Investment Update and 30 September 2026 NAV

NAV fell 4.6% on portfolio declines; major exits and project restarts remain pending.

What the company is saying

Baker Steel Resources Trust Limited reports its unaudited NAV per Ordinary Share at 172.4 pence as of 30 September 2026, with a total NAV of £181.5 million. The company attributes the 4.6% NAV per share decline since August to lower share prices in Tungsten West and Blue Moon Metals. No shares were repurchased in September, though the buyback program has retired 1,224,400 shares at an average of 116.4 pence since February. The update highlights two transformative portfolio events: a joint venture and funding package for Blue Moon Metals’ Springer Tungsten Complex in Nevada, and a signed agreement to sell 92% of Kanga Potash for USD 156.4 million. Management, led by CIO Trevor Steel, frames these developments as critical to unlocking value and emphasizes the strategic importance of U.S. government backing for the Springer project and the potential 288% ROI on Kanga Potash, though both are subject to completion and regulatory approval.

What the data suggests

The NAV per share decreased by 8.3 pence, or 4.6%, in September, driven mainly by declines in Tungsten West and Blue Moon Metals. The total NAV stands at £181.5 million, with 105,238,102 shares in issue and 700,000 in treasury. The buyback program has reduced the share count by 1,224,400 shares at a weighted average price of 116.4 pence, but no repurchases occurred in September. Portfolio concentration remains high, with the top three holdings—Tungsten West (£47.7m, 26.3%), Cemos Group (£30.0m, 16.6%), and Futura Resources (£26.9m, 14.8%)—comprising over half of NAV. The Blue Moon Springer JV contemplates a US$25 million equity injection, a US$50 million prepayment facility, and up to US$100 million for plant restart, all contingent on execution. The U.S. Department of War has committed US$450 million to Elmet, with US$150 million earmarked for these transactions, but no funds have yet been received by Blue Moon. The Kanga Potash sale, if completed, would yield US$5.1 million in December 2026 and US$0.5 million in December 2027 for BSRT, representing a projected 288% return on its US$1.93 million investment. Both the Springer restart and Kanga sale are pending regulatory approvals and future milestones, with proceeds and operational impact not yet realized.

Analysis

The announcement is a factual investment and NAV update, with clear disclosure of realised figures (NAV, share count, buyback activity, portfolio composition) and transparent attribution of the NAV decline to specific holdings. Forward-looking statements regarding the Springer Tungsten Complex and Kanga Potash sale are presented as expectations or projections, not as completed milestones. While large capital investments and potential returns are discussed, the language is proportionate and avoids promotional overstatement. The forward-looking elements (Springer restart in 2027/2028, Kanga Potash sale proceeds) are appropriately caveated and not presented as guaranteed outcomes. There is no evidence of narrative inflation or exaggerated claims relative to the disclosed facts. The gap between narrative and evidence is minimal, and the tone remains measured throughout.

Risk flags

• ●Execution risk on the Blue Moon Springer JV is high, as the US$25 million equity investment, US$50 million prepayment, and up to US$100 million for plant restart are not yet closed. Delays or failure to secure these funds would postpone or jeopardize the project timeline.
• ●The Kanga Potash sale is subject to both Congolese and Chinese regulatory approvals, with 90% of proceeds due at closing and 10% a year later. Any regulatory or counterparty delays could defer or reduce the expected 288% return.
• ●NAV remains highly concentrated in a few holdings, notably Tungsten West and Cemos Group, amplifying the impact of adverse price movements on overall portfolio value, as evidenced by the September NAV decline.
• ●Projected returns from both Blue Moon and Kanga Potash are not yet realized and depend on successful execution of complex, multi-party transactions and regulatory processes, introducing material uncertainty to the timing and quantum of future cash flows.

