logo-loader
viewBase Resources Limited

BASE RESOURCES LIMITED - Annual Financial Report - period ended 30 June 2019

BASE RESOURCES LIMITED - Annual Financial Report - period ended 30 June 2019

BASE RESOURCES LIMITED - Annual Financial Report - period ended 30 June 2019

PR Newswire

AIM and Media Release 

26 August 2019

BASE RESOURCES LIMITED
Annual Financial Report – period ended 30 June 2019

Base Resources Limited (ASX & AIM: BSE) (Base Resources or the Company) is pleased to provide the following extracts from the Company’s Annual Report (which includes the Annual Financial Report) for the year ended 30 June 2019.

1. Operations Summary.
2. Business Development.
3. Markets.
4. Corporate.
5. Consolidated Statement of Profit or Loss and Other Comprehensive Income.
6. Consolidated Statement of Financial Position.
7. Consolidated Statement of Changes in Equity.
8. Consolidated Statement of Cash Flows.

These extracts should be read with reference to the notes and graphics contained in the full version of the 2019 Annual Report, a copy of which is available from the Company’s website:  www.baseresources.com.au.  The Company has also released an Investor Presentation to accompany its Annual Report, a PDF copy of which is available from the Company’s website:  www.baseresources.com.au

All figures are reported in US dollars unless otherwise stated.

HIGHLIGHTS

Sales price increases and a focus on efficiency have resulted in record revenue, EBITDA and NPAT for the year ended 30 June 2019 (FY19) for mineral sands producer and developer, Base Resources.  The Company also successful transitioned mining operations to the South Dune orebody at its Kwale Operation in Kenya and released the pre-feasibility study for its Toliara Project in Madagascar. 

Operational Highlights for FY19

  • Kwale production in line with updated guidance – 92,393 tonnes of rutile, 402,698 tonnes of ilmenite and 31,941 tonnes of zircon.
  • Mining rate increased by 57% to 17.8Mtpa, facilitated by implementation of the Kwale Phase 2 mine optimisation project in the prior year.
  • Successfully transitioned mining operations to the Kwale South Dune after fully depleting the Central Dune.
  • Total Recordable Injury Frequency Rate of zero – no lost time injury since early 2014.
  • US$3.8m invested in community and environment programs.

Financial Highlights for FY19

  • Average price improvement for both rutile (22% increase) and zircon (28% increase) increased revenue by 5% to US$209.5m.
  • EBITDA increased 4% to US$113.5m.
  • NPAT increased 15% to US$39.2m.
  • Net debt free, with a closing net cash position of US$19.2m.
  • Financing costs lower after early retirement of the Kwale Project Debt Facility in October 2018.
  • Revolving Credit Facility increased to US$75.0m on more favourable terms, increasing funding flexibility.
  • Revenue to cost of sales ratio of 2.6:1 maintained Kwale Operations position in the upper quartile of mineral sands producers.

Development Highlights for FY19

  • Increased the Ranobe deposit Mineral Resources estimate, on which the Toliara Project is based, to 1.3 billion tonnes at 5.1% HM, a 25% rise in contained HM tonnes[1].
  • Toliara Project pre-feasibility study[2] released, confirming the Company’s view that the Toliara Project is a world-class mineral sands development.
  • Toliara Project definitive feasibility study commenced and on target for completion by the end of 2019.
  • Kwale North Dune Mineral Resources estimate released and feasibility study commenced.
  • 136km2 Vanga exploration license, south of Kwale, granted with 8,195m drilled.

Managing Director of Base Resources, Tim Carstens, said:

“This has been a busy but rewarding year for Base Resources with our highly productive Kwale Operation in Kenya delivering a consistently strong performance and the world class Toliara Project in Madagascar progressing towards development.”

“Strong price improvement for rutile and zircon contributed to record financial results for the Company and we ended the year net cash positive, establishing a strong platform from which to grow the business.  Our focal points for FY20 are optimisation and consistent performance of the Kwale Operations on the South Dune, pursuit of mine life extension at Kwale, and continued progression of the Toliara Project towards a development decision, with delivery of the DFS and project funding the immediate priorities.”

