Base Resources Limited Interim Financial Report - period ended 31 December 2018

 
TIDMBSE 
 
AIM Release 
 
25 February 2019 
 
BASE RESOURCES LIMITED 
Interim Financial Report - period ended 31 December 2018 
 
Base Resources Limited (ASX & AIM: BSE) (Base Resources or the Company) is 
pleased to provide the following extracts from the company's Interim Financial 
Report for the six months ended 31 December 2018. 
 
1.  Review of Operations 
 
2.  Market Developments and Outlook 
 
3.  Review of Financial Performance 
 
4.  Consolidated Condensed Statement of Profit or Loss and Other Comprehensive 
Income 
 
5.  Consolidated Condensed Statement of Financial Position 
 
6.  Consolidated Condensed Statement of Changes in Equity 
 
7.  Consolidated Condensed Statement of Cash Flows 
 
These extracts should be read with reference to the notes contained in the full 
version of the Interim Financial Report, a copy of which is available from the 
Company's website:  www.baseresources.com.au . The Company has also released an 
Investor Presentation to accompany its Interim Financial Report, a PDF copy of 
which is available from the Company's website:  www.baseresources.com.au . 
 
Highlights 
 
Highlights from Base Resources' interim financial results for the six-month 
period ended 31 December 2018 are as follows: 
 
Operational Highlights for H1 FY191 
 
  * 66% increase in mined ore at Kwale Operations offsets lower ore grade; 
 
  * Steady production - 49,630 tonnes of rutile, 226,730 tonnes of ilmenite and 
    17,935 tonnes of zircon; 
 
  * Continued strengthening of rutile and zircon prices; 
 
  * 136km2 Vanga prospecting licence issued, extending south west from the 
    Company's existing Kwale Operation; 
 
  * Total Recordable Injury Frequency Rate of zero - no lost time due to injury 
    since 2014; and 
 
  * US$2.0m invested in community and environmental programs including 
    scholarships and livelihood enhancement. 
 
Financial Highlights for H1 FY19 
 
  * Revenue increased 13% to US$102.2m; 
 
  * EBITDA increased 7% to US$57.5m; 
 
  * NPAT increased 4% to US$17.4m; 
 
  * Net debt free at 31 December 2018 - a reduction of US$34.2m during the 
    period; and 
 
  * Revenue to cost of sales ratio of 2.7:1. 
 
[Note 1:  All figures reported in United States dollars unless otherwise 
stated.] 
 
1. Review of Operations 
 
Base Resources operates the Kwale Operation in Kenya, which commenced 
production in late 2013.  The Kwale Operation is located 50 kilometres south of 
Mombasa, the principal port facility for East Africa. 
 
In order to counter declining grades, and to fully exploit the availability of 
mineral separation plant (MSP) capacity, the Company completed the Kwale Phase 
2 mine optimisation project in second half of the 2018 financial year. 
 Following its successful implementation, mining volumes ramped up 
significantly, resulting in ore tonnes mined in the reporting period increasing 
by 66% over the comparative period.  Mined ore grade of 4.18% for the reporting 
period was lower than the comparative period (7.61%), as expected, as mining 
proceeded around the fringes of the Central Dune orebody. 
 
Mining and Wet Concentrator Plant (WCP) Performance   Six months to   Six months to 
                                                           Dec 2018        Dec 2017 
 
Ore mined (tonnes)                                        9,828,180       5,906,079 
 
Heavy mineral (HM) %                                          4.18%           7.61% 
 
WCP Heavy mineral concentrate produced (tonnes)             348,015         435,305 
 
Despite the increase in mining volume, production of heavy mineral concentrate 
(HMC) decreased by 20% to 348,015 tonnes due to the lower ore grade.  In order 
to maintain steady MSP throughput, an additional 32,203 tonnes of HMC was drawn 
from the HMC stockpile (comparative period: 54,008 tonnes added to HMC 
stockpile), which closed the reporting period with a balance of 45,709 tonnes. 
 
