PERTH (miningweekly.com) – Mineral sands producer Base Resources has reported a 170% decline in profits for the half-year ended December, along with a 13% decline in revenues on the back of lower production and prices.
The ASX- and Aim-listed company on Monday reported that sales revenue for the six months to December had reached $72.8-million, down A$10.7-million from the previous corresponding period, while Base also reported a net loss of $6.3-million for the period, down $15.48-million on the previous corresponding period.
Heavy mineral concentrate production for the period declined to 246 039 t, compared with the 304 100 t produced in the previous corresponding period, on the back of reduced ore production and lower ore grade.
Base MD Tim Carstens told shareholders that despite the decline in production, the Kwale operation, in Kenya, remained on track to meet its production guidance for the 2021 financial year.
“Outcomes for the remainder of 2021 are expected to be stronger again with firm market demand supporting price increases for all our products. Progress towards Kwale mine life extensions remain a priority with the North Dune prefeasibility study nearing completion and the recent resumption of our near-mine exploration programme.
“On the ground activity at the Toliara project remains suspended as we engage with the government of Madagascar in relation to the fiscal terms applicable to the project. This, together with international travel restrictions and broader Covid-19 measures and impacts both in Madagascar and globally, has led to the final investment decision to proceed with the Toliara project being delayed.
“Once fiscal terms are agreed and the suspension is lifted, there will be approximately 11 months’ work to complete prior to a final investment decision.”