Base Resources Limited (AIM:BSE, ASX:BSE) has reiterated its production forecast for the current year, 2023, with concurrent mining of the south and north dunes at its Kwale minerals sands project in Kenya to start in March.
Production forecasts for 2023 are for rutile 62,000 to 73,000 tonnes; ilmenite 260,000 to 310,000 tonnes; and Zircon 22,000 to 27,000 tonnes.
In the three months to December 2022, production was largely flat, though, other than for zircon, sales volumes rose quarter-on-quarter. Revenue dipped to US$651 per tonne but the cost of goods sold also dropped.
Demand remained firm through the quarter, said Base, but prices were mixed and reflected the challenging economic conditions across some regions and market sectors, notably China.
Subdued conditions in most downstream markets are also applying downward price pressure across all products for the current or March quarter, but it expects demand for most products to stabilise and provide a steady footing for future prices.
At Toliara in Madagascar, a rare earth concept study is on track for completion this quarter while discussions are ongoing with the government over the fiscal regime for the project.
Cash at the end of December was US$60.2mln with no debt.