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Base Resources (BSE) investor relations material

Base Resources Africa Down Under Presentation summary

Complete event summary combining all related documents: earnings call transcript, report, and slide presentation.
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Africa Down Under Presentation summary6 Sep, 2024

Strategic combination and growth profile

  • Merger with Energy Fuels creates a leading global critical minerals group focused on REEs, uranium, and mineral sands, enhancing market capitalisation, liquidity, and funding capacity.

  • Immediate premium for shareholders and continued exposure to the Toliara Project, with improved access to development funding and reduced equity dilution.

  • Value addition through processing Toliara monazite at White Mesa Mill, supporting supply to North American and European EV manufacturers.

  • Asset and commodity diversification reduces risk and provides protection against downturns in individual commodities.

  • Enhanced opportunity to secure strategic US government funding support at potentially lower cost.

Energy Fuels and Base Resources asset portfolio

  • Energy Fuels holds a US$718 million market cap, US$171 million in cash and securities, and no debt as of June 2024.

  • White Mesa Mill in Utah is the only fully licensed, operating conventional uranium mill in the US, with over 40 years of operation and new REE separation capacity.

  • Portfolio includes producing, standby, and pre-production uranium and vanadium assets in the US, plus joint venture and development interests in mineral sands and rare earths globally.

  • Base Resources' Kwale operation in Kenya is closing in December 2024, with a focus on post-mining land use and community transition.

  • Asset base spans the US, Brazil, Madagascar, and Australia, covering uranium, vanadium, ilmenite, rutile, zircon, and monazite.

Toliara Project highlights

  • Toliara is a world-class mineral sands project in Madagascar, with a 38-year mine life and staged ramp-up from 13Mtpa to 25Mtpa.

  • Project produces ilmenite, rutile, zircon, and monazite (a rich REE source), with monazite as a by-product from mineral sands processing.

  • Large, high-grade deposit contains 13 of the USGS list of 50 critical minerals; NPV10 of US$2 billion, IRR 32.4%, and average annual EBITDA of US$371 million.

  • Peak annual production: 1.3Mt ilmenite/rutile/zircon and 26.1kt monazite; LOM free cash flow of US$10.6 billion.

  • Development timeline targets FID 14 months after fiscal terms are agreed, with first shipments of ilmenite in early 2028 and monazite by mid-2028.

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Frequently asked questions

Base Resources Limited is an Australian mining and mineral sands company engaged in the exploration, development, and production of mineral resources. The company’s primary operations include the Kwale Mineral Sands Project in Kenya, which produces ilmenite, rutile, and zircon—key materials used in manufacturing, including in pigments and ceramics. Base Resources is also advancing the Toliara Sands Project in Madagascar, aiming to expand its production footprint. The company is headquartered in West Perth, Western Australia, and its shares are listed on the ASX.

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