REG-Base Resources Limited: FY23 Half Year Results
27/02/2023 07:15
AIM and Media Release
27 February 2023
BASE RESOURCES LIMITED
FY23 half-year results - high prices deliver record first half revenue
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 six-month period ended 31 December 2022 (H1 FY23, reporting period or
half-year), which include announcement of an interim dividend of AUD 2 cents
per share (unfranked), and the following extracts from the Half-Year Financial
Report for the Company and its controlled entities (Group) for the same
period.
1. Review of Operations
2. Market Developments and Outlook
3. Kwale Operations Extensional Opportunities
4. Toliara Project
5. Tanzanian Exploration
6. Review of Financial Performance
7. After Balance Date Events
8. Consolidated Condensed Statement of Profit or Loss and Other Comprehensive
Income
9. Consolidated Condensed Statement of Financial Position
10. Consolidated Condensed Statement of Changes in Equity
11. Consolidated Condensed Statement of Cash Flows
The extracts from the Half-Year Financial Report should be read in conjunction
with the notes contained in the full version of that report, a copy of which
is available from the Company’s website: www.baseresources.com.au. The
full version of the Half-Year Financial Report also contains the auditor’s
independence declaration, the directors’ declaration and the auditor’s
review report. Amounts in the extracts have been rounded to the nearest
thousand dollars, unless otherwise stated.
The Company has also released a presentation to accompany its Half-Year
Financial Report. The presentation contains, among other things, further
details about the Company’s half-year results. A copy of the presentation
is available from the Company’s website: www.baseresources.com.au.
All references to currency ($ or US$) is to United States Dollars, unless
otherwise stated.
HIGHLIGHTS
Kwale Operations continued to perform consistently and remains on track to
achieve production guidance for FY23. Strong markets for mineral sands in
the first part of H1 FY23 saw price improvements for all products, delivering
a record first half revenue of US$126.6 million. Implementation of the
Bumamani Project, to extend Kwale Operations mine life to late 2024,
progressed to plan with mining of the Kwale North Dune recently commencing.
The Toliara Project in Madagascar is a significant growth opportunity for the
Company and remains an area of critical focus. Discussions with the
Government of Madagascar on the fiscal terms applicable to the project
progressed substantially during the period though an agreement has not yet
been signed.
Financial highlights for H1 FY23
* Record first half revenue of US$126.6 million following a 32% increase in
average realised unit sales price compared to the prior period ended 31
December 2021 (H1 FY22 or comparative period).
* Group EBITDA of US$80.7 million and net profit after tax of US$44.6 million.
* Free cashflow of US$29.0 million (operating cashflows of US$56.1 million
less investing cashflows of US$27.1 million).
* Net cash position of US$60.2 million at 31 December 2022.
Interim dividend of AUD 2.0 cents per share determined
The Company’s capital management policy is that cash not required to meet
the Company’s near-term growth and development requirements, or to maintain
requisite balance sheet strength in light of prevailing circumstances, could
be expected to be returned to shareholders. With net cash of US$60.2 million
at the end of the period and continued strong financial performance, the Board
has determined an interim dividend of AUD 2.0 cents per share (unfranked),
totalling A$23.6 million in aggregate (approximately US$16.0 million), which
is to be paid wholly from conduit foreign income. The record date for the
interim dividend is 13 March 2023 and the payment date is 30 March 2023 –
refer to Base Resources’ accompanying release “FY23 Interim Dividend –
Key dates and information” for further information.
Upon payment of the FY23 interim dividend, dividends distributed to
shareholders since October 2020 will total AUD 18.5 cents per share, equal to
A$217.9 million in aggregate (approximately US$156.0 million).
Operational and development highlights for H1 FY23
* Production of 38,384 tonnes of rutile, 170,771 tonnes of ilmenite, 14,043
tonnes of zircon and a combined 9,228 tonnes of low-grade rutile and zircon
products from Kwale Operations.
* Increases in average achieved product prices of 36% for rutile, 12% for
ilmenite and 29% for zircon compared to H1 FY22.
* Kwale Operations Bumamani Project implementation, to extend mine life to
late 2024, saw mining operations commence on the Kwale North Dune in late
February as planned.
