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Base Resources Limited (ASX & AIM: BSE), a prominent African mineral sands producer, has announced its financial, operational, and development results for the year ending 30 June 2024 (FY24). The company’s Kwale Operations continued to perform well, achieving production at the top end of guidance despite transitioning to lower-grade ore bodies. This shift, along with reduced sales volumes and softer product prices, led to a decrease in overall production. Mining at Kwale is set to conclude in December 2024, with processing activities wrapping up shortly thereafter.
In FY24, Kwale's mining transitioned from the South Dune to the Bumamani deposit, resulting in a 6% decrease in mined volumes to 15.3 million tonnes. The year's production figures included 41,317 tonnes of rutile, 159,395 tonnes of ilmenite, 17,354 tonnes of zircon, and 10,034 tonnes of low-grade rutile and zircon products. The average achieved prices softened by 4% for rutile, 9% for ilmenite, and 14% for zircon compared to the previous year.
On the development front, discussions with the Government of Madagascar regarding the Toliara Project's fiscal terms resumed early in 2024, following the re-election of President Rajoelina. An in-principle agreement has been reached on the key fiscal terms, although binding documentation is still pending. The focus now shifts to finalizing these agreements to ensure the project's timely advancement.
In a significant move, Base Resources announced a proposed combination with Energy Fuels Inc. (NYSE American: UUUU, TSX: EFR), aiming to establish a global leader in critical minerals. As part of this transaction, the Board has proposed a special dividend of AU$0.065 per share, conditional on the scheme of arrangement becoming effective. Shareholders will also be entitled to receive 0.0260 Energy Fuels common shares per Base Resources share if the scheme proceeds.
Financially, Base Resources reported a 50% decrease in revenue to US$135.1 million due to lower production and sales volumes. EBITDA stood at US$26.4 million, with an underlying net loss after tax of US$1.6 million. The company generated free cash flow of US$25.7 million and maintained a net cash position of US$88.1 million as of 30 June 2024.
