Proactiveinvestors United Kingdom Base Resources https://www.proactiveinvestors.co.uk Proactiveinvestors United Kingdom Base Resources RSS feed en Fri, 24 May 2019 07:49:05 +0100 http://blogs.law.harvard.edu/tech/rss Genera CMS action@proactiveinvestors.com (Proactiveinvestors) action@proactiveinvestors.com (Proactiveinvestors) <![CDATA[RNS press release - BASE RESOURCES LIMITED - Notice of change of Significant Shareholder ]]> https://www.proactiveinvestors.co.uk/companies/rns/3916/PRNRNS_201905170200PR_NEWS_UKDISCLO_0009/ Fri, 17 May 2019 07:00:00 +0100 https://www.proactiveinvestors.co.uk/companies/rns/3916/PRNRNS_201905170200PR_NEWS_UKDISCLO_0009/ <![CDATA[RNS press release - BASE RESOURCES LIMITED - Change of interests of Directors/PDMR ]]> https://www.proactiveinvestors.co.uk/companies/rns/3916/PRNRNS_201905150200PR_NEWS_UKDISCLO_0009/ Wed, 15 May 2019 07:00:00 +0100 https://www.proactiveinvestors.co.uk/companies/rns/3916/PRNRNS_201905150200PR_NEWS_UKDISCLO_0009/ <![CDATA[Media files - Base Resources begins Toliara DFS and Kwale mining transition amid strong mineral sands prices ]]> https://www.proactiveinvestors.co.uk/companies/stocktube/13330/base-resources-begins-toliara-dfs-and-kwale-mining-transition-amid-strong-mineral-sands-prices-13330.html Mon, 13 May 2019 21:37:00 +0100 https://www.proactiveinvestors.co.uk/companies/stocktube/13330/base-resources-begins-toliara-dfs-and-kwale-mining-transition-amid-strong-mineral-sands-prices-13330.html <![CDATA[RNS press release - BASE RESOURCES LIMITED - Notice of Significant Shareholder ]]> https://www.proactiveinvestors.co.uk/companies/rns/3916/PRNRNS_201905130248PR_NEWS_UKDISCLO_0015/ Mon, 13 May 2019 07:48:00 +0100 https://www.proactiveinvestors.co.uk/companies/rns/3916/PRNRNS_201905130248PR_NEWS_UKDISCLO_0015/ <![CDATA[RNS press release - BASE RESOURCES LIMITED - Change of interests of PDMR ]]> https://www.proactiveinvestors.co.uk/companies/rns/3916/PRNRNS_201905130200PR_NEWS_UKDISCLO_0010/ Mon, 13 May 2019 07:00:00 +0100 https://www.proactiveinvestors.co.uk/companies/rns/3916/PRNRNS_201905130200PR_NEWS_UKDISCLO_0010/ <![CDATA[News - Base Resources to assess North Dune as possible Kwale extension ]]> https://www.proactiveinvestors.co.uk/companies/news/219457/base-resources-to-assess-north-dune-as-possible-kwale-extension-219457.html Base Resources Limited (LON:BSE) is to press ahead with a feasibility study for the North Dune deposit to see if it stacks up as an extension to the Kwale mineral sands mine.

North Dune contains an estimated 171 million tonnes of heavy minerals (HM) at an average grade of 1.5% or 2.6Mt using a 1% cut-off grade.

The grades contained a 38% slimes content, which makes the resource amenable to the hydraulic mining used elsewhere at Kwale, which is in Kenya.

North Dune would only require minimal capital expenditure due to the close proximity of the existing Kwale processing facilities, Base added.

Drilling on North Dune will continue in 2019 to increase the proportion of the resource in the Measured and Indicated categories.

Base said today it expects the existing reserves at Kwale to last until mid-2022, which rises to 2024 if it gets approval for an extension to the South Dune lease currently before the Kenyan government.

Broker Peel Hunt, however, believes the grades indicated at North Dune mean very little of it will be economic to mine though it adds there are higher grade pockets that could add up to four years worth of EBITDA positive production.

Shares were unchanged at 15p.

 

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Wed, 01 May 2019 08:41:00 +0100 https://www.proactiveinvestors.co.uk/companies/news/219457/base-resources-to-assess-north-dune-as-possible-kwale-extension-219457.html
<![CDATA[RNS press release - BASE RESOURCES LIMITED - Mineral Resource for Kwale North Dune deposit ]]> https://www.proactiveinvestors.co.uk/companies/rns/3916/PRNRNS_201905010200PR_NEWS_UKDISCLO_0020/ Wed, 01 May 2019 07:00:00 +0100 https://www.proactiveinvestors.co.uk/companies/rns/3916/PRNRNS_201905010200PR_NEWS_UKDISCLO_0020/ <![CDATA[News - Base Resources boosts net cash position, as rutile and zircon prices rise ]]> https://www.proactiveinvestors.co.uk/companies/news/219254/base-resources-boosts-net-cash-position-as-rutile-and-zircon-prices-rise-219254.html Base Resources LTD (LON:BSE) boosted its net cash position by US$800,000 during the third quarter to March 2019.

Operational cashflow rang in at US$16mln, but the company then spent a refundable US$2mln on VAT, and US$13.2mln on capital projects.

WATCH: Base Resources delighted with PFS study result for Toliara in Madagascar

Overall, Base ended the quarter with net cash of US$1.8mln, a balance of the US$31.8mln it holds in cash and cash equivalents, and a US$30ml revolving credit facility debt.

As predicted third quarter production was down, as transitioning to new parts of the Kwale mineral sands mine in Kenya continues.

But rutile and zircon prices strengthened, with zircon prices stabilising and expected to rebound during the seasonally-strong June quarter.

Base reiterated its 2019 production guidance of between 385,000 and 415,000 tonnes of ilmenite, 31,000 and 34,000 tonnes of zircon and 88,000 to 94,000 tonnes of rutile.

During the period, the company also released an encouraging economic study, detailing the potential of its Toliara project in Madagascar.