* Near-mine exploration drilling at Kwale East commenced, with 493 holes for
5,071m drilled to date.
* Phase 1 of the initial exploration drilling program in northern Tanzania was
completed, with a total of 149 holes for 3,889m drilled.
* Toliara Project rare earths concept study was completed subsequent to period
end, with the Board approving progression to the pre-feasibility study phase.
* Inaugural Sustainability Report and Sustainability Databook released.
Managing Director of Base Resources, Tim Carstens, said:
“We have achieved another consistent and operationally strong half year
period at Kwale Operations which, when combined with increased prices for all
products, has resulted in record first half revenue and the continuation of
returns to shareholders via another dividend.”
“With the recent commencement of mining operations on the North Dune, the
Bumamani Project has extended Kwale mine life until late 2024. Beyond this,
the exploration program underway in the Kwale East region represents our best
opportunity for further, near term, mine life extension, with over 5,000m
drilled to date. Further afield, and a longer dated prospect, we have also
completed the first phase of reverse circulation exploration drilling in the
Umba region of northern Tanzania, with preliminary results expected to be
released shortly.”
“We retain a heavy focus on advancing the Toliara Project in Madagascar and
have continued to progress our discussions with the Government of Madagascar
on fiscal terms and lifting of the on-ground suspension. Though we have not
yet signed an agreement, we are encouraged by our recent engagement and the
ongoing support from local communities and leaders.”
“This is an exciting time for Base Resources. We look forward to sharing a
series of significant, and long awaited, developments with investors over the
coming months.”
Investor webcast
The webcast will be hosted by Base Resources’ Managing Director, Tim
Carstens, Chief Financial Officer, Kevin Balloch, and General Manager -
Marketing, Stephen Hay, who will each also be available to answer questions
following a presentation of the Company’s results.
Details for the webcast are below. Participants will be able to ask
questions via the messaging function on the webcast platform or 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.
* Date: Monday, 27 February 2023
* Time: 5.00pm AWST / 9.00am GMT
* Webcast URL: https://edge.media-server.com/mmc/p/ni5izmm7
* Teleconference registration URL:
https://register.vevent.com/register/BIee6b0b2e83194de58e54e496b04268b5
EXTRACTS FROM HALF-YEAR FINANCIAL REPORT
1. Review of Operations
Base Resources operates the 100% owned Kwale Operations in Kenya, which
commenced production in late 2013. Kwale Operations is located 50 kilometres
south of Mombasa, the principal port facility for East Africa. Mining
operations continued according to plan on the South Dune orebody with
approximately 8.8 million tonnes mined (comparative period: 8.7 million
tonnes). The higher tonnes mined and improved ore grade has resulted in
higher production of all products by between 6% and 12%, with differences due
to the proportion of each mineral present. Production of low-grade
concentrate products (zircon and rutile) continued in the reporting period.
Mining, Production and Sales Six months to Six months to
Dec 2022 Dec 2021
Ore mined (tonnes) 8,848,556 8,680,545
Heavy mineral (HM) % 3.90% 3.54%
Valuable heavy mineral (VHM) % 2.98% 2.71%
Production (tonnes)
Ilmenite 170,771 156,877
Rutile 38,384 36,180
Zircon 14,043 12,489
Zircon low grade 1,099 1,062
Rutile low grade 8,129 970
Sales (tonnes)
Ilmenite 136,773 164,080
Rutile 28,859 25,383
Zircon 11,140 11,787
Zircon low grade 1,208 1,179
Rutile low grade 8,037 919
Heavy mineral concentrate (HMC) stocks have increased in the reporting period
to 15,494 tonnes (9,713 tonnes as at 30 June 2022), in advance of a planned
shut in early 2023 to transition part of our mining operations to the Kwale
North Dune.
There were no lost time injuries during the reporting period resulting in a
lost time injury frequency rate (LTIFR) for Base Resources of 0.23 per million
hours worked. Compared to the Western Australian All Mines 2020/2021 LTIFR
of 2.0, this remains an exceptional performance and reflects the ongoing focus
and importance placed on safety by management. With two medical treatment
injuries recorded in the last 12 months, Base Resources’ total recordable
injury frequency rate is 0.69 per million hours worked.
