BSE Base Resources Limited

 
TIDMBSE 
 
AIM and Media Release 
 
24 November 2023 
 
Base Resources Limited 
2023 AGM - Chair's Address and Management Presentation 
Friday, 24 November 2023, 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 
11.00am (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 attached to this release and available from the 
Company's website:  www.baseresources.com.au. 
 
Chair's AGM Address 
 
Good morning shareholders, Base Resources staff and guests.  Welcome to the 2023 
Annual General Meeting of Base Resources. 
 
The 2023 financial year has been another operationally and financially 
successful one, in which the company has continued to deliver robust results at 
our Kwale Operations in Kenya, even as we made the transition to the more 
challenging and lower grade ore sources that will characterise the remainder of 
the operation. Tight control of costs and a supportive pricing environment 
contributed to an operating result that was only marginally behind the previous 
year's record.  Notwithstanding the complexity and intensity of the year, I'm 
pleased to report that the Kwale team continued to maintain its focus on health, 
safety and wellbeing with no lost time injuries in the year. In the 36.4 million 
hours worked since commencing production at Kwale Operations, there have only 
been two lost time injuries. 
 
The robust pricing environment more than offset lower production following the 
introduction of the North Dune orebody, with the group generating an underlying 
EBITDA of US$158.6 million. Despite this, a net loss of US$4.8 million was 
recorded, as profitability was impacted by a non-cash impairment of US$88.9 
million.  This impairment followed a reassessment of the carrying value of Kwale 
Operations and reflects 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 closure. 
 
Strong underlying cashflow enabled the company to end the year with US$92.9 
million net cash, with the Board determining a final dividend of AUD 4.0 cents 
per share, unfranked. Together with the AUD 2.0 cents per share paid in March, 
this brings the total distributions to shareholders determined in respect of the 
2023 financial year to AUD 6.0 cents per share, unfranked, totalling US$45.6 
million. 
 
Kwale Operations has been the foundation on which we have built Base Resources. 
However, after extensively exploring all avenues, we have been unsuccessful in 
identifying additional deposits of sufficient grade or scale to support further 
extension.  Consequently, mining is expected to end in December 2024 and the 
company's focus at Kwale now necessarily turns to detailed closure planning and 
transition to post mining land use.  Just as we have done over the past 10 years 
of mining at Kwale, we intend to close with the clear objective of cementing our 
reputation for excellence in the full life cycle of mining. 
 
With Kwale Operations now coming to an end, the next phase of shareholder value 
creation will come from progression of the world-class Toliara Project to 
development and realising both its mineral sands and rare earth potential.  This 
project continues to represent a transformational growth opportunity for the 
company. 
 
Building on the updated Definitive Feasibility Study released in FY2022, which 
significantly increased both the scale and economic value of the mineral sands 
project, a concept study assessing the commercial potential of the Toliara 
Project's monazite content, a source of valuable rare earth elements, has been 
completed. This study confirmed substantial economic potential and further 
reinforced our belief that the Toliara Project is the best undeveloped mineral 
sands asset in the world. We look forward to sharing more about this opportunity 
(likely to be in the coming weeks) once we have completed a pre-feasibility 
study for the addition of a monazite concentrator. 
 
After making sound progress in our discussions with the Government of Madagascar 
in relation to the fiscal terms applicable to the project and, with that, the 
expected lifting of the on-ground suspension, engagement slowed due to the 
Government's focus on an overhaul of the Malagasy Mining Code and preparations 
for the Presidential elections.  The first round of the elections was held on 16 
November and the new Mining Code has now come into effect, however engagement is 
expected to continue to be limited until the new Government has been formed and 
the full suite of Mining Code reform is completed. Tim will provide more colour 
on this in his presentation. 
 
With the delay in advancing the Toliara Project, substantial effort is being 
applied to identification of attractive business development opportunities to 
provide broader funding options for Toliara Project development and to secure 
optionality in pursuit of our longer-term Vision 2031 objective of multiple 
concurrent operations.  We are also accelerating our wider Kenyan exploration 
efforts with the recent lifting of the licensing moratorium. 
 
Sustainability has always been central to our business model - it's been 
embedded across every phase of our approach to developing mineral sands mines 
from exploration, through mining and then post mine land use.  While we are 
proud of the impacts of our actions, the recognition of our peers, following the 
release of the company's inaugural sustainability report in October 2022, 
through two sustainability awards at the 2023 Mining Indaba conference, is 
particularly pleasing and hopefully an indication that we are encouraging others 
on a similar path. 
 
While we are cognisant of the challenges before us, we are confident that we 
have the team, approach, reputation and support to successfully navigate them. 
As part of our approach to both renewal and ensuring the right mix of skills for 
the coming years' challenges, the Board was bolstered by the addition of Sheila 
Khama as a Non-Executive Director earlier this year. As well as a deep personal 
connection to Africa, Ms Khama brings a wealth of valuable experience and 
expertise in managing relations and working collaboratively with host 
governments and in the sustainable development of natural resources, all of 
which are critical to Base Resources' future growth and success. 
 
Non-Executive Director, Malcolm Macpherson, will also retire at the conclusion 
of today's meeting.  On behalf of the Board, I would like to thank Malcolm for 
his commitment and outstanding contribution to the Board during his tenure. 
Everyone at Base Resources has benefited considerably from Malcolm's guidance, 
insights and deep mineral sands experience.  Malcolm leaves us well-positioned 
to execute on the next phase of shareholder value creation that will come from 
progression of the world-class Toliara Project. 
 
Finally, on behalf of shareholders, and on behalf of the Board, I'd like to 
extend my sincere thanks and appreciation to the management and all staff of the 
Base Resources Group, both for "living the Base Way" and for another highly 
commendable year of achievement. 
 
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 
 
 
This information was brought to you by Cision http://news.cision.com 
The following files are available for download: 
https://mb.cision.com/Public/22548/3881974/8e37057db6d79289.pdf 2023 Management AGM presentation 
 
 
END 
 
 

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