Base Resources Limited Chair's Address to 2021 AGM
November 26 2021 - 2:00AM
UK Regulatory
TIDMBSE
AIM and Media Release
26 November 2021
BASE RESOURCES LIMITED
Chair's Address to the Annual General Meeting
Friday, 26 November 2021, 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
In another operationally and financially successful year, Base Resources
continued to deliver robust results at our Kwale Operations in Kenya while
working to progress development of the world class Toliara Project in
Madagascar.
Base Resources continued to closely manage the risks associated with the
COVID-19 pandemic, and despite these challenges, Kwale Operations maintained
full production, achieved guidance and met shipping schedules throughout the
2021 financial year.
After some early volatility, markets for mineral sands products were remarkably
resilient and finished the year very tight, with customer demand exceeding the
Company's ability to supply.
Our strong operational performance, combined with a robust pricing environment,
allowed the Company to record revenue of US$198.2 million. This result, along
with a continued focus on efficiency, drove EBITDA of US$94.6 million and a net
profit after tax of US$11.0 million. Strong underlying cashflow enabled the
Company to end the year with US$64.9 million net cash, after paying out an
aggregate of US$56.4 million in dividends over the course of the financial
year.
Following another year of strong cash generation, the Board was pleased to
determine a final dividend of AUD 4.0 cents per share. Together with the AUD
3.0 cents per share paid in March, total distributions to shareholders in
respect of the financial year were AUD 7.0 cents per share, unfranked.
On site, the Company maintained its uncompromising focus on safety, health and
wellbeing with no lost time or medical treatment 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.
To build on the Company's long history of sustainable operational practice, an
Environment, Social and Ethics committee of the Board was established in the
financial year. The Committee oversees development and implementation of the
Company's ESE strategy and reporting mechanisms, with the objective of
enhancing and cementing the Company's reputation for excellence in the full
lifecycle of mining.
The Company remains intensely focused on extending Kwale mine life to maximise
the value created by the Kwale development for shareholders, employees, the
community and the nation of Kenya. Subsequent to the year end, the Kwale South
Dune Ore Reserves estimate was updated and the Kwale Special Mining Lease
extension was finalised, extending mine life to December 2023. The outcomes of
the Bumamani PFS were also released, with the study concluding that higher
grade subsets of the North Dune and Bumamani deposits can be economically
mined, supporting an extended mine life to mid-2024 1.
We are also further expanding our exploration tenure in the Kuranze region of
Kenya, with a number of prospecting licence applications moving through the
regulatory approval process, and we secured adjacent prospecting licences in
Tanzania and have commenced our exploration program there.
The Toliara Project in Madagascar continues to represent a significant and
attractive growth opportunity for the Company and, during the 2021 financial
year, meaningful progress was made in discussions with the Government of
Madagascar about the fiscal terms applicable to the project. More recently,
the Company updated the Ranobe Mineral Resources and Ore Reserves estimates and
released an enhanced DFS which significantly increases the scale and economics
of the Toliara Project.
As we proceed through the 2022 financial year, we remain highly optimistic for
the future of Base Resources and the value we can create for all stakeholders,
especially against a backdrop of strong commodity markets with fundamentals
that are calling forward new supply.
As previously announced, I am retiring from the Board at the conclusion of this
AGM. It has been an honour to Chair the Board since 2015, during which time we
achieved many significant milestones of which I am very proud. It has been my
absolute pleasure to serve with my fellow directors and to work with such a
high-quality management team.
Mr Stirzaker will take up the role of Chair at the conclusion of the AGM. A
director of Base Resources since 2014, and with over 30 years of commercial
experience, Mr Stirzaker is well placed to take Base Resources into its next
phase of development.
In closing, I would like to thank my fellow directors for their support and
wisdom, the Base Resources team for their enduring focus on excellence, and our
shareholders for your ongoing belief in the Company.
[Note (1): Refer to Base Resources' market announcements on 3 September 2021
"Bumamani PFS supports extension of Kwale mine life to mid-2024" and "Further
supporting information for Bumamani PFS" (Bumamani PFS Announcements) for the
material assumptions and underlying methodologies adopted for deriving the
summary outcome of the Bumamani PFS disclosed above. Base Resources confirms
that all the material assumptions underpinning the production information and
forecast financial information disclosed in the Bumamani PFS Announcements
continue to apply and have not materially changed.]
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 Gareth Tredway
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 3, 46 Colin Street
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
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
END
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