(Alliance News) - Base Resources Ltd on Tuesday updated production forecasts despite a drop in production and sales at its Kwale operation in the third quarter, thanks to simultaneous improvements in the heavy mineral concentrate quality from mined ore.
In the three months ended March 31, the Australia and Africa-focused mineral sands company said it mined 3.7 million tonnes of ore, compared to 3.3 million a year prior.
At the company's Kwale mining operation in Kenya, production of ilmenite dropped to 33,500 tonnes in the quarter from 71,600 a year before.
Rutile production dropped to 9,000 tonnes from 16,600, while zircon production sank to 3,700 tonnes from 6,400.
The company said that tonnage at Kwale reduced in the quarter, due to the relocation of mining operations to the Bumamani deposit following depletion of the South Dune ore reserves.
Sales of ilmenite from Kwale were 20,100 for the third quarter, down from 86,200 in the third quarter of financial 2023.
Rutile sales dropped to 3,900 tonnes from 15,200 tonnes, and zircon to 4,500 tonnes from 7,400.
Base Resources said that mining at Kwale is expected to end in December, once ore reserves are fully depleted.
However, due to "improvements in [heavy mineral concentrate] quality" at Kwale in the quarter, Base Resources raised its production guidance for the financial 2024.
Ilmenite is now expected at 145,000 to 160,000 tonnes, compared to previous forecasts of 130,000 to 160,000.
Rutile production is expected to reach between 38,000 and 42,000 tonnes, compared to between 35,000 and 42,000.
Zircon production is forecast at 15,000 to 17,000 tonnes, changed from 13,000 to 16,000.
Shares in Base Resources closed down 1.0% at 12.50 pence per share in London on Tuesday.
By Hugh Cameron, Alliance News reporter
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