PERTH (miningweekly.com) – Mineral sands miner Base Resources has reported a 48% fall in profits after tax for the six months ended December, as its Kwale operations, in Kenya, underwent a period of transition.
The ASX and Aim-listed Base on Thursday reported that the first half of 2020 saw the transition of mining activities at Kwale transition to the South Dune deposit.
“As was anticipated, overall production has been lower than was the case when mining the Central Dune due to the lower heavy mineral grade, but we were pleased to be able to increase our production guidance for 2020 in January as we continue to optimise mining and processing operations from the orebody,” said Base MD Tim Carstens.
Heavy mineral concentrate production fell from the 348 015 t produced in the first half of 2019, to 304 100 t, resulting in an 18% decrease in revenues, to $83.4-million.
Base reported a net profit after tax for the first half of 2020 of $9.1-million, down from $17.4-million. Earnings before interest, tax, depreciation and amortization also declined from $57.5-million to $43.4-million.
Carstens on Thursday noted that during the period under review, Base continued to pursue mine life extension opportunities at Kwale, with additional prospecting license applications having been lodged, and with the start of a prefeasibility study for mining of the North Dune orebody.
Meanwhile, the Toliara project is also progressing with the completion of a definitive feasibility study, which reinforced Base’s view that the project could be world-class.
The study estimated that over the initial 33 year mine life, the Toliara operation is expected to produce an average of 780 000 t/y of ilmenite, 53 000 t/y of zircon and a further 7 000 t/y of rutile.
“We continue to engage with the government of Madagascar regarding fiscal terms for the Toliara project as well as progressing offtake and funding arrangements as we work towards a final investment decision in the second half of 2020.”