AIM and Media Release
20 November 2020
BASE RESOURCES LIMITED
Annual General Meeting materials
African mineral sands producer, Base Resources Limited
(ASX & AIM: BSE) (Base Resources or the Company)
advises that the following address was delivered by Base Resources’
Chair at the Company’s Annual General Meeting held today at
1.00pm (Perth time) in Perth, Western
Australia and online via the Lumi software platform.
The Company’s Managing Director also gave a presentation at the
Annual General Meeting. A copy of that presentation is
available from the Company's website:
www.baseresources.com.au.
Chair’s AGM Address
Ladies and gentlemen
In a volatile, uncertain and complex year globally, Base
Resources has continued to deliver results, with our Kwale
Operations in Kenya exceeding
expectations in its first full year mining in the South Dune and
good progress being made with the world class Toliara development
project in Madagascar.
Base Resources adapted quickly to the COVID-19 pandemic,
altering workplace conditions as required to maintain a safe
environment for our people and the communities in which we
operate. The fact that Kwale Operations maintained full
production and met shipping schedules throughout the 2020 financial
year is testament to the commitment and flexibility of the whole
Base Resources team.
Our strong operational performance, combined with the healthy
pricing environment, allowed the Company to record revenue of
US$208.0 million, EBITDA of
US$108.7 million and a net profit
after tax of US$39.6 million for the
financial year, and end the period with US$87.6 million net cash. Following this
result, the Board was pleased to determine a maiden dividend of
AUD3.5 cents per share, unfranked, which was paid in early
October.
On site, the Company maintained its uncompromising focus on
safety and health and wellbeing, with no workplace lost time
injuries during the financial year. Kwale Operations also
continued to set a benchmark for sustainability in mining project
implementation and operation with a wide range of activities
focused on our people, community and environment undertaken.
We remain focused on Kwale mine life extension to maximise value
creation from the Kwale development for all stakeholders. A
number of mine life extension and near mine exploration options
continue to be pursued and a pre-feasibility study on mining the
North Dune deposit was commenced in January
2020.
The Toliara Project in Madagascar represents a significant and
attractive growth opportunity for the Company. The definitive
feasibility study released in December
2019 reinforced our view that we have secured one of the
best undeveloped mineral sands assets in the world.
Subsequently, front end engineering design was advanced and
lenders’ due diligence commenced. This was all achieved while
complying with a temporary suspension of on-the-ground activity
required by the Government of Madagascar pending the outcome of discussions
on fiscal terms. We remain confident that acceptable terms
should be able to be secured and, on this basis, the Company
remains committed to development of the Toliara Project.
The last 12 months have brought many challenges, but they have
also highlighted the resilience of Base Resources. Kwale
Operations remains a high cash generating asset with an enviable
revenue to cost of sales ratio and extensional opportunities.
We have a very strong balance sheet. Our product markets are
proving relatively stable and we enjoy sound long term
relationships with our customers. We are well positioned to
deliver shareholder value while weathering future global
uncertainty. The commencement of dividend flows to
shareholders is both a statement and a major milestone on this
journey.
Since the end of the financial year, we have announced changes
to our Board composition as part of our succession plan. In
October, we welcomed Janine Herzig
as an independent non-executive director and Sam Willis will today retire from the
Board. Sam has served as an independent non-executive
director of Base Resources for 13 years and made a significant
contribution to the Company in that time, including as Chair of the
Audit Committee. We wish Sam all the best with his future
endeavours. With Sam’s retirement from the Board, I am
pleased to announce that Diane
Radley has taken up the role of Chair of the Audit
Committee.
As always, I’d like to thank the Board, our employees,
suppliers, local communities and host governments for their
steadfast support and commitment.
Finally, thank you to you, our shareholders, for your
confidence, and patience. We appreciate your ongoing support
as we continue to build a truly unique mineral sands company.
ENDS.
For further information contact:
James Fuller, Manager Communications
and Investor Relations |
UK Media Relations |
Base Resources |
Tavistock Communications |
Tel: +61 (8) 9413 7426 |
Jos Simson and Barnaby Hayward |
Mobile: +61 (0) 488 093 763 |
Tel: +44 (0) 207 920 3150 |
Email:
jfuller@baseresources.com.au |
|
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 1, 50 Kings Park Road
West Perth, Western Australia, 6005
Email: info@baseresources.com.au
Phone: +61 (0)8 9413 7400
Fax: +61 (0)8 9322 8912
NOMINATED ADVISOR
RFC Ambrian Limited
Stephen Allen
Phone: +61 (0)8 9480 2500
BROKER
Berenberg
Matthew Armitt / Detlir Elezi
Phone: +44 20 3207 7800