ASX:BSE

Stock Analysis Report

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Executive Summary

Base Resources Limited produces and sells mineral sands in Africa. More Details


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 is not significantly more volatile than the rest of Australian stocks over the past 3 months, typically moving +/- 7% a week.

Volatility Over Time: BSE's weekly volatility (7%) has been stable over the past year.


Market Performance


7 Day Return

-3.4%

BSE

-2.4%

AU Metals and Mining

0.1%

AU Market


1 Year Return

16.7%

BSE

26.9%

AU Metals and Mining

0.2%

AU Market

Return vs Industry: BSE underperformed the Australian Metals and Mining industry which returned 26.9% over the past year.

Return vs Market: BSE exceeded the Australian Market which returned 0.2% over the past year.


Shareholder returns

BSEIndustryMarket
7 Day-3.4%-2.4%0.1%
30 Day5.7%5.0%2.7%
90 Day19.1%26.8%15.4%
1 Year32.4%16.7%33.9%26.9%3.6%0.2%
3 Year11.5%-1.8%72.8%48.7%27.2%11.6%
5 Year1,200.2%937.0%285.1%215.5%72.2%38.1%

Long-Term 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$0.28) is trading below our estimate of fair value (A$0.56)

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 (6.4x) compared to the AU Metals and Mining industry average (14.3x).

PE vs Market: BSE is good value based on its PE Ratio (6.4x) compared to the Australian market (23.5x).


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 (0.7x) compared to the AU Metals and Mining industry average (3x).


Next Steps

Future Growth

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

-42.6%

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 (-42.6% per year).

Earnings vs Market: BSE's earnings are forecast to decline over the next 3 years (-42.6% 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 (-2.3% per year).

High Growth Revenue: BSE's revenue is forecast to decline over the next 3 years (-2.3% 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 (5%).


Next Steps

Past Performance

How has Base Resources performed over the past 5 years?

53.5%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: BSE has high quality earnings.

Growing Profit Margin: BSE's current net profit margins (19%) are higher than last year (18.7%).


Past Earnings Growth Analysis

Earnings Trend: BSE has become profitable over the past 5 years, growing earnings by 53.5% per year.

Accelerating Growth: BSE's earnings growth over the past year (1.2%) is below its 5-year average (53.5% per year).

Earnings vs Industry: BSE earnings growth over the past year (1.2%) underperformed the Metals and Mining industry 38%.


Return on Equity

High ROE: BSE's Return on Equity (10.9%) 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 ($236.0M) exceed its short term liabilities ($88.3M).

Long Term Liabilities: BSE's short term assets ($236.0M) exceed its long term liabilities ($83.4M).


Debt to Equity History and Analysis

Debt Level: BSE's debt to equity ratio (20.4%) is considered satisfactory.

Reducing Debt: BSE's debt to equity ratio has reduced from 126.5% to 20.4% over the past 5 years.

Debt Coverage: BSE's debt is well covered by operating cash flow (142.9%).

Interest Coverage: BSE's interest payments on its debt are well covered by EBIT (22.9x coverage).


Balance Sheet


Next Steps

Dividend

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

11.41%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: BSE's dividend (11.41%) is higher than the bottom 25% of dividend payers in the Australian market (2.03%).

High Dividend: BSE's dividend (11.41%) is in the top 25% of dividend payers in the Australian market (5.1%)


Stability and Growth of Payments

Stable Dividend: Too early to tell whether BSE's dividend payments have been stable as they only just started paying a dividend.

Growing Dividend: Too early to tell if BSE's dividend payments are increasing as they only just started paying a dividend.


Current Payout to Shareholders

Dividend Coverage: With its reasonable payout ratio (71.4%), BSE's dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: Insufficient data to determine if a dividend will be paid in 3 years and that it will be covered by earnings.


Next Steps

Management

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

8.7yrs

Average management tenure


CEO

Tim Carstens

12.67yrs

Tenure

US$869,028

Compensation

Mr. Timothy James Carstens, also known as Tom, BCom, ACA, serves as Managing Director of Base Resources Limited since the Company’s inception in May 2008. Mr. Carstens has a diverse and substantial skill, ...


CEO Compensation Analysis

Compensation vs Market: Tim's total compensation ($USD869.03K) is above average for companies of similar size in the Australian market ($USD500.07K).

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


Leadership Team

NamePositionTenureCompensationOwnership
Timothy Carstens
MD & Executive Director12.67yrsUS$869.03k0.64%
$ 2.1m
Kevin Balloch
Chief Financial Officer8.67yrsUS$460.60k0.17%
$ 560.0k
Colin Bwye
Executive Director of Operations & Development and Executive Director10.5yrsUS$873.75k0.61%
$ 2.0m
Chadwick Poletti
General Counsel & Company Secretary3.33yrsUS$424.00k0.069%
$ 226.0k
Stephen Hay
General Manager of Marketing8yrsUS$492.08k0.097%
$ 319.0k
Andre Greyling
General Manager of Project Development5.42yrsUS$454.53k0.28%
$ 913.8k
James Fuller
Manager of Communications & Investor Relationsno datano datano data
Colin Forbes
General Manager of Environment & Community Affairs8.75yrsUS$595.65kno data
Jean Ramahefarivo
General Manager of External Affairs - Madagascar3yrsno datano data
Denham Vickers
General Manager of Operations9.25yrsUS$743.94kno data

8.7yrs

Average Tenure

Experienced Management: BSE's management team is seasoned and experienced (8.7 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Timothy Carstens
MD & Executive Director12.67yrsUS$869.03k0.64%
$ 2.1m
Colin Bwye
Executive Director of Operations & Development and Executive Director10.5yrsUS$873.75k0.61%
$ 2.0m
Michael Stirzaker
Non-Executive Director6.17yrsUS$58.87kno data
Keith Spence
Independent Non-Executive Chairman5.67yrsUS$99.66k0.057%
$ 186.7k
Malcolm Macpherson
Independent Non-Executive Director7.5yrsUS$68.87kno data
Diane McCann Radley
Independent Non-Executive Director2.92yrsUS$62.66k0.042%
$ 140.0k
Janine Herzig
Independent Non-Executive Director0.25yrno datano data

6.2yrs

Average Tenure

57.5yo

Average Age

Experienced Board: BSE's board of directors are considered experienced (6.2 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$329.843m
  • Shares outstanding: 1.18b
  • 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. It produces mineral sands, such as rutile, ilmenite, and zircon. The company primarily owns 100% interests in the Kwale Mineral Sands proj...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/01/28 07:05
End of Day Share Price2021/01/28 00:00
Earnings2020/06/30
Annual Earnings2020/06/30


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.