In FY21, Baker Steel Resources Trust (BSRT) reported a modest unaudited NAV total return (TR) of 1.2% (after the strong 31.5% posted in FY20), below the c 11.0% TR recorded by the EMIX Global Mining Index. The positive revaluation of several industrial commodity projects (see chart below), supported by higher price projections and/or development progress, was mostly offset by writing down its precious metals mining investments, which now make up c 25% of BSRT’s portfolio vs c 35% at end 2020. We consider BSRT’s portfolio to be reasonably mature, providing scope for value uplifts in the medium term as the projects initiate mine construction and then approach first production.
