Annual Financial Report – Period Ended 30 Jun...
AIM Release
28 August 2018
BASE RESOURCES LIMITED
Annual Financial Report – period ended 30 June 2018
Base Resources Limited (ASX & AIM: BSE) (“Base Resources†or the “Companyâ€) is pleased to provide the following extracts from the company’s Annual Financial Report for the year ended 30 June 2018.
1. Review of Operations.
2. Market Developments and Outlook.
3. Review of Financial Performance.
4. Consolidated Statement of Profit or Loss and Other Comprehensive Income.
5. Consolidated Statement of Financial Position.
6. Consolidated Statement of Changes in Equity.
7. Consolidated Statement of Cash Flows.
These extracts should be read with reference to the notes contained in the full version of the Annual Financial Report, a copy of which is available from the Company’s website: www.baseresources.com.au. The Company has also released an Investor Presentation to accompany its Annual Financial Report, a PDF copy of which is available from the Company’s website: www.baseresources.com.au.
All figures are reported in US dollars unless otherwise stated.
Highlights
Price increases and consistent sales volumes across all products drove record revenue and NPAT for the year ended 30 June 2018 (FY18) for Base Resources (ASX and AIM: BSE). The Company also progressed its long-term strategy with the acquisition of the Toliara Sands Project in Madagascar and optimisation of the Kwale Operation in Kenya.
Operational Highlights for FY18
- Total Recordable Injury Frequency Rate of zero – no lost time due to injury since 2014;
- Consistent production – 91,672 tonnes of rutile, 464,988 tonnes of ilmenite and 37,157 tonnes of zircon;
- Average price improvement across all products – rutile up 17%, ilmenite up 28% and zircon up 46%;
- Completed a major optimisation project at the Kwale Operation to maximise production volumes;
- Kwale South Dune Measured and Indicated resources increased by 19%;
- Acquisition of the Toliara Sands Project in Madagascar and commencement of pre-feasibility study; and
- US$3.8m invested in community and environment programs.
Financial Highlights for FY18
- Revenue increased 22% to US$198.8m;
- EBITDA increased 32% to US$109.3m;
- NPAT increased 114% to US$34.0m;
- Net debt reduced by US$65.3m to US$33.2m; and
- Revenue to cost of sales ratio of 2.8:1.
Managing Director of Base Resources, Tim Carstens, said:
“This has been an outstanding year for Base Resources with our team achieving the goal of a total recordable injury frequency rate of zero – a fantastic outcome for any resources operation globally and testament to the quality of our management team.â€
“Consistent production and strong average price improvement across all products contributed to record financial results for the Company and has allowed significant debt reduction and established a strong platform from which to grow the business. The well-timed acquisition of the Toliara Sands Project in Madagascar has given Base Resources an outstanding growth path in the development of another world-class mineral sands project with a long production life.â€
Outlook
Priorities for the 2019 financial year include:
- Completion of the pre-feasibility study for the Toliara Sands Project and commencement of the definitive feasibility study, ahead of a planned final investment decision in late 2019;
- Pursuing mine-life extension at the Kwale Operation with continuation of the current encouraging exploration drilling program; and
- Retirement of the Kwale Project Finance Facility.
As stated in the June Quarterly update, Base Resources expects to produce from its Kwale Operation in FY19:
- Rutile – 88,000 to 93,000 tonnes;
- Ilmenite – 420,000 to 450,000 tonnes; and
- Zircon – 32,000 to 37,000 tonnes.
[Note 1: Refer to Base Resources market announcement “Mineral Resource Increase for Kwale South Dune†released on 4 October 2017, which is available at http://www.baseresources.com.au/investor-centre/asx-releases, which contains the JORC competent persons statement for this estimate of Mineral Resource. The Company confirms that it is not aware of any new information or data that materially affects the information included in this ASX announcement and that all material assumptions and technical parameters underpinning the Mineral Resource estimates in this announcement continue to apply and have not materially changed.]
