AIM and Media
Release
26
February 2024
Base Resources Limited
FY24 half-year
results
African mineral sands
producer and developer, Base Resources Limited
(ASX & AIM: BSE) (Base Resources or the
Company) is pleased to present its financial
results for the six-month period ended 31
December 2023 (H1 FY24 or reporting
period).
Kwale Operations continued
to perform to plan and remains on track to achieve production
guidance for FY24. During the reporting period, mining
entered the lower grade ore bodies that will characterise the
remaining mine life, which resulted in reduced production and lower
sales volumes. The period also saw softening sales prices for
all products.
After limited engagement
with the Government of Madagascar
in the lead up to the Presidential elections in November 2023, discussions on fiscal terms and
lifting of the Toliara Project’s suspension have recommenced.
With the Government indicating that progressing the Toliara Project
is a priority, the new year has seen a period of sustained
engagement with positive progress made – including expressed
support for production of a monazite product from the
project.
In light of progress
achieved and the Government’s demonstrated level of focus and
engagement, in applying the Company’s capital management policy the
Board has decided not to pay an interim
dividend.
Key Outcomes
for H1
2024Financial
-
Decreases in average achieved product prices of 4%
for rutile, 9% for ilmenite and 18% for zircon compared to the
period ended 31 December 2022
(H1 FY23).
-
H1 FY24 revenue of US$73.1
million.
-
Group EBITDA of US$14.7
million and a net loss after tax of US$1.5
million.
-
Free cashflow of US$14.8
million (operating cashflows of US$25.2 million less investing cashflows of
US$10.4
million).
-
Net cash position of US$78.9
million at 31 December
2023.
Operational and
development
-
Kwale Operations ore grade of 2.39%, down from 3.90%
in H1 FY23, as mining operations moved to lower grade ore bodies as
planned.
-
Production of 18,909 tonnes of rutile, 77,663 tonnes
of ilmenite, 7,657 tonnes of zircon and a combined 4,140 tonnes of
low-grade rutile and zircon
products.
-
Toliara Project monazite pre-feasibility study
completed, delivering exceptional outcomes and resulting in a
significant enhancement of the overall project economics, with the
project’s post tax NPV10 doubling to US$2.0
billion.
Managing Director of Base
Resources, Tim Carstens,
said:
“Kwale Operations once
again performed consistently to plan, but with only lower grade ore
bodies remaining, production and sales volumes were lower as
expected. Despite this, and softening market conditions for
our products, Kwale Operations continued to operate profitably and
generate positive free-cash flow, with preparations for post-mining
after December 2024 occurring in
parallel.”
“We were excited to deliver the results from the
monazite pre-feasibility study in December, enhancing the already
exceptional potential of the Toliara Project. Realisation of
this potential is now more important than ever. With the President
of Madagascar’s government now formed and a new Mining Code in
place, a positive shift in dynamics and significant focus and
attention from the Government on the project’s progression is
evident. We are optimistic that mutually attractive fiscal
terms can be secured that will support development of the Toliara
Project for the benefit of our host communities, the nation of
Madagascar and our
shareholders.”
“In this context and in light of the approaching
conclusion of mining at Kwale Operations, we believe it is
appropriate that cash now be retained for the anticipated
progression of the Toliara
Project.”
ADDITIONAL H1
FY24 results reporting suite DOCUMENTS
ATTACHED
For further information in
relation to Base Resources’ H1 FY24 operating and financial
results, refer to the PDF copies of the Company’s Interim Financial
Report and H1 FY24 results Investor Presentation, both attached to
this release and available from the Company’s website at:
https://baseresources.com.au/investors/announcements/.
Investor
webcast
An investor webcast will
be hosted by Base Resources’ Managing Director, Tim Carstens, Chief Financial Officer,
Kevin Balloch, and General Manager -
Marketing, Stephen Hay, who will
each also be available to answer questions following a
presentation of the Company’s
results.
