RFC Ambrian update 31.10.16

Extension of Taurus Facility
Base Resources has announced that it has extended the maturity date of US$17.3m of corporate debt provided by Taurus by nine months (from 31 December 2016 to 30 September 2017). The company reported that it anticipates being able to repay the Taurus facility largely from cash sweeps prior to the extended maturity date.
Where permitted by the Kwale Project Debt Facility, cash sweeps provide a six-monthly mechanism whereby cash can be transferred from the Kenyan operating facilities to the corporate entity. Under the Taurus facility, half of any cash swept must be used to repay debt and the remainder can be used to cover corporate expenses.
COMMENT: At the end of September 2016 net debt stood at US$147m, comprising US$175m of project debt and US$17m payable to Taurus, offset by US$45m of cash, of which US$22m was restricted under the debt service reserve account. Net debt would have been reduced by a further US$17m to US$130m if the proceeds of one of its shipments of rutile had been received in the September — rather than the December — quarter.
We continue to believe that Base Resources offers significant exposure to the ongoing improvement in pigment feedstock markets and maintain our Buy rating and our target price of A$0.30, as detailed in our report Base Resources — September Quarterly Activities Report, 13 October 2016.