Base Resources Ltd reported improved prices for ilmenite and rutile, but zircon prices weakened amid sluggish demand during the September 2023 quarter.
At the end of last month, the company had cash of US$77.2 million and no debt.
Group operating costs increased to $343 per tonne, up from $240, owing to reduced production. This factor also drove up the cost of goods sold to $442 per tonne, which reduced the revenue to cost of goods sold ratio from 2.6 to 2.3 this quarter.
Despite the rise in costs, cash operating costs slightly decreased to $18.6 million from the prior quarter's $18.8 million.
Yesterday the company said mining at its Kwale operations in Kenya will end in December 2024 with processing to stop shortly thereafter, and activity now turning to the progression of its Toliara Project in Madagascar.
The past quarter saw the transition at the Kwale operations mineral separation plant from continuous operation to campaign processing to ensure optimum product recoveries are maintained as heavy mineral concentrate is constrained by lower ore grades over the remainder of Kwale’s mine life.
HMC dropped to 84.8kt in the quarter from 103.2kt last time.
The company also halted the Kwale East Phase 2 drilling program, citing non-viability based on current evaluations.
On the Toliara project, engagement with Madagascar's government was temporarily limited in the quarter by upcoming Presidential elections in the country.
Madagascar's new Mining Code has increased the royalty rate to 5% and mandates a 3% contribution to a community fund.
"The company remains ready and committed to progressing the world class Toliara Project to a final investment decision once fiscal terms are secured and the on-ground suspension is lifted," it said.