Base Resources Limited (AIM:BSE, ASX:BSE) posted record profits for the year to end-June on higher prices for mineral sands.
Underlying earnings (EBITDA) rose to a record US$158.7mln from US$96.6mln the previous year as revenue grew 41% to a record US$279.1mln.
The Australian-based company plans to pay a final dividend of A$3.0 cents per share.
“We have completed another operationally strong year and, with the continued improvement in mineral sands prices throughout the period, we were able to achieve record financial outcomes,” said managing director Tim Carstens. “This, and our disciplined management of costs, has enabled continuation of robust returns to shareholders.”
The African mineral sands producer and developer achieved a 26% increase in rutile prices on average versus the previous year, while ilmenite prices were up 42% and zircon jumped 57%.
Its Kwale operations in Kenya achieved production guidance and met customer shipping schedules throughout the year, despite COVID-19 induced challenges and some unplanned stoppages, allowing the company to capitalise on the high price environment, it said.
Base Resources extended the mine life at Kwale to December 2024 and is looking to extend it further.
“We continue to pursue additional mine life extension opportunities in the Kwale East sector and regionally, with exploration to intensify in northern Tanzania in the coming year,” said Carstens. “Now that the Kenyan General Election has concluded, we are hopeful that various prospecting licence applications lodged in prior years will progress toward issuance.”