1. Review of Operations
Base Resources operates the 100% owned Kwale Operation in Kenya, which commenced production in late 2013. The Kwale Operation is located 50 kilometres south of Mombasa, the principal port facility for East Africa.
During the reporting period, despite a month-long mining and wet concentrator plant shutdown in March 2018 to complete final equipment installation and piping tie-ins for the Kwale Phase 2 mine optimisation project, mining volume increased by 3% over the comparative period. As part of the Kwale Phase 2 Project, the Company successfully commissioned the second hydraulic mining unit, to complement the existing hydraulic mining unit and dozer trap mining unit. With these three mining units operating for the final quarter of the reporting period, mining and wet concentrator plant volumes increased 37% over the prior three quarters. Mined ore grade remained consistent with the comparative period (7.1%) as mining proceeded around the north-western fringes of the Central Dune orebody.
| Mining and Wet Concentrator Plant (WCP) Performance | 2018 | 2017 |
| Ore mined (tonnes) | 11,332,668 | 11,014,939 |
| Heavy mineral (HM) % | 7.12% | 7.09% |
| WCP heavy mineral concentrate production (tonnes) | 748,081 | 708,404 |
The Kwale Operation is designed to process ore to recover three separate products – rutile, ilmenite and zircon. Ore is received at the wet concentrator plant from the mining units via a slurry pipeline. The wet concentrator plant removes slimes, concentrates the valuable heavy minerals (rutile, ilmenite and zircon) with a number of gravity separation steps and rejects most of the non-valuable, lighter gangue minerals to produce a heavy mineral concentrate. The heavy mineral concentrate is then processed in the mineral separation plant. The mineral separation plant cleans and separates the rutile, ilmenite and zircon minerals into finished products for sale.
The increase in mining volume resulted in production of heavy mineral concentrate increasing to 748,081 tonnes, higher than the comparative period’s 708,404 tonnes. The heavy mineral concentrate stockpile decreased to 77,912 tonnes at 30 June 2018 (83,632 tonnes at 30 June 2017), following the draw down of stocks during the one-month shut for Kwale Phase 2 commissioning.
| Mineral Separation Plant (MSP) Performance | 2018 | 2017 |
| MSP feed (tonnes of heavy mineral concentrate) | 753,801 | 764,171 |
| MSP feed rate (tph) | 91 | 91 |
| MSP recovery % | ||
| Ilmenite | 100% | 100% |
| Rutile | 100% | 97% |
| Zircon | 77% | 73% |
| Production (tonnes) | ||
| Ilmenite | 464,988 | 467,359 |
| Rutile | 91,672 | 90,625 |
| Zircon | 37,157 | 34,228 |
| Zircon low grade | 1,425 | 10,210 |
The mineral separation plant has continued to maintain high throughput rates with an average of 91tph achieved for the reporting period (comparative period: 91tph) and total heavy mineral concentrate feed to 753,801 tonnes (comparative period: 764,171 tonnes), lower due to marginally reduced utilisation.
Ilmenite production continued at above design capacity, achieving production of 464,988 tonnes (comparative period: 467,359 tonnes), with the reduced volume of mineral separation plant feed accounting for the difference.
Rutile production increased to 91,672 tonnes in the reporting period (comparative period: 90,625 tonnes) due to higher product recoveries, partially offset by slightly lower contained rutile in the mineral separation plant feed.
Zircon production increased to 37,157 tonnes for the reporting period (comparative period: 34,228 tonnes) due to higher average zircon recoveries of 77% (comparative period: 73%) and higher contained zircon in the mineral separation plant feed.
In addition to primary zircon, in July 2016, Kwale Operations commenced production of a lower grade zircon product from the re-processing of run-of-production and stockpiled zircon circuit tails into a zircon rich concentrate. Sales of this zircon low grade product have realised 70-80% of the value of each contained tonne of zircon. Reported zircon low grade represents the volume of zircon contained in the concentrate. When combined with primary zircon recoveries, the production of zircon low grade has effectively lifted total zircon recoveries well above the design target of 78%. During the reporting period the zircon tails stockpile was fully depleted, and zircon low grade production was limited to 1,425 tonnes (comparative period: 10,210 tonnes).
