Base Resources Limited Interim Financial Report - period ended 31 December 2019

 
TIDMBSE 
 
AIM and Media Release 
 
27 February 2020 
 
BASE RESOURCES LIMITED 
Interim Financial Report - period ended 31 December 2019 
 
Base Resources Limited (ASX & AIM: BSE) (Base Resources or the Company) is 
pleased provide the operational and financial highlights from the Company's 
interim results for the six-month period ended 31 December 2019 and the 
following extracts from its Interim Financial Report for the same period. 
 
 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 
 
The extracts from the Interim 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 Interim Financial Report also contains the auditor's 
independence declaration, the directors' declaration and the auditor's review 
report.  The Company has also released a presentation to accompany its Interim 
Financial Report, a copy of which is available from the Company's website: 
www.baseresources.com.au . 
 
Highlights 
 
Key achievements in the six-month period ended 31 December 2019 (H1 FY20) for 
the Company were the successful ramp up of mining operations on the South Dune 
orebody at Kwale Operations in Kenya, and the continued progression of the 
Toliara Project in Madagascar. 
 
Following the transition of mining from the high-grade Central Dune to the 
lower-grade South Dune orebody in July 2019, production from Kwale Operations 
was lower compared to the H1 FY19 comparative period.  Demand for rutile and 
ilmenite remained strong throughout the period and prices continued to 
strengthen, while global economic uncertainties tempered demand for zircon. 
 
Operational Highlights for H1 FY20 
 
  * Successful transition and ramp up of mining operations on the South Dune 
    orebody. 
  * Production of 36,201 tonnes of rutile, 165,214 tonnes of ilmenite and 
    14,904 tonnes of zircon, reduced as a consequence of the lower grade of the 
    South Dune orebody and the ramp up of operations. 
  * Continued strengthening of rutile and ilmenite prices. 
  * Kwale Operations mine life extension opportunities progressed, including 
    commencement of the North Dune pre-feasibility study and submission of 
    additional prospecting licence applications. 
  * Toliara Project definitive feasibility study (DFS) completed, with the 
    findings reinforcing the Company's view that the Toliara Project is a world 
    class mineral sands project. 
  * Toliara Project drilling revealed significant additional high-grade 
    mineralisation within the existing mining permit. 
  * Total Recordable Injury Frequency Rate of zero, with there being no lost 
    time due to injury since 2014. 
  * US$1.8m invested in community and environmental programs, including 
    scholarships and livelihood enhancement. 
 
Financial Highlights for H1 FY20 
 
  * Revenue decreased to US$83.5m, impacted by lower production and shipment 
    timing. 
  * EBITDA decreased to US$43.5m. 
  * NPAT decreased to US$9.1m. 
  * Net cash position of US$32.6m at 31 December 2019. 
  * Revenue to cash cost of sales ratio of 2.6:1. 
 
Managing Director of Base Resources, Tim Carstens, said: 
 
"With the transition of mining operations to the South Dune, we have entered 
the next phase of Kwale Operations.  As was anticipated, overall production has 
been lower than was the case when mining the Central Dune due to the lower 
heavy mineral grade, but we were pleased to be able to increase our production 
guidance for FY20 in January as we continue to optimise mining and processing 
operations for the new orebody." 
 
"We continued to pursue mine life extension opportunities at Kwale, with 
additional prospecting licence applications lodged and the commencement of the 
pre-feasibility study for mining the North Dune orebody." 
 
"The Toliara Project is progressing well with the DFS completed and its 
findings released in December 2019, reinforcing the Company's view that the 
Toliara Project is a world class mineral sands project. We continue to engage 
with the Government of Madagascar regarding fiscal terms for the Toliara 
Project as well as progressing offtake and funding arrangements as we work 
towards a final investment decision in the second half of 2020." 
 
Investor and shareholder call 
 
Base Resources' Managing Director, Tim Carstens, CFO, Kevin Balloch and GM 
Marketing, Stephen Hay, will an investor and shareholder conference call to 
discuss Base Resources' H1 FY20 results. 
 
