Base Resources Limited
Base Resources Limited
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Higher production and prices at its 100%-owned Kwale operations in Kenya have more than doubled Dec half-year (H1FY23) net profit for mineral sands miner Base Resources.
The Australian-based company lifted sales revenue to $US126.6M (H1FY22: $104.6M), delivering EBITDA of $80.7M ($54.5M) and NPAT of $44.6M ($19.2M).
Heavy mineral concentrate stocks have increased to 15,494t (9,713t) in advance of the planned transition of part of the mining operation to Kwale North Dune in early 2023.
The mining of higher-grade blocks on Base Resources’ South Dune at its Kwale mineral sands project in Kenya has lifted Dec qtr (Q2FY23) production of heavy mineral concentrate by 3%.
Production was 84,500t (Q1: 86,000t) ilmenite, 19,500t (18,900t) rutile, 7,400t (6,600t) zircon and 5,200t (5,700t) low-grade products.
African mineral sands producer Base Resources has overcome unplanned stoppages to lift Sept qtr (Q1FY23) mined volumes at its Kwale project in Kenya to 4.4Mt, from 3.9Mt in the previous period.
Production of ilmenite rose to 86,000t (Q4FY22: 83,800t) while changes in the mineral assemblage and lower recoveries lowered rutile to 18,900t (19,200t) and zircon to 6,600t (6,800t). Low-grade products totalled 5,700t (4,900t).
A planned move to a lower-grade orebody and the uncertainties of mining a new orebody have led African mineral sands producer Base Resources to reduce production guidance for the coming year at its Kwale operations in Kenya.
Base posted production for the year to June (FY22) of 74,349t (FY21: 73,248t) rutile, 325,148t (317,276t) ilmenite and 25,557t (27,122t) zircon, meeting guidance for each.
Mineral sands producer Base Resources can extend the life of its 100%-owned Kwale Operations in Kenya by 13 months to Dec 2024 after approving development of the Bumamani project.
Its DFS confirmed the viability of mining 17.9Mt ore reserves within higher-grade subsets of the Bumamani and Kwale North Dune deposits.
As well as extending the Kwale Operations’ life, the decision maintains continuity while Base develops further opportunities in Kenya and regionally.
African mineral sands producer Base Resources has progressively returned to normal mining over the last week at its 100%-owned Kwale operations in Kenya following abnormal rainstorms and flash flooding that overwhelmed the dewatering systems for its three hydraulic mining units.
Base says it still remains on schedule for FY22 production guidance.
The company is constructing additional stormwater diversion bunds and acquiring more high-capacity dewatering pumps to reduce the risk of future events.
African mineral sands producer Base Resources believes it can still meet FY22 production guidance at its Kwale operations in Kenya despite abnormal rainstorms and flash floods that initially halted all its three hydraulic mining units.
Base says one of the units is now back in operation, delivering about 45% of normal mining volumes, while the others are still being dewatered and their pump motors being replaced.
African mineral sands producer Base Resources has kept on track with FY22 guidance at its 100%-owned Kwale operations in Kenya, overcoming a 4-day mine move and 5-day shutdown after a tailing storage failure in the March qtr.
Q3 production was steady at 84,500t ilmenite (Q2: 84,000t), 18,900t rutile (18,400t) and 6,300t zircon (6,400t). Continuing strong demand lifted sales revenue to $US740/t ($459/t).
Base maintained its FY22 production guidance at 73,000-83,000t rutile, 310,000-340,000t ilmenite and 24,000-28,000t zircon.
Higher rutile and ilmenite production resulting from stable recoveries in both the wet concentrator and mineral separation plants at its 100%-owned Kwale operations in Kenya enabled mineral sands miner Base Resources to post $US19.21M NPAT for the Dec half-year (H1FY22), a turnaround from its $6.34M pcp loss.
Higher volumes coupled with average sales price to $514/t ($435/t) lifted revenue to $104.62M (H1FY21: $72.76M), resulting in EBITDA of $54.23M ($33.92M).
Kenyan mineral sands producer Base Resources is looking at a further life extension at its Kwale project after gaining government approval of a boundary extension of its special mining lease that will enable it to continue production to Dec 2023.
A DFS assessing the potential for further mine life extensions to July 2024 is due for completion in the first half of 2022.