Base Resources interim financial report for the half-year ended 31 December 2023

Base Resources Limited (ASX: $BSE) and its controlled entities reported a loss for the half-year ended 31 December 2023. The loss for the Group amounted to US$1,472,000 after providing for income tax, a significant decrease compared to the profit of US$44,575,000 in the comparative period. The Company paid a final dividend of AUD 4.0 cents per share during the reporting period, with no interim dividend declared or determined by the Board. Base Resources operates the Kwale Mineral Sands Mine in Kenya and is developing the Toliara Project in Madagascar.

Executive Commentary on Market Developments and Outlook

The subdued global pigment market and sluggish housing sectors in major markets led to diminished demand for high-grade TiO2 feedstocks, impacting rutile pricing. However, sentiment among major western pigment producers was building at the end of the period, indicating a potential recovery in pigment demand. Chinese pigment producers continued to operate at high rates, supporting strong demand for ilmenite. Zircon prices trended downwards due to challenging market conditions but showed signs of improvement at the end of the period. Base Resources announced the expected conclusion of mining activities at Kwale Operations in December 2024 and highlighted positive progress in discussions with the Government regarding the Toliara Project in Madagascar.

Summary of Base Resources Interim Financial Report

Base Resources reported a loss for the half-year ended 31 December 2023, primarily attributed to lower heavy mineral grades impacting production. The Company paid a final dividend of AUD 4.0 cents per share during the reporting period. Market conditions were challenging, with subdued pigment demand affecting rutile pricing and zircon prices trending downwards. Base Resources announced the expected conclusion of mining activities at Kwale Operations in December 2024 and highlighted positive progress in discussions with the Government regarding the Toliara Project in Madagascar. The Company remains committed to providing returns to shareholders through long-term growth and appropriate cash distributions.