With no lost time or medical treatment injuries occurring during the reporting period, Kwale Operations’ lost time injury frequency rate (LTIFR) and total recordable injury frequency rate (TRIFR) are both now zero. The Company’s employees and contractors have now worked 13.2 million man-hours LTI free, with the last LTI recorded in 2014.
| Marketing and sales | 2018 | 2017 |
| Sales (tonnes) | ||
| Ilmenite | 473,549 | 501,676 |
| Rutile | 89,132 | 91,991 |
| Zircon | 36,318 | 34,566 |
| Zircon low grade | 3,287 | 9,501 |
Across each of its three products, the Company maintains a balance of multi-year, annual and quarterly offtake agreements with long term customers as well as a small proportion of ongoing spot sales. These agreements, in place with some of the world’s largest consumers of titanium dioxide and zircon products, provide certainty for the Kwale Operation by securing minimum offtake quantities. Selling prices in these agreements are derived from prevailing market prices, based on agreed price indices or periodic price negotiations.
The Company continues its strong market presence in China, the world’s largest market for both ilmenite and zircon, with over 470,000 tonnes of ilmenite and over 29,000 tonnes of zircon products sold into the Chinese market during the reporting period.
The arrangements in place with all customers across all products has ensured that sales continue to closely match production, with minimal inventories being maintained.
2. Market Developments and Outlook
Titanium Dioxide
Ilmenite and rutile are primarily used as feedstock for the production of titanium dioxide (TiO2) pigment, with a small percentage also used in the production of titanium metal and fluxes for welding rods and wire. TiO2 is the most widely used white pigment because of its non-toxicity, brightness and very high refractive index. It is an essential component of consumer products such as paint, plastics and paper. Pigment demand is therefore the major driver of ilmenite and rutile pricing.
Overall, the global TiO2 pigment industry remained buoyant throughout the reporting period. Strong pigment demand combined with low inventory levels among the major western pigment producers has continued to support a strong pigment pricing environment in most regions. Pigment prices in China have remained strong but, unlike other regions, have been subject to some fluctuation on the back of volatility in supply and demand. This is mostly linked to the impact of periodic environmental inspections on production throughout the supply chain and, towards the end of the reporting period, concerns over the potential impact of US trade tariffs on the wider Chinese economy.
Chinese domestic ilmenite production increased through the reporting period but has also been subject to the volatility associated with environmental inspections. The increased domestic output has been offset by a decrease in foreign ilmenite supply into China from Vietnam, limited by high cost of production, and ongoing production and export bans from Tamil Nadu in India.
Following significant ilmenite price appreciation throughout the comparative period, the realised price of Chinese ilmenite sales has followed the volatility seen in Chinese pigment prices through the reporting period. The price of the Company’s ilmenite experienced swings throughout the reporting period, but the average achieved was 28% higher than the comparative period.
Ilmenite prices are expected to continue fluctuating around the average levels experienced during the reporting period. The extent of such fluctuation is largely dependent upon the ongoing impact of environmental inspections on ilmenite, pigment and downstream paint and plastics producers within China and the general economic impact of US trade tariffs. As the supply and demand fundamentals for pigment and ilmenite remain robust at a global level, there is upside potential for ilmenite pricing should the impact of environmental inspections and trade tensions dissipate.
A supply deficit in the high-grade feedstock sector (which includes rutile), driven mostly by demand strength from the western chloride pigment sector, has seen market conditions continue to tighten. Most recently, a major producer announced that it has applied a 14% price increase for contracted rutile sales in the first half of financial year 2019. This has been exacerbated by supply interruptions resulting from incidents at two major chloride slag facilities during the second half of the reporting period. The Company’s average achieved rutile price for the reporting period increased by 17% over the comparative period. Further price gains for bulk rutile sales from major suppliers to large mainstream customers are likely to be secured as and when pricing periods in offtake arrangements come up for renewal.
In the absence of substantial new feedstock supply coming online, the titanium dioxide feedstock market is expected to remain in structural supply deficit, providing an opportunity for continued price strength in both ilmenite and rutile over the coming years.
