Editor: Adam Zhang
Base Resources Limited is pleased to release its half year results for the reporting period to 31 December 2017, with the following highlights.
Sales volumes: 225,814 tonnes of ilmenite (comparative period: 236,488 tonnes), 37,971 tonnes of rutile (comparative period: 42,796 tonnes), 17,427 tonnes of zircon (comparative period: 17,957 tonnes) and 3,287 tonnes of zircon low grade (comparative period: 3,397 tonnes). Sales volumes were lower than the comparative period, despite higher production volumes, solely due to the timing of shipments.
Sales revenue: $115.9 million (comparative period: $90.6 million), achieving an average price of product sold (rutile, ilmenite, zircon and zircon low grade) of $407 per tonne, or US$317 per tonne, (comparative period: $302 per tonne or US$227 per tonne) with the main drivers being higher ilmenite and zircon prices.
Costs: Underlying costs remained steady at an average cost of $131, or US$102, per tonne of product sold (comparative period: $130, or US$98, per tonne). Reflecting the 5% decrease in sales volume, total cost of goods sold decreased by 5% to $37.2 million (comparative period: $39.0 million).
Revenue to cash cost ratio: The Kwale Operation achieved a revenue to cost of sales ratio of 2.8:1, comfortably positioning it in the first quartile of mineral sands producers.
Group EBITDA: $69.3 million, representing a 58% increase (comparative period: $44.0 million) on the back of improving commodity prices and a continued tight focus on cost management. • Cash flow from operations: $73.5 million (comparative period: $45.1 million).
Capital investment: Cash flows used in investing activities increased to $21.4 million (comparative period: $3.0 million) due to the Kwale Phase 2 mine optimisation project commencing during the reporting period and on track for completion of construction in the June quarter of 2018.
Reduction in net debt: $44.1 million (comparative period: $24.5 million), bringing net debt to $84.1 million (US$65.6 million) at the end of the reporting period.