ASX:BSE

Stock Analysis Report

NOT FOR DISTRIBUTION
Header cover image

Executive Summary

Base Resources Limited produces and sells mineral sands in Africa.


Snowflake Analysis

Flawless balance sheet and undervalued.


Similar Companies

Share Price & News

How has Base Resources's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: BSE's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

22.2%

BSE

2.2%

AU Metals and Mining

3.6%

AU Market


1 Year Return

-6.4%

BSE

-1.8%

AU Metals and Mining

-10.3%

AU Market

Return vs Industry: BSE underperformed the Australian Metals and Mining industry which returned -1.8% over the past year.

Return vs Market: BSE exceeded the Australian Market which returned -10.3% over the past year.


Shareholder returns

BSEIndustryMarket
7 Day22.2%2.2%3.6%
30 Day22.2%0.5%0.2%
90 Day46.7%19.7%16.4%
1 Year-6.4%-6.4%3.4%-1.8%-6.6%-10.3%
3 Year-10.0%-13.7%66.5%43.3%18.2%2.5%
5 Year94.5%76.0%114.5%71.6%35.7%6.4%

Price Volatility Vs. Market

How volatile is Base Resources's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Base Resources undervalued compared to its fair value and its price relative to the market?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: BSE (A$0.22) is trading below our estimate of fair value (A$1.04)

Significantly Below Fair Value: BSE is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: BSE is good value based on its PE Ratio (8.3x) compared to the Metals and Mining industry average (10.6x).

PE vs Market: BSE is good value based on its PE Ratio (8.3x) compared to the Australian market (16x).


Price to Earnings Growth Ratio

PEG Ratio: BSE's earnings are forecast to decline next year, so we can't calculate its PEG ratio.


Price to Book Ratio

PB vs Industry: BSE is good value based on its PB Ratio (0.8x) compared to the AU Metals and Mining industry average (1.8x).


Next Steps

Future Growth

How is Base Resources forecast to perform in the next 1 to 3 years based on estimates from 4 analysts?

-15.0%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: BSE's earnings are forecast to decline over the next 3 years (-15% per year).

Earnings vs Market: BSE's earnings are forecast to decline over the next 3 years (-15% per year).

High Growth Earnings: BSE's earnings are forecast to decline over the next 3 years.

Revenue vs Market: BSE's revenue is expected to decline over the next 3 years (-5.5% per year).

High Growth Revenue: BSE's revenue is forecast to decline over the next 3 years (-5.5% per year).


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: BSE's Return on Equity is forecast to be low in 3 years time (2.5%).


Next Steps

Past Performance

How has Base Resources performed over the past 5 years?

61.2%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: BSE has high quality earnings.

Growing Profit Margin: BSE's current net profit margins (16.2%) are lower than last year (16.4%).


Past Earnings Growth Analysis

Earnings Trend: BSE has become profitable over the past 5 years, growing earnings by 61.2% per year.

Accelerating Growth: BSE's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: BSE had negative earnings growth (-10.7%) over the past year, making it difficult to compare to the Metals and Mining industry average (-8.4%).


Return on Equity

High ROE: BSE's Return on Equity (9.3%) is considered low.


Next Steps

Financial Health

How is Base Resources's financial position?


Financial Position Analysis

Short Term Liabilities: BSE's short term assets ($124.2M) exceed its short term liabilities ($53.3M).

Long Term Liabilities: BSE's short term assets ($124.2M) exceed its long term liabilities ($53.6M).


Debt to Equity History and Analysis

Debt Level: BSE's debt to equity ratio (4.3%) is considered satisfactory.

Reducing Debt: BSE's debt to equity ratio has reduced from 118.5% to 4.3% over the past 5 years.

Debt Coverage: BSE's debt is well covered by operating cash flow (554.6%).

Interest Coverage: BSE's interest payments on its debt are well covered by EBIT (21.7x coverage).