MSP Performance                                       Six months to   Six months to 
                                                           Dec 2018        Dec 2017 
 
MSP feed (tonnes of heavy mineral concentrate)              385,944         381,297 
 
MSP feed rate (tph)                                              90              91 
 
MSP recovery % (i) 
 
Ilmenite                                                       102%            100% 
 
Rutile                                                          99%            100% 
 
Zircon                                                          76%             77% 
 
Production (tonnes) 
 
Ilmenite                                                    226,730         238,585 
 
Rutile                                                       49,630          45,587 
 
Zircon                                                       17,935          18,705 
 
Zircon low grade                                                  -           1,425 
 
(i)   The presence of altered ilmenite species that are not defined as either 
"rutile" or "ilmenite" in the Mineral Resource but are recovered in the 
production of both, results in calculated recoveries above 100% being 
achievable for both products 
 
The MSP has continued to maintain high throughput rates with an average of 
90tph achieved for the reporting period (comparative period: 91tph), whilst 
achieving availability of 97% (comparative period: 95%), which resulted in 
total MSP feed of 385,944 tonnes (comparative period: 381,297 tonnes). 
 
Ilmenite production in the reporting period was lower at 226,730 tonnes 
(comparative period: 238,585 tonnes), due to lower contained ilmenite in the 
MSP feed, partly offset by the higher average ilmenite recoveries of 102% (100% 
in the comparative period). 
 
Rutile production increased to 49,630 tonnes in the reporting period 
(comparative period: 45,587 tonnes) due to higher contained rutile in the MSP 
feed, with recoveries reasonably steady at 99%. 
 
Zircon production decreased to 17,935 tonnes for the reporting period 
(comparative period: 18,705 tonnes) due to lower contained zircon in the MSP 
feed, with average zircon recoveries in line with the comparative periods 76%. 
 
With no serious injuries occurring during the reporting period, Kwale 
Operations lost time injury (LTI) frequency rate remains at zero.  The 
Company's employees and contractors have now worked 14.9 million man-hours LTI 
free, with the last LTI recorded in early 2014. Further, 5.3 million man-hours 
have been worked without a medical treatment injury. 
 
Marketing and sales                                   Six months to   Six months to 
                                                           Dec 2018        Dec 2017 
 
Sales (tonnes) 
 
Ilmenite                                                    214,420         225,814 
 
Rutile                                                       47,588          37,971 
 
Zircon                                                       17,764          17,427 
 
Zircon low grade                                                  -           3,287 
 
Across each of its three products, the Company maintains a balance of 
multi-year, annual and quarterly offtake agreements with long term customers as 
well as a small proportion of ongoing spot sales. These agreements, in place 
with some of the world's largest consumers of titanium dioxide and zircon 
products, provide certainty for the Kwale Operation by securing minimum offtake 
quantities. Selling prices in these agreements are derived from prevailing 
market prices, based on agreed price indices or periodic price negotiations. 
 
The Company continues its strong market presence in China, the world's largest 
market for both ilmenite and zircon, with over 210,000 tonnes of ilmenite and 
over 13,000 tonnes of zircon products sold into the Chinese market during the 
reporting period.  The strength of the mineral sands market for all products 
has ensured that sales continue to closely match production, with minimal 
inventories being maintained. 
 
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. 
 
After more than two years of strong growth, the global TiO2 pigment industry 
moderated through the reporting period.  Global economic uncertainties appear 
to have led to some pigment consumers reducing inventory levels which combined 
with the seasonally slow December quarter to dampen demand for pigment. 
However, most major pigment producers, who had been holding lower than normal 
inventories, continued to operate at high production levels which fuelled solid 
demand for feedstocks including rutile and ilmenite.  Environmental inspections 
that had been restricting pigment production in China for the past two years 
dissipated through the reporting period, allowing most Chinese pigment 
producers to resume normal production rates. 
 
Significant supply constraints on high grade feedstocks, combined with the 
ongoing firm demand, has resulted in continued price improvement for rutile. 
 
Chinese domestic ilmenite production has been stable to slightly down through 
the reporting period while production and exports from India and Vietnam have 
significantly diminished.  Indian government-imposed bans on mineral sands 
mining and exports are now in place in the two major ilmenite producing states 
- Tamil Nadu and Andhra Pradesh, with no indication of when mining in either 
state may resume.  Government- issued export quotas in Vietnam expired at the 
end of the 2018 calendar year - and new quotas have not yet been forthcoming. 
These ilmenite supply constraints are supporting ilmenite prices which have 

remained stable throughout the reporting period and into early 2019. 
 
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.  Following a two-year period 
of strong growth, the economic uncertainties that have emerged in most key 
markets have tempered demand for zircon resulting in prices stabilising during 
the latter stages of the reporting period and into 2019.  However, ongoing 
constraints on global production are expected to support continued stable 
pricing for zircon. 
 