Bottom line

Baker Steel Resources Trust’s NAV fell 4.6% in September, reflecting marked-to-market losses in key holdings. While the company has secured agreements that could unlock significant value—most notably the Kanga Potash sale (potential 288% ROI) and the Blue Moon Springer JV (with US$150 million in U.S. government-backed funding earmarked)—neither has closed, and both are subject to regulatory and execution hurdles. The portfolio remains concentrated, and the timing of major cash inflows is uncertain, with the earliest material proceeds from Kanga Potash not expected until December 2026 and Springer’s operational restart targeted for late 2027 or beyond. Investors should focus on completion of the Kanga sale and tangible progress at Springer as the next value catalysts. The most important takeaway is that while the trust’s pipeline is strong on paper, near-term NAV is driven by listed equity volatility, and the headline returns from pending deals remain projections until cash is received.

Announcement summary

(LSE:BSRT) Baker Steel Resources Trust Limited announced its unaudited net asset value (NAV) per Ordinary Share as at 30 September 2026 was 172.4 pence. The total NAV was £181.5 million. The NAV per share decreased by 8.3 pence, or 4.6%, from the last published NAV at 31 August 2026, mainly due to decreases in the listed share prices of Tungsten West and Blue Moon Metals. No shares were bought back in September 2026 under the share buyback programme, which began in February 2026. As at 30 September 2026, the programme had bought back a total of 1,224,400 shares at a volume weighted average price of 116.4 pence per share. The Company had 105,238,102 Ordinary Shares in issue and 700,000 shares held in treasury as at 30 September 2026. The top 10 investments as at 30 September 2026 included Tungsten West Plc (£47.7 million, 26.3%), Cemos Group plc (£30.0 million, 16.6%), Futura Resources Ltd (£26.9 million, 14.8%), Blue Moon Metals Inc (£19.6 million, 10.8%), Bilboes Royalty (£14.3 million, 7.9%), Silver X Mining Corporation (£11.7 million, 6.4%), Metals Exploration plc (£7.3 million, 4.1%), First Tin PLC (£6.7 million, 3.7%), Kanga Potash (£3.4 million, 1.9%), and Chancery Royalty (£2.3 million, 1.2%). Other investments totaled £3.3 million (1.8%), and net cash, equivalents and accruals were £8.3 million (4.5%). On 14 September 2026, Blue Moon Metals Inc, The Elmet Group Co., and EQ Resources Limited announced a joint venture agreement regarding the Springer Tungsten Complex in Imlay, Nevada, United States. The Springer facility includes open pit and underground mines, a 1,200 Tpd mill, and an Ammonium Paratungstate (APT) plant, capable of potentially producing up to 4,000 Tpa. The facility is fully permitted for construction. The transactions include the formation of a JV entity to own and operate the APT plant, a US$25 million equity investment by Elmet into Blue Moon, a supply agreement for EQ and Blue Moon tungsten concentrate offtakes to the APT plant at market pricing, and a US$50 million tungsten prepayment facility provided by Elmet to Blue Moon to be repaid through concentrate sales. Up to US$100 million investment by Elmet and EQ is planned to bring the APT plant back into production. Blue Moon will have a 20% carried interest in the APT JV. The U.S. Department of War (DoW) has supported the transactions, including completing a National Environmental Act review of Springer, and announced a US$450 million investment into Elmet, with US$150 million designated for these transactions. The Springer mine and mill are expected to be back in production in Q4 2027, and the APT plant is expected to restart in 2H 2028. During September 2026, Kanga Potash shareholders signed a Share Purchase Agreement with Zangge Mining and Yuntu Holdings for the sale of 92% of Kanga Potash for USD 156.4 million, with 90% of the consideration paid in cash on completion (subject to Congolese and Chinese regulatory approvals) and the remaining 10% paid in cash one year after completion. The Company’s investment in Kanga Potash was US$1.93 million (£1.46 million). The investment is being held at a 20% discount to the expected share of proceeds of US$5.1 million (£3.8 million) in December 2026 and US$0.5 million in December 2027. On completion of the Kanga sale, the consideration will represent a 288% return on investment.

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