The Investment Doctor • Wed, Oct. 15
Be smarter and faster with PRO Alerts on BSRUF
PRO • Thu, Mar. 6
There are 2 articles on this stock available only to PRO subscribers.
Update: Base Resources Upgrades And Increases Its Kwale Resource EstimateThe Investment Doctor • Wed, Oct. 15
- Base Resources is able to increase its resource estimate despite mining depletion.
- This is positively surprising, as I hadn’t anticipated this in my original article.
- The investment thesis remains standing, if the ramp-up continues to go as expected, Kwale will be a high-margin operation.
- Base Resources has rescheduled its debt repayments and principal repayments are postponed until June next year.
- This was unexpected, but it’s a good move as the project was delayed for a few months.
- The investment thesis doesn’t change, but Base now has a greater financial flexibility.
- Base Resources has announced its financial results for FY 2014.
- These showed a net loss, as the project only reached the production stage during the year.
- The investment thesis remains unchanged for now, as the demand for ilmenite and rutile seems to be picking up again.
Base Resources - What Is Kwale County Thinking?
- Base Resources has successfully brought the Kwale project into production, and should be producing ilmenite at a cash cost close to or under zero per tonne.
- The local Kwale County has smelled money and instated a tax of $57 per exported tonne of ilmenite and rutile.
- I expect the federal government to overrule this tax, as Kenya is trying to attract more foreign investment in its resource sector.
- Based on conservative assumptions, the fair value of Base Resources is $0.41/share, compared to the current share price of $0.30/share.
Base Resources Will Not Remain This Cheap For Much Longer
There are no Related articles on BSRUF.
There are no Transcripts on BSRUF.
We currently have no Breaking News on this stock.
BSRUF vs. ETF Alternatives
Currently, there's no company description for BSRUF.
Other News & PR