Base widens loss on lower average prices
JOHANNESBURG (miningweekly.com) – ASX- and Aim-listed Base Resources reached the top end of its guidance range in the full year ended June 30, producing sales volumes of 480 538 t of ilmenite, 85 536 t of rutile and 33 062 t of zircon.
This led to sales revenue growth of 16% to $169-million, achieving an average price of product sold of $282/t, down from $309/t realised in 2015, reflecting the “challenging” market conditions faced by mineral sands producers for much of the reporting period.
Base Resources widened its net loss to $20.9-million, from $16-million in 2015.
Total cost of goods sold increased to $86-million, from $73.3-million in 2015, driven largely by the 27% increase in sales volume, at an average cost of $144/t, or $105/t of product sold, compared with $155/t or $130/t in 2015.
Base Resources further reported that it achieved a 10% increase in earnings before interest, taxes, depreciation and amortisation (Ebitda) of $60.6-million, attributable to a reduction in operating costs to $121/t and the flagship Kwale operation, in Kenya, achieving a revenue to cost of sales ratio of 2:1, comfortably positioning it in the first quartile of mineral sands producers.
Cash flow from operations was $78.6-million, up from $38.2-million and higher than group Ebitda, predominately driven by a decrease in receivables of $10.9-million during the reporting period, associated with $10.3-million of Kenyan operational value-added tax refunds and timing of sales receipts.
Free cash flow of $46.7-million contributed to the overall reduction in net debt of $48.9-million, while repayments of $31.7-million were made against the Kwale operation debt facility, reducing the outstanding balance to $180.5-million.
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