Bauxite Resources review their half-yearly operations for period ended Dec 31

Bauxite Resources Limited (BRL) in their Interim Financial Report for the half-year ended 31 December 2015 have updated stakeholders on the status of their ongoing bauxite mining operations, business direction envisioned for the next half of the financal year, and strategy being devised by the Board.

During the period under review, the company continued to focus primarily on resolving the issues surrounding the Felicitas Deposit with its Joint Venture Partner Yankuang Resources Pty Ltd (Yankuang). On 21 October 2015, the company announced it had reached agreement to sell its interests in the Joint Venture to Yankuang. Formal documents were signed on 30 November 2015, with shareholder approval being received on 18 January 2016 and settlement occurring on the 21 January 2016.

On termination of the JV with Yankuang, the latter paid BRL the sum of $7.15 million for its interests in the assets of the joint ventures, including its shareholding in Bauxite Alumina Joint Ventures Pty Ltd, and for its interests in the Fortuna bauxite rights. BRL has bought back Yankuang's 19,700,000 shares in BRL for the sum of $1.15 million.

Yankuang and BAJV will pay BRL a royalty of 0.9 per cent of the FOB price for the first 100 million tonnes of bauxite mined from the Fortuna and Felicitas tenement. BRL transferred to Yankuang all its interest in the tenements that relate to the joint ventures.

This has had a substantial effect on the company’s cash position and has simplified its operations, with the main exploration focus now on the HD Mining JV.

BRL is in a strong financial position with significant cash reserves and no debt. As at 31 December 2015 the company held $21.1 million in cash.