Potential to generate a 20%+ yield

London, UK, 14 Mai 2024

Edison issues review on Baker Steel Resources Trust (BSRT): Potential to generate a 20%+ yield

Baker Steel Resources Trust (BSRT) offers the potential for regular dividend and royalty income, as well as realisation proceeds, from its maturing portfolio of natural resources companies. Despite the multiple headwinds recently affecting junior mining projects, its largest holding (Futura Resources) was able to successfully close a financing round in September and advance one of its coking coal mines to production. Moreover, Cemos Group is eyeing the deployment of a second grinding line and clinker plant to significantly increase its earnings. Despite the recent share price rally, BSRT’s shares trade at a 33% discount to NAV.

BSRT’s portfolio does not simply offer geared exposure to a basket of commodities, but provides the potential to generate returns from bringing junior mining projects up the development curve. Its current portfolio includes several maturing assets, many of which are already in production. BSRT’s manager estimates that upon full production ramp-up of its major projects, its portfolio could potentially generate total royalty and dividend income of £11–17m pa. This would represent a very healthy 19–30% annual yield on its current share price, though we note that this is still subject to project execution risks. Most of this potential comes from Futura Resources and Cemos Group, which plan to complete their production ramp-up/expansion in the next 12–24 months.

Click here to view the full report.

All reports published by Edison are available to download free of charge from its website

www.edisongroup.com

About Edison: As a content-led investor-relations business, Edison helps companies stand out and meet the right shareholders. Edison’s integrated investor relations solution combines expert analyst content, digital targeting and active investor engagement. This drives liquidity and valuations by building bigger, better informed and more engaged investor audiences globally.

Edison has a proven history of increasing liquidity and valuations for its clients. Edison’s content can be viewed by all investors, anywhere in the world.

Edison is authorised and regulated by the Financial Conduct Authority.

Edison is not an adviser or broker-dealer and does not provide investment advice. Edison’s reports are not solicitations to buy or sell any securities.

For more information, please contact Edison:

Milosz Papst +44 (0)20 3077 5700 investmenttrusts@edisongroup.com

Learn more at www.edisongroup.com and connect with Edison on: 

LinkedIn https://www.linkedin.com/company/edison-group-/

X  www.twitter.com/Edison_Inv_Res

YouTube http://www.youtube.com/edisonitv