Kwale Operations Extensional Exploration 
 
During the reporting period, the Company progressed the re-evaluation, 
including infill drilling, of the higher-grade areas of the North Dune, 
adjacent to the Kwale Operation's Central Dune, motivated by an improved 
economic environment, refined resource definition methodology and insights from 
five years of operations on the Central Dune.  The drill program is now 
complete, with 573 holes for 20,598 metres drilled and a Mineral Resource 
estimate for the North Dune is expected during the June quarter of 2019. 
 
The Company's 136km2 Vanga Prospecting Licence (PL/2015/0042), extending south 
west from the company's Kwale Operation towards the Tanzanian border, was 
granted late in the reporting period.  Community engagement in the area is 
currently underway, with a drill program planned to commence in the March 2019 
quarter, access and drill rig availability permitting. 
 
Extensional exploration drilling in the North-East Sector (now called Kwale 
East) of the Kwale Operations remains suspended pending resolution of community 
access issues. 
 
Toliara Project 
 
During the reporting period, the Company continued to progress the 
pre-feasibility study for the Toliara Project in Madagascar, which is due for 
completion in March 2019. The pre-feasibility study (PFS) will build on the 
considerable body of work completed by previous owners of the Toliara Project 
and together form the foundations of an accelerated feasibility study program 
that aims to advance the project toward a decision to proceed to construction 
in early 2020. 
 
During the reporting period, an update to the Ranobe deposit Mineral Resources 
estimate was completed to advance detailed mine planning and to refine the 
processing design criteria for the Toliara Project PFS.  The update is the 
result of additional drilling completed to date and revised geological 
interpretations following a comprehensive mineralogical re-definition of drill 
samples, which, together with a revision of cut-off grade from 3.0% to 1.5% HM, 
has increased the Ranobe Mineral Resources estimate to 1.3 billion tonnes at 
5.1% HM2. 
 
[Note 2:  For further detailed information on the Ranobe Deposit Mineral 
Resources, refer to Base Resources' market announcements of 23 January 2019 
"Updated Ranobe Deposit Mineral Resources (corrected)" available at https:// 
www.baseresources.com.au/investor-centre/asx-releases/.  Base Resources 
confirms that it is not aware of any new information or data that materially 
affects the information included in that market announcement and all material 
assumptions and technical parameters underpinning the estimates in that market 
announcement continue to apply and have not materially changed.] 
 
3. Review of Financial Performance 
 
Base Resources achieved a profit after tax of US$17.4 million for the six-month 
reporting period, a 4% increase compared with US$16.8 million in the 
comparative period, primarily due to higher sales revenues. 
 
                            Six months to 31 December 2018       Six months to 31 December 
                                                                           2017 
 
                              Kwale  Toliara    Other    Total       Kwale    Other    Total 
                         Operations  Project                    Operations 
 
                            US$000s  US$000s  US$000s  US$000s     US$000s  US$000s  US$000s 
 
Sales Revenue               102,166        -        -  102,166      90,292        -   90,292 
 
Cost of goods sold excluding depreciation & amortisation: 
 
Operating costs            (31,968)        -        - (31,968)    (27,647)        - (27,647) 
 
Inventory movement            2,557        -        -    2,557       4,923        -    4,923 
 
Royalties expense           (7,119)        -        -  (7,119)     (6,229)        -  (6,229) 
 
Total cost of goods sold   (36,530)        -        - (36,530)    (28,953)        - (28,953) 
(i) 
 
Corporate & external        (2,188)    (197)  (2,782)  (5,167)     (1,864)  (1,945)  (3,809) 
affairs 
 
Community development       (1,534)        -        -  (1,534)     (1,027)        -  (1,027) 
 
Selling & distribution      (1,316)        -        -  (1,316)     (1,970)        -  (1,970) 
costs 
 
Other income /                  443        -    (528)     (85)       (132)    (452)    (584) 
(expenses) 
 
EBITDA (i)                   61,041    (197)  (3,310)   57,534      56,346  (2,397)   53,949 
 
Depreciation &             (26,025)        -     (62) (26,087)    (23,481)     (21) (23,502) 
amortisation 
 
EBIT (i)                     35,016    (197)  (3,372)   31,447      32,865  (2,418)   30,447 
 
