21st Feb 2014 10:40
LONDON (Alliance News) - Base Resources Ltd Friday said its loss widened in the first half of the financial year, as it continued to develop its Kwale Mineral Sands project in Kenya.
The company reported a pretax loss of USD5.5 million for the six months to end-December, compared with a pretax loss of USD2.4 million the prior year, as consultant fees and administrative expenses increased.
The company is yet to make any revenues from operations, although it reported USD36,581 in income in its half-year report.
Base Resources said commissioning of the mineral separation plant commenced in December, and Ilmenite production is on track for tonnage and quality, with the first 25,000 tonne shipment
exported in February. It said ramp up of rutile production has been slower due to an initial focus on the front end ilmenite circuit as well as the rectification of a number of plant bottlenecks.
The group said its working capital decreased to USD16 million as at December 31 2013, from USD88 million at June 30, as it used money to develop the Kwale Project.
Shares in Base Resources were trading 4.9% higher at 25.70 pence per share Friday morning.
By Rowena Harris-Doughty; [email protected]; @rharrisdoughty
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