Baker Steel Resources Trust Reports 16.2% NAV Growth Amid Commodity Market Divergence

Baker Steel Resources Trust Delivers Stellar NAV Growth Amid Commodity Rollercoaster

While most mining investors were white-knuckling their way through 2024’s commodity swings, Baker Steel Resources Trust (BSRT) quietly delivered a masterclass in selective resource investing. Today’s annual report reveals a 16.2% NAV surge to 89.7p per share – a performance that left the MSCI Metals & Mining Index eating dust with its 13.5% decline.

The Great Commodity Divergence: Winners vs. Losers

2024 wasn’t a uniform “rising tide” year. The market cleaved sharply between:

• 🟢 Precious metals gang: Gold (+27%), Silver (+21.5%)
• 🟡 Base metals crew: Copper (+2%), Tin (+14.6%)
• 🔴 Bulk commodity casualties: Iron ore (-27%), Coking coal (-40%)

The trust’s secret sauce? Heavy exposure to the energy transition metals complex while maintaining strategic positions in cash-generative industrial plays.

Portfolio Powerhouses: The 65% Duo Driving Returns

Futura Resources (33.4% of NAV)

This Australian metallurgical coal play delivered 83% growth since initial investment, now producing 1Mtpa from Queensland’s Bowen Basin. But here’s the rub – current coking coal prices at $170/tonne are testing industry margins. The board remains bullish on long-term demand from India’s steel growth, but I’m watching working capital needs like a hawk.

CEMOS Group (31.4% of NAV)

Morocco’s cement dark horse saw 90% growth, with EBITDA doubling to €9m. The upcoming clinker plant (Q2 2025) could be transformative – vertical integration typically unlocks 15-20% margin improvements in cement plays. With World Cup 2030 infrastructure spending looming, this could become BSRT’s cash cow.

The Discount Dilemma: 37% Gap Raises Eyebrows

Despite the NAV fireworks, shares trade at a chunky 37% discount. Chairman Fiona Perrott-Humphrey isn’t hitting the panic button yet, noting sector-wide discounts. But the appointment of Shore Capital as broker signals action is coming: