30th Jan 2024 11:18
(Alliance News) - Base Resources Ltd on Tuesday reported a difficult second quarter with lower mining and production, as it prepares to finish operations in the Kwale area in Kenya.
Despite the lower trading, however, shares in Base Resources were up 4.4% at 8.74 pence late on Tuesday morning in London.
The Africa-focused mineral sands producer and developer said 3.9 million tonnes of ore was mined during the three months to December 31, down from 4.5 million tonnes the previous year.
Ilmenite production dropped to 38,900 tonnes from 84,500 tonnes, while rutile production fell to 9,600 tonnes from 19,500. Base Resources went on to sell 63,700 tonnes of ilmenite, down from 74,100, and 15,000 tonnes of rutile, down from 14,700.
Sales revenue for the quarter fell to USD589 per tonne from USD651, while operating costs rose to USD304 per tonne from USD165.
Base Resources said that prices softened for all of its products, thanks to "ongoing economic uncertainties and sluggish demand across key markets".
Furthermore, the company reiterated that it expects to end mining by Kwale Operations in December this year, after an "exhaustive" evaluation concluded that the two remaining near-mine prospective areas "both lack sufficient grade or scale to support the capital investment required to extend or establish new mining operations".
By Emma Curzon, Alliance News reporter
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