Net financing expenses      (7,131)        -  (1,690)  (8,821)     (7,733)  (1,417)  (9,150) 
 
Income tax expense          (5,209)        -        -  (5,209)     (4,497)        -  (4,497) 
 
NPAT (i)                     22,676    (197)  (5,062)   17,417      20,635  (3,835)   16,800 
 
(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 13% to US$102.2 million for the reporting period 
(comparative period: US$90.3 million), achieving an average price of product 
sold (rutile, ilmenite, zircon and zircon low grade) of US$365 per tonne 
(comparative period: US$317 per tonne), with averaged realised prices higher 
for rutile and zircon, offset by lower prices for ilmenite. Operating cost per 
tonne produced was 20% higher at US$109 per tonne for the reporting period 
(comparative period: US$91 per tonne), due to increased volumes mined following 
the implementation of the Kwale Phase 2 mine optimisation project. In addition, 
higher fuel costs and an increase in flocculant use on the lower grade ore have 
contributed to the increase in operating costs. Total cost of goods sold, 
excluding depreciation and amortisation, was US$36.5 million for the reporting 
period, 26% higher than the comparative period (US$29.0 million), at an average 
cost of US$131 per tonne of product sold (comparative period: US$102 per 
tonne), due to higher operating costs and higher royalties associated with 
increased sales revenue. 
 
With a margin of US$234 per tonne sold for the reporting period, 9% higher than 
the comparative period (US$215 per tonne) and an achieved revenue to cash cost 
of sales ratio of 2.7 in the reporting period (comparative period: 2.8), the 
Company remains well positioned high in the upper quartile of mineral sands 
producers. 
 
Improved commodity prices and a continued focus on cost management has 
delivered a Kwale Operations EBITDA for the reporting period of US$61.0 
million, an 8% increase over the comparative period (US$56.3 million) and a 
Group EBITDA of US$57.5 million, a 7% increase over the comparative period 
(US$53.9 million). 
 
The majority of Kwale Operation assets are depreciated on a straight-line basis 
over the remaining mine life. Since the implementation of the Kwale Phase 2 
mine optimisation project in March 2018, mining rates have significantly 
increased to offset declining ore grades and thus the remaining mine life is 
correspondingly shorter. As a result, depreciation and amortisation has 
increased 11% in the reporting period to US$26.1 million (comparative period: 
US$23.5 million). Should the extensional exploration currently underway at 
Kwale Operations be successful, there is the potential to increase ore reserves 
and extend mine life, thereby reducing future annual depreciation and 
amortisation charges. 
 
A 10% increase in net profit after tax of US$22.7 million was recorded by Kwale 
Operations (comparative period: US$20.6 million) and Group net profit after tax 
increased by 4% to US$17.4 million for (comparative period $16.8 million). 
Basic earnings per share for the Group was US1.52 cents per share (comparative 
period: US2.26 cents per share), lower as a result of additional shares issued 
in January 2018 to fund the acquisition of the Toliara Project. 
 
Cash flow from operations was US$53.8 million for the reporting period 
(comparative period: US$57.3 million), slightly lower than Group EBITDA due to 
working capital movements. The operating cash flows were used to fund capital 
expenditure at Kwale Operations, Toliara Project progression, as well as debt 
servicing and repayment. 
 
Total capital expenditure for the Group was US$14.0 million in the reporting 
period (comparative period: US$17.0 million) comprised of US$7.3 million at 
Kwale Operations (comparative period: US$17.0 million), primarily for the 
preparatory work for the transition of mining operations to the South Dune 
deposit, US$6.3 million on the progression of the Toliara Project and US$0.3 
million for Corporate capital works. 
 

In October 2018, the US$80.0 million outstanding balance of the Kwale Project 
Debt Facility was repaid from a combination of cash reserves and utilisation of 
the Revolving Credit Facility (RCF) following a concurrent increase in the RCF 
to US$75.0 million. Early retirement of the Kwale Project Debt Facility 
demonstrates the continued strong performance of Kwale Operations and, together 
with the increased RCF, provides the Group with additional funding flexibility 
and reduced debt servicing costs. 
 
During the reporting period, the Group became net cash positive for the first 
time following a US$34.2 million reduction in net debt from US$33.2 million at 
30 June 2018, to a net cash position of US$1.0 million at 31 December 2018. The 
Group's cash positive position is comprised of cash reserves of US$49.1 
million, with the RCF drawn to US$48.2 million. Future cash generation will now 
be available to contribute to the progression of the Toliara Project. 
 
