Bauxite Resources' current cash burn rate reduces in quarter ended March 2016

Bauxite Resources Limited has published its production report for the quarter ended on March 2016. During the review period, Bauxite Resources completed sale of the company’s interest in the BAJV. Key changes made as a consequence of this were as follows:

• BRL received net cash funds of $6m from the sale of its interest in the BAJV for $7.15m and the buy-back by BRL of Yankuang’s shares for $1.15m;
• BRL will receive a royalty from the sale of all bauxite mined from the BAJV tenements and the Fortuna tenement (equivalent to 50c/tonne up to 100 million tonnes);
• BRL completed the buy-back and cancelled 19.7m shares held by Yankuang; and
• Yankuang’s representative Mr Cunliang Lai resigned from the BRL Board.

Exploration activities were minimal for the quarter in its remaining joint venture with HD Mining (HDJV) under which all exploration and study costs are met by HD Mining, as issues relating to future operations are discussed in detail. Bauxite Resources' current resource base is 87.8Mt; HD Mining have an ‘earn in’ of up to 60 per cent on decision to mine.

Future Operations

Bauxite Resources is now focussed on identifying new opportunities both within and outside the mining industry and is undertaking reviews of new projects.

The company’s current cash burn rate has been reduced significantly, and it is expected to maintain these levels in the near term with surplus assets continuing to be reviewed and rationalised in an orderly manner as markets allow for reasonable prices to be achieved.

The Board will continue to manage the company in the best manner in which to maximise returns to shareholders and these may include various capital management initiatives.