Investment Update and 31 August 2026 NAV

BSRT's NAV surged 17.3% in August, driven by Tungsten West and commodity price gains.

What the company is saying

Baker Steel Resources Trust Limited reports a 17.3% increase in NAV per share to 180.7 pence as at 31 August 2026, with total NAV reaching £190.2 million. The company attributes this gain primarily to a sharp rise in Tungsten West’s value following a £71 million financing deal with the UK National Wealth Fund and a broader recovery in listed portfolio holdings amid stronger commodity prices. The announcement highlights the Hemerdon tungsten mine’s now fully funded status, projecting substantial after-tax profits once operational. Management, represented by Chief Investment Officer Trevor Steel, emphasizes the strategic importance of government backing and the robust economics of First Tin’s Australian project, referencing updated feasibility metrics. The tone is confident, focusing on imminent production milestones and the potential for high margins if current commodity prices persist. The company also details its ongoing share buyback programme, noting no repurchases in August but a cumulative 1,224,400 shares bought back since February at an average price of 116.4 pence.

What the data suggests

The disclosed figures show a material NAV per share increase of 26.6 pence (17.3%) from July to August 2026, with the total NAV at £190.2 million and 105,238,102 shares outstanding. Tungsten West, now 28.0% of the portfolio (£53.2 million), benefited from a 47% share price jump after agreeing to a £71 million investment package from the UK National Wealth Fund, comprising £36 million in equity at 36p, up to £25 million in debt, and a £10 million accordion facility. The Hemerdon mine is projected to generate over US$300 million per year after tax at current tungsten prices, with a base case 11-year mine life and potential extension beyond 40 years. First Tin’s updated DFS for the Taronga project in Australia forecasts 3,200 tonnes of tin annually over 13.5 years, with US$208 million pre-production capex, an AISC of US$18,650/t, and an NPV(8%) of US$172 million at US$40,000/t tin, rising to US$400 million at current prices over US$55,000/t. First Tin’s market cap is US$88 million, suggesting a significant discount to project NPV. The company’s buyback programme has reduced share count by 1,224,400 shares at an average of 116.4 pence. All project-level figures are feasibility-based projections, not realised outcomes.

Analysis

The announcement provides robust, factual disclosure of NAV, share count, buybacks, and portfolio composition, with a clear and significant 17.3% NAV per share increase over the prior month. However, much of the positive narrative is attributed to forward-looking events, such as the proposed Tungsten West financing and feasibility study projections for both Tungsten West and First Tin. While the agreed terms for Tungsten West's financing are a concrete milestone, the benefits (mine production, projected profits) remain long-term and contingent on successful project execution. The release highlights large capital requirements (e.g., US$208 million pre-production capex for First Tin) with benefits that are not imminent. Several claims, such as multi-decade mine life and high after-tax profits, are projections rather than realised outcomes. The gap between realised NAV growth and the aspirational tone around portfolio companies' future cash flows and margins inflates the overall signal.

Risk flags

• ●The NAV increase is heavily reliant on a single holding, Tungsten West, which now represents 28.0% of the portfolio. This concentration exposes BSRT to project-specific and commodity price risks, especially as Hemerdon is not yet in production.
• ●Projected returns from Hemerdon and Taronga are based on feasibility studies and current commodity prices, both of which are subject to change. If tungsten or tin prices fall, or if project execution falters, expected cash flows and margins could be materially lower.
• ●The Hemerdon mine’s production and profitability projections assume timely completion and ramp-up, but delays, cost overruns, or permitting setbacks could erode value. The same applies to First Tin, which still requires an operating licence and faces a US$208 million capex hurdle.
• ●Portfolio valuation is based on unaudited, estimated figures that may not reflect actual market values or be independently verified. This introduces potential for NAV volatility or restatement if assumptions prove optimistic.
• ●The share buyback programme has reduced share count but may have limited impact on NAV if underlying portfolio assets underperform or if market conditions reverse.

Bottom line

BSRT delivered a strong 17.3% NAV per share gain in August, driven by a sharp re-rating of Tungsten West after securing UK government-backed financing and by rising commodity prices across its portfolio. While the NAV uplift is real and supported by detailed figures, much of the future value depends on successful project execution at Hemerdon and Taronga, both of which remain pre-production and capital intensive. The portfolio is now more concentrated, with Tungsten West accounting for over a quarter of assets, amplifying both upside and downside risk. Investors should weigh the credibility of feasibility-based projections against the real-world challenges of mine development and commodity market volatility. The next key catalyst is Hemerdon’s move to production by Q1 2027 and First Tin’s operating licence decision by year-end. The most important takeaway: BSRT’s NAV is up sharply, but future gains hinge on timely project delivery and sustained commodity prices.

Announcement summary

(LSE:BSRT) Baker Steel Resources Trust Limited announced its unaudited net asset value per Ordinary Share as at 31 August 2026 was 180.7 pence, with a total NAV of £190.2 million. The NAV per share increased by 26.6 pence, up 17.3% from the last published NAV at 31 July 2026, largely due to the increase in Tungsten West following the announcement of financing by the UK National Wealth Fund and the recovery of other listed shares in the portfolio on the back of stronger commodity prices. As at 31 August 2026, the Company had a total of 105,238,102 Ordinary Shares in issue with a further 700,000 shares held in treasury. No shares were bought back in August 2026, but since the commencement of the share buy back programme in February 2026, a total of 1,224,400 shares have been bought back at a volume weighed average price of 116.4 pence per share. The Company's top 10 investments as at 31 August 2026 included Tungsten West Plc (£53.2 million, 28.0%), Cemos Group plc (£30.0 million, 15.8%), Futura Resources Ltd (£27.1 million, 14.3%), Blue Moon Metals Inc (£22.9 million, 12.0%), Bilboes Royalty (£14.0 million, 7.4%), Silver X Mining Corporation (£12.3 million, 6.5%), Metals Exploration plc (£7.3 million, 3.8%), First Tin PLC (£6.5 million, 3.4%), Caledonia Mining Corporation Plc (£3.7 million, 2.0%), and Kanga Potash (£2.6 million, 1.4%). On 25 August 2026, Tungsten West announced it had agreed terms with the National Wealth Fund for a proposed investment of up to £71 million, consisting of a £36 million equity investment at 36p, a debt financing facility of up to £25 million, and a non-committed £10 million accordion facility. Tungsten West's feasibility study sets out a base case with an 11-year life of mine producing an average of 3,320 tonnes WO3 per annum, with potential to extend the operational life of mine to over 40 years. At current tungsten prices, the Hemerdon Mine is projected to make in excess of US$300 million per annum after tax once in full production. Tungsten West shares rose 47% in August 2026. On 17 August 2026, First Tin published an update to its 2024 Definitive Feasibility Study on its Taronga tin project in Australia, forecasting average production of 3,200 tonnes of tin over a 13.5 year life, pre-production capex of US$208 million, and an AISC of US$18,650 per tonne of tin. The economic model calculates a NPV(8%) of US$172 million using a US$40,000/t tin price, rising to around US$400 million using the current tin price of over US$55,000/t, compared to First Tin's market capitalisation of approximately US$88 million.

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