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Mon, 29 Apr 2019 09:22:00 +0100 https://www.proactiveinvestors.co.uk/companies/news/219254/base-resources-boosts-net-cash-position-as-rutile-and-zircon-prices-rise-219254.html
<![CDATA[RNS press release - BASE RESOURCES LIMITED - Quarterly Activities Report – March 2019 ]]> https://www.proactiveinvestors.co.uk/companies/rns/3916/PRNRNS_201904290200PR_NEWS_UKDISCLO_0007/ Mon, 29 Apr 2019 07:00:00 +0100 https://www.proactiveinvestors.co.uk/companies/rns/3916/PRNRNS_201904290200PR_NEWS_UKDISCLO_0007/ <![CDATA[RNS press release - BASE RESOURCES LIMITED - Notice of change of Significant Shareholder ]]> https://www.proactiveinvestors.co.uk/companies/rns/3916/PRNRNS_201904110733PR_NEWS_UKDISCLO_0074/ Thu, 11 Apr 2019 12:33:00 +0100 https://www.proactiveinvestors.co.uk/companies/rns/3916/PRNRNS_201904110733PR_NEWS_UKDISCLO_0074/ <![CDATA[News - Base Resources sets production target for 2020 ]]> https://www.proactiveinvestors.co.uk/companies/news/218307/base-resources-sets-production-target-for-2020-218307.html Mineral sands miner Base Resources Limited (LON:BSE) has published its production estimate for 2020.

A switch to the South Dune at its Kwale operation in Kenya will mean production of between 64,000-70,000 tonnes of rutile, 315,000-350,000 tonnes of ilmenite and 25,000-28,000 tonnes of zircon.

That is less than the 2019 forecast for all three metals, something Base attributes to lower grades at the South Dune and its using up of high-grade stockpiles.

Base added the 2020 estimate is consistent with the cash flows from Kwale predicted in the pre-feasibility study for its Toliara project in Madagascar.

The forecast for 2019 is unchanged 88,000-94,000t rutile, 385,000-415,000t ilmenite, 31,000 -34,000t tonnes of zircon.

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Wed, 10 Apr 2019 09:00:00 +0100 https://www.proactiveinvestors.co.uk/companies/news/218307/base-resources-sets-production-target-for-2020-218307.html
<![CDATA[RNS press release - BASE RESOURCES LIMITED - Production Guidance for FY20 ]]> https://www.proactiveinvestors.co.uk/companies/rns/3916/PRNRNS_201904100200PR_NEWS_UKDISCLO_0010/ Wed, 10 Apr 2019 07:00:00 +0100 https://www.proactiveinvestors.co.uk/companies/rns/3916/PRNRNS_201904100200PR_NEWS_UKDISCLO_0010/ <![CDATA[RNS press release - BASE RESOURCES LIMITED - Appointment of Berenberg as Joint Broker ]]> https://www.proactiveinvestors.co.uk/companies/rns/3916/PRNRNS_201903270443PR_NEWS_UKDISCLO_0013/ Wed, 27 Mar 2019 08:43:00 +0000 https://www.proactiveinvestors.co.uk/companies/rns/3916/PRNRNS_201903270443PR_NEWS_UKDISCLO_0013/ <![CDATA[RNS press release - BASE RESOURCES LIMITED - Notice of Significant Shareholder ]]> https://www.proactiveinvestors.co.uk/companies/rns/3916/PRNRNS_201903260300PR_NEWS_UKDISCLO_0003/ Tue, 26 Mar 2019 07:00:00 +0000 https://www.proactiveinvestors.co.uk/companies/rns/3916/PRNRNS_201903260300PR_NEWS_UKDISCLO_0003/ <![CDATA[Media files - Mining Capital's Ford sees 'huge growth opportunity' for Base Resources ]]> https://www.proactiveinvestors.co.uk/companies/stocktube/12703/mining-capital-s-ford-sees--huge-growth-opportunity--for-base-resources-12703.html Fri, 22 Mar 2019 14:09:00 +0000 https://www.proactiveinvestors.co.uk/companies/stocktube/12703/mining-capital-s-ford-sees--huge-growth-opportunity--for-base-resources-12703.html <![CDATA[News - With revenue and profits rising, Base Resources can now confidently set out its stall for future growth ]]> https://www.proactiveinvestors.co.uk/companies/news/216959/with-revenue-and-profits-rising-base-resources-can-now-confidently-set-out-its-stall-for-future-growth-216959.html At the end of December 2018, Base Resources PLC (ASX:BSE) (LON:BSE) turned debt free.

It was a seminal moment for the company, as it paid down the final US$25mln tranche of a US$200mln-plus package that allowed it to put the Kwale mineral sands operation in Kenya into production a few years ago.

READ: Toliara's world class status confirmed by study says Base Resources

After a few initial delays, Kwale very quickly came into its own and has been a significant earner both for Base and for Kenya ever since. Indeed, for Kenya, a country with a very limited mining industry, Kwale has been something of a trailblazer and, in the same context, Base has therefore been something of an ambassador for the mining industry at large.

In more recent months, the economics of the Kwale project have been helped by favourable mineral sands prices. Increased demand has boosted the prices of rutile and zircon, while the ilmenite price has remained stable.

And while grades have dipped a little at Kwale, Base has been able to boost production, so the overall effect comes out roughly even.

Thus, while unit costs per tonne of goods sold rose to US$146 in the quarter to December 2018 from US$124 in the prior quarter, revenue per tonne of goods was also up, from US$354 in the prior quarter to US$377 in the quarter to December.

That nets out at a slight decrease in the ratio of revenue to costs from 2.8 to 2.6 over the most recent quarter, although the overall figure for the first half of the financial year, the six months to December 2018, is 2.7.

Any further increase in mineral sands prices is likely to send that ratio higher though.

