Base Resources launches entitlement offer after interim results

29th Feb 2016 11:52

(ShareCast News) - Base Resources was looking at improved trading in its interim results on Monday, while also being forced to explore options to ensure its continued financial viability.The AIM-traded company saw revenue increase in the six month period to 31 December, to AUD 81.7m (£42.17m) from AUD 61.8m. Its EBITDA rose to AUD 30.47m, from AUD 20.93m, with EBIT rising significantly to AUD 6.84m from AUD 1.49m.Base Resources reported a net loss after tax of AUD 11.27m, widening from the AUD 10.24m loss in December 2014. This was due to net financing expenses of AUD 18.06m being much larger than the prior period's AUD 11.73m."In the period under review, mining volumes were marginally lower than the six months to 30 June 2015 , due to maintenance downtime reducing the availability of the wet concentrator plant," the company's board explained in a statement."After mining in high grade blocks for much of calendar 2015, there was a planned progression through to adjacent lower grade perimeter blocks on the eastern edge of the Central Dune in the last months of the period. This resulted in an average ore grade for the period of 7.12% heavy mineral, lower than the prior period," it added.In a bid to ensure funding continuity, Base Resources announced the launch of a partially-underwritten accelerated pro rata renounceable entitlement offer to existing shareholders at the same time as the results.It was offering one new, fully paid ordinary share in Base for every 3.35 shares held at the record date, at AUD 0.06 per new share, to raise gross proceeds of AUD 10m.