BSE Base Resources Limited

 
TIDMBSE 
 
AIM and Media Release 
 
28 August 2023 
 
Base Resources Limited 
FY23 results - Kwale continues to deliver strong financial performance 
 
African mineral sands producer and developer, Base Resources Limited (ASX & AIM: 
BSE) (Base Resources or the Company) is pleased to present its results for the 
year ended 30 June 2023 (FY23), with higher prices across all products 
delivering an EBITDA of US$158.6 million and generating cash flows from 
operations of US$117.4 million.  The disciplined application of the Company's 
capital management policy has supported the determination of a FY23 final 
dividend of AUD 4 cents per share (unfranked). 
 
Despite Kwale Operations' robust operational performance, a net loss of US$4.8 
million was recorded, with profitability impacted by a non-cash impairment of 
US$88.9 million following a reassessment of the carrying value of Kwale 
Operations, reflecting the increased operating costs of mining the North Dune, 
the softening outlook for mineral sands product prices over the remaining mine 
life and an improved understanding of the ultimate costs of closure1. 
 
The Toliara Project in Madagascar remains a significant growth opportunity for 
the Company.  Despite making sound progress in discussions with the Government 
of Madagascar on the fiscal terms applicable to the project and the lifting of 
the on-ground suspension, recent engagement has slowed whilst the Government 
focuses on finalising its overhaul of the Malagasy Mining Code and preparations 
for the upcoming presidential election.  The Company remains committed to 
developing the world class project and is ready to progress.  However, until the 
Mining Code reform is finalised, and the elections scheduled for late 2023 have 
concluded, the Company does not expect to achieve material progress in securing 
fiscal terms or lifting of the project's on-ground suspension.  In parallel, 
substantial effort is being applied to identification and progression of 
attractive business development opportunities to secure optionality in the 
project portfolio as well as broader funding options for ultimate Toliara 
Project development. 
 
Operational and development highlights for FY23 
 
  · Production of 68,814 tonnes of rutile, 297,861 tonnes of ilmenite, 25,954 
tonnes of zircon and a combined 18,330 tonnes of low-grade rutile and zircon 
products from Kwale Operations. 
  · Increase in average achieved prices of 18% for rutile, 3% for ilmenite and 
3% for zircon compared to the prior year. 
  · Bumamani Project implementation completed and mining of the North Dune 
orebody commenced, extending the mine life of Kwale Operations to December 2024. 
  · Toliara Project Rare Earths Concept Study completed, confirming the 
substantial economic potential of the Toliara monazite content and advancing to 
a Pre-Feasibility Study, which remains on track for completion in the March 
quarter of 2024. 
 
Financial highlights for FY23 
 
  · Revenue of US$271.4 million, with an 8% increase in average realised unit 
sales price partially offsetting lower production and sales volumes when 
compared to the prior year. 
  · EBITDA of US$158.6 million and underlying NPAT of US$84.0 million (before 
the US$88.9 million impairment charge). 
  · Free cashflow of US$79.2 million (operating cashflows of US$117.4 million 
less US$38.2 million invested to extend Kwale Operations mine life and progress 
the Toliara Project). 
  · Net cash position of US$92.9 million at 30 June 2023. 
 
Final dividend of AUD 4 cents per share determined 
 
Consistent with its growth strategy, the Company seeks to provide returns to 
shareholders through both long-term growth in the Company's share price and 
appropriate cash distributions.  Cash not required for the Company's growth and 
development, or to maintain requisite balance sheet strength in light of 
prevailing circumstances, can be expected to be returned to shareholders.  In 
the disciplined application of this capital management approach in the context 
of anticipated future cashflows from Kwale Operations and the approaching 
closure of the mine, the strategic opportunities being pursued and a net cash 
position of US$92.9 million at the end of the period, the Board has determined a 
final dividend of AUD 4.0 cents per share (unfranked), totalling A$47.1 million 
in aggregate (approximately US$31.3 million). 
 
Upon payment of the final dividend, dividends distributed to shareholders since 
October 2020 will total AUD 22.5 cents per share, equal to A$265 million in 
aggregate (approximately US$187 million). 
 
The dividend will be paid wholly from conduit foreign income and have record and 
payment dates of 11 September 2023 and 28 September 2023, respectively - for 
further information, refer to Base Resources' accompanying announcement "FY23 
Final Dividend - Key dates and information". 
 