WATCH: Base Resources delighted with PFS study result for Toliara in Madagascar

And even allowing for those cost pressures, Base is doing pretty well. In the six months to December, Base managed to boost revenues by 13% to US$102.2mln, earnings by 7% to US$57.5mln, and net profits by 4% to US$17.4mln.

With that sort of operational strength behind it, it’s hardly surprising that debt was wiped out and the net cash position netted out at US$1mln, although actually there’s more than US$40mln cash inside the company, balanced against a similar-sized revolving facility.

And it is against this backdrop that broker Peel Hunt said in a note a couple of months ago that it expects shares in Base Resources to more than double to 31p over the coming year.

The ongoing strengthening of the rutile and zircon price is one thing to consider, but Peel Hunt was particularly interested in the company’s expansion plans. Exploration at Kwale, the broker reckons, is likely to add significantly to the mine life, while work on the new project at Toliara is likely to add in a second long-life asset.

How much of the value of Toliara will get priced into the shares short-term is an open question.

The market was initially cautious when Base announced the results of a pre-feasibility study for the project that demonstrated both its long-term viability and its sensitivity both to market pricing and to discount rates, marking the shares up by a modest 1.75% to 14.5p.

But as broker SP Angel noted in early commentary: “The devil is in the detail.”

What Base has done with Toliara is lay out a workable base-case scenario which, as with so many of these kinds of projects, it can now refine as it brings it on into the bankable feasibility stage.

Expect the IRR and the NPV to go up as work continues on refining the economics, and costs to come down.

Although the costs already look pretty good, broker Shore Capital Toliara pointed out, calling the revenue to cost ratio of 3.06 “attractive”. Shore also referred to the internal rate of return on a base case price deck as “decent, although it’s somewhat open to interpretation what a decent internal rate of return is on a project like this.

READ: Base Resources boosts profits with increased production

Still, Tim Carstens, the chief executive of Base, was in no doubt that the potential addition of a further 18.3mln tonnes of annual production to Base’s total is likely to be game-changing.

“We are delighted to be able to share these pre-feasibility study findings,” he said. 

“They confirm our long-held view, which informed the project’s acquisition by Base Resources in early 2018, that the Toliara project is one of the best mineral sands development opportunities in the world.”

Among other things outlined in the very detailed report on Toliara that Base has made public are several opportunities for the expansion of what’s already a sizeable project.

So, it seems pretty clear that Toliara has got plenty going for it, and that news on that could provide significant catalysts for Base’s share price in the coming months.

It’s worth remembering too, that the development of Toliara will be supported by an ever-growing cash pile inside Base itself, so this is not one of those projects that require the continual dilution of shareholders at each round of funding.

Quite the contrary in fact. Base has set out its stall for future growth. And at this stage, there isn’t a dilutionary fundraising in sight.

 

 

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Thu, 21 Mar 2019 13:46:00 +0000 https://www.proactiveinvestors.co.uk/companies/news/216959/with-revenue-and-profits-rising-base-resources-can-now-confidently-set-out-its-stall-for-future-growth-216959.html
<![CDATA[News - Toliara's world class status confirmed by study says Base Resources ]]> https://www.proactiveinvestors.co.uk/companies/news/216920/toliara-s-world-class-status-confirmed-by-study-says-base-resources-216920.html A feasibility study for its Toliara project in Madagascar has confirmed it is a world-class project, said minerals sands miner Base Resources Limited (LON:BSE).

The net present value of Toliara was estimated at US$671mln in the study, which was better than expected said Peel Hunt.

“Capex looks in line with our estimates but margins look stronger – largely due to better quality ilmenite product suite than we had baked into our present estimates,” said the broker.

Based on the existing resource, the PFS estimated a mine life of 33 years producing 806,000 tonnes of ilmenite, 54,000t zircon and 8,000t of rutile each year.

Annual revenues would be US$254mln and net profits of US$110m, though Base added the study assumed only 46% of the existing Ranobe deposit being utilised, which leaves significant development potential.

Key mineral sands

Tim Carstens, managing director, said the PFS confirmed that Toliara is one of the best mineral sands development opportunities in the world.

Costs of stage one construction for a 13Mtpa procession operations are estimated at US$439mln US$67mln to boost processing production to 19Mtpa.

Peel Hunt added that management had mentioned a US$100mln equity raise to help fund the capital cost.

Colin Bwye, operations and development director, said work had already started on the Definitive Feasibility Study, which it aims to complete by the end of 2019.

A final investment decision will be made in the first quarter of next year with Toliara potentially in operation by the end of 2021.

Shares rose 2% to 14.5p.

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Thu, 21 Mar 2019 08:53:00 +0000 https://www.proactiveinvestors.co.uk/companies/news/216920/toliara-s-world-class-status-confirmed-by-study-says-base-resources-216920.html
<![CDATA[RNS press release - BASE RESOURCES LIMITED - Toliara PFS confirms world-class mineral sands project ]]> https://www.proactiveinvestors.co.uk/companies/rns/3916/PRNRNS_201903210300PR_NEWS_UKDISCLO_0009/ Thu, 21 Mar 2019 07:00:00 +0000 https://www.proactiveinvestors.co.uk/companies/rns/3916/PRNRNS_201903210300PR_NEWS_UKDISCLO_0009/ <![CDATA[Media files - Base Resources delighted with PFS study result for Toliara in Madagascar ]]> https://www.proactiveinvestors.co.uk/companies/stocktube/12673/base-resources-delighted-with-pfs-study-result-for-toliara-in-madagascar-12673.html Thu, 21 Mar 2019 02:40:00 +0000 https://www.proactiveinvestors.co.uk/companies/stocktube/12673/base-resources-delighted-with-pfs-study-result-for-toliara-in-madagascar-12673.html <![CDATA[News - Base Resources boosts profits with increased production ]]> https://www.proactiveinvestors.co.uk/companies/news/215188/base-resources-boosts-profits-with-increased-production-215188.html Base Resources LTD (LON:BSE) offset lower grades at its Kwale mineral sands operation in Kenya with a 66% boost to output during the six months to December 2018, which meant that production was broadly flat when compared to the corresponding period a year ago.

