Base Resources Limited (AIM:BSE, ASX:BSE) confirmed it will pay out a special dividend conditional on approval of the scheme of arrangement for its merger with Energy Fuels Inc
A special dividend of 6.5 Australian cents was part of the merger terms announced in April with Base shareholders also to receive 0.0260 Energy Fuels for each share they own, equating to total consideration of approximately A$0.302 per share.
In the year to 30 June, Base reported revenues down 50% at US$135.12 million, with underlying profits of US$26.4 million and a net loss of US$1.6 million.
Free cash flow was US$25.7 million with a net cash position of US$88.1 million on 30 June 2024.
Tim Carstens, managing director said: "The 2024 financial year has been another successful one for Base Resources.
“The Kwale operations team overcame the dual challenges of new ore bodies and lower grades to deliver production volumes at the top end of guidance while continuing to keep tight control of costs, contributing to the Group's strong closing cash position of US$88.1 million.
“Unfortunately, after exploring all avenues to further extend mine life, mining at Kwale operations will end in December 2024 when ore reserves are fully depleted as planned.
"Our belief that the Toliara project is the best undeveloped mineral sands project in the world was reinforced following completion of the Monazite pre-feasibility study in December.
"With our understanding that in-principle agreement has been reached with the Government on fiscal terms and focus shifting to finalising a memorandum of understanding to record the terms agreed, we consider realisation of the Toliara Project's potential is now closer than ever.
"By providing the opportunity to go further downstream and capture more of the rare earths supply chain value and risk diversification, the proposed combination with Energy Fuels will only enhance Toliara's exceptional potential and also provide increased capacity and optionality for funding the project.”