Base Resources Limited Annual General Meeting materials
20 November 2020 - 6:00PM
UK Regulatory
TIDMBSE
AIM and Media Release
20 November 2020
BASE RESOURCES LIMITED
Annual General Meeting materials
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
1.00pm (Perth time) in Perth, Western Australia and online via the Lumi
software platform.
The Company's Managing Director also gave 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 a volatile, uncertain and complex year globally, Base Resources has
continued to deliver results, with our Kwale Operations in Kenya exceeding
expectations in its first full year mining in the South Dune and good progress
being made with the world class Toliara development project in Madagascar.
Base Resources adapted quickly to the COVID-19 pandemic, altering workplace
conditions as required to maintain a safe environment for our people and the
communities in which we operate. The fact that Kwale Operations maintained
full production and met shipping schedules throughout the 2020 financial year
is testament to the commitment and flexibility of the whole Base Resources
team.
Our strong operational performance, combined with the healthy pricing
environment, allowed the Company to record revenue of US$208.0 million, EBITDA
of US$108.7 million and a net profit after tax of US$39.6 million for the
financial year, and end the period with US$87.6 million net cash. Following
this result, the Board was pleased to determine a maiden dividend of AUD3.5
cents per share, unfranked, which was paid in early October.
On site, the Company maintained its uncompromising focus on safety and health
and wellbeing, with no workplace lost time 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 undertaken.
We remain focused on Kwale mine life extension to maximise value creation from
the Kwale development for all stakeholders. A number of mine life extension
and near mine exploration options continue to be pursued and a pre-feasibility
study on mining the North Dune deposit was commenced in January 2020.
The Toliara Project in Madagascar represents a significant and attractive
growth opportunity for the Company. The definitive feasibility study released
in December 2019 reinforced our view that we have secured one of the best
undeveloped mineral sands assets in the world. Subsequently, front end
engineering design was advanced and lenders' due diligence commenced. This was
all achieved while complying with a temporary suspension of on-the-ground
activity required by the Government of Madagascar pending the outcome of
discussions on fiscal terms. We remain confident that acceptable terms should
be able to be secured and, on this basis, the Company remains committed to
development of the Toliara Project.
The last 12 months have brought many challenges, but they have also highlighted
the resilience of Base Resources. Kwale Operations remains a high cash
generating asset with an enviable revenue to cost of sales ratio and
extensional opportunities. We have a very strong balance sheet. Our product
markets are proving relatively stable and we enjoy sound long term
relationships with our customers. We are well positioned to deliver
shareholder value while weathering future global uncertainty. The commencement
of dividend flows to shareholders is both a statement and a major milestone on
this journey.
Since the end of the financial year, we have announced changes to our Board
composition as part of our succession plan. In October, we welcomed Janine
Herzig as an independent non-executive director and Sam Willis will today
retire from the Board. Sam has served as an independent non-executive director
of Base Resources for 13 years and made a significant contribution to the
Company in that time, including as Chair of the Audit Committee. We wish Sam
all the best with his future endeavours. With Sam's retirement from the Board,
I am pleased to announce that Diane Radley has taken up the role of Chair of
the Audit Committee.
As always, I'd like to thank the Board, our employees, suppliers, local
communities and host governments for their steadfast support and commitment.
Finally, thank you to you, our shareholders, for your confidence, and
patience. We appreciate your ongoing support as we continue to build a truly
unique mineral sands company.
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 Barnaby Hayward
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 1, 50 Kings Park Road
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
BROKER
Berenberg
Matthew Armitt / Detlir Elezi
Phone: +44 20 3207 7800
END
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