Baker Steel supports strategic investment in Futura Resources
Summary
The company also retains a 1.5% gross revenue royalty over future production from Futuras mines, unaffected by the transaction.Futura has made significant operational strides in the past 18 months. Fairhill produced its first coal in April 2025, with initial deliveries to the Gregory Crinum wash plant taking place this month. Additional working capital has therefore been sought to support the company through the ramp-up phase at Fairhill.Futura management continues to view current market weakness as temporary, citing medium-term supply constraints and strong expected demand growth particularly from India as reasons for long-term optimism.BSRT has not revalued its stake in Futura pending a binding offer from IRH. A further review is expected at 30 June 2025, in line with the trusts valuation policy for unlisted holdings.Commenting on the transaction, Trevor Steel, Chief Investment Officer of Baker Steel Capital Managers LLP, said: Whilst it is uncertain at this stage as to whether IRH will exercise their option to acquire the Companys shares in Futura, we are pleased to note the high level of interest in consolidation of the coking coal sector in Australia, in which Futura can potentially participate. [QD comment MR: This update highlights a potentially significant value realisation opportunity for BSRT through its investment in Futura Resources.