WATCH: Base Resources' MD updates on quarterly highli ghts, production, and projects

In total the company produced 49,630 tonnes of rutile, 226,730 tonnes of ilmenite and 17,935 tonnes of zircon and sold into a strengthening market for rutile and zircon.

It all added up to a 13% increase in revenue to US$102.2mln, and a 4% increase in net profits after tax of US$17.4mln.

What’s more, Base also eliminated net debt during the period, an overall reduction of US$34.2mln.

 

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Mon, 25 Feb 2019 07:49:00 +0000 https://www.proactiveinvestors.co.uk/companies/news/215188/base-resources-boosts-profits-with-increased-production-215188.html
<![CDATA[RNS press release - BASE RESOURCES LIMITED - Interim Financial Report - period ended 31 December 2018 ]]> https://www.proactiveinvestors.co.uk/companies/rns/3916/PRNRNS_201902250200PR_NEWS_UKDISCLO_0008/ Mon, 25 Feb 2019 07:00:00 +0000 https://www.proactiveinvestors.co.uk/companies/rns/3916/PRNRNS_201902250200PR_NEWS_UKDISCLO_0008/ <![CDATA[RNS press release - BASE RESOURCES LIMITED - FY19 Interim Results - Investor Conference Call ]]> https://www.proactiveinvestors.co.uk/companies/rns/3916/PRNRNS_201902210200PR_NEWS_UKDISCLO_0009/ Thu, 21 Feb 2019 07:00:00 +0000 https://www.proactiveinvestors.co.uk/companies/rns/3916/PRNRNS_201902210200PR_NEWS_UKDISCLO_0009/ <![CDATA[RNS press release - BASE RESOURCES LIMITED - Notice of Significant Shareholder ]]> https://www.proactiveinvestors.co.uk/companies/rns/3916/PRNRNS_201902070337PR_NEWS_UKDISCLO_0030/ Thu, 07 Feb 2019 08:37:00 +0000 https://www.proactiveinvestors.co.uk/companies/rns/3916/PRNRNS_201902070337PR_NEWS_UKDISCLO_0030/ <![CDATA[RNS press release - BASE RESOURCES LIMITED - Presentation - Arlington Pre-daba ]]> https://www.proactiveinvestors.co.uk/companies/rns/3916/PRNRNS_201902010200PR_NEWS_UKDISCLO_0013/ Fri, 01 Feb 2019 07:00:00 +0000 https://www.proactiveinvestors.co.uk/companies/rns/3916/PRNRNS_201902010200PR_NEWS_UKDISCLO_0013/ <![CDATA[News - Base Resources reveals rise in Ranobe deposit resources ]]> https://www.proactiveinvestors.co.uk/companies/news/213142/base-resources-reveals-rise-in-ranobe-deposit-resources-213142.html Base Resources Limited (LON:BSE) has raised the mineral resource estimates for the Ranobe deposit, which forms part of the Toliara Mineral Sands Project in Madagascar, with the deposit now seen to comprise some 1.3bn tonnes containing 5.1% heavy minerals.

It marks a 25% increase on the prior estimates for the deposit and the upgrade is said to be the result of additional drilling and revised geological interpretations, based on a comprehensive mineralogical re-definition exercise.

READ: Base Resources reports ‘slightly better than expected’ production and sales

The new estimate is part of workflows contributing to the upcoming pre-feasibility study for the Toliara project which is expected to complete in March.

Base highlighted that drilling programmes will in the meantime continue over the course of this year – to assist the completion of remaining mineralogy re-definition, to help improve the understanding of lower mineralised units, and upgrading mineral resources.

Another Ranobe resource estimated is anticipated once the 2019 drilling is complete, and, that will also feed into a statement defining project reserves.

In a note to clients, analysts at RFC Ambrian said they think the 25% increase in resources obviously bodes well for March’s preliminary feasibility study (PFS) for the Toliara Sands project.

They said: “With continued strong cashflow generation from Kwale and a supportive mineral sands outlook, we expect that the definition of the Toliara project parameters in the PFS will help to de-risk the company’s valuation. In the meantime, we maintain our BUY rating and our TP of A$0.46/share.”

In early afternoon trading, Base Resources London-listed shares held steady at 13.5p.

 -- Adds analyst comment, share price --

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Wed, 23 Jan 2019 08:38:00 +0000 https://www.proactiveinvestors.co.uk/companies/news/213142/base-resources-reveals-rise-in-ranobe-deposit-resources-213142.html
<![CDATA[RNS press release - BASE RESOURCES LIMITED - Updated Ranobe Deposit Mineral Resources ]]> https://www.proactiveinvestors.co.uk/companies/rns/3916/PRNRNS_201901230200PR_NEWS_UKDISCLO_0012/ Wed, 23 Jan 2019 07:00:00 +0000 https://www.proactiveinvestors.co.uk/companies/rns/3916/PRNRNS_201901230200PR_NEWS_UKDISCLO_0012/ <![CDATA[RNS press release - BASE RESOURCES LIMITED - Notice of change of Substantial Shareholder ]]> https://www.proactiveinvestors.co.uk/companies/rns/3916/PRNRNS_201901220200PR_NEWS_UKDISCLO_0010/ Tue, 22 Jan 2019 07:00:00 +0000 https://www.proactiveinvestors.co.uk/companies/rns/3916/PRNRNS_201901220200PR_NEWS_UKDISCLO_0010/ <![CDATA[News - Base Resources reports "slightly better than expected" production and sales ]]> https://www.proactiveinvestors.co.uk/companies/news/212762/base-resources-reports--slightly-better-than-expected--production-and-sales-212762.html Africa-focused mineral sand miner Base Resources Limited (LON:BSE) became net positive for the first time in the final quarter of 2018.

The miner started the final quarter with US$23.8mln of net debt but revealed in an activities report that it closed out the year with net cash of US$1.0mln.

