Base Resources Limited (AIM:BSE, ASX:BSE) said a strong operational performance in its latest fiscal year boosted cash resources though write-downs on its Kwale deposit in Kenya hit the bottom line.
Revenue in the year to June 2023 dropped by 3% US$271 million, with a net loss of US$4.8 million after an impairment charge of US$88.9 million for Kwale, which is nearing the end of its commercial life.
High prices for minerals sands products zircon, ilmenite and rutile meant underlying profits or EBITDA were US$158.6 million or only marginally below the previous year’s record, said the statement.
Over the 12 months, Base produced 68,814 tonnes of rutile, 297,861 tonnes of ilmenite, 25,954 tonnes of zircon and a combined 18,330 tonnes of low-grade rutile and zircon products from Kwale operations.
Average achieved prices rose by 18% for rutile, 3% for ilmenite and 3% for zircon compared to the prior year.
The Australia-based business ended the year with net cash of US$92.9 million and announced a final dividend of A$4c to make A$6c for the year.
“In the context of Kwale operations’ approaching end of mine life and diminishing future cash generation potential, we believe this strikes the right balance between delivering cash returns to shareholders and retaining balance sheet strength to fund the company’s strategic growth initiatives in pursuant of our 2031 vision of multiple concurrent operations,” said Tim Carstens, chief executive.
On that note, Carstens said talks are continuing with the Madagascar government over fiscal terms for the Toliara project, which Base Resources believes is "the best undeveloped minerals sands project in the world".