After Balance Date Events 
 
Subsequent to period end, in January 2019, US$18.2 million of the RCF debt was 
repaid from existing cash reserves. The outstanding balance of the facility 
following this repayment was US$30.0 million. 
 
4. Consolidated Condensed Statement of Profit or Loss and Other Comprehensive 
Income 
 
                                                       6 months to      6 months to 
                                                  31 December 2018      31 December 
                                                                            2017(i) 
 
                                         Note              US$000s          US$000s 
 
Sales revenue                                              102,166           90,292 
 
Cost of sales                             2               (62,555)         (52,434) 
 
Profit from operations                                      39,611           37,858 
 
Corporate and external affairs                             (5,229)          (3,830) 
 
Community development costs                                (1,534)          (1,027) 
 
Selling and distribution costs                             (1,316)          (1,970) 
 
Other (expenses) / income                                     (85)            (584) 
 
Profit before financing costs and income                    31,447           30,447 
tax 
 
Financing costs                           3                (8,821)          (9,150) 
 
Profit before income tax                                    22,626           21,297 
 
Income tax expense                                         (5,209)          (4,497) 
 
Net profit after tax for the period                         17,417           16,800 
 
Other comprehensive income 
 
Items that may be reclassified subsequently 
to profit or loss: 
 
Foreign currency translation differences                   (1,644)              262 
- foreign operations 
 
Total other comprehensive (loss) /                         (1,644)              262 
income for the period 
 
Total comprehensive income for the                          15,773           17,062 
period 
 
Net Earnings per share                                       Cents            Cents 
 
Basic earnings per share (US cents per                        1.52             2.26 
share) 
 
Diluted earnings per share (US cents per                      1.50             2.10 
share) 
 
(i)   Restated from AUD to USD in accordance with change in presentation 
currency. Refer to "Note 1: Basis of preparation". 
 
The notes contained in the full version of the Interim Financial Report form 
part of these consolidated financial statements, a copy of which is available 
from the Company's website:  www.baseresources.com.au . 
 
5. Consolidated Condensed Statement of Financial Position 
 
                                                  31 December 2018 30 June 2018 (i) 
 
                                         Note              US$000s          US$000s 
 
Current assets 
 
Cash and cash equivalents                                   49,126           29,686 
 
Restricted cash                                                  -           29,591 
 
Trade and other receivables                4                40,484           38,726 
 
Inventories                                5                23,782           19,789 
 
Other current assets                                         7,841            5,993 
 
Total current assets                                       121,233          123,785 
 
Non-current assets 
 
Capitalised exploration and evaluation     6               103,962           97,115 
 
Property, plant and equipment              7               219,666          240,509 
 
Total non-current assets                                   323,628          337,624 
 
Total assets                                               444,861          461,409 
 
Current liabilities 
 
Trade and other payables                                    29,965           27,865 
 
Borrowings                                 8                    32           53,266 
 
Income tax payable                                           7,191               75 
 
Deferred revenue                                               833              833 
 
Other liabilities                                            8,653            8,564 
 
Total current liabilities                                   46,674           90,603 
 
Non-current liabilities 
 
Borrowings                                 8                47,059           35,532 
 
Provisions                                                  24,479           22,458 
 
Deferred tax liability                    12                18,474           20,969 
 
Deferred revenue                                               208              625 
 
Other liabilities                                           10,000           10,000 
 
Total non-current liabilities                              100,220           89,584 
 
Total liabilities                                          146,894          180,187 
 
Net assets                                                 297,967          281,222 
 
Equity 
 
Issued capital                            10               306,512          305,277 
 
Reserves                                                  (19,990)         (16,384) 
 
Retained earnings / (Accumulated                            11,445          (7,671) 
losses) 
 
Total equity                                               297,967          281,222 
 
(i)   Restated, refer to Note 12. 
 
The notes contained in the full version of the Interim Financial Report form 
part of these consolidated financial statements, a copy of which is available 
from the Company's website:   www.baseresources.com.au . 
 
