Base Carbon Reports Year End 2024 Operating and Financial Results
TORONTO, April 01, 2025 (GLOBE NEWSWIRE) -- Base Carbon Inc. (Cboe CA: BCBN) (OTCQX:BCBNF) with operations through its wholly-owned subsidiary, Base Carbon Capital Partners Corp. ("BCCPC", together, with affiliates, "Base Carbon", or the "Company"), is pleased to announce its year-end 2024 consolidated financial results and operational highlights. All financial references are denominated in U.S. dollars, unless otherwise noted.
Annual Corporate and Financial Highlights as of December 31, 2024:
Strong Free Cash Flow Generation: Delivered Net Cash Provided by (used in) Operating Activities of $16.4 million and Adjusted Comprehensive Income1 of $18.2 million, while achieving continued attractive risk-adjusted returns on capital deployed.
Increased Cash Position: Year-over-year cash balance increased to $14.8 million (up from $1.4 million as at year-end 2023), equivalent to $0.14 (C$0.202) per basic share, representing approximately 50% of the current share price3 of C$0.40 in cash alone.
Rwanda Cookstoves Project, Milestone Achieved: First carbon credit production achieved during 2024 with issuances contributing over 1.7 million Article 6 Authorized carbon credits to inventory, valued at approximately $25 million, or over $0.23 (C$0.331) per basic share.
Vietnam Household Devices Project, Ongoing Monetization of Carbon Credits: Monetized approximately 5.7 million carbon credits for proceeds of $28.0 million in 2024. Subsequent to year end, approximately 270,000 additional carbon credits were delivered and sold to project off-taker Citigroup and a further issuance and monetization is expected in Q2 2025.
India Afforestation, Reforestation, and Revegetation ("ARR") Project, Planting Complete: Successfully completed full planting of approximately 6.5 million trees within 14 months of project execution in August 2023 and remains on track for first carbon credit issuance during 2025.
Disciplined Capital Allocation: The Company repurchased approximately 8.7 million common shares through the Normal Course Issuer Bid ("NCIB") during 2024. With a focus on the Company's equity cost of capital, driving per share value accretion and increasing the optionality of the enterprise, the Company is actively exploring complementary market mechanisms to drive further risk-adjusted shareholder accretion.
Strategic Growth Advancement: Continued advancement of the Company's contractual project expansion rights in both Vietnam and India. Continue to develop deep internal, thesis-driven, expertise that will underpin growth capital opportunities in North American carbon project development and environmental industrials.
"In 2024, Base Carbon continued to deliver on its business plan by generating strong free cash flow, enhancing the value of its carbon credit inventory and further expanding the embedded optionality across our portfolio. Our key efforts over the year were to (i) actively manage and begin monetization of our portfolio of assets, and (ii) lay the groundwork that will underpin our next phase of growth and capital deployment. Within our current portfolio, 2024 was a year of transition from asset underwriting and capital deployment to operational management and monetization," said Michael Costa, CEO of Base Carbon.
"As we progress and execute on our growth strategy, we remain keenly focused on our equity cost of capital. Throughout the year, our growth capital was primarily allocated towards share repurchases under our NCIB where we strongly believe in the long-term accretive value of these purchases on both a fundamental basis as well as on an optionality basis. With broader softness in carbon and environmental industrials capital markets, the Company through its track record, expertise and meaningful cash position is uniquely positioned to capitalize on this market dynamic. This cyclical weakness in environmental markets presents a unique opportunity for the Company to begin deploying capital into high expected return situations, in a manner consistent with our thorough underwriting, with attractive risk reward characteristics that we believe to be accretive to the long-term value of the Company," Costa added.
Outlook
Despite cyclical headwinds within carbon markets, including near-term commercial and perception-based challenges, Base Carbon remains confident in the sector's long-term fundamentals, particularly in the end-markets where we maintain active, risk-aligned exposure. We continue to see strong validation of our disciplined approach through proven free cash flow generation, the strength of our asset base, and commercial optionality embedded in our portfolio.
Base Carbon retains an option to expand or extend our investment in the Vietnam household devices and India ARR projects, which could meaningfully scale production and returns. We continuously evaluate and re-underwrite these options based on our equity cost of capital, market conditions and expected risk-adjusted returns. Management views these options as compelling growth levers given the operational success of both projects to date.
