Base Resources: Interim Financial Report
Base Resources Limited (ASX & AIM: BSE) (Base Resources) is pleased to provide the following extracts from the company’s Interim Financial Report for the six month ended 31 December 2017.
These extracts should be read with reference to the notes contained in the full version of the Interim Financial Report, a copy of which is available from the Company’s website: www.baseresources.com.au.
Highlights from Base Resources’ interim financial results for the six month period ended 31 December 2017 are as follows (All figures reported in Australian dollars unless otherwise stated):
- Kwale Operation Sales Revenue UP 28% – $115.9m (31 Dec 2017) – $90.6m (31 Dec 2016)
- Kwale Operation EBITDA UP 55% – $72.4m (31 Dec 2017) – $46.8m (31 Dec 2016)
- Group EBITDA UP 58% – $69.3m (31 Dec 2017) – $44.0m (31 Dec 2016)
- Net Profit / (loss) UP 466% – $21.5m (31 Dec 2017) – $3.8m (31 Dec 2016)
- Net debt REDUCTION in period – $44.1m (31 Dec 2017) – $24.5m*
- Net Debt outstanding at end of period DOWN 53% – $84.1m (31 Dec 2017) – $179.7m (31 Dec 2016) – 53%*
*Net Debt consists of the outstanding balance of debt facilities less cash less restricted cash held in the debt service reserve account.
- Sales volumes: 225,814 tonnes of ilmenite (comparative period: 236,488 tonnes), 37,971 tonnes of rutile (comparative period: 42,796 tonnes), 17,427 tonnes of zircon (comparative period: 17,957 tonnes) and 3,287 tonnes of zircon low grade (comparative period: 3,397 tonnes). Sales volumes were lower than the comparative period, despite higher production volumes, solely due to the timing of shipments.
- Sales revenue: A$115.9 million (comparative period: A$90.6 million), achieving an average price of product sold (rutile, ilmenite, zircon and zircon low grade) of A$407 per tonne, or US$317 per tonne, (comparative period: A$302 per tonne or US$227 per tonne) with the main drivers being higher ilmenite and zircon prices.
- Costs: Underlying costs remained steady at an average cost of A$131, or US$102, per tonne of product sold (comparative period: A$130, or US$98, per tonne). Reflecting the 5% decrease in sales volume, total cost of goods sold decreased by 5% to A$37.2 million (comparative period: A$39.0 million).
- Revenue to cash cost ratio: The Kwale Operation achieved a revenue to cost of sales ratio of 2.8:1, comfortably positioning it in the first quartile of mineral sands producers.
- Group EBITDA: A$69.3 million, representing a 58% increase (comparative period: A$44.0 million) on the back of improving commodity prices and a continued tight focus on cost management.
- Cash flow from operations: A$73.5 million (comparative period: A$45.1 million).
- Capital investment: Cash flows used in investing activities increased to A$21.4 million (comparative period: A$3.0 million) due to the Kwale Phase 2 mine optimisation project commencing during the reporting period and on track for completion of construction in the June quarter of 2018.
- Reduction in net debt: A$44.1 million (comparative period: A$24.5 million), bringing net debt to A$84.1 million (US$65.6 million) at the end of the reporting period.