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Sierra Rutile is having difficulties with its transaction with Iluka. I wonder if this might be an opportunity for Tim Carstens to extend the Base Resources footprint.
http://www.proactiveinvestors.co.uk/columns/the-rfc-ambrian-metals-mining-and-oil-gas-overview/26107/in-the-news-base-resources-26107.html Great article if everything comes to fruition here
The update also mentioned that barring new supplies of mineral sands coming on stream, price forecasts would be higher by the end of 2016, so a flicker of hope and certainly an improving outlook albeit a gradual one
Base Resources Ltd on Wednesday said a significant lift in revenue during its recently completed financial year was not enough to stop its loss ballooning, as higher finance and other costs dragged the mineral sands producer deeper into the red. Base shares were untraded at 9.0 pence per share on Wednesday. The company, which is focused on the Kwale project in Kenya, reported a 16% rise in revenue in the financial year to the end of June to USD169.0 million from USD145.5 million the year before, as sales of ilmenite, rutile and zircon hit the upper end of Base's guidance and production increased from last year. Production of ilmenite rose to 455,870 tonnes from 427,655 tonnes in the previous year, rutile production increased to 85,654 tonnes from 71,537 tonnes, and zircon production experienced a lift to 31,389 tonnes from 22,416 tonnes. Sales of ilmenite during the year were more than production, rising to 480,538 tonnes from 373,046 tonnes in the previous year, with sales of rutile and zircon coming in line with production. Rutile sales amounted to 85,536 tonnes, up from 76,801 tonnes, and zircon sales rose to 33,062 tonnes from 21,287 tonnes. The increase in sales was partly offset by lower prices, averaging USD205 per tonne of product compared to USD256 per tonne last year. The average cost of product sold was reduced to help counter the price falls, averaging USD105 per tonne from USD130 last year. Overall, that led to gross profit of USD35.4 million in the year compared to a profit of USD30.8 million previously. The other costs across the rest of the business were generally higher in the year and ultimately led to the pretax loss coming in much wider than the previous year. Corporate and external affair costs rose to USD11.3 million from USD10.8 million, selling and distribution expenses increased to USD4.1 million from USD2.4 million, and other costs increased to USD2.7 million from USD262,000, with community development costs being the only segment not to increase in the year, managing to remain broadly flat. The profit before financing costs and tax, as a result, came in only a touch higher year-on-year at USD13.4 million from USD13.3 million. Higher financing costs of USD34.3 million compared to the USD29.3 million last year was the final cost to ultimately see Base report a wider pretax loss for the year of USD20.9 million from the USD16.0 million loss a year earlier. Cash at the end of the year stood at USD36.3 million, falling from USD40.9 million at the end of June 2015, but net debt has been reduced significantly to USD192.1 million from USD241.0 million at the end of June 2015.
When is the annual report due?
Just changing the last message on this BB. Tired of seeing the last message for over a month now
Don't like the spread
Interesting prospect, very profitable looking through the figures from last week BUT current market cap is very weighty given excessive net debt position. Only worth a punt
Base Resources has announced it has been granted exploration tenure over a significantly expanded land area surrounding the Kwale Mineral Sands Project in Kenya, and that it expects to commence an aircore drilling programme of up to 18,000m over the acreage in the September 2016 quarter. The company’s expanded licence EPL 173 now covers an area of 177km2 (from 56km2), and the company has applied for an additional EPL covering a 136km2 area extending south-west from EPL 173 towards the Tanzanian border. This application is currently advancing through the granting process, having been approved by the Ministry of Mines’ licensing committee, and would increase the company’s footprint in the south-eastern tip of Kenya to over 300km2. The proposed exploration drilling comes on the back of a 2015 airborne geophysics programme covering the south coast of Kenya between Mombasa and the Tanzanian border. The multiple exploration targets identified by the programme were subsequently confirmed through ground reconnaissance. COMMENT: As highlighted by the company, the Kwale Project is now at steady-state following production start-up in December 2013, with 22.2Mt of material having been mined to date. We expect mining of the high-grade Central Dune to continue for an estimated 4.5 years, aligning with the project debt repayment schedule, before operations transfer to the South Dune post-2020. (We expect annual nameplate production from the South Dune to be in the region of 250,000t of ilmenite, 55,000t of rutile and 20,000t of zircon vs. 440,000t ilmenite, 80,000t rutile and 30,000t zircon from the Central Dune). The bolt-on of the new acreage and the planned resumption of exploration drilling indicate that, with Kwale ramp-up completed and operational targets being achieved, the company is now looking to refocus on value accretion through life-of-mine extension. Base’s strong performance over recent months should be underlined (the share price has risen by 260% in the last six months), and comes with a backdrop of improving sentiment in the mineral sands space. On the demand-side, we understand this is being driven by improving prices for titanium dioxide pigment end-products. TiO2 prices have already risen six times in China this year, precipitated by low inventory levels and a healthier construction market. International pigment producers such as Huntsman have also heralded price increases to more sustainable levels, anticipated in 2H16. Due to the tendency for feedstock pricing movements to lag their end markets, the expected resulting improvement in heavy mineral markets is likely to be predominantly manifested in CY17. On the supply side, the suspension of operations at Iluka’s Jacinth Ambrosa mine, the largest single source of zircon, for a planned 18-24-month period from mid-April, as well as the cessation of the company’s ilmenite-rutile Virginia operations, has helped to rebalance market dynamics. Further
No stopping this behemoth now, unbelievable !
