PERTH (miningweekly.com) – Despite a robust performance from its Kwale operations, in Kenya, mineral sands miner Base Resources has finished its 2023 financial year with a loss of $4.8-million.

The ASX- and Aim-listed company on Monday reported a non-cash impairment of $88.9-million following the reassessment of the carrying value for Kwale, reflecting the increased operating costs of mining the North Dune, the softening outlook for mineral sands product prices over the remaining mine life, and the ultimate cost of closure.

Net profits after tax for the full year ended June declined from a profit of $80.7-million in the 2022 financial year, to a loss of $4.8-million, while earnings before interest, taxes, depreciation and amortisation (Ebitda) declined only slightly from $158.7-million to $158.6-million.

Revenue for the full year was down 3% from $279.1-million to $271.4-million, despite a fall in mineral sands production, as the lower volumes were partially offset by higher average unit sales prices.

Production of 68 814 t of rutile, 297 861 t of ilmenite, 25 954 t of zircon and a combined 18 330 t of low-grade rutile and zircon products was reported from Kwale operations.

“The 2023 financial year has been another operationally and financially successful one. Strong operational performance, coupled with the continuation of buoyant mineral sands markets, has delivered a record Ebitda for Kwale operations, even with the transition to the more challenging and lower grade ore sources that will characterise the final years of the operation,” said Base Resources MD Tim Carstens.

“We continue to actively pursue additional mine life extension opportunities in the Kwale East sector, with a second phase aircore drill programme currently underway. Given the inherent uncertainty associated with exploration, significant effort is also going into planning for the ultimate closure of Kwale Operations and the transition to post-mining land use, with the clear objective of cementing a reputation for excellence in the full life cycle of mining.”

Carstens said that the Toliara project in Madagascar continued to represent a transformational growth opportunity for the company.

“By confirming the substantial commercial potential of its monazite content, the Toliara project rare earth concept study has enhanced that opportunity and further reinforces our belief that the project is the best undeveloped mineral sands asset in the world. We look forward to sharing more as we complete the study phases and clear regulatory hurdles.

“While engagement with the government on the fiscal terms applicable to the Toliara project has slowed due to the government's focus on its new mining code and the presidential elections in late 2023, we are clear that our patient approach is the right one to secure outcomes that will support the realisation of optimum shareholder value and we remain fully committed to the project’s development.”