Base Resources Limited Annual General Meeting materials

 
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: [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 
Stephen Allen 
Phone: [phone] 
 
BROKER 
Berenberg 
Matthew Armitt / Detlir Elezi 
Phone: [phone] 
 
 
 
 
END 
 

(END) Dow Jones Newswires

November 20, 2020 02:00 ET (07:00 GMT)