27th Aug 2019 09:27
(Alliance News) - Base Resources Ltd said on Tuesday higher commodity prices drove the company to record revenue in a year where it became cash positive for the first time.
Revenue for the year to June rose 5.3% to USD209.5 million, while pretax profit climbed 15% to USD49.9 million.
Operationally, ilmenite production fell 13% to 402,698 tonnes with zircon production falling 14% to 31,941. Rutile production, however, rose by 0.8% to 92,393 tonnes.
At a sales level, Base's rutile operations was the only one to deliver growth, climbing 5.5% to 94,070 tonnes. Ilmenite sales fell by 17% to 395,378 tonnes and zircon sales were down 9.2% to 32,992 tonnes.
Prices for zircon were 28% higher year-on-year and for ilmenite by 22%.
The firm became debt free during period, achieving a net cash position of USD19.2 million on June 30, compared to a net debt of USD33.2 million in the year before.
In financial 2020, the company expects Kwale in Kenya to produce between 64,000 and 70,000 tonnes of rutile, between 315,000 and 350,000 tonnes of ilmenite, and 25,000 to 28,000 tonnes of zircon.
Looking ahead, the feasibility study for Toliara in Madagascar is on target to be completed by late 2019 with construction expected to be completed by 2020. The project is expected to be brought into production in 2022, Base said.
Managing Director Tim Carstens said: "This has been a busy but rewarding year for Base Resources with our highly productive Kwale operation in Kenya delivering a consistently strong performance and the world class Toliara project in Madagascar progressing towards development.
"Strong price improvement for rutile and zircon contributed to record financial results for the company and we ended the year net cash positive, establishing a strong platform from which to grow the business. Our focal points for 2020 are optimisation and consistent performance of the Kwale operations on the South Dune, pursuit of mine life extension at Kwale, and continued progression of the Toliara project towards a development decision, with delivery of the definitive feasibility study and project funding the immediate priorities."
Shares in Base were untraded in London on Tuesday morning, last quoted at 13.12 pence each.
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