Outlook

As previously announced[3], Base Resources expects to produce from its Kwale Operation in FY20:

  • Rutile – 64,000 to 70,000 tonnes;
  • Ilmenite – 315,000 to 350,000 tonnes; and
  • Zircon – 25,000 to 28,000 tonnes.

[Note (1) For further information on the Ranobe deposit Mineral Resources, refer to Base Resources’ market announcement on 23 January 2019 “Updated Ranobe Deposit Mineral Resources (corrected)” available at https://www.baseresources.com.au/investor-centre/asx-releases/..  Base Resources confirms that it is not aware of any new information or data that materially affects the information included in the 23 January 2019 market announcement and all material assumptions and technical parameters underpinning the estimates in the 23 January 2019 market announcement continue to apply and have not materially changed.]
[Note (2) For further information about the Toliara Project PFS outcomes refer to Base Resources’ market announcement on 21 March 2019 “Toliara Project PFS confirms status as a world-class mineral sands development” available at https://www.baseresources.com.au/investor-centre/asx-releases/.]
[Note (3) For further information refer to Base Resources’ market announcement on 10 April 2019 “Production Guidance for FY20” available at https://www.baseresources.com.au/investor-centre/asx-releases/.]

1. OPERATIONS SUMMARY

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.

The Kwale Operation is designed to process ore to recover three main products: rutile, ilmenite and zircon. Mining operations are predominantly hydraulic mining, which has proved to be cost effective and well suited to the Kwale deposit. Ore is received at the wet concentrator plant from the mining units via a slurry pipeline. The wet concentrator plant removes slimes, concentrates the valuable heavy minerals with a number of gravity separation steps and rejects most of the non-valuable, lighter gangue minerals to produce a heavy mineral concentrate. The heavy mineral concentrate is then processed in the mineral separation plant which cleans and separates the rutile, ilmenite and zircon minerals into finished products for sale.

Mining

Mining volume increased 57% to 17.8 million tonnes in the reporting period (the year ended 30 June 2019) compared to the comparative period (the year ended 30 June 2018) following implementation of the Kwale Phase 2 (KP2) mine optimisation project in 2018. KP2 aimed to maximise heavy mineral concentrate (HMC) feed to the mineral separation plant (MSP) by increasing mining rates to counter ore grade declines. The average mined ore grade was 3.90%, lower than the comparative period (7.12%) due to mining on the remnant outer fringes of the Central Dune as the ore body was fully depleted in the reporting period. In June 2019, mining operations were successfully transitioned to the South Dune orebody.

Mining and Wet Concentrator Plant (WCP) Performance 2019 2018
Ore mined (tonnes) 17,822,324 11,332,668
Heavy mineral (HM) % 3.90 7.12
WCP heavy mineral concentrate production (tonnes) 644,180 748,081

644,180 tonnes of HMC was produced in the reporting period, lower than the comparative period (748,081 tonnes) due to the lower heavy mineral grade of ore mined. The HMC stockpile decreased to 20,010 tonnes at 30 June 2019 (comparative period: 77,912 tonnes), following the drawdown of stocks during the transition of mining operations to the South Dune orebody.

Processing

Mineral Separation Plant (MSP) Performance 2019 2018
MSP feed (tonnes of heavy mineral concentrate) 702,082 753,801
MSP feed rate (tph) 84 91
MSP recovery %
        Ilmenite 102 100
        Rutile 101 100
        Zircon 76 77
Production (tonnes)
        Ilmenite 402,698 464,988
        Rutile 92,393 91,672
        Zircon 31,941 37,157
        Zircon low grade 519 1,425

The mineral separation plant continued to maintain high throughput rates for much of the reporting period, though the MSP feed rate was decreased from February 2019 onwards to ensure sufficient HMC stocks were available to allow a continuous feed to the MSP during the June transition of mining to the South Dune orebody. Total heavy mineral concentrate feed in the reporting period was correspondingly lower at 702,082 tonnes (comparative period: 753,801 tonnes).

Due to the reduced MSP feed in the reporting period, production of ilmenite and zircon was lower than the comparative period:

  • Ilmenite production was 402,698 tonnes in the reporting period (comparative period: 464,988 tonnes) with production also affected by lower contained ilmenite in the feed.
  • Rutile production was 92,393 tonnes in the reporting period (comparative period: 91,672 tonnes) with higher contained rutile in the feed offsetting a reduced feed rate.
  • Zircon production was 31,941 tonnes for the reporting period (comparative period: 37,157 tonnes) with production also affected by lower contained zircon in the feed. Production of a low-grade zircon product re-commenced in February 2019 from a previously rejected MSP tailings stream with a contained 519 tonnes produced during the year.

