A 40% increase in ilmenite prices in the quarter to December helped Base Resources (LON:BSE)(ASX:BSE) deliver a record ratio of revenue to cost of goods sold of 2.5 from its Kwale mine in Kenya.
It also allowed the company to cut net debt by a further US$18.1 mln during the quarter to US$129.5 mln.
What’s more, further price increases are locked in for contracted March quarter sales, so the current good run looks set to continue.
Operationally, Base has also been doing well. The hydraulic mining unit fully has ramped-up and is now exceeding its 400 tonnes per hour design performance and contributing to record mining volumes.
Exploration drilling is also now underway at Kwale.