Mineral sands miner Base Resources Limited (LON:BSE) doubled profits in the year just ended as all three of its core metals saw higher prices.
Production was steady at 91,672 tonnes of rutile, 464,988 tonnes of ilmenite and 37,157 tonnes of zircon; but prices of the metals rose by 17%, 28% and 46% respectively.
READ: Base Resources expects prices of mineral sand metals to stay strong
Revenue rose 22% to US$198.8mln, while net profit climbed by 114%.
Debt was cut by two-thirds to US$65.3mln as the strong operating performance translated into cashflow.
Tim Carstens, managing director, described it as an outstanding year for the business, especially as it had been achieved without one recorded injury during the year.
“Consistent production and strong average price improvement across all products contributed to record financial results for the company and has allowed significant debt reduction and established a strong platform from which to grow the business.”
For the current year, Base is forecasting production of 88,000 to 93,000 tonnes of rutile; 420,000 to 450,000 tonnes of ilmenite and 32,000 to 37,000 tonnes of zircon.
Rutile and ilmenite are the core components of titanium and paint pigment titanium dioxide, while zircon is a staining agent used in pottery and glass.
Base also intends to complete a pre-feasibility study of its Toliara Sands project in Madagascar and begin a definitive study ahead of an investment decision late in 2019.
"The Toliara Sands Project in Madagascar has given Base Resources an outstanding growth path in the development of another world-class mineral sands project with a long production life,” said Carstens.