Cofidence returns with a vengence despite misleading reports!
(BSE AU/LN) has been asked to make a response to the ASX regarding a sharp move in its share price. The good news is that this price movement has been upwards. In fact, its price has more than doubled over the last few days. The main driver of this move has been positive sentiment towards the general market for mineral sands. This has been seen in recent announcements from Base’s peer group; sector bellwether Iluka is up some 11% over the last two days of trading. This all mirrors our own understanding that pricing sentiment has improved of late, a fact picked up by our clients who have been making more calls about Base and the mineral sands market than they have for a while. Also, there was a mineral sands conference in China this week that clearly went well. Obviously, after a share price has been in the doldrums, moves can be more pronounced on improved volume. This has been particularly so in Base’s case, where the financial gearing effect created by its debt magnifies changes in the value of the underlying assets in the share price. It’s interesting that the UK listing is currently trading at 4.375p, which equates to A$0.088. The shares closed in Australia at A$0.12, so if you can pick up stock in London, you should.
http://www.the-star.co.ke/news/2016/05/03/mineral-revenues-to-stagnate-this-year-report_c1341458 Are we looking at some consolidation now ?
Ditto this morning, markets here are forecast to be flat for the rest of the year?
Nice bounce this morning, nasty spread though
fully taken up BASE RESOURCES LIMITED Successful Completion of Institutional Entitlement Offer Base Resources Limited (ASX & AIM: BSE) (“Base Resources”) is pleased to announce the successful completion of the accelerated institutional component (“Institutional Entitlement Offer”) of the 1 for 3.35 renounceable entitlement offer announced on 29 February 2016 (“Entitlement Offer”), as part of the capital raising to raise gross proceeds of approximately A$10 million at A$0.06 per share (“Offer Price”). The Institutional Entitlement Offer, together with the institutional shortfall bookbuild, was fully subscribed and will raise gross proceeds of approximately A$8.3 million for the issue of approximately 137.5 million fully paid ordinary shares (“New Shares”). The institutional shortfall bookbuild was completed on Wednesday, 2 March 2016, and was well supported by both existing major shareholders and new institutional investors, with all institutional shortfall shares being subscribed for at the Offer Price. Settlement of the Institutional Entitlement Offer is scheduled for Thursday, 10 March 2016, with the New Shares expected to commence trading on Friday, 11 March 2016. On issue, the New Shares will rank equally in all regards with existing Base Resources ordinary shares. Base Resources’ Managing Director, Tim Carstens, said: “We have been delighted with the strong support demonstrated by our existing institutional shareholders, including that of Pacific Road Capital in additionally ensuring the success of the Entitlement Offer by providing a significant sub-underwriting commitment, and also the level of interest from new investors. We welcome the new shareholders to Base Resources’ register, and also look forward to the participation of our eligible retail shareholders in the retail entitlement offer.” Commencement of the Retail Entitlement Offer The Entitlement Offer to existing retail shareholders (“Retail Entitlement Offer”) opens on Thursday, 10 March 2016 and is expected to close at 5.00pm (Sydney time) on Thursday, 24 March 2016. Shareholders who are eligible to participate under the terms of the Retail Entitlement Offer will be offered the opportunity to subscribe for 1 New Share for every 3.35 existing Base Resources shares held at 7.00pm (Sydney time) on Thursday, 3 March 2016 at the Offer Price of A$0.06 per share. This is the same entitlement ratio and Offer Price as applied to the Institutional Entitlement Offer. Eligible retail shareholders should carefully read the Retail Entitlement Offer Booklet and the personalised entitlement and acceptance form, which are expected to be mailed to eligible retail shareholders on Wednesday, 9 March 2016. The Retail Entitlement Offer is only being extended to shareholders with a registered address in Australia, New Zealand or the United Kingdom. Notification to those retail sharehold
For ASX relisting. Then we will see where this goes.
Spread 3.0-3.5p Market makers offering 50k at 3.5p. In fact any amount seems to be 3.5p. With a 3p bottom this again could climb back up to the 4s. It won't take much as there is hardly any available. There is not too much interest here so once there is this could be 5-6p
expect a bounce on Thursday when ASX trading re starts and confirmation of full uptake by IIs
Fall in share price yet nothing really available.
around 50k bought and this is back up to 4p. Such is the illquidity. At the end of the day there was 24k left at 4p.
Results were good and Bode well Full year production guidance for FY 2016:(1) ► Rutile – 80,000 to 84,000 tonnes ► Ilmenite – 430,000 to 450,000 tonnes ► Zircon – 27,000 to 30,000 tonnes ► December 2015 half-year averages: ► Revenue: US$207 per tonne ► Operating costs (inc. royalties): US$98 per tonne ► Operating margin: 52%
yes it certainly seems the case.ASX was neutral so we went down on the initial RNS. Hardly any stock around at these levels.
seems I missed the RNS and therefore a low price buyback. Hey ho...
glad I didnt hold for results...