WATCH: Base Resources' MD updates on quarterly highlights, production, and projects

Mined tonnes in the final quarter increased 5.1% to 5,036,211 from 4,791,969 tonnes in the preceding quarter but lower ore grades meant heavy mineral concentrate (HMC) produced ebbed to 148,937 tonnes from 199,079 tonnes in the third quarter.

Largely as a result of ore characteristics being encountered in the remnants of the Central Dune ore-body at Base’s Kwale operations, management has revised production guidance for 2019. The company now expected to produce 88,000 to 94,000 tonnes of rutile (previous guidance: 88,000 – 93,000 tonnes); 385,000 to 415,000 tonnes of ilmenite (420,000 – 450,000 tonnes) and 31,000 to 34,000 tonnes of zircon (32,000 – 37,000 tonnes).

The planned transition of mining to the South Dune ore-body at Kwale has been brought forward by one month to June 2019 as a result of Base mining the Central Dune ore-body faster than anticipated over the past two quarters and due to an anticipated continuation of the lower than expected ore densities in the Central Dune.

Total operating costs in the fourth quarter were marginally higher than the previous quarter due to higher tonnes mined, which, when combined with a decrease in overall production volumes, resulted in a higher unit operating cost of US$115 per tonne produced (rutile, ilmenite and zircon) (third quarter: US$103 per tonne).

The cost of goods sold was US$146 per tonne (Q3: US$124), higher than the preceding quarter due to the drawdown of HMC stocks, resulting in an increase in cost of goods sold of US$0.4mln (Q3: decrease in cost of goods sold of US$1.8mln as finished goods stocks increased).

At the Toliara project development in Madagascar, Base Resources has revised its development plans and now expects to complete the definitive feasibility study by the final quarter of this year, ahead of a decision to proceed to construction in the first quarter of next year. This timetable is still expected to have the project in production by the end of 2021.

Total expenditure on the Toliara project for the quarter was US$3.8mln, up from US$2.2mln in the preceding quarter.

Peel Hunt said it was a solid quarter for Base.

“Unit revenues of US$376/t along with production and sales in line to slightly better than expected means that Base Resources closed 2018 in a net cash position, with further cash builds to come ahead of the Toliara construction (starting in 2020),” the broker noted.

“Management is reducing MSP [mineral separation plant] throughput to manage inventories through the mining move to the S Dune (now in June), meaning our production estimates look high,” Peel Hunt added.

The broker has a target price of 31p for Base and rates the shares a ‘buy’.

“Longer term, with at least a three-year period with EBITDA averaging over US$200mln pa, the current multiples the shares are trading on seem to be ignoring any value from Toliara,” it observed.

Shares in Base currently trade at 13.5p.

--- adds broker comment and share price ---

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Thu, 17 Jan 2019 08:36:00 +0000 https://www.proactiveinvestors.co.uk/companies/news/212762/base-resources-reports--slightly-better-than-expected--production-and-sales-212762.html
<![CDATA[Media files - Base Resources' MD updates on quarterly highlights, production, and projects ]]> https://www.proactiveinvestors.co.uk/companies/stocktube/11868/base-resources--md-updates-on-quarterly-highlights-production-and-projects-11868.html Thu, 17 Jan 2019 08:15:00 +0000 https://www.proactiveinvestors.co.uk/companies/stocktube/11868/base-resources--md-updates-on-quarterly-highlights-production-and-projects-11868.html <![CDATA[RNS press release - BASE RESOURCES LIMITED - Quarterly Activities Report December 2018 ]]> https://www.proactiveinvestors.co.uk/companies/rns/3916/PRNRNS_201901170200PR_NEWS_UKDISCLO_0009/ Thu, 17 Jan 2019 07:00:00 +0000 https://www.proactiveinvestors.co.uk/companies/rns/3916/PRNRNS_201901170200PR_NEWS_UKDISCLO_0009/ <![CDATA[RNS press release - BASE RESOURCES LIMITED - Notice of change of Substantial Shareholder ]]> https://www.proactiveinvestors.co.uk/companies/rns/3916/PRNRNS_201901110200PR_NEWS_UKDISCLO_0013/ Fri, 11 Jan 2019 07:00:00 +0000 https://www.proactiveinvestors.co.uk/companies/rns/3916/PRNRNS_201901110200PR_NEWS_UKDISCLO_0013/ <![CDATA[RNS press release - BASE RESOURCES LIMITED - Lapse of unexercised options ]]> https://www.proactiveinvestors.co.uk/companies/rns/3916/PRNRNS_201901020200PR_NEWS_UKDISCLO_0019/ Wed, 02 Jan 2019 07:00:00 +0000 https://www.proactiveinvestors.co.uk/companies/rns/3916/PRNRNS_201901020200PR_NEWS_UKDISCLO_0019/ <![CDATA[News - Peel Hunt spotlights 29 stocks with potential to double on 2-3 year view including Base Resources, Eland O&G, Motif Bio, Circassia ]]> https://www.proactiveinvestors.co.uk/companies/news/211426/peel-hunt-spotlights-29-stocks-with-potential-to-double-on-2-3-year-view-including-base-resources-eland-og-motif-bio-circassia-211426.html Analysts at Peel Hunt have compiled a list of 29 stocks which they deem to have the potential to double on a 2-3 year view including AIM-listed Base Resources PLC (LON:BSE), Eland Oil & Gas PLC (LON:ELA), Motif Bio Plc (LON:MTFB), and FTSE Small Cap Circassia Pharmaceuticals PLC (LON:CIR).

In a note to clients, the City broker’s team pointed out that December is often a time for winding down and celebrating but, with the FTSE All Share looking set to record its worst annual performance since 2008 - when it dropped by a third in value - the festive spirit is a little short this year.

READ: Base Resources' Kwale mine 'attractive' and generating significant cash flow, says broker

The analysts said: “While it is still difficult to call what will happen with Brexit and how this will impact the market, there are always some stocks that are dancing to their own particular tune which could deliver some healthy returns.” 