The Company maintains a balanced portfolio of multi-year and quarterly offtake
agreements with long term customers, supplemented by a small proportion of
ongoing spot sales. These agreements, with some of the world’s largest
consumers of titanium dioxide feedstocks and zircon products, provide
certainty for Kwale Operations by securing minimum offtake quantities. Sales
prices in these agreements are typically either negotiated on a
shipment-by-shipment basis or set for periods of up to six months and are
derived from prevailing market prices.
Ilmenite, and the majority of rutile, is sold in bulk, with typical shipment
sizes of 50-54kt for ilmenite and 10-12kt for rutile, which frequently results
in sales volumes of these products being out of step with production volumes,
which was the case in the reporting period. Zircon is sold in smaller
parcels and, in the absence of any market constraints, sales generally align
with production volume. Bulk shipments of both ilmenite and rutile took
place in early 2023.
2. Market Developments and Outlook
Titanium Dioxide
Ilmenite and rutile are primarily used as feedstock for the production of
titanium dioxide (TiO2) pigment, with a small percentage also used in the
production of titanium metal and fluxes for welding rods and wire. TiO2 is
the most widely used white pigment because of its non-toxicity, brightness and
very high refractive index. It is an essential component of consumer
products such as paint, plastics and paper. Pigment demand is therefore the
major driver of ilmenite and rutile pricing.
Major western pigment producers typically use high grade TiO2 feedstocks
(which includes rutile) while Chinese pigment producers typically rely on
sulphate ilmenite as their main feedstock.
Financial year 2023 commenced with a very tight TiO2 feedstock market.
Demand was strong, with most global pigment plants operating near capacity
levels. Feedstock supply could not keep up with demand and inventories
throughout the supply chain were at very low levels. However, a slowdown in
pigment consumption, driven by a deterioration in global economic conditions,
led to a sharp downturn in pigment demand through later part of the reporting
period. Pigment demand is expected to recover as it more closely reflects
improving underlying consumption through the second half of financial year
2023.
In response to the sharp drop in pigment demand, and to avoid a build-up of
pigment inventory, western pigment producers began curtailing production rates
through the middle of the reporting period. This was particularly the case
in Europe, where pigment consumption was weak and operating costs (due to
energy cost inflation) have been very high. A subsequent build in raw
material inventories led to declining demand for TiO2 feedstock, including
both rutile and ilmenite, through the latter part of the reporting period.
China, the major global market for ilmenite, was significantly impacted by
government imposed COVID-19 restrictions through the reporting period.
Domestic demand for pigment was weak throughout the reporting period and
major pigment producers in China became increasingly dependent on export
sales. Cost-related cuts to sulphate pigment production in Europe provided
an opportunity for Chinese pigment exports to Europe to remain at high levels.
For quality and logistics reasons, most major pigment producers in China,
who typically maintain a high exposure to export sales, have a heavy
dependence on imported ilmenite. Therefore, while overall pigment production
in China declined, the ongoing need for imported ilmenite through the
reporting period to support export sales provided solid support for Base
Resources’ ilmenite.
Demand for rutile into the welding and titanium metal sectors continued to be
very strong throughout the reporting period and into the second half of
financial year 2023. A booming ship-building industry is the main driver of
demand for the high value welding sector and the sharp increase in aerospace
manufacturing, combined with sanctions on Russian-supply of raw materials, is
driving demand for titanium metal.
On the back of the strong conditions at the beginning of the reporting period,
further price gains were achieved for both rutile and ilmenite. Rutile
prices, mostly contracted during the middle of calendar year 2022, and with an
exposure to the strong welding and metal markets, continued to increase
throughout the reporting period. Ilmenite prices, mostly set on a spot
basis, came under pressure and moderated through the latter stages of the
reporting period. Over the reporting period, rutile prices were 36% higher
and ilmenite prices were 12% higher than the comparative period (first half of
financial year 2022).
Western pigment producers have advised their intent to increase their
production rates, to match an expected return in underlying pigment demand,
back to normal levels through the second half of financial year 2023.