Europe conference call 
 
Date: Thursday, 27 February 2020 
Time: 5.00pm AWST / 9.00am GMT 
Conference ID: 10004382 
 
Telephone dial in details: 
 
United Kingdom:  0800 051 8245   Ireland:      1800 948 625    UAE:            8000 3570 2705 
 
Belgium:         0800 72 111     Italy:        800 793 500     United States:  [phone] 
 
Sweden:          020 791 959     Norway:       800 69 950      Canada:         [phone] 
 
France:          080 098 1498    Switzerland:  0800 820 030    Other           61 7 3145 4010 
                                                               international: 
 
Germany:         0800 182 7617   South Africa: 0800 999 976 
 
Extracts from Interim Financial Report 
 
1. Review of Operations 
 
Base Resources operates the 100% owned 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 
July 2019, after fully depleting the Central Dune orebody, mining operations 
successfully transitioned to the lower grade South Dune orebody. As a result of 
the transition and subsequent ramp up, mining volume decreased 3% to 9.5 
million tonnes in the reporting period. As expected, the mined ore grade 
improved over the reporting period to average 3.41% for the six months, lower 
than the comparative period's 4.18%. 
 
Mining and Wet Concentrator Plant (WCP) Performance    Six months to    Six months to 
                                                            Dec 2019         Dec 2018 
 
Ore mined (tonnes)                                         9,489,385        9,828,180 
 
Heavy mineral (HM) %                                           3.41%            4.18% 
 
Heavy mineral concentrate produced (tonnes)                  304,100          348,015 
 
Due to the combination of reduced ore mined and lower grade, production of 
heavy mineral concentrate (HMC) decreased by 13% to 304,100 tonnes. Following 
the depletion of HMC stocks during the transition to the South Dune, stocks 
were rebuilt throughout the reporting period to a closing balance of 45,905 
tonnes (20,010 tonnes at the commencement of the reporting period). 
 
Mineral Separation Plant (MSP) Performance             Six months to    Six months to 
                                                            Dec 2019         Dec 2018 
 
MSP feed (tonnes of heavy mineral concentrate)               276,816          385,944 
 
MSP feed rate (tph)                                               77               90 
 
MSP recovery % (i) 
 
        Ilmenite                                                102%             102% 
 
        Rutile                                                  102%              99% 
 
        Zircon                                                   85%              76% 
 
Production (tonnes) 
 
        Ilmenite                                             165,214          226,730 
 
        Rutile                                                36,201           49,630 
 
        Zircon                                                14,904           17,935 
 
        Zircon low grade                                       1,012                - 
 
[(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] 
 
MSP throughput was lower at 77tph in the reporting period (comparative period: 
90tph) due to the reduced volume of HMC available in the early part of the 
reporting period when mining commenced on the northern fringes of the South 
Dune, where grades are lower. Ore grades increased as mining progressed towards 
the centre of the orebody, and HMC production with it, allowing MSP feed rates 
to correspondingly increase. However, total MSP feed was lower at 276,816 
tonnes (comparative period: 385,944 tonnes). 
 
As a result of the above, production of ilmenite, rutile and zircon was lower 
than the comparative period: 
 
  * Ilmenite production was 165,214 tonnes in the reporting period (comparative 
    period: 226,730 tonnes) with recoveries steady at 102% (comparative period: 
    102%). 
  * Rutile production was 36,201 tonnes in the reporting period (comparative 
    period: 49,630 tonnes) with improved recoveries of 102% (comparative 
    period: 99%) and higher contained rutile in the feed. 
  * Zircon production was 14,904 tonnes in the reporting period (comparative 
    period: 17,935 tonnes) with the lower feed rate partially offset by 
    improved recoveries of 85% (comparative period: 76%). The higher zircon 
    recovery is a function of the mineral properties encountered to date in the 
    South Dune orebody, which improves separation efficiency. 
 
There were no workplace lost time or medical treatment injuries during the 
reporting period at the Kwale Operation and, as a result, the lost time injury 
(LTI) frequency rate and total recordable injury frequency rate were both zero 
during the reporting period. No lost time or medical treatment injuries were 
recorded for the Toliara Project and the total number of injuries of any type 

since Toliara Project commencement remains at zero. Base Resources' employees 
and contractors have now worked 19.1 million man-hours LTI free, with the last 
LTI recorded in early 2014. Further, 9.4 million hours have been worked without 
a medical treatment injury. 
 
Marketing and sales                                    Six months to    Six months to 
                                                            Dec 2019         Dec 2018 
 
Sales (tonnes) 
 
        Ilmenite                                             166,653          214,420 
 
        Rutile                                                27,096           47,588 
 
        Zircon                                                13,803           17,764 
 
        Zircon low grade                                       1,455                - 
 
Across each of its three main 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 160,000 tonnes of ilmenite and 
over 9,000 tonnes of zircon products sold into the Chinese market during the 
reporting period. 
 