Sales

Across each of its three 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 feedstocks and zircon products, provide certainty for the Kwale Operations by securing minimum offtake quantities. Sales 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 390,000 tonnes of ilmenite and over 25,000 tonnes of standard zircon products sold into the Chinese market during the reporting period. The strength of the mineral sands market for all products has ensured that sales continue to closely match production, with minimal inventories being maintained.

Product Sales 2019 2018
Sales (tonnes)
Ilmenite 395,378 473,549
Rutile 94,070 89,132
Zircon 32,992 36,318
Zircon low grade 334 3,287

2. BUSINESS DEVELOPMENT

Business development remained a core focus with the Toliara Project significantly progressed and opportunities to extend Kwale Operations mine life pursued.

Toliara Project

The Company completed the acquisition of the Toliara Project in January 2018 and is currently progressing the project through a full study phase. The Toliara Project is founded on the Ranobe deposit, located approximately 50 kilometres north of the regional town of Toliara in south west Madagascar.

An updated Ranobe Mineral Resources estimate was released in the reporting period increasing the contained heavy mineral by 25% to 1.3 billion tonnes at 5.1% heavy mineral.

The release of the pre-feasibility study (PFS) for the Toliara Project confirmed the Company’s view that the project is one of the best mineral sands development opportunities in the world. The PFS estimated post-tax/pre-debt (real) NPV10 of

US$671 million and a sector leading average revenue to cost of sales ratio of 3.06 over the 33-year initial mine life[4].  Other key estimated annual outputs of the PFS are:

  • Production of 806kt ilmenite (sulphate, slag and chloride), 54kt zircon and 8kt rutile.
  • Revenue of US$254 million.
  • Operating costs of US$77 million or US$82 million incl. 2% royalties.
  • EBITDA of US$165 million and NPAT of US$110 million.
  • Free cash flow of US$133 million.

A definitive feasibility study (DFS) for the Toliara Project commenced in the reporting period and is on target for completion in late 2019, ahead of a planned decision to proceed to construction in 2020.  On this schedule, it could be expected that the Toliara Project would be brought into production in 2022.

[Note (4) For further information about the Toliara Project PFS outcomes including key assumptions and risks, refer to Base Resources’ market announcement on 21 March 2019 “Toliara Project PFS confirms status as a world-class mineral sands development” available at baseresources.com.au/investor-centre/asx-releases.]

Kwale Operations extensional exploration

The Company released the Kwale North Dune Mineral Resources estimate of 171 million tonnes at an average heavy mineral grade of 1.5% in the year.  With the expectation that the resource will support modest extensions to Kwale Operations, further drilling has been completed and a study phase has commenced to assess the economics of potential mine life extensions.

Base Resources was granted a prospecting licence for the 136km2 Vanga area in December 2018 and exploratory drilling commenced in April 2019. An extension of this prospecting licence was also applied for in the period. Completion of the remaining drilling program in the Kwale East area and Vanga remains suspended pending resolution of community access issues. Drill assay results to date have shown potential for some limited extensional economic resource close to the Central Dune (Bumamani), but this remains subject to more detailed evaluation.

3. MARKETS

With ongoing demand and supply constraints, Base Resources secured strong price gains for rutile and zircon in the reporting period. Ilmenite experienced a modest start to the year before supply tightness triggered solid price improvement.

Mineral sands end products are widely used in everyday life and historical demand has been tightly tied to growth in global GDP.

Ilmenite and rutile

Rutile and ilmenite are different grades of titanium dioxide (Ti02) minerals and are used predominantly to produce pigments for paint, paper, plastics, textiles and inks. Ti02 pigment is prized for its opacity, brightness and whiteness and its ability to absorb and reflect ultraviolet radiation. It is also non-toxic and inert to most chemical reagents.

High grade Ti02 minerals (which include rutile) can also be used to produce titanium metal, which is corrosion resistant and has the highest strength to weight ratio of any metal. Titanium metal is used across the aerospace and defence industries as well as in medical devices, sporting equipment and jewellery.