Zircon
Zircon has a range of end-uses, the predominant of which is in the production of ceramic tiles, accounting for more than 50% of global zircon consumption. Milled zircon enables ceramic tile manufacturers to achieve brilliant opacity, whiteness and brightness in their products. Zircon’s unique properties include heat and wear resistance, stability, opacity, hardness and strength, making it sought after for other applications such as refractories, foundries and specialty chemicals.
Demand growth for zircon is closely linked to growth in global construction and increasing urbanisation in the developing world. These factors have improved in line with the acceleration of global economic growth over the past few years resulting in steady demand growth for zircon. A significant draw down of inventories of zircon throughout the supply chain, along with constraints on global production, have resulted in a rapidly tightening market and sharp increases in zircon prices since the end of calendar year 2016. Throughout the reporting period, demand from the Company’s core group of long term zircon customers has continued to exceed the Company’s ability to supply. The average achieved price of the Company’s zircon products for the reporting period increased by more than 46% over the comparative period. A further increase of approximately 11% has been secured for the first quarter of financial year 2019.
Ongoing firm demand and restricted supply may lead to further price improvement in zircon through financial year 2019. However, concerns from zircon producers in relation to the potential for substitution or thrifting of zircon by customers may begin to restrain the extent and/or frequency of price increases going forward.
Kwale Operations Extensional Exploration
During the reporting period, an updated Mineral Resource estimate for the Kwale South Dune (the 2017 Kwale South Dune Mineral Resource) was completed, resulting in a 19% increase in contained in situ heavy mineral in the Measured and Indicated categories. Completion of an updated Ore Reserve based on the 2017 Kwale South Dune Mineral Resource is subject to finalisation of mining tenure arrangements, which are currently being progressed with the Kenyan Ministry of Petroleum and Mining.
The next phase of extensional exploration drilling at Kwale Operations commenced during the last quarter of the reporting period in the north and north-east of the Company’s Kwale Special Prospecting License 173, adjacent to the Kwale Operation’s Central Dune.
Toliara Sands Project
In January 2018, the Company completed the US$75.0 million acquisition of an initial 85% interest in the Toliara Sands Project in Madagascar. Base Resources will acquire the remaining 15% interest, with a further US$17.0 million payable on achievement of key milestones, as the project advances towards mine development.
The Toliara Sands Project is considered by Base Resources to be one of the best mineral sands development projects in the world. It is underpinned by the Ranobe deposit which has Mineral Resources of 857Mt at 6.2% heavy mineral, including 612Mt at 6.7% heavy mineral in the Measured and Indicated Categories.
During the reporting period the Company appointed Mineral Technologies and Lycopodium to deliver the Pre-Feasibility Study for the Toliara Sands Project. The Company anticipates pre-feasibility study completion in the March quarter of 2019. The pre-feasibility study will build on the considerable body of work completed by previous owners of the Toliara Sands Project and together form the foundations of an accelerated feasibility study program that aims to advance the project toward a decision to proceed to construction in the second half of 2019.
3. Review of Financial Performance
Base Resources recorded an increased profit after tax of US$34.0 million for the reporting period, compared with US$15.8 million in the comparative period, primarily due to higher sales revenues.
