Base Resources - Half Year Results to 31 December 2016
Base Resources (ASX:BSE) has reported a net profit of $3.8 million for the period ended 31 December 2016, up 134% from the $11.3m loss in the comparative period in 2015. The $15.1m turnaround was based on an $8.9m increase in revenue and a reduction in operating costs at Kwale. During the 6 months, Base reduced net debt by 12% or A$24.5 million. Operating cashflow for the 6 months was $45.1 million, with a higher result expected in H2.
Base Resources Limited (ASX & AIM: BSE) (“Base Resources”) is pleased to release its half year results for the reporting period to 31 December 2016, with the following highlights(1) .
- Sales volumes of 236,488 tonnes of ilmenite, 42,796 tonnes of rutile, 17,957 tonnes of zircon and 3,397 tonnes of zircon low grade, up 5% on comparative period total sales volume.
- Sales revenue of $90.6 million, achieving an average price of product sold (rutile, ilmenite, zircon and zircon low grade) of $302 per tonne, or US$227 per tonne, ($286 per tonne or US$207 per tonne in the comparative period). Higher average sale prices reflecting the strong improvement in ilmenite prices during the reporting period.
- Total cost of goods sold decreased to $39.0 million ($39.6 million in the comparative period), despite the 5% increase in sales volumes over the comparative period, to record an average cost of $130 per tonne (US$98 per tonne) of product sold, down from $138 per tonne (US$100 per tonne) of product sold in the comparative period, demonstrating the Company’s continued focus on cost management.
- Achieved revenue to cost of sales ratio of 2.3:1 (2.1:1 in the comparative period), comfortably positioning Base Resources in the first quartile of mineral sands producers.
- Cash flow from operations of $45.1 million for the reporting period ($26.8 million in the comparative period).
- Free cash flow of $30.9 million ($9.8 million in the comparative period) contributed to the $24.5 million reduction in net debt to $179.7 million (US$129.5 million) compared with $204.2 million (US$151.5 million) at 30 June 2016.
(1) Refer to Base Resources’ Half-Year Financial Report for the six months ended 31 December 2016 for a more detailed review.
2 All figures reported in Australian dollars unless otherwise stated.
3 Free cash flow is determined as cash flow before net proceeds from issue of shares, debt rescheduling costs, proceeds/repayments of borrowings and payments to/transfers from the debt service reserve account.