What to expect from Base Resources (ASX: BSE) in FY24?

4 min read | September 12, 2023 09:48 PM AEST | By Team Kalkine Media

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What to expect from Base Resources (ASX: BSE) in FY24? — Image source: Mr. Tempter

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Highlights

Base Resources is an Australia-based mineral sands producer that operates Kwale operations in Kenya.

The company saw a fall of nearly 3% in revenue during FY23 due to decline in sales volume.

BSE had announced a final dividend of 4 cents per share, payable on 28 September 2023.

Base Resources Limited (ASX:BSE) is a mineral sand producer and developer which is based in Australia and is focused on Africa. The company operates the Kwale operation in Kenya and is also engaged in developing the Toliara project in Madagascar and conducting an exploration in Tanzania.

In the financial year 2023 (FY23), the company saw a decline in sales volume, which led to a 2.76% fall in the revenue to USD 271.40 million, but it was partially offset by higher realised unit price. During the reported period, the EBITDA was almost flat on a YoY basis, to stand at USD 158.60 million. Its operating cost increased in FY23 due to a surge in North Dune mining, fuel and power costs.

In FY23, the underlying NPAT reached USD 84 million, nearly 4.5% higher than the previous corresponding period. The reported NPAT was affected by non-cash impairment loss on Kwale operations.

Top 10 shareholders of BSE

The top 10 shareholders of BSE together have around 67.41% stake in the firm, with Pacific Road Capital Management and Sustainable Capital Ltd having the highest stake of about 26.52% and 24.66%, respectively.

Recent business update

Through an ASX filing dated 7 September 2023, the company informed that FIL Limited and its related entities had decreased their stake in the firm from 7.45% as of 13 January 2023 to 6.44% as of 5 September 2023.

Another significant ASX update dated 28 August 2023 highlighted that the ex-date for the final dividend of AUD 0.04 per share was 8 September, and the pay date is 28 September 2023.

Outlook

In FY24, the company expects the following production from Kwale operations –

Rutile – 35,000 to 41,000 tonnes
Ilmenite - 130,000 to 160,000 tonnes
Zircon – 13,000 to 16,000 tonnes

Also, BSE intends to pursue strategic growth opportunities.

Share performance of BSE

BSE shares closed 2.7% lower at AUD 0.18 apiece on 12 September 2023. With this, BSE’s share price dropped by 41.94% in the last 12 months and increased by 2.86% in the last three months.

The 52-week high of BSE is AUD 0.32 per share, recorded on 12 September 2022, and the 52-week low is AUD 0.16 apiece, recorded on 12 July 2023. The current share price is 43.75% lower than its 52-week high and 12.50% higher than the 52-week low.

Note 1: Past performance is neither an Indicator nor a guarantee of future performance.

Note 2: The reference date for all price data, and currency, is 12 September 2023. The reference data in this report has been partly sourced from EODHD/Others.

Disclaimer

This article has been prepared by Kalkine Media, echoed on the website kalkinemedia.com/au and associated pages, based on the information obtained and collated from the subscription reports prepared by Kalkine Pty. Ltd. [ABN 34 154 808 312; AFSL no. 425376] on Kalkine.com.au (and associated pages). The principal purpose of the content is to provide factual information only for educational purposes. None of the content in this article, including any news, quotes, information, data, text, reports, ratings, opinions, images, photos, graphics, graphs, charts, animations, and video is or is intended to be, advisory in nature. The content does not contain or imply any recommendation or opinion intended to influence your financial decisions, including but not limited to, in respect of any particular security, transaction, or investment strategy, and must not be relied upon by you as such. The content is provided without any express or implied warranties of any kind. Kalkine Media, and its related bodies corporate, agents, and employees (Kalkine Group) cannot and do not warrant the accuracy, completeness, timeliness, merchantability, or fitness for a particular purpose of the content or the website, and to the extent permitted by law, Kalkine Group hereby disclaims any and all such express or implied warranties. Kalkine Group shall NOT be held liable for any investment or trading losses you may incur by using the information shared on our website.

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