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 first half of calendar year 2019 and stabilised during 
the reporting period (second half of calendar year 2019).  Global economic 
uncertainties have led to pigment consumers moving to, and maintaining, very 
low pigment inventories.  However, underlying pigment consumption has held up 
and most major pigment producers continued to operate at high production levels 
which fuelled solid demand for feedstocks, including rutile and ilmenite. Any 
improvement in the global economic outlook has the potential to rapidly lead to 
re-stocking activity from pigment consumers and a spike in pigment demand. 
 
Chinese domestic ilmenite production was stable through the reporting period 
while production and exports from India and Vietnam remain significantly 
constrained.  Indian government-imposed bans on mineral sands mining and 
exports (at both the national and state levels) remain in place and now appear 
likely to be permanent.  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 continue to support strengthening ilmenite 
prices. 
 
Significant supply constraints on high grade feedstocks, combined with the 
ongoing firm demand, has resulted in continued price improvement for rutile. 
 
To date, there has been no direct impact on the Company's sales of ilmenite or 
rutile stemming from the COVID-19 outbreak.  Ilmenite demand is much more 
exposed to the Chinese market than rutile, but, like zircon, the impact that 
COVID-19 will have on the Chinese economy and downstream demand in the coming 
months remains uncertain. 
 
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 period of strong 
growth, the economic uncertainties that persist in most key markets led to 
cautious buying behaviour and de-stocking by zircon consumers through the 
reporting period and into 2020.  This has resulted in a slight surplus of 
zircon production from some major producers and a moderation of prices through 
the reporting period. 
 
The outlook for zircon in the short term has become dependent on the full 
extent of the COVID-19 impact - which is expected to be much more significant 
in China, a major market for the Company.  The direct impact on zircon sales to 
date has been minimal, with only a slight delay in the timing of shipments to 
Chinese customers.  While these customers are now resuming shipments and 
clearing the backlog of the past few weeks, it remains uncertain how the impact 
on the general economy and downstream markets will affect zircon demand in the 
coming months. 
 
As a result of the low inventory levels being maintained by zircon consumers, 
any improvement on the COVID-19 outlook and general economic sentiment would 
likely result in a rapid tightening of market conditions as zircon supply is 
expected to remain stable through calendar year 2020. 
 
Kwale Operations Extensional Exploration 
 
Mining tenure arrangements continue to progress with the Kenyan Ministry of 
Petroleum and Mining as a precursor to an anticipated updated Ore Reserves 
estimate based on the expanded 2017 Kwale South Dune Mineral Resource1. A 
concept study for mining the 171Mt North Dune Mineral Resources estimate (136Mt 
Indicated and 34Mt Inferred)2 was completed in early January 2020, with the 
results supporting progression to a pre-feasibility study, which has now 
commenced. 
 
Other exploration drill programs within the Kwale region remained on hold 
pending resolution of community access issues.  After wider prospectivity work, 
additional prospecting licence applications have been lodged for an area south 
of Lamu (Apps No/2136, 2146 and 2153) together with an area in the Kuranze 
region of Kwale county about 70 km west of the Kwale Operation (App No/2123). 
These applications are progressing through the granting process. 
 
[Notes: 
 
(1) Refer to Base Resources' market announcement "Mineral Resource Increase for 
Kwale South Dune" released on 4 October 2017, which is available at:  https:// 
baseresources.com.au/investors/announcements/, for further information. 
 
(2) For further information on the Kwale North Dune Mineral Resources estimate, 
refer to Base Resources' market announcement "Mineral Resource for Kwale North 
Dune deposit" released on 1 May 2019, which is available at https:// 
baseresources.com.au/investors/announcements/. Base Resources confirms that it 
is not aware of any new information or data that materially affects the 
information included in the 1 May 2019 announcement and all material 
assumptions and technical parameters underpinning the estimates in the 1 May 
2019 announcement continue to apply and have not materially changed.] 
 
Toliara Project 
 
In November 2019, the Government of Madagascar (GoM) required the Company to 
temporarily suspend on-the-ground activity on the Toliara Project while 
discussions on fiscal terms applying to the project were progressed3.  Activity 
remains suspended as Base Resources engages with the GoM in relation to the 
fiscal terms applicable to the mining sector in Madagascar, including the 
Toliara Project.  Base Resources is confident that mutually beneficial terms 
can be secured that will support a sound and sustainable Toliara Project and 
broader mining sector, while delivering clear benefits to the communities, the 
nation of Madagascar and shareholders. 
 
