REG-Base Resources Limited: Chair’s Address to the Annual General Meeting

Base ResourcesAnnouncement

25/11/2022 07:15

AIM and Media Release 

25 November 2022

BASE RESOURCES LIMITED
Chair’s Address to the Annual General Meeting
Friday, 25 November 2022, 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,

The 2022 financial year saw the continuation of the buoyant mineral sands
markets that characterised the last few years.  Kwale Operations was once
again metronomic in its reliability, achieving production guidance and meeting
customer shipping schedules consistently despite COVID-induced challenges and
some unplanned stoppages.  Costs were managed tightly, despite inflationary
headwinds, contributing to record financial outcomes.  The team maintained
its focus on safety, health and wellbeing, though the first lost time injury
since 2014 was recorded in the year.

With consistent operational performance and a robust pricing environment, the
Group generated record EBITDA of US$158.7 million and net profit after tax of
US$80.7 million.  Strong underlying cashflow enabled the Company to end the
financial year with US$55.4 million net cash and the Board determined a final
dividend of AUD 3.0 cents per share, unfranked, which was paid in late
September.  Together with the AUD 3.0 cents paid in March 2022, this brought
the total distributions to shareholders determined in respect of the 2022
financial year to AUD 6.0 cents per share, unfranked, totalling US$48.8
million.

The Company remains very focused on extending Kwale Operations’ mine life to
maximise value for all stakeholders.  The addition of a further two years
taking production to the end of 2024 through the Kwale South Dune extension
and the Bumamani Project were significant steps and ones that provide the
Company with some additional time to pursue further extensions.  With
exploration tenure in place, the near-mine Kwale East sector represents the
most immediate extensional opportunity and we were pleased to commence
drilling in that area earlier this month.

Slightly further afield, and a longer dated opportunity, exploration on the
prospective geological feature that extends from the Kuranze region of Kenya
across the border into Tanzania is underway, albeit limited at present to the
Tanzanian side.  Following an initial reconnaissance program, we recently
completed a more extensive 3,000m drill program.  In Kenya, the
government-imposed industry-wide moratorium on issuance of mineral rights,
which has been in place since 2019, continues to impede the Company’s
ability to undertake any exploration in the Kuranze region.  Following recent
general elections, and the appointment of a new Minister, we are hopeful that
the issuance of prospecting licences will resume soon.

The Toliara Project in Madagascar continues to represent a significant and
attractive growth opportunity for the Company.  Following a major update and
increase to the Ranobe Ore Reserves estimate, the Toliara Project definitive
feasibility study was updated in October last year, significantly increasing
both the scale and economic value of the Project.  The team is now assessing
the commercial potential of the monazite mineralisation in the deposit to seek
to further add significant value to the project.

We continue to progress discussions with the Government of Madagascar in
relation to the fiscal terms applicable to the project and the lifting of the
on-ground suspension.  Tim will provide more colour on this in his
presentation.

Sustainability has always been a key component of the Base Resources business
model and we were pleased to recently publish the Company’s inaugural
sustainability report.  I would encourage all shareholders to read this
report, and also to review the associated Sustainability Databook, to see how
we go about demonstrating that sustainable mining of essential resources can
be a reality, whilst generating requisite shareholder returns and improving
the environmental, social and economic outcomes for all stakeholders.

Since the 2021 AGM, we have seen some change in the composition of your Board.
I would like to thank Colin Bwye, Executive Director Operations and
Development, who retired after providing valuable leadership while on the
Board and as a key member of our senior management team since 2010, and also
Janine Herzig who resigned as a Non-Executive Director during the year.  We
intend to reshape the Board further in the coming months as part of our
approach to both renewal and ensuring the right mix of skills for the coming
years’ challenges.

Finally, on behalf of the Board, I’d like to extend my sincere thanks and
appreciation to 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:

 James Fuller, Manager Communications and Investor Relations  UK Media Relations             
 Base Resources                                               Tavistock Communications       
 Tel: +61 8 9413 7426                                         Jos Simson and Gareth Tredway  
 Mobile: +61 488 093 763                                      Tel: +44 207 920 3150          
 Email: jfuller@baseresources.com.au                                                         

This release has been authorised by 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 ADVISOR
RFC Ambrian Limited
Stephen Allen
Phone: +61 8 9480 2500

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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



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