Base Resources Limited (AIM:BSE, ASX:BSE) is showing signs of progress in its Toliara project, according to analysts at Peel Hunt, which maintained its buy rating on the stock.
The lower-than-expected dividend points to the sign that the company is progressing in its Toliara project, with analysts believing it is looking to keep cash in hand.
Previously, the Australia-based, Africa-focused miner had said it will continue to pay dividends until it had sight on an investment decision for Toliara, which Peel Hunt takes as a sign it is moving in the right direction.
Additionally, the broker points to management comments over demand exceeding supply, although this is expected to ease in the financial year 2023 as high prices will spur additional supply.
TPeel Hunt's target price is set at 26p.