| 2018 | 2017 | ||||||
| Kwale Operation | Toliara Sands Project | Other | Total | Kwale Operation | Other | Total | |
| US$000s | US$000s | US$000s | US$000s | US$000s | US$000s | US$000s | |
| Sales Revenue | 198,810 | - | - | 198,810 | 162,417 | - | 162,417 |
| Cost of goods sold excluding depreciation & amortisation: | |||||||
| Operating costs | (56,658) | - | - | (56,658) | (51,816) | - | (51,816) |
| Inventory movement | (2,114) | - | - | (2,114) | (3,794) | - | (3,794) |
| Royalties expense | (13,678) | - | - | (13,678) | (11,141) | - | (11,141) |
| Total cost of goods sold (i) | (72,450) | - | - | (72,450) | (66,751) | - | (66,751) |
| Corporate & external affairs | (4,312) | (87) | (4,855) | (9,254) | (3,983) | (4,205) | (8,188) |
| Community development | (3,000) | - | - | (3,000) | (2,699) | - | (2,699) |
| Selling & distribution costs | (4,056) | - | - | (4,056) | (2,030) | - | (2,030) |
| Other income / (expenses) | 28 | (704) | (89) | (765) | 352 | (444) | (92) |
| EBITDA (i) | 115,020 | (791) | (4,944) | 109,285 | 87,306 | (4,649) | 82,657 |
| Depreciation & amortisation | (47,349) | - | (84) | (47,433) | (37,355) | (48) | (37,403) |
| EBIT (i) | 67,671 | (791) | (5,028) | 61,852 | 49,951 | (4,697) | 45,254 |
| Net financing expenses | (15,929) | - | (2,560) | (18,489) | (19,264) | (4,247) | (23,511) |
| Income tax expense | (9,389) | - | - | (9,389) | (5,895) | - | (5,895) |
| NPAT (i) | 42,353 | (791) | (7,588) | 33,974 | 24,792 | (8,944) | 15,848 |
(i) Base Resources’ financial results are reported under International Financial Reporting Standards (IFRS). These Financial Statements include certain non-IFRS measures including EBITDA, EBIT and NPAT. These measures are presented to enable understanding of the underlying performance of the Group and have not been audited.
Sales revenue was US$198.8 million for the reporting period (comparative period: US$162.4 million), achieving an average price of product sold (rutile, ilmenite, zircon and zircon low grade) of US$330 per tonne (comparative period: US$255 per tonne), with averaged realised prices higher for all products. Total cost of goods sold, excluding depreciation and amortisation, was US$72.5 million for the reporting period (comparative period: US$66.8 million) at an average cost of US$120 per tonne of product sold (comparative period: US$105 per tonne). Operating cost per tonne produced was higher at US$94 per tonne for the reporting period (comparative period: US$86 per tonne), due to higher electricity usage following the Kwale Phase 2 upgrade, which increased volumes mined by hydraulic mining unit and installed pumping capacity in the wet concentrator plant. In addition, higher fuel costs, electricity prices and mobile equipment maintenance as the fleet ages contributed to the increase in operating costs.
With an operating margin of US$210 per tonne produced for the reporting period (comparative period: US$150 per tonne produced) and an achieved revenue to cost of sales ratio of 2.8 (comparative period: 2.4), the Company remains well positioned in the upper quartile of mineral sands producers.
Improved commodity prices and a continued focus on cost management has delivered a Kwale Operations EBITDA for the reporting period of US$115.0 million (comparative period: US$87.3 million) and a Group EBITDA of US$109.3 million (comparative period: US$82.7 million).
Depreciation and amortisation has increased for the reporting period to US$47.3 million (comparative period:
US$37.4 million), due to the Kwale Phase 2 project implementation, which will significantly increase future mining rates and thus reduced remaining mine life, on the basis of current ore reserves. The majority of Kwale Operation assets are depreciated on a straight-line basis over the remaining mine life. Should the extensional exploration currently underway at Kwale Operations be successful, there is the potential to further increase ore reserves and extend mine life.
A net profit after tax of US$42.4 million was recorded by Kwale Operations (comparative period: US$24.8 million) and US$34.0 million for the Group (comparative period: US$15.8 million). Basic earnings per share for the Group was 3.66 cents per share (comparative period: 2.14 cents).
Cash flow from operations was US$117.1 million for the reporting period (US$76.6 million in the comparative period), higher than Group EBITDA due to working capital movements. The operating cashflows were used to fund capital expenditure at Kwale Operations and Toliara Sands Project, as well as debt servicing and repayment.
Total capital expenditure for the Group was US$32.9 million in the reporting period (comparison period: US$6.5 million) comprised of US$31.2 million at Kwale Operations, primarily for the KP2 Project, and US$1.6 million on the progression of the Toliara Sands Project.
