Base Resources has drawn down the full US$75 million available under its existing revolving credit facility (RCF) to secure enhanced liquidity and ensure flexibility as part of a prudent management strategy in navigating the evolving uncertainty associated with the COVID-19 pandemic.
At 29 February 2020, the Company had cash reserves of US$37.7 million and no debt. Under the terms of the RCF, there are no mandatory repayments until 30 June 2021, when the available RCF reduces to US$50 million.
The final maturity date for the RCF is 31 December 2021. Base Resources’ significant combined cash reserves make it well placed to emerge from the current crisis in sound financial shape and to capitalise on appropriate emergent opportunities.
Supported by sound customer demand, production at the Company’s Kwale Operation in Kenya has continued uninterrupted with broad health and safety procedures implemented to minimise the risk of COVID-19 to its personnel and surrounding communities.
Base Resources is working with Government of Kenya authorities to adjust work arrangements as necessary to keep operations within government restrictions.
However, in a rapidly evolving local and global landscape, operations continue to be maintained balancing the considerations of employee and community health, operational safety, community benefits, government policy and regulation, input availability, customer demand and financial prudence.
Consequently, a halt to, or curtailment of operations at Kwale in the future cannot be ruled out.