For miner Base Resources, on which they have a 31p target price, Peel Hunt said they see two value catalysts - Kwale exploration, which looks likely to add to the mine life, extending the overlap with Toliara; while the Toliara development gives the company a long life asset.

They pointed out that extending the overlap with Toliara would speed project debt reduction, de-risking the group significantly while an increasing amount of the 21p value they see in that project should also come into the share price.

Ongoing development drilling for Eland

Reiterating a 160p price target on Eland Oil & Gas, the Peel Hunt analysts said that the low-cost nature of the group’s production assets means it achieves very healthy netbacks.

They pointed out: “As we move beyond the current volatility and oil prices trend upwards over the coming years, in combination with clear visibility on further material production growth, Eland is ideally positioned to exploit the full potential of OML 40.

“We expect ongoing development drilling to continue yielding positive results and with the low-risk, 78MMbbl Amobe prospect due to spud in 2019, a very high chance of success opportunity exists to double the resource base.”

Iclaprim US date key for Motif Bio

Meanwhile, for Motif Bio, on which they have a 95p target price, the analysts said the upcoming date for potential approval by US regulators of the firm’s iclaprim antibiotic of 13 February 2019 could result in a material rerating of the stock.

They said: “We remain convinced of iclaprim’s efficacy at a time of high unmet need as antibiotic resistance rises. Iclaprim also has a very favourable safety profile, established across three phase-3 trials (c1,300 patients dosed), and a potential market of c3m patients per year in the US alone.

The analysts added: “Recent US stewardship guidelines for antibiotic use by the Infectious Disease Society of America (ISDA) and favourable economic work-up on the reduced care-pathway costs of using iclaprim vs the standard of care, provide a strong differentiator for iclaprim’s use.”

Circassia reinvented 

For Circassia, the Peel Hunt analysts noted that the firm has reinvented itself as a specialist respiratory pharma play having discontinued its allergy activities.

They added: “Progress has been swift, with a significant deal with AstraZeneca that brought US rights to two COPD products with combined peak sales potential of c$300mln.”

The analysts concluded that Circassia’s delivery on sales and cash at its half-year and strong operating leverage underpins their 120p target price for the stock, implying a near doubling of the share price.

Rest of the list

The other 25 stocks on the Peel Hunt list are Nanoco PLC (LON:NANO), CMC Markets Plc (LON:CMCX), On the Beach Group PLC (LON:OTB), Polar Capital Holdings plc (LON:POLR), GB Group PLC (LON:GBG), PureTech Health PLC (LON:PRTC), GoCompare.com Group PLC (LON:GOCO),  Gulf Keystone PLC (LON:GKP), Renold plc (LON:RNO), Joules Group PLC (LON:JOUL), RHI Magnesita NV (LON:RHIM), JD Sports Fashion PLC (LON:JD.), Rockhopper Exploration Plc (LON:RKP), Kaz Minerals PLC (LON:KAZ), SIG PLC (LON:SHI), Kenmare Resources PLC (LON:KMR), Sumo Group PLC (LON:SUMO), Kin and Carta PLC (LONLKCT), Ten Entertainment Group PLC (LON:TEG), Lookers PLC (LON:LOOK), The AA PLC (LON:AA.), Manx Telecom PLC (LON:MANX), The Gym Group Plc (LON:GYM), and McCarthy & Stone PLC (LON:MCTY).

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Tue, 18 Dec 2018 15:43:00 +0000 https://www.proactiveinvestors.co.uk/companies/news/211426/peel-hunt-spotlights-29-stocks-with-potential-to-double-on-2-3-year-view-including-base-resources-eland-og-motif-bio-circassia-211426.html
<![CDATA[RNS press release - BASE RESOURCES LIMITED - Notice of Substantial Shareholder ]]> https://www.proactiveinvestors.co.uk/companies/rns/3916/PRNRNS_201812110503PR_NEWS_UKDISCLO_0036/ Tue, 11 Dec 2018 10:03:00 +0000 https://www.proactiveinvestors.co.uk/companies/rns/3916/PRNRNS_201812110503PR_NEWS_UKDISCLO_0036/ <![CDATA[News - Base Resources' Kwale mine 'attractive' and generating significant cash flow, says broker ]]> https://www.proactiveinvestors.co.uk/companies/news/210790/base-resources-kwale-mine-attractive-and-generating-significant-cash-flow-says-broker-210790.html Base Resources Ltd (LON:BSE) has an attractive, medium-life mineral sands mine in the form of Kwale, according to analysts at Berenberg.

Located 10 kilometres inland from the Kenyan coast and 50 kilometres south of the country’s principal port, Mombasa, the company’s wholly-owned mine has been bringing in strong cash flows.

“The Kwale mine is now built and operating smoothly and is supported by a healthier minerals sands pricing environment. Kwale is, therefore, generating significant cash flow,” Berenberg said.

Berenberg, which has a 'buy' rating on Base Resources, expects Kwale will deliver US$420mln in free cash flow over the remaining life of the mine to fiscal year 2024.

Kwale cash flows to support construction of Toliara

The broker expects cash flows will be reinvested into the Toliara mineral sands project in Madagascar, reducing its reliance on debt and avoiding large raises.

Base Resources completed the acquisition of Toliara earlier this year. Construction of the project is slated to begin in the fourth quarter of 2019 and initial production expected a year later.

“Once operating, Toliara offers an attractive +40-year life-of-mine with average steady state free cash flow of US$85m a year, supporting the transition from net debt (US$248mln) into net cash (US$41mln) between fiscal year 2022 and 2026,” Berenberg said.

“With a long life of mine and steady cash flow stream (as well as peers Kenmare and Iluka paying dividends), we expect Base to transition into a dividend payer once Toliara is generating free cash flow (from 2023).”

Base Resources is due to release its pre-feasibility study for Toliara in the first quarter of 2019. Mineral Technologies and Lycopodium have been engaged to complete the pre-feasibility study.

Berenberg expects Base to deliver “more-attractive project economics” when it releases the study.