Optimism is also growing in the Chinese domestic pigment market as lifting
of government imposed COVID-19 restrictions continues, which should lead to
improved pigment demand through the coming period. It is, therefore,
expected that both rutile and ilmenite prices will soften through early 2023,
before stabilising towards the end of the financial year.
Zircon
Zircon has a range of end-uses, the predominant of which is in the production
of ceramic tiles, accounting for more than 50% of global zircon consumption.
Milled zircon enables ceramic tile manufacturers to achieve brilliant
opacity, whiteness and brightness in their products. Zircon’s unique
properties include heat and wear resistance, stability, opacity, hardness and
strength, making it sought after for other applications such as refractories,
foundries and specialty chemicals.
Demand growth for zircon is closely linked to growth in global construction
and increasing urbanisation in the developing world.
Zircon experienced increasingly tight conditions through financial year 2022
and finished that year at historically high price levels. The government
imposed COVID-19 restrictions in China, who account for over 50% of the global
zircon market, weighed on zircon demand through the reporting period.
However, in the first few months of the reporting period, this was off-set
by ongoing firm demand in most regions outside of China, particularly in
Europe, and average zircon prices were maintained at high levels.
Deteriorating economic conditions in Europe began to have an impact on
zircon demand in the latter part of the reporting period which, combined with
the weak conditions in China, resulted in prices for zircon dropping.
However, over the whole reporting period zircon prices were 29% higher than
the comparative period.
While the weak economic conditions across the major zircon markets have
continued into the beginning of 2023, the optimism building in China from the
lifting of COVID-19 restrictions is expected to provide support for zircon
demand in coming months.
3. Kwale Operations Extensional Opportunities
Implementation of the Bumamani Project, which will extend Kwale Operations
mine life to late 2024, continued during the reporting period, and mining
activities on the Kwale North Dune remain on schedule to commence in March
2023. The subsets of the Kwale North Dune, forming part of the Bumamani
Project, will be mined concurrently with the South Dune area to maximise
mining rates and better manage tailings.
Exploration activities commenced in the area immediately North-East of Kwale
Operations (and within Prospecting Licence 2018/0119) with 320 holes for a
total of 3,260m drilled by the end of the reporting period. Drilling in this
area will continue in second half of FY23 as further land access is secured.
Prospecting licence applications lodged for an area in the Kuranze region of
Kwale county, about 70 km west of Kwale Operations, together with applications
for an area south of Lamu, remain on hold pending lifting of a Government of
Kenya moratorium on issuance of new mineral rights, in place since November
2019. The Company is working with the Government of Kenya, and other mining
sector stakeholders, to see the moratorium lifted.
4. Toliara Project
In November 2019, the Government of Madagascar required Base Resources to
suspend on-the-ground activity on the Toliara Project while discussions on
fiscal terms applying to the project were progressed. Activity remains
suspended as Base Resources continues to engage the Government in relation to
the country’s Large Mining Investment Law (LGIM) regime, fiscal terms
applicable to the Toliara Project and the lifting of the on-the-ground
suspension, with discussions with the Government of Madagascar on fiscal
terms, and lifting of its on-ground suspension, continued to advance in the
reporting period with positive progress made.
A Final Investment Decision (FID) to proceed with construction of the Toliara
Project remains subject to lifting of the suspension and fiscal terms being
agreed with the Government of Madagascar. Once these two key milestones are
achieved, there will be approximately 11 months’ work to complete prior to
reaching FID, including finalisation of funding, completion of land access
arrangements, conclusion of major construction contracts and entry of offtake
agreements with customers. Contact with major EPCM consultants, construction
contractors and equipment suppliers has been maintained in readiness to
accelerate progress when conditions support. Assessment of potential funding
options for the Toliara Project also progressed during the reporting period.
5. Tanzanian exploration
The Company has four prospecting licenses in the Umba region of northern
Tanzania covering 263km2, with a fifth application still pending. An initial
wide-spaced reverse circulation drill program commenced in this area, with 149
holes for 3,889m drilled during the reporting period. The drill samples were
exported to Kenya for analysis at the Kwale Operations laboratory with this
work currently ongoing. Analysis for graphite is also being concurrently
undertaken by an external laboratory. Results from this program are expected
to be released in the second half of the 2023 financial year.