During the reporting period, the remaining US$11.8 million of the Taurus Debt Facility was repaid in full and a further US$61.2 million of the Kwale Operations Debt Facility repaid, reducing its outstanding balance to US$80.0 million. The Group established a US$30.0 million Revolving Credit Facility (RCF) to provide additional funding flexibility and US$12.5 million was utilised during the reporting period for corporate working capital and the progression of the Toliara Sands Project. Total debt outstanding at 30 June 2018 was US$92.5 million, reduced from US$153.0 million at 30 June 2017. The Company’s net debt position at 30 June 2018 reduced to US$33.2 million, from US$98.5 million at 30 June 2017.
In January 2018, the Company completed the acquisition of an initial 85% interest in the Toliara Sands Project, which was funded by the issue of 380,381,075 shares at a price of A$0.255 per share, raising funds of A$97.0 million (US$73.7 million), completed in January 2018.
Significant changes in state of affairs
Other than the acquisition of the Toliara Sands Project, there were no other significant changes in the state of affairs of the Group during the reporting period.
After balance date events
Subsequent to year end, in July 2018, in accordance with the terms of the Kwale Facility, a cash sweep of US$14.9 million was distributed from Kwale Operations. Half of the cash sweep (US$7.45 million) went towards mandatory repayment of the Kwale Facility, with the other half distributed to the parent entity, Base Resources. The outstanding Kwale Facility debt after this repayment was US$72.6 million. The repayment of debt from the cash sweep has no impact on net debt.
There have been no other significant after balance date events at the date of this report.
Future developments, prospects and business strategies
Base Resources strategy is to continue to pursue mine life extension at the Kwale Operation through exploration and develop the Toliara Sands Project ahead of a decision to proceed with construction in the second half of 2019.
4. Consolidated Statement of Profit or Loss and Other Comprehensive Income for the Year Ended 30 June 2018
| 2018 | 2017(i) | ||
|---|---|---|---|
| Note | US$000s | US$000s | |
| Sales revenue | 2 | 198,810 | 162,417 |
| Cost of sales | 2 | (119,799) | (104,106) |
| Profit from operations | 79,011 | 58,311 | |
| Corporate and external affairs | (9,338) | (8,236) | |
| Community development costs | (3,000) | (2,699) | |
| Selling and distribution costs | (4,056) | (2,030) | |
| Other expenses | (765) | (92) | |
| Profit before financing costs and income tax | 61,852 | 45,254 | |
| Financing costs | 2 | (18,489) | (23,511) |
| Profit before income tax | 43,363 | 21,743 | |
| Income tax expense | 4 | (9,389) | (5,895) |
| Net profit for the year | 33,974 | 15,848 | |
| Other comprehensive income | |||
| Items that may be reclassified subsequently to profit or loss: | |||
| Foreign currency translation differences - foreign operations | (1,197) | 1,169 | |
| Total other comprehensive (loss) / income for the year | (1,197) | 1,169 | |
| Total comprehensive income for the year | 32,777 | 17,017 | |
| Net Earnings per share | Cents | Cents | |
| Basic earnings per share (US cents per share) | 3 | 3.66 | 2.14 |
| Diluted earnings per share (US cents per share) | 3 | 3.44 | 1.98 |
(i) Restated from AUD in previous financial statements in accordance with change in presentation currency. Refer to Note 1.
The notes contained in the full version of the Annual Financial Report form part of these consolidated financial statements, a copy of which is available from the company’s website: www.baseresources.com.au.
