Base Resources Limited (AIM:BSE, ASX:BSE) delivered revenues of US$126.6mln in the six months to December 2022, and net profit after tax of US$44.6mln.
Sales hit record levels as strong markets for mineral sands generated price improvements for all products from the company’s Kwale mine in Kenya.
The company also continued with the implementation of the Bumamani project, which is designed to extend Kwale mine life to late 2024.
Mining of the Kwale North Dune recently commenced.
Meanwhile, negotiations with the government of Madagascar in regard to fiscal terms for the development of the Toliara project are ongoing.
Operations at Kwale generated free cashflow of US$29mln during the period and net cash stood at US$60.2mln as at 31 December 2022.
The company will pay an interim dividend of A$0.02.
The record date for the interim dividend is 13 March 2023 and the payment date is 30 March 2023.
Payment of that dividend will take the total amount returned to shareholders since October 2020 to A$217.9mln.
During the period the company produced 38,384 tonnes of rutile, 170,771 tonnes of ilmenite, 14,043 tonnes of zircon and a combined 9,228 tonnes of low-grade rutile and zircon products.
“We have achieved another consistent and operationally strong half year period at Kwale Operations which, when combined with increased prices for all products, has resulted in record first half revenue and the continuation of returns to shareholders via another dividend,” said Base’s managing director Tim Carstens.
“With the recent commencement of mining operations on the North Dune, the Bumamani project has extended Kwale mine life until late 2024. Beyond this, the exploration program underway in the Kwale East region represents our best opportunity for further, near term, mine life extension, with over 5,000 metres drilled to date. Further afield, and a longer dated prospect, we have also completed the first phase of reverse circulation exploration drilling in the Umba region of northern Tanzania, with preliminary results expected to be released shortly.”