Details for the webcast
are below. Participants will be able to ask questions via the
messaging function on the webcast platform or via the
teleconference line. Participants proposing to use the
teleconference line will need to pre-register their details using
the teleconference registration URL provided below. Upon
registering, participants will receive an email with their unique
PIN and dial-in details so that they can join the call without
speaking to an operator.
-
Date: Monday, 26 February
2024
-
Time: 5.00pm AWST /
9.00am
GMT
-
Webcast URL:
https://webcast.openbriefing.com/hyr-bse-24-uk/
-
Teleconference registration URL:
https://registrations.events/direct/OCP2304597
IMPORTANT
NOTICESForward looking
statements
Certain statements in or
in connection with this announcement contain or comprise forward
looking statements. Such statements may include, but are not
limited to, statements with regard to future production and grades,
capital cost, capacity, sales projections and financial performance
and may be (but are not necessarily) identified by the use of
phrases such as “will”, “expect”, “anticipate”, “believe” and
“envisage”. By their nature, forward looking statements
involve risk and uncertainty because they relate to events and
depend on circumstances that will occur in the future and may be
outside Base Resources’ control. Accordingly, results could
differ materially from those set out in the forward-looking
statements as a result of, among other factors, changes in economic
and market conditions, success of business and operating
initiatives, changes in the regulatory environment and other
government actions, fluctuations in product prices and exchange
rates and business and operational risk management. Subject
to any continuing obligations under applicable law or relevant
stock exchange listing rules, Base Resources undertakes no
obligation to update publicly or release any revisions to these
forward-looking statements to reflect events or circumstances after
today's date or to reflect the occurrence of unanticipated
events.
Toliara Project – Forecast
Financial Information
This announcement
discloses the NPV from the Monazite PFS on an aggregated basis with
the NPV from the Mineral Sands DFS2. Base Resources’
announcement on 14 December 2023,
titled “Additional critical mineral stream doubles Toliara’s NPV”
(the Monazite PFS Announcement), discloses the
material assumptions and underlying methodologies adopted for
deriving the NPV from the Monazite PFS. It also discloses key
risks in respect of the Monazite Project and the Toliara Project as
a whole. Base Resources confirms that all the material
assumptions underpinning the production information and forecast
financial information in the Monazite PFS Announcement continue to
apply and have not materially
changed.
Base Resources’
announcement on 27 September 2021,
titled “DFS2 enhances scale and economics of the Toliara Project”
(the Mineral Sands DFS2 Announcement), discloses
the material assumptions and underlying methodologies adopted for
deriving the NPV from Mineral Sands DFS2. Base Resources
confirms that all the material assumptions underpinning the
production information and forecast financial information in the
Mineral Sands DFS2 Announcement continue to apply and have not
materially changed.
Base Resources’ announcements are available at
https://baseresources.com.au/investors/announcements/.
ENDS.
For further information
contact:
Australian Media
Relations |
UK Media
Relations |
Citadel
Magnus |
Tavistock
Communications |
Cameron Gilenko and
Michael Weir |
Jos Simson and Gareth
Tredway |
Tel: +61 8 6160
4900 |
Tel: +44 207 920
3150 |
About Base
Resources
Base Resources is an Australian based, African
focused, mineral sands producer and developer with a track record
of project delivery and operational performance. The Company
operates the established Kwale Operations in Kenya and is developing the Toliara Project in
Madagascar. Base Resources is an ASX and AIM listed
company. Further details about Base Resources are available
at www.baseresources.com.au.
PRINCIPAL & REGISTERED
OFFICE
Level 3, 46 Colin Street
West Perth, Western Australia, 6005
Email: info@baseresources.com.au
Phone: +61 8 9413 7400
Fax: +61 8 9322 8912
NOMINATED ADVISER & JOINT
BROKER
Canaccord Genuity Limited
James Asensio / Raj Khatri /
George Grainger
Phone: +44 20 7523 8000
JOINT BROKER
Berenberg
Matthew Armitt / Detlir Elezi
Phone: +44 20 3207 7800