The DFS for the Toliara Project was completed in December 2019, with the 
results of that study reinforcing the Company's view that the project is a 
world class mineral sands development. 
 
The DFS outcomes closely align with the PFS released in March 2019 and include 
a post-tax/pre-debt (real) NPV10 of US$652 million, construction capital cost 
estimate of US$442 million and an average revenue to cost ratio of 3.15 over 
the initial 33 year mine life4. The Company is now advancing the Project 
towards a planned decision to proceed to construction later in 2020, with 
production expected to start late 2022. 
 
[Notes: 
 
(3) Refer to Base Resources' market announcement "Toliara Project - Government 
of Madagascar statement" released on 7 November 2019, which is available at: 
https://baseresources.com.au/investors/announcements/, for further information. 
 
(4) Refer to Base Resources' market announcement "DFS reinforces Toliara 
Project's status as a world class mineral sands development" released on 12 
December 2019, which is available at https://baseresources.com.au/investors/ 
announcements/ (DFS Announcement), for further information. The DFS 
Announcement discloses details about the material assumptions and underlying 
methodologies adopted for deriving the forecast financial information included 
in this document in respect of the Toliara Project, such as the material price 
and operating cost assumptions, which include the currently legislated 
government mineral royalty of 2%. The DFS Announcement also discloses key pre 
and post FID risks and an NPV sensitivity analysis in respect of the Toliara 
Project. Base Resources confirms that the material assumptions underpinning the 
forecast financial information disclosed in the DFS Announcement continue to 
apply and have not materially changed.] 
 
3. Review of Financial Performance 
 

Base Resources achieved a profit after tax of US$9.1 million for the six-month 
reporting period, a decrease compared with US$17.4 million in the comparative 
period, primarily due to lower sales revenues. 
 
                       Six months to 31 December 2019       Six months to 31 December 2018 
 
                          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            83,463       -       -   83,463     102,166       -       -  102,166 
 
Cost of goods sold excluding depreciation & amortisation: 
 
Operating costs        (33,647)       -       - (33,647)    (31,968)       -       - (31,968) 
 
Inventory movement        7,417       -       -    7,417       2,557       -       -    2,557 
 
Royalties expense       (5,861)       -       -  (5,861)     (7,119)       -       -  (7,119) 
 
Total cost of goods    (32,091)       -       - (32,091)    (36,530)       -       - (36,530) 
sold (i) 
 
Corporate &             (2,533)    (45) (2,706)  (5,284)     (2,188)   (197) (2,782)  (5,167) 
external affairs 
 
Community               (1,798)       -       -  (1,798)     (1,534)       -       -  (1,534) 
development 
 
Selling &               (1,147)       -       -  (1,147)     (1,316)       -       -  (1,316) 
distribution costs 
 
Other income /              630       1   (310)      321         443       -   (528)     (85) 
(expenses) 
 
EBITDA (i)               46,524    (44) (3,016)   43,464      61,041   (197) (3,310)   57,534 
 
Depreciation &         (27,919)    (51)   (129) (28,099)    (26,025)       -    (62) (26,087) 
amortisation 
 
EBIT (i)                 18,605    (95) (3,145)   15,365      35,016   (197) (3,372)   31,447 
 
Net financing           (2,047)       -   (358)  (2,405)     (7,131)       - (1,690)  (8,821) 
expenses 
 
Income tax expense      (3,817)       -       -  (3,817)     (5,209)       -       -  (5,209) 
 
NPAT (i)                 12,741    (95) (3,503)    9,143      22,676   (197) (5,062)   17,417 
 
[(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 Base 
Resources and its controlled entities (the Group) and have not been audited/ 
reviewed.] 
 
Sales revenue decreased to US$83.5 million for the reporting period 
(comparative period: US$102.2 million), achieving an average price of product 
sold (rutile, ilmenite, zircon and zircon low grade) of US$399 per tonne 
(comparative period: US$365 per tonne). Average unit revenue is influenced by 
both product sales mix and realised product prices.  During the reporting 
period, proportionally less rutile and more ilmenite was sold than in the 
comparative period, which would usually result in a lower average unit revenue 
price, however, higher averaged realised prices for ilmenite and rutile, offset 
by lower prices for zircon, pushed the unit revenue price higher. 
 