Extending Kwale life of mine

If the life of mine for Kwale is extended through exploration, Berenberg believes this will offer “attractive, low risk upside” to its valuation.

The broker sees four life-of-mine extension opportunities: South Dune; Kwale East; North Dune and the Vanga exploration lease.

Berenberg said it conservatively models a life-of-mine extension to 2024 but thinks this could well be increased.

The company’s non-executive chairman, Keith Spence, has said he is optimistic of achieving a mine life extension for Kwale. 

“With the Kwale operation running smoothly and with greater flexibility post-Kwale Phase 2, the focus has been squarely on extending the mine life," he said at the group's annual general meeting in November. 

READ: Base Resources' chairman believes the company is “very well positioned to create further shareholder value”

Spence said drilling activity has now shifted to the northeast sector of the Kwale operations, on the North Dune and Kwale East zones with encouraging indications to date.

He believes the profitable mineral sands company “is now very well positioned to create further shareholder value.”

“We have an outstanding operating asset in our Kwale Operation with strong cash generation and extensional potential, an exciting development opportunity with the World-Class Toliara Project and an outstanding team with a track record of successful mineral sands development," he said. 

In a positive step towards the pursuit of a mine life extension at Kwale, the group announced in December that it had been granted a prospecting license (PL) for the Vanga area in Kenya.

READ: Base Resources granted prospecting license for Vanga area in Kenya, extending from existing Kwale operation

The Vanga license is valid for three years and covers an area of 136 square kilometres, extending south-west from the company’s existing Kwale operation towards the Tanzanian border.

Base Resources said preparatory activities, ahead of a planned drilling program in 2019, were underway.

On track to meet production guidance

In its last operations update, the group said mined ore tonnes increased by 35% in the third quarter following the successful implementation of the Kwale Phase 2 mine optimisation project.

The company produced a record amount of rutile – 25,125 tonnes – and a record 9,683 tonnes of zircon in the quarter.

Production guidance for the full year at the Kwale mineral sands project in Kenya was left unchanged.

For the 2019 fiscal year, Berenberg predicts revenue of US$212mln and earnings (EBITDA) of US$114mln.

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Fri, 07 Dec 2018 07:53:00 +0000 https://www.proactiveinvestors.co.uk/companies/news/210790/base-resources-kwale-mine-attractive-and-generating-significant-cash-flow-says-broker-210790.html
<![CDATA[News - Base Resources granted prospecting licence for Vanga area in Kenya, extending from existing Kwale operation ]]> https://www.proactiveinvestors.co.uk/companies/news/210660/base-resources-granted-prospecting-licence-for-vanga-area-in-kenya-extending-from-existing-kwale-operation-210660.html Base Resources Limited (LON:BSE) (ASX:BSE) announced that it has been granted a prospecting licence (PL) for the Vanga area in Kenya.

The AIM-listed group said the Vanga licence is valid for three years and covers an area of 136 square kilometres, extending south-west from the company’s existing Kwale operation towards the Tanzanian border.

READ:  Base Resources' chairman believes the company is “very well positioned to create further shareholder value”

It added that the licence was applied for following an airborne geophysical and radiometric survey that identified a series of promising exploration targets.

Tim Carstens, managing director of Base Resources commented: “In the context of the current pursuit of mine life extension at Kwale Operations, the granting of the Vanga PL is a positive and important step.”

He added: “Preparatory activities, ahead of a planned drilling program in 2019, are underway.”

In early morning trading, Base Resources shares were 1.7% higher at 14.75p.

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Thu, 06 Dec 2018 09:36:00 +0000 https://www.proactiveinvestors.co.uk/companies/news/210660/base-resources-granted-prospecting-licence-for-vanga-area-in-kenya-extending-from-existing-kwale-operation-210660.html
<![CDATA[RNS press release - BASE RESOURCES LIMITED - Vanga Prospecting License Granted ]]> https://www.proactiveinvestors.co.uk/companies/rns/3916/PRNRNS_201812060200PR_NEWS_UKDISCLO_0010/ Thu, 06 Dec 2018 07:00:00 +0000 https://www.proactiveinvestors.co.uk/companies/rns/3916/PRNRNS_201812060200PR_NEWS_UKDISCLO_0010/ <![CDATA[RNS press release - BASE RESOURCES LIMITED - Issue of LTIP performance rights ]]> https://www.proactiveinvestors.co.uk/companies/rns/3916/PRNRNS_201812040200PR_NEWS_UKDISCLO_0006/ Tue, 04 Dec 2018 07:00:00 +0000 https://www.proactiveinvestors.co.uk/companies/rns/3916/PRNRNS_201812040200PR_NEWS_UKDISCLO_0006/ <![CDATA[RNS press release - BASE RESOURCES LIMITED - 2018 Mineral Resource & Ore Reserve Statement-corrected ]]> https://www.proactiveinvestors.co.uk/companies/rns/3916/PRNRNS_201812030200PR_NEWS_UKDISCLO_0013/ Mon, 03 Dec 2018 07:00:00 +0000 https://www.proactiveinvestors.co.uk/companies/rns/3916/PRNRNS_201812030200PR_NEWS_UKDISCLO_0013/ <![CDATA[News - Base Resources' chairman believes the company is “very well positioned to create further shareholder value” ]]> https://www.proactiveinvestors.co.uk/companies/news/209809/base-resources-chairman-believes-the-company-is-very-well-positioned-to-create-further-shareholder-value-209809.html Base Resources Limited’s (LON:BSE) chairman believes the profitable mineral sands company “is now very well positioned to create further shareholder value.”

At the company’s Annual General Meeting, held today in West Perth, Western Australia, Keith Spence - the AIM-listed firm’s non-executive chairman - said: “We have an outstanding operating asset in our Kwale Operation with strong cash generation and extensional potential, an exciting development opportunity with the World-Class Toliara Project and an outstanding team with a track record of successful mineral sands development.”

