Baker Steel Resources Trust Ltd. (BSRT) is a Guernsey, headquartered natural resource investment company. The group pre-dominantly seeks for opportunities available in the pre-IPO natural resource companies and also invests in natural resource securities in the listed arena. Their focus is on seeking opportunities that provide long-term capital growth through a focused portfolio comprising pre-dominantly equities and the other related instruments. Their portfolio strategy comprises of 40-100% investment in the unlisted or pre-IPO companies and 0-50% in the listed or special conditions investment.
Recently, the natural resource focused equity investment instrument reported its Net Asset Value (NAV) position at the end of May 31, 2019. The recorded net asset value per common shares stood at 59.1 pence and registered a growth of 4 per cent against the reported NAV as on April 30, this year.
The reported growth in the NAV at the end of May, this year, was primarily led by 5.4 per cent surge in the stock price of Polymetal International Plc (LSE: POLY) at the London Stock Exchange, despite the board of the Polymetal International announced a final dividend payment of US$0.31 per share (for the year ended on Dec-31-2018) as on May 15, 2019.
In the company filing with the exchange, the equity investment company also disclosed its top-10 investments in the group’s portfolio, as a percentage of NAV.
Source: Company filings (as on June 06, 2019), London Stock Exchange
BSRT and Mining Industry in 2018
However, FY18 was a challenging financial year for the company, during the year the investment group recorded a marginal improvement of 0.2 per cent in its Net Asset Value (NAV), this was particularly because of successful liquidation of their investment in the Prognoz to Polymetal International Plc.
In general, in 2018, the mining market was underperforming, and recovery took a pause. Commodity prices were lower, in general, and stocks of the mining companies followed the EMIX Global Mining Index, which was down by 5.9 per cent on a YoY basis.
Indeed, investment in the mining companies are subject to a variety of risks, but geopolitical risks could substantially dent the value of otherwise lucrative projects.
Stock Information: BSRT
Shares of the BSRT are listed on the main market of the London Stock Exchange (LSE) and a constituent of FTSE All Small and FTSE Fledgling. The outstanding market capitalisation of the company stood at around £50.43 million, which ranks it among the small-cap companies listed on the London Stock Exchange. Shares of the equity investment group got listed on April 28, 2010, on the LSE.
Share Price Performance
Daily Price Chart (as on June 07, 2019), after the market closed. (Source: Thomson Reuters)
As on June-07-2019, shares of BSRT closed at GBX 47.50 and remained flat against the previous day’s closing price level.
In the past 52wks, shares of the BSRT have touched a high of GBX 50.0/share and a low of GBX 38.0/share, and at the current trading level, the stock was 5 per cent below the 52w high price level and 25 per cent above the 52w low price level.
Today’s volume in the stock stood at 78,366 (at the time of writing, after the market closed). The 5-days average daily volume traded on the London Stock Exchange stood at 54,608.40, which was 24.20 per cent below the 30-days average daily traded volume on the LSE. The 30-days and 90-days average daily volume traded on the London Stock Exchange stood at 72,041.57 and 68,786.77 respectively.
Simple Average Moving (SMA)
From the SMA standpoint, shares of the BSRT were trading above 200-day and 60-day SMA prices, which is a bullish technical indicator and stock could move up further from the current trading levels.
Absolute price change (%)
In the past one year, shares of BSTR have delivered a price return of 5.32 per cent, and on a year-to-date basis, the stock was up by approximately 6.74 per cent.
However, in the past one year, shares ended 28-times up against the previous closing price, 22-times ended lower against the previous closing level and remained unchanged for 203 times.
The overall trend is favourable in the stock, considering the fact that the stock is trading above the 200-day simple moving average price level.