Operating cost per tonne produced was higher at US$155 per tonne for the 
reporting period (comparative period: US$109 per tonne), due to reduced 
production as a result of the transition of mining operations to the lower 
grade South Dune orebody in July 2019, and increased costs associated with 
mining higher volumes and moving ore over longer distances, specifically power 
required for pumping. 
 
Unit cost of goods sold is influenced by both the underlying operating costs 
and product sales mix.  Operating costs are allocated to each product based on 
revenue contribution, which sees the higher value rutile and zircon products 
attracting a higher cost per tonne than the lower value ilmenite.  Therefore, 
the greater the sales volume of rutile and zircon relative to ilmenite in a 
period, the higher both unit revenue per tonne and unit cost of goods sold will 
be. 
 
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 means any given 
half-year will usually contain either three or four rutile and ilmenite sales. 
Zircon is sold in smaller parcels and, in the absence of any market 
constraints, sales generally align with production volume.  Product sales mix 
will therefore vary depending on the number of bulk shipments of ilmenite and 
rutile in each period. 
 
Total cost of goods sold, excluding depreciation and amortisation, was US$32.1 
million for the reporting period (comparative period: US$36.5 million) at an 
average cost of US$154 per tonne of product sold (comparative period: US$131 
per tonne), lower than the unit operating cost as a result of inventory 
movements - primarily a build-up of rutile stocks for an early January 2020 
shipment. 
 
With a margin of US$245 per tonne sold for the reporting period (comparative 
period: US$234 per tonne) and an achieved revenue to cost of sales ratio of 2.6 
in the reporting period (comparative period: 2.7). 
 
The reduced sales volume resulted in a lower Kwale Operations EBITDA for the 
reporting period of US$46.5 million (comparative period: US$61.0 million) and a 
Group EBITDA of US$43.5 million (comparative period: US$57.5 million). 
 
A net profit after tax of US$12.7 million was recorded by Kwale Operations 
(comparative period: US$22.7 million) and US$9.1 million for the Group 
(comparative period: US$17.4 million). Basic earnings per share for the Group 
was US0.78 cents per share (comparative period: US1.52 cents per share). 
 
Cash flow from operations was US$35.5 million for the reporting period 
(comparative period: US$53.8 million), lower than Group EBITDA due to the 
payment of US$20.7 million in corporate income tax to the Kenya Revenue 
Authority during the reporting period, offset by a $16.6 million reduction in 
trade receivables. The operating cashflows 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$20.0 million in the reporting 
period (comparative period: US$14.0 million) comprised of US$5.1 million at 
Kwale Operations (comparative period: US$7.3 million), primarily for the 
transition of mining operations to the South Dune deposit, US$14.7 million on 
the progression of the Toliara Project (comparative period: US$6.3 million) and 
US$0.2 million for Corporate capital works (comparative period: US$0.4 
million). 
 
In July 2019, the Group made a payment of US$5.0 million to reduce the amount 
owing on the RCF debt. The Group continues to operate in a net cash positive 
position. At 31 December 2019, the Group held cash reserves of US$47.6 million 
and the RCF balance was US$15.0 million. 
 
After Balance Date Events 
 
Subsequent to period end, in January 2020, the outstanding US$15.0 million 
balance of the RCF debt was repaid in full from cash reserves. 
 
In January 2020, in accordance with the terms of the share sale agreement with 
World Titane Holdings Limited, the Group acquired the remaining minority 
interest in the Toliara Project.  As a result, the Group now owns 100% of the 
Toliara Project. 
 
4. Consolidated Condensed Statement of Profit or Loss and Other Comprehensive 
Income 
 
                                                      6 months to          6 months to 
                                                 31 December 2019     31 December 2018 
 
                                          Note            US$000s              US$000s 
 
Sales revenue                              2               83,463              102,166 
 
Cost of sales                              3             (60,010)             (62,555) 
 
Profit from operations                                     23,453               39,611 
 
Corporate and external affairs                            (5,464)              (5,229) 
 
Community development costs                               (1,798)              (1,534) 
 
Selling and distribution costs                            (1,147)              (1,316) 
 
Other income / (expenses)                                     321                 (85) 
 
Profit before financing costs and income                   15,365               31,447 
tax 
 
Financing costs                            4              (2,405)              (8,821) 
 
Profit before income tax                                   12,960               22,626 
 
