Base Resources (BSE) H2 2024 earnings summary

Executive summary

• Revenue fell 50% year-over-year to $135.1 million due to lower production and sales volumes, with a net loss after tax of $1.6 million, a 66% improvement from the prior year loss of $4.8 million.

• Mining at Kwale Operations is set to end in December 2024, with post-mining transition and closure planning underway.

• A binding agreement was reached for acquisition by Energy Fuels Inc., with shareholders to receive shares and a special dividend if the scheme is effective.

Financial highlights

• Sales revenue dropped to $135.1 million from $271.4 million year-over-year, with total tonnes sold halved to 200,530.

• Group EBITDA was $26.4 million, down from $158.6 million; Kwale Operations EBITDA was $43.6 million, down from $169.0 million.

• Operating costs decreased 6% to $72.4 million, but unit operating costs rose to $317/tonne from $188/tonne.

• Net tangible assets per share declined to $0.07 from $0.11; net assets per share fell to $0.22 from $0.24.

• Cash flow from operations was $45.4 million, down from $117.6 million.

• A final dividend of AUD 4.0 cents/share was paid in September 2023; a special dividend of AUD 6.5 cents/share is conditional on the Energy Fuels transaction.

Outlook and guidance

• Mining at Kwale Operations will cease in December 2024, with processing to conclude soon after; transition to post-mining is planned.

• The Toliara Project in Madagascar is expected to progress once fiscal terms are finalized and the suspension is lifted, with a final investment decision anticipated 14 months after these conditions are met.

• The proposed combination with Energy Fuels aims to create a global leader in critical minerals, focusing on rare earths, mineral sands, and uranium.