After a solid start to the reporting period the global pigment industry experienced a slowdown in demand in late 2018 as major pigment producers reported that pigment consumers had embarked on a period of de-stocking pigment inventory. While consumption of pigment from these end users remained at good levels, the reduction in inventories had a net negative impact on pigment demand which ultimately led to some pigment producers reducing their production rates. By the end of the reporting period major pigment producers indicated that the de-stocking process had slowed significantly or been completed. Pigment conditions for the rest of 2019 are looking positive with an expectation of ongoing growth.

Conditions within the titanium metal sector improved through the course of the year. A significant and growing backlog of orders with the major aircraft manufacturers has led to a much-improved outlook on titanium metal demand from the aerospace industry.

Supply constraints on high grade titanium feedstocks (which includes rutile) persisted through the reporting period. This is the result of some rutile deposits approaching the end of their life and ongoing production issues at some major rutile

operations. Despite the adjustments to pigment production by some western producers, demand for high grade feedstocks from all three end-user segments (pigment, Ti02 metal and welding) has continued to exceed supply which has resulted in ongoing price gains. The average price for Base Resources rutile in the reporting period was ~25% higher than in the comparative period.

Supply constraints on ilmenite emerged through the course of the year. The bans on the mining and export of mineral sands in the two major producing states in India (Tamil Nadu and Andhra Pradesh) continued and these have been more recently followed up with a separate blanket ban being imposed by the Indian national government on all private mining of mineral sands deposits in India. Vietnamese ilmenite supply has also trended strongly downwards since export quotas expired at the end of calendar year 2018.

Following subdued conditions in the first months of the reporting period, increased pigment production in China, combined with the restrictions on ilmenite supply, resulted in ilmenite prices trending upwards towards the end of the year. While the average price of Base Resources ilmenite was marginally lower than the prior year, ilmenite prices ended the reporting period ~10% higher than the comparative period average. Ongoing supply constraints and firm demand are expected to support a positive market environment for rutile and ilmenite in the coming year.

Zircon

Zircon has a range of end-uses, including in the production of ceramic tiles, which accounts 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 for zircon is closely linked to growth in global construction and increasing urbanisation in the developing world. Under normal conditions there is a close link between zircon demand growth and global GDP growth.

After a good start to the period, which saw further strong gains in pricing, the zircon market began to moderate during late 2018. Global trade tensions and economic uncertainties, combined with increased environmental inspections in some of the major zircon consuming regions in China, led to more cautious buying behaviour from consumers and an overall dampening on demand. Following a two-year period of strong quarterly gains, market conditions and prices for zircon stabilised from early 2019 onwards.

The management of supply to suit the conditions from at least one of the major zircon suppliers, and a move to six monthly fixed pricing contracts from a number of major suppliers, provide a solid foundation for ongoing stability in the zircon market. Any return to normal levels of demand growth would likely result in further price improvement as ongoing constrained supply may not be able to keep pace with demand.

Zircon demand from Base Resources’ customers remains firm and continues to exceed the Company’s ability to supply. The recent trend in market preference for standard zircon compared with premium zircon suits Base Resources’ production profile which is currently set at ~85% standard grade and ~15% premium. The average price for Base Resources’ standard zircon in the reporting period was ~30% higher than the comparative period.

4. CORPORATE

Base Resources achieved a record profit after tax of US$39.2 million for the reporting period compared to US$34.0 million in the comparative period, driven primarily by higher sales revenues and reduced debt servicing expenses.

2019 2018
Kwale Operation US$000s Toliara Project US$000s Other US$000s Total US$000s Kwale Operation US$000s Toliara Project US$000s
Other US$000s

Total US$000s

Sales Revenue

209,456

-

-

209,456

198,810

-

-

198,810
Cost of goods sold excluding
Depreciation & amortisation:
Operating costs (63,234) - - (63,234) (56,658) - - (56,658)
Inventory movement (2,075) - - (2,075) (2,114) - - (2,114)
Royalties expense (14,597) - - (14,597) (13,678) - - (13,678)
Total cost of goods sold (i) (79,906) - - (79,906) (72,450) - - (72,450)

Corporate & external affairs

(4,024)

(249)

(5,859)

(10,132)