WATCH: Base Resources 'unique in sector' with 'defined earnings engine and future growth'

The group, which wholly-owns the Kwale project in Kenya, and is developing the Toliara project in Madagascar, has seen demand for its products continue to improve in the year and this, along with low inventory levels and restricted supply, supported strong price improvement, Spence said, with those dynamics having continued for rutile and zircon post-year end.

The chairman added: “With the Kwale operation running smoothly and with greater flexibility post-Kwale Phase 2, the focus has been squarely on extending the mine life.”

“The focus of drilling activity has now shifted to the northeast sector of the Kwale operations, on the North Dune and Kwale East zones with encouraging indications to date.  We are optimistic that further mine life extension will result,“ he continued.

Spence pointed out that, in order to fully capitalise on the company’s organisational capability, business model and financial platform, it had been “seeking the right growth opportunity from which to drive shareholder value”, which led it to acquire the Toliara Project.

The chairman added: “Since completing the acquisition earlier in 2018, a concept study has been completed and a suite of additional test work, building on the sound work already completed, is well advanced.  Mineral Technologies and Lycopodium have been engaged to complete the pre-feasibility study which is heading towards completion in the March quarter of 2019.  The aim is to bring the Toliara Project into production in late 2021.”

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Fri, 23 Nov 2018 07:36:00 +0000 https://www.proactiveinvestors.co.uk/companies/news/209809/base-resources-chairman-believes-the-company-is-very-well-positioned-to-create-further-shareholder-value-209809.html
<![CDATA[RNS press release - BASE RESOURCES LIMITED - Chairman’s Address to the Annual General Meeting ]]> https://www.proactiveinvestors.co.uk/companies/rns/3916/PRNRNS_201811230200PR_NEWS_UKDISCLO_0012/ Fri, 23 Nov 2018 07:00:00 +0000 https://www.proactiveinvestors.co.uk/companies/rns/3916/PRNRNS_201811230200PR_NEWS_UKDISCLO_0012/ <![CDATA[RNS press release - BASE RESOURCES LIMITED - Presentation TZMI Congress ]]> https://www.proactiveinvestors.co.uk/companies/rns/3916/PRNRNS_201811140200PR_NEWS_UKDISCLO_0010/ Wed, 14 Nov 2018 07:00:00 +0000 https://www.proactiveinvestors.co.uk/companies/rns/3916/PRNRNS_201811140200PR_NEWS_UKDISCLO_0010/ <![CDATA[RNS press release - Price Monitoring Extension ]]> https://www.proactiveinvestors.co.uk/companies/rns/3916/LSE20181112090017_13863116/ Mon, 12 Nov 2018 09:00:17 +0000 https://www.proactiveinvestors.co.uk/companies/rns/3916/LSE20181112090017_13863116/ <![CDATA[Media files - Base Resources 'unique in sector' with 'defined earnings engine and future growth' ]]> https://www.proactiveinvestors.co.uk/companies/stocktube/11112/base-resources-unique-in-sector-with-defined-earnings-engine-and-future-growth--11112.html Tue, 06 Nov 2018 15:16:00 +0000 https://www.proactiveinvestors.co.uk/companies/stocktube/11112/base-resources-unique-in-sector-with-defined-earnings-engine-and-future-growth--11112.html <![CDATA[RNS press release - BASE RESOURCES LIMITED - Notice of Significant Shareholder ]]> https://www.proactiveinvestors.co.uk/companies/rns/3916/PRNRNS_201811050200PR_NEWS_UKDISCLO_0014/ Mon, 05 Nov 2018 07:00:00 +0000 https://www.proactiveinvestors.co.uk/companies/rns/3916/PRNRNS_201811050200PR_NEWS_UKDISCLO_0014/ <![CDATA[RNS press release - BASE RESOURCES LIMITED - Notice of Substantial Shareholder ]]> https://www.proactiveinvestors.co.uk/companies/rns/3916/PRNRNS_201811020342PR_NEWS_UKDISCLO_0002/ Fri, 02 Nov 2018 07:42:00 +0000 https://www.proactiveinvestors.co.uk/companies/rns/3916/PRNRNS_201811020342PR_NEWS_UKDISCLO_0002/ <![CDATA[RNS press release - BASE RESOURCES LIMITED - Notice of Significant Shareholder ]]> https://www.proactiveinvestors.co.uk/companies/rns/3916/PRNRNS_201811020300PR_NEWS_UKDISCLO_0013/ Fri, 02 Nov 2018 07:00:00 +0000 https://www.proactiveinvestors.co.uk/companies/rns/3916/PRNRNS_201811020300PR_NEWS_UKDISCLO_0013/ <![CDATA[RNS press release - BASE RESOURCES LIMITED - Presentation Bell Potter Emerging Leaders Conference ]]> https://www.proactiveinvestors.co.uk/companies/rns/3916/PRNRNS_201810250200PR_NEWS_UKDISCLO_0011/ Thu, 25 Oct 2018 07:00:00 +0100 https://www.proactiveinvestors.co.uk/companies/rns/3916/PRNRNS_201810250200PR_NEWS_UKDISCLO_0011/ <![CDATA[RNS press release - BASE RESOURCES LIMITED - Notice of ceasing to be a Significant Shareholder ]]> https://www.proactiveinvestors.co.uk/companies/rns/3916/PRNRNS_201810230434PR_NEWS_UKDISCLO_0030/ Tue, 23 Oct 2018 09:34:00 +0100 https://www.proactiveinvestors.co.uk/companies/rns/3916/PRNRNS_201810230434PR_NEWS_UKDISCLO_0030/ <![CDATA[RNS press release - BASE RESOURCES LIMITED - Notice of AGM ]]> https://www.proactiveinvestors.co.uk/companies/rns/3916/PRNRNS_201810220747PR_NEWS_UKDISCLO_0086/ Mon, 22 Oct 2018 12:47:00 +0100 https://www.proactiveinvestors.co.uk/companies/rns/3916/PRNRNS_201810220747PR_NEWS_UKDISCLO_0086/