27th Feb 2020 11:39
(Alliance News) - Base Resources Ltd on Thursday said its first half revenue was hurt by lower production at its Kwale operations in Kenya.
In the six months to December 31, revenue was down 18% to USD83.5 million from USD102.2 million. Pretax profit was 43% lower at USD13.0 million from USD22.6 million.
"Following the transition of mining from the high-grade Central Dune to the lower-grade South Dune orebody in July 2019, production from Kwale operations was lower compared to the first half of the comparative period. Demand for rutile and ilmenite remained strong throughout the period and prices continued to strengthen, while global economic uncertainties tempered demand for zircon," Base Resources said.
In January, the company reported that in the quarter to the end of December, ilmenite production fell 16% year-on-year to 91,406 tonnes.
Ilmenite is the main source of titanium dioxide, which is used in paints, printing inks, fabrics, plastics, paper, sunscreen, food and cosmetics.
In rutile and zircon, materials often used as whitening agents, quarterly production fell also fell year-on-year. In rutile, it was down 19% to 19,812 tonnes and in zircon down by 3.9% to 7,923 tonnes.
Shares in the company were 2.1% lower at 11.50 pence each in London on Thursday morning.
By Eric Cunha; [email protected]
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