(4,312)

(87)

(4,855)

(9,254)
Community development (3,607) - - (3,607) (3,000) - - (3,000)
Selling & distribution costs (2,501) - - (2,501) (4,056) - - (4,056)
Other income / (expenses) 850 - (649) 201 28 (704) (89) (765)
EBITDA (i) 120,268 (249) (6,508) 113,511 115,020 (791) (4,944) 109,285

Depreciation & amortisation

(51,885)

-

(183)

(52,068)

(47,349)

-

(84)

(47,433)
EBIT (i) 68,383 (249) (6,691) 61,443 67,671 (791) (5,028) 61,852

Net financing expenses

(9,729)

-

(1,826)

(11,555)

(15,929)

-

(2,560)

(18,489)
Income tax expense (10,735) - - (10,735) (9,389) - - (9,389)
NPAT (i) 47,919 (249) (8,517) 39,153 42,353 (791) (7,588) 33,974

(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 the Group and have not been audited.

Sales revenue increased 5% to US$209.5 million for the reporting period (comparative period: US$198.8 million), achieving an average price of product sold (rutile, ilmenite, zircon and zircon low grade) of US$401 per tonne (comparative period: US$330 per tonne), with higher average realised prices for rutile and zircon, offset by lower prices for ilmenite. Operating cost per tonne produced was 28% higher at US$120 per tonne for the reporting period (comparative period: US$95 per tonne), due to increased volumes mined following the implementation of the Kwale Phase 2 mine optimisation project. In addition, increased flocculant use on the lower grade ore and increased mine clearing and preparation associated with the higher mining rate following the Kwale Phase 2 upgrade have contributed to the increase in operating costs. Total cost of goods sold, excluding depreciation and amortisation, was US$79.9 million for the reporting period, 10% higher than the comparative period (US$72.5 million) at an average cost of US$153 per tonne of product sold (comparative period: US$120 per tonne), due to higher operating costs and higher royalties associated with increased sales revenue.

With a margin of US$248 per tonne sold for the reporting period, 18% higher than the comparative period (US$210 per tonne) and an achieved revenue to cost of sales ratio of 2.6 (comparative period: 2.8), the Company remains well positioned high in the upper quartile of mineral sands producers.

Improved commodity prices and a continued focus on cost management has delivered a Kwale Operations EBITDA for the reporting period of US$120.3 million, a 5% increase over the comparative period (US$115.0 million) and a Group EBITDA of US$113.5 million, a 4% increase over the comparative period (US$109.3 million).

The majority of Kwale Operation assets are depreciated on a straight-line basis over the remaining mine life. Since the implementation of the Kwale Phase 2 mine optimisation project in March 2018, mining rates have significantly increased to offset declining ore grades and thus the remaining mine life is correspondingly shorter. As a result, depreciation and amortisation has increased 10% in the reporting period to US$52.1 million (comparative period: US$47.4 million). Should the extensional exploration currently underway at Kwale Operations be successful, there is the potential to increase ore reserves and extend mine life, thereby reducing future annual depreciation and amortisation charges.

A 13% increase in net profit after tax of US$47.9 million was recorded by Kwale Operations (comparative period: US$42.4 million) and Group net profit after tax increased by 15% to US$39.2 million (comparative period: US$34.0 million). Basic earnings per share for the Group was 3.39 cents per share (comparative period: 3.66 cents).

Cash flow from operations was US$96.6 million for the reporting period (comparative period: US$117.1 million), lower than Group EBITDA due to working capital movements. 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$36.1 million in the reporting period (comparative period: US$35.9 million excluding Toliara Project acquisition costs), including US$11.7 million for the transition of mining operations to the South Dune deposit and US$17.3 million on the progression of the Toliara Project.

Net debt reduction

In October 2018, the US$80.0 million outstanding balance of the Kwale Project Debt Facility was repaid from a combination of cash reserves and utilisation of the Revolving Credit Facility (RCF) following a concurrent increase in the RCF to US$75.0 million. The drawn balance of the RCF increased by $US7.5 million to US$20.0 million in the reporting period. Early retirement of the Kwale Project Debt Facility demonstrates the continued strong performance of Kwale Operations and, together with the increased RCF, provides the Group with additional funding flexibility and reduced debt servicing costs.

