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's $4.8 million loss.

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

• A proposed combination with Energy Fuels Inc. was announced, offering shareholders 0.0260 Energy Fuels shares plus AUD 6.5 cents per share in a special dividend, conditional on the scheme's effectiveness.

• The Toliara Project in Madagascar advanced with in-principle agreement on fiscal terms, pending binding documentation and lifting of on-ground suspension.

Financial highlights

• Sales revenue dropped 50% year-over-year to $135.1 million, with total product sold halved to 200,530 tonnes.

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

• Net loss after tax improved to $1.6 million from $4.8 million loss in FY23.

• Cash flow from operations was $45.4 million, down from $117.6 million, reflecting lower sales volumes.

• Final dividend of AUD 4.0 cents per share ($29.9 million) paid in September 2023; special dividend of AUD 6.5 cents per share proposed, conditional on Energy Fuels transaction.

Outlook and guidance

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

• Toliara Project expected to progress to final investment decision within 14 months of lifting suspension, pending MoU on fiscal terms.

• Proposed combination with Energy Fuels aims to create a global leader in critical minerals, subject to shareholder approval.