Base Resources H1 FY24 half-year results overview

Base Resources Limited (ASX: $BSE) has released its financial results for the six-month period ended 31 December 2023 (H1 FY24). The company reported a net loss after tax of US$1.5 million, with a free cashflow of US$14.8 million and a net cash position of US$78.9 million at the end of the reporting period. Operational highlights include Kwale Operations performing to plan, albeit with lower grade ore bodies resulting in reduced production and sales volumes. Additionally, progress has been made in discussions with the Government of Madagascar regarding the Toliara Project, with sustained engagement and expressed support for the project's monazite product production.

Executive Commentary on H1 FY24 results and future prospects

Kwale Operations continued to operate profitably and generate positive free-cash flow, despite lower production and sales volumes as expected. The completion of the Toliara Project's monazite pre-feasibility study in December has significantly enhanced the project's economics, with the post tax NPV10 doubling to US$2.0 billion. The Government of Madagascar has demonstrated a significant level of focus and attention on the project's progression, and we are optimistic about securing mutually attractive fiscal terms to support the project's development for the benefit of all stakeholders.

Summary of Base Resources H1 FY24 results and outlook

Base Resources' H1 FY24 results reflect the impact of lower grade ore bodies on production and sales volumes, as well as softening market conditions for its products. The company's decision not to pay an interim dividend aligns with its capital management policy, as it retains cash for the anticipated progression of the Toliara Project. Looking ahead, Base Resources remains focused on the development of the Toliara Project, leveraging the positive shift in dynamics and the Government of Madagascar's support. The completion of the monazite pre-feasibility study has significantly enhanced the project's potential, and the company is committed to realizing this potential for the benefit of its host communities, Madagascar, and its shareholders.