During the reporting period, the Group became net cash positive for the first time following a US$52.4 million reduction in net debt from US$33.2 million at 30 June 2018, to a net cash position of US$19.2 million at 30 June 2019.  The Group’s cash positive position is comprised of cash reserves of US$39.2 million, with the RCF drawn to US$20.0 million.  Future cash generation will now be available to contribute to the progression of the Toliara Project.

Kenyan VAT receivable

Base Resources has refund claims for VAT paid in Kenya, relating to both the construction of the Kwale Project and the period since operations commenced, totalling approximately US$24.2 million at 30 June 2019. These claims are proceeding through the Kenya Revenue Authority process, with a number of operational period claims, totalling approximately US$3.5 million, settled during the reporting period. Base Resources is continuing to engage with the Kenyan Treasury and the Kenya Revenue Authority, seeking to expedite the remainder of the refunds.

Significant changes in state of affairs

There were no other significant changes in the state of affairs of the Group during the reporting period.

After balance date events

There have been no significant events since the reporting date.

Future developments, prospects and business strategies

Base Resources’ strategy is to continue to pursue mine life extension at the Kwale Operation through exploration and develop the Toliara Project ahead of a decision to proceed with construction in 2020.

5. CONSOLIDATED STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME FOR THE YEAR ENDED 30 JUNE 2019


Note
2019
US$000s
2018
US$000s
Sales revenue
Cost of sales
3
4
209,456
(131,791)
198,810
(119,799)
Profit from operations 77,665 79,011

Corporate and external affairs

(10,315)

(9,338)
Community development costs (3,607) (3,000)
Selling and distribution costs (2,501) (4,056)
Other income/(expenses) 201 (765)
Profit before financing costs and income tax 61,443 61,852
Financing costs 5 (11,555) (18,489)
Profit before income tax 49,888 43,363
Income tax expense 7 (10,735) (9,389)
Net profit for the year 39,153 33,974

Other comprehensive income
Items that may be reclassified subsequently to profit or loss:
Foreign currency translation differences - foreign operations (1,915) (1,197)
Total other comprehensive (loss)/income for the year (1,915) (1,197)
Total comprehensive income for the year 37,238 32,777

Net Earnings per share

Cents

Cents
Basic earnings per share (US cents per share) 6 3.39 3.66
Diluted earnings per share (US cents per share) 6 3.34 3.44

The notes contained in the full version of the Annual Financial Report (contained within the 2019 Annual 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 Statement of Financial Position as at 30 June 2019


Note
30 June 2019
US$000s
30 June 2018 (i)
US$000s
Current assets
Cash and cash equivalents 39,242 29,686
Restricted cash - 29,591
Trade and other receivables 9 62,397 38,726
Inventories 10 19,574 19,789
Other current assets 6,313 5,993
Total current assets 127,526 123,785

Non-current assets
Capitalised exploration and evaluation 11 115,891 97,115
Property, plant and equipment 12 205,586 240,509
Total non-current assets 321,477 337,624
Total assets 449,003 461,409

Current liabilities
Trade and other payables 13 33,138 27,865
Borrowings 14 19 53,266
Provisions 15 3,398 1,506
Income tax payable 14,463 75
Deferred consideration 16 17,000 7,000
Other liabilities 625 891
Total current liabilities 68,643 90,603

Non-current liabilities
Borrowings 14 18,913 35,532
Provisions 15 24,355 22,458
Deferred tax liability 7 16,500 20,969
Deferred revenue - 625
Deferred consideration 16 - 10,000
Total non-current liabilities 59,768 89,584
Total liabilities 128,411 180,187
Net assets 320,592 281,222

Equity
Issued capital 17 306,512 305,277
Reserves (19,230) (16,384)
Retained earnings/accumulated losses 33,310 (7,671)
Total equity 320,592 281,222

(i) Restated, refer to Note 24.

