AUS
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Highlights
- Base Resources is an Australia based mineral sands producer and developer
- In FY23, the company recorded a 2.76% YoY fall in the revenue to USD 271.40 million
- Pacific Road Capital Management has the highest stake in BSE with a shareholding of around 26.52%
Base Resources Limited (ASX:BSE) is an ASX-listed mineral sands developer and producer which operates the Kwale operations in Kenya. The company produces a suite of mineral sands products such as zircon, rutile and ilmenite. Moreover, the company is engaged in developing the Toliara project in Madagascar and undertaking an exploration campaign in Tanzania.
The AUD 135.47 million-market cap entity recorded a fall of around 7% YoY in the production volume in the first quarter of the financial year 2024 (1QFY24), while the revenue per tonne increased by nearly 44% YoY annually to USD 1,029. During the reported period, ilmenite and rutile improved and prices of zircon remained soft on sluggish demand.
In FY23, the revenue dropped by 2.76% YoY to USD 271.40 million due to lower sales volume, but it was partially offset by an increased realised unit price. During the reported period, EBITDA remained nearly flat at USD 158.60 million because North Dune power,, fuel and mining increased operating costs. NPAT during the stated period, dropped to negative USD 4.8 million from USD 80.7 million in FY22.
Top 10 shareholders of BSE
The top 10 shareholders of BSE have around 62.74% shareholding in BSE, while the top four have approximately 58.73% shareholding. Pacific Road Capital Management and Sustainable Capital Ltd. have the highest stake in the company with a shareholding of ~26.52% and ~24.66%, respectively.
Recent business update
On 24 November 2023, the company released the results of 2023 AGM. The purpose of the meeting was to seek shareholders’ approval on five resolutions, out of which one was withdrawn, two were not approved and the remaining two were approved with the required votes.
Through an ASX-filing, the company informed that Malcolm Macpherson, BSE’s director had no stake in the firm as of 24 November 2023.
Outlook
In December 2024, mining at Kwale operations is expected to be completed. The company shared the belief that Rutile demand from titanium and welding metal sectors to remain strong and price premiums are expected to sustain. This is likely to drive sales growth in future, said BSE.
Share performance of BSE
BSE shares closed 4.35% higher at AUD 0.12 apiece on 5 December 2023. Including this, BSE’s share price has declined by almost 50% in the last nine months and has dropped by 48.94% in the last three months.
The 52-week high of BSE is AUD 0.26, recorded on 3 March 2023, and the 52-week low is AUD 0.105, recorded on 2 November 2023.
Note 1: Past performance is neither an Indicator nor a guarantee of future performance.
Note 2: The reference date for all price data, currency, is 05 December 2023. The reference data in this report has been partly sourced from EODHD/Others.
Disclaimer
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