Base Resources Ltd, a mineral sands producer and developer, reported a decline in full-year earnings as lower production outweighed higher prices for its products.
In the year to end June 2021, group EBITDA fell to US$94.6mln (£68.7mln), from US$108.7mln the previous year, as revenue dipped 5% to US$198.2mln. The company announced its annual production figures last month.
READ: Base Resources continues to see strong demand
All of the company’s revenue is generated from its Kwale operations in Kenya where it is seeking to extend the mine life via the assessment and development of existing near mine deposits and exploration.
“Kwale operations’ performance has been consistently strong throughout the year, meeting our FY21 production guidance,” said managing director Tim Carstens. “We have successfully navigated our business through the challenges of COVID whilst, critically, maintaining our outstanding safety performance.
“We have made sound progress towards extending mine life with the extension to the Kwale Special Mining Lease 23 to incorporate the updated Kwale South Dune ore reserves expected shortly, the Bumamani pre-feasibility study nearing completion and prospecting licences secured in Tanzania.”
The company declared a full-year dividend of A$4.0 cents (2 pence) per share, up from its maiden dividend of A$3.5 cents per share the previous year, taking its total divdend to A$7.0 cents a share.
Base Resources is also developing the Toliara project in Madagascar.
“Positive progress was made in our discussions with the Government of Madagascar in relation to fiscal terms applicable to the project and we remain confident that acceptable terms should be able to be secured,” said Carstens.
“The process of updating the Ranobe mineral resources and ore reserves estimates to incorporate completed drilling work, as well as the project’s definitive feasibility study to refine and enhance outcomes, are well advanced and we expect to release these significant pieces of work shortly.”
Base Resources was forced by the government to suspend on-the-ground activity at Toliara in November 2019 while discussions on fiscal terms were ongoing.
“We will be maintaining a high degree of engagement with the Government of Madagascar in seeking to secure fiscal terms and lifting of the suspension and will await their decision as to when they are ready to move forward with the project. In the meantime, we hold our focus on extending the life of our Kwale operations as well as actively considering wider opportunities in a sector that is continuing to evolve,” Carstens added.