6. Review of Financial Performance
Base Resources achieved a profit after tax of US$44.6 million for the
reporting period, an increase compared with a profit of US$19.2 million in the
comparative period, primarily due to increased product prices and lower
depreciation.
Six months to 31 December 2022 Six months to 31 December 2021
Kwale Operations Toliara Project Other Total Kwale Operations Toliara Project Other Total
US$000s US$000s US$000s US$000s US$000s US$000s US$000s US$000s
Sales Revenue 126,611 - - 126,611 104,615 - - 104,615
Cost of goods sold excluding depreciation & amortisation:
Operating costs (37,931) - - (37,931) (35,919) - - (35,919)
Inventory movement 11,332 - - 11,332 6,771 - - 6,771
Royalties expense (7,318) - - (7,318) (7,754) - - (7,754)
Total cost of goods sold ((i)) (33,917) - - (33,917) (36,902) - - (36,902)
Corporate & external affairs (2,429) (43) (4,397) (6,869) (1,817) (54) (3,947) (5,818)
Community development (2,758) - - (2,758) (2,228) - - (2,228)
Selling & distribution costs (1,005) - - (1,005) (1,182) - - (1,182)
Net write-off of Kenyan VAT receivable and royalty payable - - - - (3,012) - - (3,012)
Other expenses (1,144) - (228) (1,372) (137) - (823) (960)
EBITDA ((i)) 85,358 (43) (4,625) 80,690 59,337 (54) (4,770) 54,513
Depreciation & amortisation (14,897) (94) (198) (15,189) (22,404) (94) (198) (22,696)
EBIT ((i)) 70,461 (137) (4,823) 65,501 36,933 (148) (4,968) 31,817
Net financing expenses (1,640) 46 936 (658) (3,062) - 311 (2,751)
Income tax expense:
Corporate income tax (12,168) - - (12,168) (5,352) - - (5,352)
Dividend withholding tax - - (8,100) (8,100) - - (4,500) (4,500)
NPAT ((i)) 56,653 (91) (11,987) 44,575 28,519 (148) (9,157) 19,214
(i) Base Resources’ financial results are reported under International
Financial Reporting Standards (IFRS). These Financial Statements include
certain non-IFRS measures including EBITDA, EBIT and NPAT. These measures
are presented to enable understanding of the underlying performance of the
Group and have not been audited/reviewed.
Sales revenue increased 26% to US$126.6 million for the reporting period
(comparative period: US$104.6 million) due to a 32% increase in the average
price of product sold to US$681 per tonne (comparative period: US$514 per
tonne).
Total operating costs of US$37.9 million represented an increase of 6%
compared to the prior period (US$35.9 million), due to higher unit fuel and
power costs and a 6% increase in production volume, with operating costs per
tonne produced steady at US$169 per tonne (prior period: US$167 per tonne).
Cost of goods sold (operating costs, adjusted for stockpile movements, and
royalties), was US$195 per tonne of product sold, 5% higher than the
comparative period (US$185 per tonne) due to higher product prices driving an
increase in royalties and product sales mix.
With an operating margin of US$486 per tonne sold (comparative period: US$329
per tonne) and an achieved revenue to cost of sales ratio of 3.5 (comparative
period: 2.8), Base Resources remains well positioned amongst mineral sands
producers.
Higher product prices have delivered an increased Kwale Operations EBITDA for
the reporting period of US$85.4 million (comparative period: US$59.3 million)
and a Group EBITDA of US$80.7 million (comparative period: US$54.5 million).
The majority of Kwale Operations assets are depreciated on a straight-line
basis over the remaining mine life. Shortly before the start of the
reporting period, the maiden Kwale North Dune and Bumamani Ore Reserves
estimate was released, which extended mine life by 13 months, allowing
depreciation and amortisation charges to be prospectively spread over a longer
remaining mine life. Accordingly, depreciation and amortisation in the
reporting period decreased 34% to US$15.2 million (prior period: US$22.7
million).
