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Base Resources hits production targets as minerals sands prices rally

Published: 03:44 25 Jul 2019 EDT

Mineral sands
Mineral sands metals have rallied strongly

Base Resources Limited (LON:BSE) hit production targets in 2019 while it shifted operations to a different area of mining at Kwale in Kenya.

Base is now mining the South Dune at mineral sands mine Kwale, having stopped operations from the Central Dune at the end of June.

Production for the quarter amounted to 88,800t on ilmenite, 22,600t of rutile and 7,100t of zircon.

WATCH: Base Resources highlights transition of Kenyan mining operations to the South Dune ore body

Base made record sales in the quarter as revenues were helped by a sharp increase in prices for the metals used in the titanium market.

A basket of zircon, ilmenite and rutile was selling for US$482 per tonne at the end of June compared to US$376 a year earlier.

Production this year to June 2020 is forecast to be lower as throughput at the processing plant will be running  below last year.

Guidance currently for between 64,000 to 70,000t of rutile (92,000t); 315,000-350,000t of ilmenite (403,000t) and 25-28,000t of zircon (32,000t).

Further exploration will be undertaken on the North Dune area at Kwale, where 171mln tonnes of heavy minerals have already been identified.

A definitive feasibility study is also being prepared for the Toliara project in Madagascar and is expected to be completed late this year. 

Broker Shore Capital said a constraints on sulphate ilmenite and high-grade chloride feedstock supply have continued to support “further positive price momentum”. 

Base’s net cash position stood at US$19.2mln.

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