5. Consolidated Statement of Financial Position as at 30 June 2018
| 30 June 2018 | 30 June 2017(i) | 1 July 2016(ii) | ||
|---|---|---|---|---|
| Note | US$000s | US$000s | US$000s | |
| Current assets | ||||
| Cash and cash equivalents | 29,686 | 28,278 | 26,923 | |
| Restricted cash | 6 | 29,591 | 26,166 | 22,077 |
| Trade and other receivables | 7 | 38,726 | 44,056 | 32,300 |
| Inventories | 8 | 19,789 | 18,517 | 20,742 |
| Other current assets | 5,993 | 4,528 | 4,322 | |
| Total current assets | 123,785 | 121,545 | 106,364 | |
| Non-current assets | ||||
| Capitalised exploration and evaluation | 9 | 97,115 | 2,038 | 1,103 |
| Property, plant and equipment | 10 | 240,509 | 257,213 | 289,521 |
| Total non-current assets | 337,624 | 259,251 | 290,624 | |
| Total assets | 461,409 | 380,796 | 396,988 | |
| Current liabilities | ||||
| Trade and other payables | 11 | 27,865 | 20,696 | 18,510 |
| Borrowings | 12 | 53,266 | 59,211 | 45,854 |
| Provisions | 13 | 1,581 | 1,304 | 870 |
| Deferred revenue | 833 | 833 | 833 | |
| Other liabilities | 14 | 7,058 | 646 | 658 |
| Total current liabilities | 90,603 | 82,690 | 66,725 | |
| Non-current liabilities | ||||
| Borrowings | 12 | 35,532 | 88,112 | 145,605 |
| Provisions | 13 | 22,458 | 22,219 | 21,492 |
| Deferred tax liability | 4 | 15,106 | 5,846 | - |
| Deferred revenue | 625 | 1,458 | 2,292 | |
| Other liabilities | 14 | 10,000 | - | - |
| Total non-current liabilities | 83,721 | 117,635 | 169,389 | |
| Total liabilities | 174,324 | 200,325 | 236,114 | |
| Net assets | 287,085 | 180,471 | 160,874 | |
| Equity | ||||
| Issued capital | 15 | 305,277 | 231,079 | 229,747 |
| Reserves | (16,384) | (14,267) | (15,324) | |
| Accumulated losses | (1,808) | (36,341) | (53,549) | |
| Total equity | 287,085 | 180,471 | 160,874 |
(i) Restated from AUD in previous financial statements in accordance with change in presentation currency. Refer to Note 1.
(ii) Opening balances as at 1 July 2016 are reported due to change in presentation currency. Refer to Note 1.
The notes contained in the full version of the Annual Financial Report form part of these consolidated financial statements, a copy of which is available from the company’s website: www.baseresources.com.au.
6. Consolidated Statement of Changes in Equity for the Year Ended 30 June 2018
| Issued capital |
Accumulated losses | Share based payment reserve | Foreign currency translation reserve |
Treasury shares reserve | Total | |
|---|---|---|---|---|---|---|
| US$000s | US$000s | US$000s | US$000s | US$000s | US$000s | |
| Balance at 1 July 2016(i) | 229,747 | (53,549) | 5,362 | (20,686) | - | 160,874 |
| Profit for the year | - | 15,848 | - | - | - | 15,848 |
| Other comprehensive income | - | - | - | 1,169 | - | 1,169 |
| Total comprehensive income for the year | - | 15,848 | - | 1,169 | - | 17,017 |
| Transactions with owners, recognised directly in equity | ||||||
| Shares issued during the year, net of costs | 1,332 | - | - | - | - | 1,332 |
| Share based payments | - | 1,360 | (112) | - | - | 1,248 |
| Balance at 30 June 2017(i) | 231,079 | (36,341) | 5,250 | (19,517) | - | 180,471 |
| Balance at 1 July 2017 | 231,079 | (36,341) | 5,250 | (19,517) | - | 180,471 |
| Profit for the year | - | 33,974 | - | - | - | 33,974 |
| Other comprehensive income | - | - | - | (1,197) | - | (1,197) |
| Total comprehensive income for the year | - | 33,974 | - | (1,197) | - | 32,777 |
| Transactions with owners, recognised directly in equity | ||||||
| Shares issued during the year, net of costs | 73,669 | - | - | - | - | 73,669 |
| Own shares acquired | - | - | - | - | (1,476) | (1,476) |
| Share based payments | 529 | 559 | 556 | - | - | 1,644 |
| Balance at 30 June 2018 | 305,277 | (1,808) | 5,806 | (20,714) | (1,476) | 287,085 |
(i) Restated from AUD in previous financial statements in accordance with change in presentation currency. Refer to Note 1.