The notes contained in the full version of the Annual Financial Report (contained within the 2019 Annual 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 STATEMENT OF CHANGES IN EQUITY FOR THE YEAR ENDED 30 JUNE 2019

Issued capital Retained earnings / (Accumulated losses) Share based payment reserve Foreign currency translation reserve Treasury shares reserve Total
US$000s US$000s US$000s US$000s US$000s US$000s
Balance at 1 July 2017 as previously reported 231,079 (36,341) 5,250 (19,517) - 180,471
Impact of prior year error (i) - (5,863) - - - (5,863)
Restated balance at 1 July 2017 231,079 (42,204) 5,250 (19,517) - 174,608
Profit for the year - 33,974 - - - 33,974
Other comprehensive income - - - (1,197) - (1,197)
Total comprehensive income for the year - 33,974 - (1,197) - 32,777

Transactions with owners, ecognized directly in equity
Shares issued during the year, net of costs 73,669 - - - - 73,669
Own shares acquired - - - - (1,476) (1,476)
Share based payments 529 559 556 - - 1,644
Balance at 30 June 2018 305,277 (7,671) 5,806 (20,714) (1,476) 281,222

   

Restated balance at 1 July 2018 (i) 305,277 (7,671) 5,806 (20,714) (1,476) 281,222

Profit for the year
- 39,153 - - - 39,153
Other comprehensive income - - - (1,915) - (1,915)
Total comprehensive income for the year - 39,153 - (1,915) - 37,238
Transactions with owners, ecognized directly in equity
Share based payments 1,235 1,828 (2,407) - 1,476 2,132
Balance at 30 June 2019 306,512 33,310 3,399 (22,629) - 320,592

(i) Restated, refer to Note 24.

The notes contained in the full version of the Annual Financial Report (contained within the 2019 Annual Report) form part of these consolidated financial statements, a copy of which is available from the Company’s website:  www.baseresources.com.au.

8. CONSOLIDATED STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 30 JUNE 2019


Note
2019
US$000s
2018
US$000s

Cash flows from operating activities
Receipts from customers 188,493 205,807
Payments in the course of operations (91,146) (88,623)
Other (704) (42)
Net cash from operating activities 8 96,643 117,142

Cash flows from investing activities
Purchase of property, plant and equipment (17,493) (32,862)
Payments for exploration and evaluation (18,557) (78,077)
Other 661 621
Net cash used in investing activities (35,389) (110,318)

Cash flows from financing activities
Proceeds from issue of shares - 76,133
Payment of share issue costs - (2,464)
Purchase of treasury shares - (1,476)
Proceeds from borrowings 48,180 12,500
Repayment of borrowings (120,653) (72,553)
Receipts from/(transfers to) restricted cash 29,591 (3,425)
Payments for debt service costs and re-scheduling fees (8,060) (13,611)
Net cash used in financing activities (50,942) (4,896)

Net increase in cash held

10,312

1,928
Cash at beginning of year 29,686 28,278
Effect of exchange fluctuations on cash held (756) (520)
Cash at end of year 39,242 29,686

The notes contained in the full version of the Annual Financial Report (contained within the 2019 Annual 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 Relations UK Media Relations
Base Resources Tavistock Communications
Tel: +61 (8) 9413 7426 Jos Simson and Barnaby Hayward
Mobile: +61 (0) 488 093 763 Tel: +44 (0) 207 920 3150
Email: [email protected] 

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:  [email protected]
Phone: +61 (0)8 9413 7400
Fax: +61 (0)8 9322 8912

NOMINATED ADVISOR
RFC Ambrian Limited

Andrew Thomson / Stephen Allen
Phone: +61 (0)8 9480 2500

JOINT BROKER
Berenberg

Matthew Armitt / Detlir Elezi
Phone: +44 20 3207 7800

JOINT BROKER
Numis Securities Limited

John Prior / James Black / Paul Gillam
Phone: +44 20 7260 1000
 

Quick facts: Base Resources Limited

Price: 13.2

Market: AIM
Market Cap: £153.99 m
Follow

Create your account: sign up and get ahead on news and events

NO INVESTMENT ADVICE

The Company is a publisher. You understand and agree that no content published on the Site constitutes a recommendation that any particular security, portfolio of securities, transaction, or investment strategy is...

FOR OUR FULL DISCLAIMER CLICK HERE

Watch

Full interview: Base Resources highlights financial improvement and debt...

Base Resources Ltd (ASX:BSE) managing director Tim Carstens updates Proactive Investors on milestone achievements in the FY19 year with major financial improvements and a significant debt reduction resulting in a strong net cash position at June 30. The managing director said the African...

on 29/8/19