Income tax expense                                        (3,817)              (5,209) 
 
Net profit after tax for the period                         9,143               17,417 
 
Other comprehensive income 
 
Items that may be reclassified subsequently to 
profit or loss: 
 
Foreign currency translation differences                      161              (1,644) 
- foreign operations 
 
Total other comprehensive income / (loss)                     161              (1,644) 
for the period 
 
Total comprehensive income for the period                   9,304               15,773 
 
Net Earnings per share                                      Cents                Cents 
 
Basic earnings per share (US cents per                       0.78                 1.52 
share) 
 
Diluted earnings per share (US cents per                     0.77                 1.50 
share) 
 
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 2019        30 June 2019 
 
                                          Note              US$000s             US$000s 
 
Current assets 
 
Cash and cash equivalents                                    47,563              39,242 
 

Trade and other receivables                 5                43,719              62,397 
 
Inventories                                 6                26,187              19,574 
 
Other current assets                                          6,764               6,313 
 
Total current assets                                        124,233             127,526 
 
Non-current assets 
 
Capitalised exploration and evaluation      7               131,330             115,891 
 
Property, plant and equipment               8               182,274             205,586 
 
Total non-current assets                                    313,604             321,477 
 
Total assets                                                437,837             449,003 
 
Current liabilities 
 
Trade and other payables                                     32,371              33,138 
 
Borrowings                                  9                   165                  19 
 
Provisions                                                    3,749               3,398 
 
Income tax payable                         10                     -              14,463 
 
Deferred consideration                                       17,000              17,000 
 
Other liabilities                                                 -                 625 
 
Total current liabilities                                    53,285              68,643 
 
Non-current liabilities 
 
Borrowings                                  9                14,244              18,913 
 
Provisions                                                   25,152              24,355 
 
Deferred tax liability                                       14,188              16,500 
 
Total non-current liabilities                                53,584              59,768 
 
Total liabilities                                           106,869             128,411 
 
Net assets                                                  330,968             320,592 
 
Equity 
 
Issued capital                             11               307,063             306,512 
 
Reserves                                                   (18,548)            (19,230) 
 
Retained earnings                                            42,453              33,310 
 
Total equity                                                330,968             320,592 
 
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 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           -       17,417        -     (1,644)         -    15,773 
for 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 
 
Balance at 1 July 2019         306,512       33,310    3,399    (22,629)         -   320,592 
 
Profit for the period                -        9,143        -           -         -     9,143 
 
Other comprehensive loss             -            -        -         161         -       161 
 
Total comprehensive income           -        9,143        -         161         -     9,304 
for the period 
 
Transactions with owners, recognised directly in equity 
 
Share based payments               551            -      521           -         -     1,072 
 
Balance at 31 December 2019    307,063       42,453    3,920    (22,468)         -   330,968 
 
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 2019     31 December 2018 
 
                                                          US$000s              US$000s 
 
Cash flows from operating activities 
 
Receipts from customers                                    99,012              103,379 
 
Payments in the course of operations                     (42,786)             (48,997) 
 
Income tax paid                           10             (20,696)                (588) 
 
Net cash from operating activities                         35,530               53,794 
 
Cash flows from investing activities 
 
Purchase of property, plant and                           (5,235)              (6,661) 
equipment 
 
Payments for exploration and evaluation                  (14,737)              (7,321) 
 
Other                                                         136                  406 
 
Net cash used in investing activities                    (19,836)             (13,576) 
 
Cash flows from financing activities 
 
Proceeds from borrowings                                        -               48,180 
 
Repayment of borrowings                                   (5,000)             (92,473) 
 
Transfers from restricted cash                                  -               29,591 
 
Payment of debt service costs                             (1,293)              (5,832) 
 
Net cash used in financing activities                     (6,293)             (20,534) 
 
Net increase in cash held                                   9,401               19,684 
 
Cash at beginning of period                                39,242               29,686 
 
Effect of exchange fluctuations on cash                   (1,080)                (244) 
held 
 
Cash at end of period                                      47,563               49,126 
 
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 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] 
 
JOINT BROKER 
Berenberg 
Matthew Armitt / Detlir Elezi 
Phone: [phone] 
 
JOINT BROKER 
Numis Securities Limited 
John Prior / James Black / Paul Gillam 
Phone: [phone] 
 
 
 
END 
 

(END) Dow Jones Newswires

February 27, 2020 02:00 ET (07:00 GMT)