Base Resources Ltd reported higher output for all of its products in the quarter to end-September and received much better prices amid strong demand.
Production of Ilmenite rose 10.6% from the year-earlier quarter to 72,866 tonnes, while output for rutile jumped 14.5% to 17,762 tonnes and for zircon climbed 1.2% to 6,069 tonnes. The company retained its full-year production guidance.
Unit costs fell to US$174 a tonne from US$189 in the year-earlier quarter, but were higher than the June quarter when production was higher. However, the revenue received for its products jumped to US$668 per tonne, beating both the June 2021 quarter (US$497) and the year-earlier one (US$413).
The company is confident about higher prices for all of its products going forward.
It expects ilmenite prices to continue their upward trend through the December quarter, although some of these price gains will be partly eroded by escalating bulk freight costs to China.
Demand for high grade feedstocks, including rutile, increased significantly through the quarter, which along with supply constraints pushed prices higher. Rutile prices are expected to accelerate further through the coming quarters, Base Resources said.
It added that zircon demand continues to be very strong due to recoveries in all end-use sectors and regions, which, when combined with limited supply and minimal inventories, has resulted in a tightening zircon market and significant upward price pressure. Zircon prices for the company’s September quarter contracts increased by about US$150 a tonne from the June quarter and prices agreed for the company’s December quarter contracts have increased by an additional US$600 a tonne, it said.