BSE Base Resources Limited

 
TIDMBSE 
 
AIM and Media Release 
 
26 November 2021 
 
BASE RESOURCES LIMITED 
Chair's Address to the Annual General Meeting 
Friday, 26 November 2021, 11.00am (AWST) 
 
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 
11.00 am (Perth time) in Perth, Western Australia and online via the Lumi 
software platform. 
 
Management also delivered 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 another operationally and financially successful year, Base Resources 
continued to deliver robust results at our Kwale Operations in Kenya while 
working to progress development of the world class Toliara Project in 
Madagascar. 
 
Base Resources continued to closely manage the risks associated with the 
COVID-19 pandemic, and despite these challenges, Kwale Operations maintained 
full production, achieved guidance and met shipping schedules throughout the 
2021 financial year. 
 
After some early volatility, markets for mineral sands products were remarkably 
resilient and finished the year very tight, with customer demand exceeding the 
Company's ability to supply. 
 
Our strong operational performance, combined with a robust pricing environment, 
allowed the Company to record revenue of US$198.2 million.  This result, along 
with a continued focus on efficiency, drove EBITDA of US$94.6 million and a net 
profit after tax of US$11.0 million.  Strong underlying cashflow enabled the 
Company to end the year with US$64.9 million net cash, after paying out an 
aggregate of US$56.4 million in dividends over the course of the financial 
year. 
 
Following another year of strong cash generation, the Board was pleased to 
determine a final dividend of AUD 4.0 cents per share.  Together with the AUD 
3.0 cents per share paid in March, total distributions to shareholders in 
respect of the financial year were AUD 7.0 cents per share, unfranked. 
 
On site, the Company maintained its uncompromising focus on safety, health and 
wellbeing with no lost time or medical treatment 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. 
 
To build on the Company's long history of sustainable operational practice, an 
Environment, Social and Ethics committee of the Board was established in the 
financial year.  The Committee oversees development and implementation of the 
Company's ESE strategy and reporting mechanisms, with the objective of 
enhancing and cementing the Company's reputation for excellence in the full 
lifecycle of mining. 
 
The Company remains intensely focused on extending Kwale mine life to maximise 
the value created by the Kwale development for shareholders, employees, the 
community and the nation of Kenya.  Subsequent to the year end, the Kwale South 
Dune Ore Reserves estimate was updated and the Kwale Special Mining Lease 
extension was finalised, extending mine life to December 2023.  The outcomes of 
the Bumamani PFS were also released, with the study concluding that higher 
grade subsets of the North Dune and Bumamani deposits can be economically 
mined, supporting an extended mine life to mid-2024 1. 
 
We are also further expanding our exploration tenure in the Kuranze region of 
Kenya, with a number of prospecting licence applications moving through the 
regulatory approval process, and we secured adjacent prospecting licences in 
Tanzania and have commenced our exploration program there. 
 
The Toliara Project in Madagascar continues to represent a significant and 
attractive growth opportunity for the Company and, during the 2021 financial 
year, meaningful progress was made in discussions with the Government of 
Madagascar about the fiscal terms applicable to the project.  More recently, 
the Company updated the Ranobe Mineral Resources and Ore Reserves estimates and 
released an enhanced DFS which significantly increases the scale and economics 
of the Toliara Project. 
 
As we proceed through the 2022 financial year, we remain highly optimistic for 
the future of Base Resources and the value we can create for all stakeholders, 
especially against a backdrop of strong commodity markets with fundamentals 
that are calling forward new supply. 
 
As previously announced, I am retiring from the Board at the conclusion of this 
AGM.  It has been an honour to Chair the Board since 2015, during which time we 
achieved many significant milestones of which I am very proud.  It has been my 
absolute pleasure to serve with my fellow directors and to work with such a 
high-quality management team. 
 
Mr Stirzaker will take up the role of Chair at the conclusion of the AGM.  A 
director of Base Resources since 2014, and with over 30 years of commercial 
experience, Mr Stirzaker is well placed to take Base Resources into its next 
phase of development. 
 
In closing, I would like to thank my fellow directors for their support and 
wisdom, the Base Resources team for their enduring focus on excellence, and our 
shareholders for your ongoing belief in the Company. 
 
[Note (1):  Refer to Base Resources' market announcements on 3 September 2021 
"Bumamani PFS supports extension of Kwale mine life to mid-2024" and "Further 
supporting information for Bumamani PFS" (Bumamani PFS Announcements) for the 
material assumptions and underlying methodologies adopted for deriving the 
summary outcome of the Bumamani PFS disclosed above.  Base Resources confirms 
that all the material assumptions underpinning the production information and 
forecast financial information disclosed in the Bumamani PFS Announcements 
continue to apply and have not materially changed.] 
 
ENDS. 
 
For further information contact: 
 
James Fuller, Manager Communications and Investor  UK Media Relations 
Relations 
 
Base Resources                                     Tavistock Communications 
 
Tel: +61 (8) 9413 7426                             Jos Simson and Gareth Tredway 
 
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 3, 46 Colin Street 
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 
 
JOINT BROKER 
Berenberg 
Matthew Armitt / Detlir Elezi 
Phone: +44 20 3207 7800 
 
JOINT BROKER 
Canaccord Genuity 
Raj Khatri / James Asensio / Patrick Dolaghan 
Phone: +44 20 7523 8000 
 
 
 
 
END 
 
 

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