Baker Steel Resources Trust (BSRT), the £142m mining fund whose shares have rallied 94% in the past year, saw its net asset value (NAV) per share fall by 8.3p, or 4.6%, to 172.4p in September. This was largely due to decreases in the listed share prices of Tungsten West and Blue Moon Metals. At 132p the shares stand on a 23.5% discount to NAV.

Richard Williams, senior analyst at QuotedData, said: “September’s NAV decline is a reminder of the volatility that comes with BSRT’s exposure to development-stage mining companies, particularly with Tungsten West now accounting for more than a quarter of the portfolio. However, the underlying developments remain encouraging. Following the UK National Wealth Fund’s backing of Tungsten West, Blue Moon’s proposed partnership with Elmet and EQ Resources, supported by US government funding, represents another significant step towards bringing a major Western tungsten project into production. The proposed Kanga Potash disposal is also welcome, potentially crystallising a substantial gain and releasing cash from an otherwise illiquid holding. Together, these developments illustrate BSRT’s strategy of backing projects where financing, strategic partnerships and eventual realisations can unlock value, even if share price volatility obscures that progress in the short term.”