Base Resources Limited
Base Resources Limited
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An 8-day stoppage to move its mining collection hopper and forecast lower grades have seen mineral sands miner Base Resources post lower Sept qtr (Q1FY21) production and sales at its 100%-owned Kwale operations in Kenya.
Q1 production comprised 65,863t (Q4FY20: 84,843t) ilmenite, 15,513t (19,035t) rutile, 6,000t (7,590t) zircon and 426t (578t) low-grade zircon. Operating costs rose to $US189/t ($153/t) due to lower volumes.
Product price increases mitigating lower production has enabled African mineral sands producer and developer Base Resources to maintain strong June year (FY20) financial performance, enabling it to announce a maiden $A0.035cps unfranked dividend.
Revenue of $US208M, compared to $209.5M in the prior year, delivered EBITDA of $108.7M (FY19: $113.5M) and NPAT of $39.6M ($39.2M).
Kenyan mineral sands producer Base Resources is facing a 5% reduction in mined volumes in the coming year as well as a 22% decline in mineral resources for the South Dune deposit at its 100%-owned Kwale project.
Australian-based Base achieved revised Kwale production targets in the June year (FY20) after mining transitioned to the South Dune from the depleted Central Dune in mid-2019.
While COVID-19 uncertainty is delaying a final investment decision on its Toliara project in Madagascar, Base Resources’ Kwale mineral sands operation in Kenya has posted increased production amid strengthening ilmenite and rutile prices in the March qtr (Q3FY20).
Substantially modified workplace practices have enabled Kwale to continue uninterrupted, lifting Q3 output to 105,035t (Q2: 91,406t) ilmenite, 23,683t (19,812t) rutile, 9,163t (7,923t) zircon and 780t (546t) low-grade zircon.
The ramp-up of operations at the Kwale mineral sands project in Kenya since the transition of mining to the South Dune orebody in July have enabled Base Resources to increase its Dec qtr (Q2FY20) production to 91,406t ilmenite (Q1: 73,808t), 19,812t rutile (16,390t), 7,923t zircon (6,980t) and 546t low-grade zircon (466t).
Unit operating costs improved to $US140/t ($173/t).
Strong trends since it began mining the South Dune orebody in July 2019 have prompted African mineral sands producer Base Resources to raise production guidance for its Kwale operations in Kenya for the year to June 2020.
Base is now predicting Kwale’s FY20 output to be 75,000-81,0000t rutile (previously 64,000-70,000t), 335,000-355,000t ilmenite (315,000-350,000t) and 29,000-32,000t zircon (25,000-28,000t).
Australian-based mineral sands producer Base Resources is targeting a Sept 2020 final investment decision on its Toliara project in Madagascar after a DFS reinforced its world-class potential.
The DFS confirmed its March 2019 preliminary study, outlining a $US442M, 13Mtpa stage 1 development that will expand in stage 2 to 19Mtpa at capex of $69M.
Ore reserves of 586Mt @ 6.5% HM are forecast to support steady-state production of 780,000tpa ilmenite, 53,000t zircon and 7,000t rutile over an initial 33-year LOM.
Mineral sands miner Base Resources has matched the forecast 33-year mine life for its Toliara project in SW Madagascar with the release of a maiden proved and probable ore reserve of 586Mt @ 6.5% for 38Mt in-situ heavy minerals in the Ranobe deposit, the project's key mineralisation source.
The JORC-compliant reserve estimate by Base and consultant IHC Robins will be incorporated the Toliara project DFS due next month.
(COMMUNITY)
Base Resources warns a Madagascar government order suspending work on its Toliara mineral sands project could undermine its efforts to build community support for one of the world’s most exciting development projects.
A shock for Australian-based miner Base Resources in Madagascar, with the government ordering it to stop all on-ground activity at the Toliara project identified as one of the world’s best mineral sands development opportunities.
The government is citing local community protests as the reason for its order, while calling for more talks on the fiscal terms applying to the project.