Due to increased EBITDA and reduced depreciation and amortisation, Kwale
operations recorded a net profit after tax of US$56.7 million (comparative
period: US$28.5 million). During the reporting period, the Group’s Kenyan
subsidiary, Base Titanium Limited (Base Titanium), distributed US$54.0 million
of surplus cash (comparative period: US$30.0), via dividend, to the Group’s
ultimate parent entity, Base Resources. The dividend distribution by Base
Titanium incurred 15% Kenyan dividend withholding tax of US$8.1 million
(comparative period: US$4.5 million), which has been recorded as an income tax
expense, thus contributing to a profit after tax of US$44.6 million for the
Group (comparative period: US$19.2 million).
Cash flow from operations was US$56.1 million for the reporting period
(comparative period: US$20.6 million), with higher sales revenue contributing
to US$19.6 million increase in receipts from customers and a decrease in
royalties paid due to a one-off royalty catch-up payment in the comparative
period of US$18.8m. Operating cashflows were used to fund capital
expenditure at Kwale Operations, Toliara Project progression and dividend.
Total capital expenditure for the Group was US$27.5 million in the reporting
period (comparative period: US$12.0 million) comprised of US$22.6 million at
Kwale Operations (comparative period: US$5.8 million), primarily for the
acquisition of land and establishment infrastructure and services to support
mining operations in the Kwale North Dune and Bumamani deposits, and US$4.5
million on the progression of the Toliara Project (comparative period: US$4.1
million).
Consistent with Base Resources’ strategy, the Group seeks to provide returns
to shareholders through both long-term growth in the Base Resources share
price and appropriate cash distributions. Cash not required to meet the
Group’s near-term growth and development requirements, or to maintain
requisite balance sheet strength in light of prevailing circumstances could be
expected to be returned to shareholders.
Applying this capital management policy, the Board determined a FY22 final
dividend of AUD 3 cents per share, unfranked, which was paid during the
reporting period.
While discussions with the Government of Madagascar on fiscal terms applicable
to the Toliara Project have progressed significantly in the reporting period,
an agreement has not yet been signed. Against this backdrop, with net cash
of US$60.2 million at the end of the period and continued strong financial
performance, the Board has determined an interim dividend of AUD 2.0 cents per
share (unfranked), totalling A$23.6 million in aggregate (approximately
US$16.0 million), to be paid wholly from conduit foreign income.
7. After Balance Date Events
Other than the interim dividend determined by the Board, there have been no
other significant events since the reporting period.
8. Consolidated Condensed Statement of Profit or Loss and Other
Comprehensive Income
6 months to 6 months to
31 December 2022 31 December 2021
Note US$000s US$000s
Sales revenue 2 126,611 104,615
Cost of sales 3 (48,814) (59,307)
Profit from operations 77,797 45,308
Corporate and external affairs (7,161) (6,109)
Community development costs (2,758) (2,228)
Selling and distribution costs (1,005) (1,182)
Net write-off of Kenyan VAT receivable and royalty payable - (3,012)
Other expenses (1,372) (960)
Profit before financing costs and income tax 65,501 31,817
Financing costs (658) (2,751)
Profit before income tax 64,843 29,066
Income tax expense 4 (20,268) (9,852)
Net profit for the period 44,575 19,214
Other comprehensive income/(loss)
Items that may be reclassified subsequently to profit or loss:
Foreign currency translation differences - foreign operations (2,587) (1,166)
Total other comprehensive income/(loss) for the period (2,587) (1,166)
Total comprehensive income for the period 41,988 18,049
Net earnings per share Cents Cents
Basic earnings per share (US cents per share) 3.85 1.64
Diluted earnings per share (US cents per share) 3.80 1.60
The notes contained in the full version of the Half-Year Financial Report form
part of these consolidated financial statements, a copy of which is available
from the Company’s website: www.baseresources.com.au.