The notes contained in the full version of the Annual Financial Report form part of these consolidated financial statements, a copy of which is available from the company’s website: www.baseresources.com.au.
7. Consolidated Statement of Cash Flows for the Year Ended 30 June 2018
| 2018 | 2017(i) | ||
|---|---|---|---|
| Note | US$000s | US$000s | |
Cash flows from operating activities |
|||
| Receipts from customers | 205,807 | 151,632 | |
| Payments in the course of operations | (88,623) | (75,008) | |
| Other | (42) | (32) | |
| Net cash from operating activities | 5 | 117,142 | 76,592 |
| Cash flows from investing activities | |||
| Purchase of property, plant and equipment | (32,862) | (6,513) | |
| Payments for exploration and evaluation | (78,077) | (935) | |
| Other | 621 | 284 | |
| Net cash used in investing activities | (110,318) | (7,164) | |
| Cash flows from financing activities | |||
| Proceeds from issue of shares | 76,133 | - | |
| Payment of share issue costs | (2,464) | - | |
| Purchase of treasury shares | 16 | (1,476) | - |
| Proceeds from borrowings | 12,500 | - | |
| Repayment of borrowings | (72,553) | (47,539) | |
| Transfers to restricted cash | 6 | (3,425) | (4,089) |
| Payments for debt service costs and re-scheduling fees | (13,611) | (16,512) | |
| Net cash used in financing activities | (4,896) | (68,140) | |
| Net increase in cash held | 1,928 | 1,288 | |
| Cash at beginning of year | 28,278 | 26,923 | |
| Effect of exchange fluctuations on cash held | (520) | 67 | |
| Cash at end of year | 29,686 | 28,278 |
(i) Restated from AUD in previous financial statements in accordance with change in presentation currency. Refer to Note 1.
The notes contained in the full version of the Annual Financial Report form part of these consolidated financial statements, a copy of which is available from the company’s website: www.baseresources.com.au.
ENDS.
Directors
Keith Spence (Non-Executive Chairman)
Tim Carstens (Managing Director)
Colin Bwye (Executive Director)
Sam Willis (Non-Executive Director)
Michael Stirzaker (Non-Executive Director)
Malcolm Macpherson (Non-Executive Director)
Diane Radley (Non-Executive Director)
Company Secretary
Chadwick Poletti
NOMINATED ADVISOR & BROKERS
RFC Ambrian Limited
As Nominated Adviser:
Andrew Thomson / Stephen Allen
Phone: +61 (0)8 9480 2500
As Joint Broker:
Charlie Cryer
Phone: +44 20 3440 6800
Numis Securities Limited
As Joint Broker:
John Prior / James Black / Paul Gillam
Phone: +44 20 7260 1000
SHARE REGISTRY: ASX
Computershare Investor Services Pty Limited
Level 11, 172 St Georges Terrace
PERTH WA 6000
Enquiries: 1300 850 505 / +61 (3) 9415 4000
www.computershare.com.au
SHARE REGISTRY: AIM
Computershare Investor Services PLC
The Pavilions
Bridgwater Road
BRISTOL BS99 6ZZ
Enquiries: +44 (0) 870 702 0003
www.computershare.co.uk
AUSTRALIAN MEDIA RELATIONS
Cannings Purple
Andrew Rowell
arowell@canningspurple.com.au
Phone: +61 (0)8 6314 6300
UK MEDIA RELATIONS
Tavistock Communications
Jos Simson / Barnaby Hayward
Phone: +44 (0) 207 920 3150
KENYA MEDIA RELATIONS
Africapractice (East Africa)
Evelyn Njoroge / Joan Kimani
Phone: +254 (0)20 239 6899
Email:jkimani@africapractice.com
PRINCIPAL & REGISTERED OFFICE
Level 1, 50 Kings Park Road
West Perth, Western Australia, 6005
Email: info@baseresources.com.au
Phone: +61 (0)8 9413 7400
Fax: +61 (0)8 9322 8912
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