Managing Director of Base Resources, Tim Carstens, said: 
 
"The 2023 financial year has been another operationally and financially 
successful one.  Strong operational performance, coupled with the continuation 
of buoyant mineral sands markets, has delivered a record EBITDA for Kwale 
Operations, even with the transition to the more challenging and lower grade ore 
sources that will characterise the final years of the operation. 
 
We continue to actively pursue additional mine life extension opportunities in 
the Kwale East sector, with a second phase aircore drill program currently 
underway.  Given the inherent uncertainty associated with exploration, 
significant effort is also going into planning for the ultimate closure of Kwale 
Operations and the transition to post-mining land use, with the clear objective 
of cementing a reputation for excellence in the full life cycle of mining. 
 
The Toliara Project in Madagascar continues to represent a transformational 
growth opportunity for the Company.  By confirming the substantial commercial 
potential of its monazite content, the Toliara Project Rare Earth concept study 
has enhanced that opportunity and further reinforces our belief that the project 
is the best undeveloped mineral sands asset in the world.  We look forward to 
sharing more as we complete the study phases and clear regulatory hurdles. 
 
While engagement with the Government on the fiscal terms applicable to the 
Toliara Project has slowed due to the Government's focus on its new mining code 
and the presidential elections in late 2023, we are clear that our patient 
approach is the right one to secure outcomes that will support the realisation 
of optimum shareholder value and we remain fully committed to the project's 
development. 
 
Having finished the year with a significant cash balance, the Board has 
determined an AUD 4 cents per share dividend.  In the context of Kwale 
Operations' approaching end of mine life and diminishing future cash generation 
potential, we believe this strikes the right balance between delivering cash 
returns to shareholders and retaining balance sheet strength to fund the 
Company's strategic growth initiatives in pursuant of our 2031 vision of 
multiple concurrent operations." 
 
Documents attached and forming part of Base Resources' FY23 results reporting 
suite 
 
For further information in relation to Base Resources' FY23 operating and 
financial results, refer to the PDF copies of the Company's 2023 Annual Report 
and FY23 results Investor Presentation attached to this release and available 
from the Company's website at: 
https://baseresources.com.au/investors/announcements/. 
 
Also attached to this release and available from the Company's website (link 
above), and forming part of Base Resources' FY23 results reporting suite, is the 
Company's FY23 Corporate Governance Statement. 
 
Investor webcasts 
 
Investor webcasts will be hosted by Tim Carstens (Managing Director) and Kevin 
Balloch (Chief Financial Officer), who will both be available to answer 
questions following a presentation of the Company's results. 
 
Details for the webcasts and teleconferences are below.  Participants will only 
be able to ask questions via the teleconference line.  Participants that propose 
using 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 needing to speak to an operator. 
 
Australia webcast and teleconference 
 
  · Date: Monday, 28 August 2023 
  · Time: 8.30am AWST / 10.30am AEST 
  · Webcast URL: https://webcast.openbriefing.com/bse-fyr-2023/ 
  · Teleconference registration URL: 
https://registrations.events/direct/OCP61319 
 
UK webcast and teleconference 
 
  · Date: Tuesday, 29 August 2023 
  · Time: 4.30pm AWST / 9.30am BST 
  · Webcast URL: https://webcast.openbriefing.com/bse-fyr-2023-uk/ 
  · Teleconference registration URL: 
https://registrations.events/direct/OCP60433 
 
Forward looking statements 
 
Certain statements in or in connection with this release 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. 
 
[Note (1): Refer to note 13 to the FY23 consolidated financial statements 
contained in the 2023 Annual Report for further details about the impairment.] 
 
 
 
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        | 
+--------------------------------+-----------------------------+ 
 
This release has been authorised by the Base Resources Disclosure Committee. 
 
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 
Phone: +44 20 7523 8000 
 
JOINT BROKER 
Berenberg 
Matthew Armitt / Detlir Elezi 
Phone: +44 20 3207 7800 
 
 
This information was brought to you by Cision http://news.cision.com 
The following files are available for download: 
https://mb.cision.com/Public/22548/3824549/b5b3327b9b47a596.pdf 2023 Corporate Governance Statement 
https://mb.cision.com/Public/22548/3824549/b32eeec6590c4a57.pdf Presentation - FY23 Full Year Results 
https://mb.cision.com/Public/22548/3824549/83569c8ce4fc15fa.pdf 2023 Annual Report 
 
 
END 
 
 

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