A consensus view on Base was that all funds generated by its Kwale mine in Kenya would be directed to its treasury to provide cash reserves for the eventual commencement of the Toliara project in Madagascar.
The maiden dividend of A$0.035 per share, however, implies a yield of c14%.
Berenberg says this adds a new dimension to the investment case through a portion of Kwale cash flow that can be paid out as dividends at a compelling yield.
The broker adds it has not included the North Dune at Kwale in its estimates, so there is clear extension of dividend flow beyond 2023, albeit at likely lower levels due to lower grades.
Buy with a 26p target is its view.
Shares rose 1.75% to 14.5p.