Favourable prices, higher output lift Base Resources’ full-year profits
ASX- and Aim-listed Base Resources achieved record earnings and net profit after tax (NPAT) for the financial year ended June 30, on the back of higher mineral sands production.
In the reporting year, Base successfully transitioned mining operations to the South Dune orebody, from the depleted Central Dune, at its Kwale operation, in Kenya, and released a prefeasibility study (PFS) for the Toliara project, in Madagascar.
Kwale produced 92 393 t of rutile, 402 698 t of ilmenite and 31 941 t of zircon during the financial year under review.
The company managed to increase Kwale’s mining rate by 57% to 17.8-million tonnes a year.
The higher production helped to boost earnings before interest, taxes, depreciation and amortisation by 4% year-on-year to $113.5-million.
NPAT increased by 15% year-on-year to $39.2-million.
Base MD Tim Carstens noted that strong price improvements for rutile and zircon had contributed to the record financial results for the company.
Meanwhile, the company has started work on the Toliara definitive feasibility study, which it expects will be completed before the end of this calendar year.
The PFS estimated a mineral resource of 1.3-billion tonnes at 5.1% heavy minerals.
The company has also started on a feasibility study for the Kwale North Dune and continued exploration work within the Vanga exploration licence, in Kenya.
“Our focus for the 2020 financial year is on optimisation and consistent performance at Kwale, as well as mine life extension at Kwale,” Carstens said on Monday, adding that the company would also prioritise the progression of the Toliara project towards a development decision.
Base set its guidance for the 2020 financial year at between 64 000 t and 70 000 t of rutile. The company further aims to produce between 315 000 t and 350 000 t of ilmenite and between 25 000 t and 28 000 t of zircon.
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