6. Consolidated Condensed Statement of Changes in Equity 
 
                                              Retained   Share      Foreign Treasury 
                                   Issued   earnings /    based    currency   shares    Total 
                                  capital (Accumulated  payment translation  reserve 
                                               losses)  reserve     reserve 
 
                                  US$000s      US$000s  US$000s     US$000s  US$000s  US$000s 
 
Balance at 1 July 2017 as         231,079     (36,341)    5,250    (19,517)        -  180,471 
previously reported(i) 
 
Impact of prior year error (ii)         -      (5,863)        -           -        -  (5,863) 
 
Restated balance at 1 July 2017   231,079     (42,204)    5,250    (19,517)        -  174,608 
 
Profit for the period                   -       16,800        -           -        -   16,800 
 
Other comprehensive income              -            -        -         262        -      262 
 
Total comprehensive income for          -       16,800        -         262        -   17,062 
the period 
 
Transactions with owners, recognised directly in equity 
 
Share based payments                  529          559    (316)           -        -      772 
 
Balance at 31 December 2017 (i)   231,608     (24,845)    4,934    (19,255)        -  192,442 
 
Balance at 1 July 2018 as         305,277      (1,808)    5,806    (20,714)  (1,476)  287,085 
previously reported 
 
Impact of prior year error (ii)         -      (5,863)        -           -        -  (5,863) 
 
Restated balance at 1 July 2018   305,277      (7,671)    5,806    (20,714)  (1,476)  281,222 
 
Profit for the period                   -       17,417        -           -        -   17,417 
 
Other comprehensive loss                -            -        -     (1,644)        -  (1,644) 
 
Total comprehensive income for          -       17,417        -     (1,644)        -   15,773 
the period 
 
Transactions with owners, recognised directly in equity 
 
Share based payments                1,235        1,699  (3,438)           -    1,476      972 
 
Balance at 31 December 2018       306,512       11,445    2,368    (22,358)        -  297,967 
 
(i)   Restated from AUD to USD in accordance with change in presentation 
currency. Refer to "Note 1: Basis of preparation". 
 
(ii)    Restated, refer to Note 12. 
 
The notes contained in the full version of the Interim Financial Report form 
part of these consolidated financial statements, a copy of which is available 
from the Company's website:  www.baseresources.com.au . 
 
7. Consolidated Condensed Statement of Cash Flows 
 
                                                      6 months to        6 months to 
                                                 31 December 2018   31 December 2017 
                                                                                 (i) 
 
                                         Note             US$000s            US$000s 
 
 
Cash flows from operating activities 
 
Receipts from customers                                   103,379             99,954 
 
Payments in the course of operations                     (48,997)           (42,657) 
 
Other                                                       (588)               (42) 
 
Net cash from operating activities                         53,794             57,255 
 

Cash flows from investing activities 
 
Purchase of property, plant and                           (6,661)           (16,965) 
equipment 
 
Payments for exploration and evaluation                   (7,321)              (132) 
 
Other                                                         406                390 
 
Net cash used in investing activities                    (13,576)           (16,707) 
 
Cash flows from financing activities 
 
Proceeds from borrowings                                   48,180              7,500 
 
Repayment of borrowings                                  (92,473)           (40,324) 
 
Transfers (to) / from restricted cash                      29,591            (4,694) 
 
Payment of debt service costs                             (5,832)            (7,324) 
 
Net cash used in financing activities                    (20,534)           (44,842) 
 
Net increase / (decrease) in cash held                     19,684            (4,294) 
 
Cash at beginning of period                                29,686             28,278 
 
Effect of exchange fluctuations on cash                     (244)              (158) 
held 
 
Cash at end of period                                      49,126             23,826 
 
(i)   Restated from AUD to USDs in accordance with change in presentation 
currency. Refer to Note 1: Basis of preparation". 
 
The notes contained in the full version of the Interim Financial Report form 
part of these consolidated financial statements, a copy of which is available 
from the Company's website:  www.baseresources.com.au . 
 
ENDS. 
 
For further information contact: 
 
James Fuller, Manager - Communications and         UK Media Relations 
Investor Relations 
 
Base Resources                                     Tavistock Communications 
 
Tel: [phone]                             Jos Simson and Barnaby Hayward 
 
Mobile: [phone]                        Tel: [phone] 
 
Email: [e-mail] 
 
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:  [e-mail] 
Phone: [phone] 
Fax: [phone] 
 
NOMINATED ADVISOR 
RFC Ambrian Limited 
Andrew Thomson / Stephen Allen 
Phone: [phone] 
 
 
 
 
END 
 

(END) Dow Jones Newswires

February 25, 2019 02:00 ET (07:00 GMT)