Fareast Capital Newsletter - warick grigor

Mineral Sands Base Resources (ASX:BSE) Mkt Cap $140m, Cash US$40m If you believed the share price earlier in 2016, you would have thought that BSE was priced to fail. However, that price was due to institutional shareholders wanting to exit. The operations have actually performed credibly since commissioning, though falling commodity prices have impacted cash flows. Now that the selling has finished the shares have started to rise. Ilmenite prices are also improving. Base seems to be here to stay and looks set to improve further. It might not be long before they become acquisitive, potentially offering new growth curves. The shares continue to offer value at these levels.