Base Resources Limited FY23 Half Year Results

 
TIDMBSE 
 
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 Toliara    Other    Total      Kwale Toliara    Other    Total 
                      Operations Project                   Operations Project 
 
                         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     (33,917)       -        - (33,917)   (36,902)       -        - (36,902) 
sold (i) 
 
Corporate & external     (2,429)    (43)  (4,397)  (6,869)    (1,817)    (54)  (3,947)  (5,818) 
affairs 
 
Community development    (2,758)       -        -  (2,758)    (2,228)       -        -  (2,228) 
 
Selling &                (1,005)       -        -  (1,005)    (1,182)       -        -  (1,182) 
distribution costs 
 
Net write-off of               -       -        -        -    (3,012)       -        -  (3,012) 
Kenyan VAT receivable 
and royalty payable 
 
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 &          (14,897)    (94)    (198) (15,189)   (22,404)    (94)    (198) (22,696) 
amortisation 
 
EBIT (i)                  70,461   (137)  (4,823)   65,501     36,933   (148)  (4,968)   31,817 
 
Net financing            (1,640)      46      936    (658)    (3,062)       -      311  (2,751) 
expenses 
 
Income tax expense: 
 
Corporate income tax    (12,168)       -        - (12,168)    (5,352)       -        -  (5,352) 
 
Dividend withholding           -       -  (8,100)  (8,100)          -       -  (4,500)  (4,500) 
tax 
 
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    31 December 
                                                             2022           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                      -        (3,012) 
royalty payable 
 
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 -                (2,587)        (1,166) 
foreign operations 
 
Total other comprehensive income/(loss) for               (2,587)        (1,166) 
the period 
 
Total comprehensive income for the period                  41,988         18,049 
 
Net earnings per share                                      Cents          Cents 
 
Basic earnings per share (US cents per                       3.85           1.64 
share) 
 
Diluted earnings per share (US cents per                     3.80           1.60 
share) 
 
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   30 June 2022 
                                                             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 
 
                                                     Share     Foreign  Treasury 
                                Issued   Retained    based    currency    shares     Total 
                               capital   earnings  payment translation   reserve 
                                                   reserve     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/          -          -        -     (1,166)         -   (1,166) 
(loss) 
 
Total comprehensive income           -     19,214        -     (1,166)         -    18,048 
for the period 
 
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/          -          -        -     (2,587)         -   (2,587) 
(loss) 
 
Total comprehensive income           -     44,575        -     (2,587)         -    41,988 
for the period 
 
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                         (22,368)           (6,806) 
equipment 
 
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                       70           (1,188) 
held 
 
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.S. 
 
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: [phone]                               Tel: [phone] 
 
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:  [e-mail] 
Phone: [phone] 
Fax: [phone] 
 
NOMINATED ADVISOR 
RFC Ambrian Limited 
Stephen Allen 
Phone: [phone] 
 
JOINT BROKER 
Berenberg 
Matthew Armitt / Detlir Elezi 
Phone: [phone] 
 
JOINT BROKER 
Canaccord Genuity 
Raj Khatri / James Asensio / Patrick Dolaghan 
Phone: [phone] 
 
 
 
 
END 
 
 

(END) Dow Jones Newswires

February 27, 2023 02:00 ET (07:00 GMT)