China, Myles said.
Looking ahead, Myles said the world is "still coming to grips with the implications" of Covid-19.
"In the past two months we have seen weakness in base metals and steel mineral prices as output has been suspended particularly in China. However, structuring of many of our investments as convertible loans at least means that we have the benefit of accruing a coupon and potentially improving conversion terms should there be, for example, a delay to a project. Moreover, a high proportion of the portfolio assets are in precious metal projects and should in theory act as a hedge in case of a prolonged crisis," he added.
At March 31, Baker's NAV per share had dipped to 67.3p.
Shares in Baker Steel Resources were untraded in London on Tuesday, having last closed at 46.54 pence each.
By Paul McGowan; [email protected]
Copyright 2020 Alliance News Limited. All Rights Reserved.
Related Shares:
Baker Steel