Base Resources is a mining company that is listed on the Australian Securities Exchange (ASX). The company is focused on the exploration, development, and operation of mineral sands projects, which are deposits of minerals that are mined for their economic value.
One of Base Resources’ key assets is the Kwale Mineral Sands Operations in Kenya, which is one of the largest mineral sands projects in the world. The project produces high-quality titanium dioxide feedstocks and zircon, which are used in a variety of applications including paint, plastics, ceramics, and construction materials.
In addition to its operations in Kenya, Base Resources also has exploration projects in Madagascar and Senegal. The company is committed to responsible and sustainable mining practices, and works closely with local communities to ensure that its operations have a positive impact.
As an ASX-listed company, Base Resources is subject to strict reporting and governance requirements. This helps to provide investors with confidence in the company’s financial performance and management.
Overall, Base Resources is a strong player in the mining industry, with a focus on high-quality mineral sands projects in key locations around the world. The company’s commitment to sustainability and strong governance practices shed a positive light on the company.
BSE Share Price
At the time of writing the article, BSE.asx was trading around the $0.23 mark.
What are Mineral Sands Used For?
Mineral sands are used in a variety of industries and applications, including:
Construction: Mineral sands, particularly titanium dioxide, are used to manufacture paint, which is used to coat the exteriors and interiors of buildings. Zircon is also used in the production of ceramics, which are used in tiles and other building materials.
Plastics: Mineral sands are used as a filler in plastic products, helping to increase their strength and durability.
Chemical industry: Titanium dioxide is used as a whitening agent in a range of products, including cosmetics, paper, and food. Zircon is used in the production of zirconium chemicals, which are used in a variety of industrial applications.
Aerospace: Titanium, which is extracted from mineral sands, is used in the aerospace industry due to its strength, low weight, and resistance to corrosion.
Other industries: Mineral sands are also used in the production of glass, electronics, and other products.
Will Mineral Sands Be Used Long Term?
It is likely that mineral sands will continue to be used for the foreseeable future due to their unique physical and chemical properties, as well as their widespread use in a variety of industries.
One of the key minerals extracted from mineral sands, titanium dioxide, is used in a wide range of products including paint, plastics, and cosmetics, and is expected to see increased demand in the coming years due to population growth and urbanization. Zircon, another mineral commonly extracted from mineral sands, is also expected to see increased demand due to its use in the production of ceramics, which are used in the construction industry.
However, the demand for mineral sands may be affected by a number of factors, including technological advances that could lead to the development of alternative materials, as well as changes in consumer preferences and government regulations. It is also important for the mining industry to ensure that mineral sands are extracted and processed in a responsible and sustainable manner.
Is Base Resources a well run company with a sustainable future?
According to reports, Base Resources is a well run company with a conservative approach to management.
What are some attractive traits about Base Resources?
The company fits a few factors including:
- Time in the market – The company has been listed on the ASX since late 2008
- Low cost per share – The low cost per share (around $0.23 per share at the time of this article) can be attractive to people looking for micro cap and small cap investments.
- Dividends – The dividends paid on BSE.asx have been around $0.03 per share, twice per year (over 20% dividend annually)
- Dividend Consistency – BSE has been paying a semi annual dividend since late 2020 with reasonable consistency in dividend per share
- Boring Company – Given the company is quite boring in nature (mineral sands), it doesn’t get all the hype like tech stocks, crypto companies and other more exciting concepts. This stock is reserved for people looking to invest in the raw company and its earnings rather than getting a kick out of owning the name.
Recent News on Base Resources (BSE asx)
One of the directors recently purchased a lump sum of stock worth around 100k.
Most of the investors are institutional by the look of the reports.
The stock has slid from about $0.34 per share in mid 2022. This year has seen the highest profits yet for the company.
Always Do Your Research
Read the financial reports from company’s you look to invest in. See what they might be doing, planning or mismanaging.
Look for holes in their management, business and industry and assess whether it is worth taking the risk of investing still.
Assess the underlying industry and asset itself, where does the future stand for the market as a whole.
Do not fear investing as compared to spending the money on something that doesn’t earn an income. Anything bought (goods, services etc.) is instant loss of 100% unless you intend to sell it later. Investments are key to long term wealth and making good decisions earlier in life will be highly beneficial long term.