Base Resources (ASX: $BSE) operational update

Base Resources Limited (ASX: $BSE) has reported a decrease in production and sales volumes due to lower ore grade at its Kwale Operations. The company recorded a sales revenue of US$73.1m, an EBITDA of US$14.7m, and a loss after tax of US$1.5m. The Kwale mining operations are anticipated to conclude in December 2024 upon depletion of existing ore reserves. Discussions have resumed regarding fiscal terms and lifting of the Toliara Project's suspension following limited engagement with the Government of Madagascar.

Executive commentary on operational performance

The company is encouraged by the progress made in advancing Toliara Project fiscal terms. In line with the capital management policy, the Board has decided to reserve cash and not pay an interim dividend. Base Resources remains committed to contributing to solving global challenges while maintaining profitability and sustainability.

Summary of Base Resources' operational and financial outlook

Base Resources (ASX: $BSE) has experienced a decline in production and sales volumes at its Kwale Operations due to lower ore grade, resulting in reduced sales revenue and a loss after tax. The company anticipates the conclusion of mining operations at Kwale by December 2024. Discussions have recommenced regarding fiscal terms and lifting of the Toliara Project's suspension. Base Resources remains committed to sustainability and has been recognized for its leading practices. The Toliara Project presents a significant rare earth diversification opportunity, with the company focusing on capital management and returning value to shareholders. The company's strategic relevance in critical minerals and its commitment to sustainability position it for long-term growth and development.