Base Carbon continues to progress a diversified but highly-focused portfolio set through novel capital allocations via three key channels: organic expansions, thesis-driven growth, and inbound opportunities. While no new capital deployments were announced in 2024, this is a reflection of our intentional focus on portfolio quality, timing, and market discipline rather than strategic inertia or lack of opportunity. We believe our improved capitalization and track record provide a strong foundation to pursue attractive growth opportunities in 2025 and beyond.
Looking ahead, Base Carbon is focused on nature-based and technology-based removals, aligned with growing demand for high-integrity and compliance-aligned credits. We are also actively evaluating mature biochar opportunities across North America and see this as a key growth driver of our long-term capital allocation strategy.
Furthermore, as Base Carbon's shares continue to trade below the value of its cash plus its carbon credit inventory4, as well as at a significant discount to both, book value and equity research estimates, we remain committed to enhancing shareholder value through opportunistic buybacks under our NCIBprogram. In addition, the Company is exploring complementary capital market-based strategies which align with our disciplined approach to capital allocation and long-term value creation.
Rwanda Cookstoves Project Update
In 2024, the Rwanda cookstoves project issued and delivered over 1.7 million Article 6 Authorized carbon credits to BCCPC. These credits, valued at approximately $25 million, were reclassified from current investments to carbon credit inventory.
In Q4 2024, Verra released an updated methodology (VM0050) for cookstove projects, enhancing the accuracy of emission reduction calculations and aligning with the latest scientific standards. Shortly thereafter, it was confirmed that Verra-issued credits under the new VM0050 methodology may be eligible for the first phase of the Carbon Offsetting and Reduction Scheme for International Aviation ("CORSIA") compliance program.
The Company and DelAgua Group, the project developer, are working collaboratively to maximize the value of the carbon credits, and believe that participation in CORSIA could drive significant pricing upside and position the project as a leader in high-integrity, compliance-aligned carbon reduction endeavors.
Base Carbon and DelAgua initiated the process to transition the Rwanda cookstoves project and its future issuances to the updated methodology, and based on the latest update from DelAgua, CORSIA eligibility is expected to be confirmed in Q3 of 2025.
With respect to the current inventory of 1.7 million Article 6 Authorized carbon credits, Base Carbon retains the right, but not the obligation, to re-quantify these credits under the VM0050 methodology. While the existing credits remain valuable as non-double counted Article 6 Authorized carbon credits, re-quantification could lead to eligibility for CORSIA, further enhancing their value.
The Rwanda cookstoves project is fully funded and requires no further capital from the Company.
Vietnam Household Devices Project Update
During the year ended December 31, 2024, Base Carbon, through BCCPC, received total net cash payments of approximately $28.0 million from the delivery and monetization of carbon credits generated by the Vietnam household devices project. This amount reflects both a realized gain and a derecognition of a portion of the investment's financial asset balance. Since inception to date, the Company has received approximately $35.2 million in aggregate cash payments from the sale of carbon credits, representing a full repayment of capital deployed ($20.8 million) and an initial cash gain of approximately $14.4 million, generating a return of over 69% on invested capital since the initial capital deployment in May of 2022.
As of August 2024, the Company had fully funded its contractually committed capital to the project.
India Afforestation, Reforestation, and Revegetation (ARR) Project UpdateDuring the year ended December 31, 2024, all 6.5 million project trees were planted, within 14 months of deal execution in August 2023. The first issuance of carbon credits from the project is expected in the second half of 2025, contingent on the completion of key development milestones, including the finalization of the project design document and successful project registration and verification. Over its anticipated 20-year life, the India ARR project is expected to generate approximately 1.6 million nature-based removal carbon credits.
To date, Base Carbon, through BCCPC, has deployed approximately $6.1 million in project capital, including $1.7 million during the year ended December 31, 2024, in line with required milestones completed by in-country project partner, Value Network Ventures Services Pte Ltd. ("VNV"). An additional $7.5 million is expected ...
https://www.benzinga.com/pressreleases/25/04/g44580564/base-carbon-reports-year-end-2024-operating-and-financial-results
