15th Feb 2016 10:14
LONDON (Alliance News) - Base Resources Ltd Monday said it will make less rutile sales in 2016 than originally thought after a customer exercised an option to reduce the amount of product it takes from the company.
Base said the customer, which it did not name, has exercised its contractual right to reduce the amount of annual production it buys from the company by 20,000 tonnes, and said this will reduce planned rutile sales in the contract year to end January 31, 2017, by 6,000 tonnes.
Rutile is a rich source of titanium dioxide, which is used as a pigment in paints, plastics and paper, alongside other uses, due to its white, opaque and reflective characteristics.
The customer has reduced the amount of product it will buy, due to a decrease in its operational requirements for high-grade titanium feedstocks, Base said.
"The company will explore all available options for selling the rutile concerned to other customers and anticipates being able to secure alternate sales over the coming twelve month period," said Base.
Base shares were trading down 5.9% to 2.0 pence per share on Monday morning.
By Joshua Warner; [email protected]; @JoshAlliance
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