16th Sep 2020 14:31
Baker Steel Resources Trust Ltd - Guernsey-incorporated firm investing in equities, loans or related instruments of natural resources companies - Net asset value per share increases by 4.5% to 77.2 pence as at June 30 from 73.9p at the end of 2019. This is, however, a 21% drop from its first NAV, calculated April 2010. The EMIX Global Mining index was up 5.8% for the same six month period and has risen 5.3% since April 2010 in sterling terms. Chair Howard Myles notes "extremely volatile" mining share market in period with sharp fall in March along with other markets before a strong recovery in the second quarter.
"The second half of 2020 promises to be eventful with Bilboes Gold and Nussir both seeking finance or a partner to fund the development of their gold and copper projects respectively after completing positive definitive feasibility studies earlier this year. Generally, there remain significant uncertainties as a result of actual and potential measures introduced to combat the Covid pandemic. However, with the gold price having risen to over USD2,000 per ounce during late July, exceeding its previous high reached in 2011 and currently still close to that level, and with a recent increase in the copper price, it may be an opportune time to bring these companies to the market," Myles says.
"If the recent recovery in commodity prices continues, especially gold and silver, and with long term low or negative real interest rates, a rapid expansion of debt, historically high levels of economic stimulus and the potential for growing inflationary pressures, real assets such as commodities and mining should become increasingly attractive."
Current stock price: 67.00p
Year-to-date change: up 23%
By Anna Farley; [email protected]
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