Balance Sheet


Next Steps

Dividend

What is Base Resources's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

Notable Dividend: Unable to evaluate BSE's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate BSE's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if BSE's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if BSE's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of BSE's dividend in 3 years as they are not forecast to pay a notable one for the Australian market.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

8.2yrs

Average management tenure


CEO

Tim Carstens

12.17yrs

Tenure

US$899,250

Compensation

Mr. Tim Carstens, Bcom, ACA, serves as Managing Director of Base Resources Limited. Mr. Carstens has a diverse and substantial skill, having previously held senior executive roles with Perilya Limited, Nor ...


CEO Compensation Analysis

Compensation vs Market: Tim's total compensation ($USD899.25K) is above average for companies of similar size in the Australian market ($USD516.55K).

Compensation vs Earnings: Tim's compensation has been consistent with company performance over the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Timothy Carstens
MD & Executive Director12.17yrsUS$899.25k0.50% $1.3m
Kevin Balloch
Chief Financial Officer8.17yrsUS$479.01k0.17% $440.0k
Colin Bwye
Executive Director of Operations & Development and Executive Director10yrsUS$897.30k0.52% $1.3m
Chadwick Poletti
General Counsel & Company Secretary2.83yrsUS$413.68k0.069% $177.5k
Stephen Hay
General Manager of Marketing7.5yrsUS$507.53k0.097% $250.6k
Andre Greyling
General Manager of Project Development4.92yrsUS$446.57k0.28% $717.9k
James Fuller
Manager of Communications & Investor Relationsno datano datano data
Colin Forbes
General Manager of Environment & Community Affairs8.25yrsUS$776.20kno data
Jean Ramahefarivo
General Manager of External Affairs - Madagascar2.5yrsno datano data
Denham Vickers
General Manager of Operations8.75yrsUS$969.43kno data

8.2yrs

Average Tenure

Experienced Management: BSE's management team is seasoned and experienced (8.2 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Timothy Carstens
MD & Executive Director12.17yrsUS$899.25k0.50% $1.3m
Colin Bwye
Executive Director of Operations & Development and Executive Director10yrsUS$897.30k0.52% $1.3m
Michael Stirzaker
Non-Executive Director5.67yrsUS$61.57kno data
Keith Spence
Independent Non-Executive Chairman5.17yrsUS$106.19k0.057% $146.7k
Malcolm Macpherson
Independent Non-Executive Director7yrsUS$72.23kno data
Diane McCann Radley
Independent Non-Executive Director2.42yrsUS$65.61k0.043% $110.0k
Samuel John Willis
Independent Non-Executive Director13.17yrsUS$74.37k0.030% $77.0k

7.0yrs

Average Tenure

58yo

Average Age

Experienced Board: BSE's board of directors are considered experienced (7 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Base Resources Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Base Resources Limited
  • Ticker: BSE
  • Exchange: ASX
  • Founded: 2007
  • Industry: Diversified Metals and Mining
  • Sector: Materials
  • Market Cap: AU$257.754m
  • Shares outstanding: 1.17b
  • Website: https://www.baseresources.com.au

Number of Employees


Location

  • Base Resources Limited
  • 50 Kings Park Road
  • Level 1
  • West Perth
  • Western Australia
  • 6005
  • Australia

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
BSEASX (Australian Securities Exchange)YesOrdinary SharesAUAUDOct 2008
BSEAIM (London Stock Exchange AIM Market)YesOrdinary SharesGBGBPOct 2008
BSECHIA (Chi-X Australia)YesOrdinary SharesAUAUDOct 2008
B4ZDB (Deutsche Boerse AG)YesOrdinary SharesDEEUROct 2008

Biography

Base Resources Limited produces and sells mineral sands in Africa. The company produces mineral sands, such as rutile, ilmenite, and zircon. It primarily owns 100% interests in the Kwale Mineral Sands project located in Kenya. The company was formerly known as Base Iron Limited and changed its name to Base Resources Limited in 2010. Base Resources Limited was incorporated in 2007 and is based in West Perth, Australia. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/07/07 10:33
End of Day Share Price2020/07/07 00:00
Earnings2019/12/31
Annual Earnings2019/06/30


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.