9. Consolidated Condensed Statement of Financial Position
31 December 2022 30 June 2022
Note US$000s US$000s
Current assets
Cash and cash equivalents 60,165 55,447
Trade and other receivables 5 62,720 68,961
Inventories 6 25,932 15,098
Other current assets 7,800 9,099
Total current assets 156,617 148,605
Non-current assets
Capitalised exploration and evaluation 7 160,776 156,069
Property, plant and equipment 8 95,149 89,012
Deferred tax asset 64 -
Total non-current assets 255,989 245,081
Total assets 412,606 393,686
Current liabilities
Trade and other payables 19,322 17,652
Provisions 9 6,242 7,500
Deferred consideration 7,000 7,000
Other current liabilities 372 493
Total current liabilities 32,936 32,645
Non-current liabilities
Provisions 9 16,262 16,534
Deferred tax liability - 162
Deferred consideration 10,000 10,000
Other non-current liabilities 522 645
Total non-current liabilities 26,784 27,341
Total liabilities 59,720 59,986
Net assets 352,886 333,700
Equity
Issued capital 10 307,811 307,811
Treasury shares 11 (2,261) (4,957)
Reserves (21,085) (17,811)
Retained earnings 68,421 48,657
Total equity 352,886 333,700
The notes contained in the full version of the Half-Year Financial Report form
part of these consolidated financial statements, a copy of which is available
from the Company’s website: www.baseresources.com.au.
10. Consolidated Condensed Statement of Changes in Equity
Issued Retained earnings Share Foreign currency Treasury shares reserve Total
capital based payment reserve translation reserve
US$000s US$000s US$000s US$000s US$000s US$000s
Balance at 1 July 2021 307,811 28,563 4,465 (18,666) (2,273) 319,900
Profit for the period - 19,214 - - 19,214
Other comprehensive income/(loss) - - - (1,166) - (1,166)
Total comprehensive income for the period - 19,214 - (1,166) - 18,048
Transactions with owners, recognised directly in equity
Dividends paid - (34,838) - - - (34,838)
Purchase of treasury shares - - - - (537) (537)
Share based payments - 529 (460) - 1,150 1,219
Balance at 31 December 2021 307,811 13,469 4,005 (19,832) (1,660) 303,792
Balance at 1 July 2022 307,811 48,657 3,650 (21,461) (4,957) 333,700
Profit for the period - 44,575 - - - 44,575
Other comprehensive income/(loss) - - - (2,587) - (2,587)
Total comprehensive income for the period - 44,575 - (2,587) - 41,988
Transactions with owners, recognised directly in equity
Dividends paid - (22,703) - - - (22,703)
Purchase of treasury shares - - - - (1,151) (1,151)
Share based payments - (2,108) (687) - 3,847 1,052
Balance at 31 December 2022 307,811 68,421 2,963 (24,048) (2,261) 352,886
The notes contained in the full version of the Half-Year Financial Report form
part of these consolidated financial statements, a copy of which is available
from the Company’s website: www.baseresources.com.au.
11. Consolidated Condensed Statement of Cash Flows
6 months to 6 months to
31 December 2022 31 December 2021
US$000s US$000s
Cash flows from operating activities
Receipts from customers 134,885 115,276
Payments in the course of operations (63,292) (77,522)
Income tax paid (15,502) (17,118)
Net cash from operating activities 56,091 20,636
Cash flows from investing activities
Purchase of property, plant and equipment (22,368) (6,806)
Payments for exploration and evaluation (5,153) (5,163)
Other 466 93
Net cash used in investing activities (27,055) (11,877)
Cash flows from financing activities
Dividends paid (22,703) (34,838)
Purchase of treasury shares (1,151) (537)
Payments for debt service costs (534) (55)
Net cash used in financing activities (24,388) (35,430)
Net increase/ (decrease) in cash held 4,648 (26,671)
Cash at beginning of period 55,447 64,925
Effect of exchange fluctuations on cash held 70 (1,188)
Cash at end of period 60,165 37,066
The notes contained in the full version of the Half-Year Financial Report form
part of these consolidated financial statements, a copy of which is available
from the Company’s website: www.baseresources.com.au.
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 capital cost, capacity, future production and
grades, 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.
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,
is developing the Toliara Project in Madagascar and is conducting exploration
in Tanzania. 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
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
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