Base Resources : 20 Oct 2016 Annual Report 2016 (4.1 MiB) View Document

for growth

BASE RESOURCES LIMITED ANNUAL REPORT 2016

Base Resources Limited Annual Report 2016

Contents

Highlights

Chairman's letter

Operation summary

Sustainability in practice

Business development

Corporate and finance

Marketing and sales

Mineral sands market outlook

Resources and reserves

22

Corporate directory

23

the Kwale Project, provisions and

contingent liabilities and tax and regulatory developments.

Forward-looking statements can be

identified by the use of terminology such as "intend", "aim", "project", "anticipate", "estimate", "plan", "believe", "expect", "may", "should", "will", "continue" or similar words.

Forward-looking statements

involve known and unknown risks, uncertainties, assumptions and other factors that are beyond Base Resources' control.

Consolidated financial statements

Forward looking statements

Certain statements made in or in

connection with this Annual Report contain or comprise forward-looking statements, including but not limited to statements regarding capital

cost, capacity, future production and grades, sales projections and financial performance of the Kwale Operations, estimated mineral resources and ore reserves,

trends in commodity prices and currency exchange rates, demand for commodities (in particular mineral sands), plans, strategies and

objectives of management, operating costs, anticipated production life of

No assurance or guarantee can be Except as required by applicable

given that such forward-looking regulations or by law, Base statements will prove to be correct. Resources does not undertake to Results or outcomes could differ publicly update, review or release materially from those expressed any revisions to these forward- or implied by the forward-looking looking statements to reflect new statements as a result of, among information or future events or other factors, changes in economic circumstances.

and market conditions, success of business and operating initiatives and strategies, changes in the regulatory environment and other government actions, fluctuations in product prices and exchange rates and business and operational risk management.

Positioned for growth

Base Resources' (ASX & AIM: BSE) successful development of the Kwale Mineral Sands Project in southern Kenya and growing track record of operational, safety and community development achievements, provides

a solid foundation to grow a contemporary mid-tier resources company. 01

With production volumes exceeding design targets and an enviable position in the market secured, Base Resources is well positioned to capitalise on a market showing positive signs and renewed investor interest in the sector.

The recent granting of exploration tenure and the imminent commencement of drilling on identified targets presents exciting potential to extend the

mine life of the Kwale Operations. Demonstrated development capability provides the basis to drive further shareholder value

from acquisition opportunities.

Base Resources Limited ABN 88 125 546 910

Base Resources Limited Annual Report 2016

02 Highlights

US$205 average sale price achieved per tonne delivering a revenue to cost of sales ratio of 2:1

US$105 per tonne sold Average cost of sales (operating costs and royalties)

Emerging tightness in TiO2 feedstock markets is allowing Base Resources to lock in substantial price increases for ilmenite for sales in the September 2016 quarter

for all products