Australian mining company, Base Resources, hit revenues worth US$ 135.1 million in the financial year 2024 – compared to US$ 271.4 million in the previous financial year due to reduced sale volumes.
- Base Resources sold mineral volumes of about 200,530 tonnes in the period under review, a slump from the June 2023 figures which stood at 406,023 tonnes.
- The miner also announced that operating costs of US$72.4 million represented a decrease of 6% compared to the prior period (US$77.0 million) mainly because of reduced production and transport expenses.
- The company’s Kwale operations recorded a net profit of US$12 million, a drop from US$17.9 million from the previous year.
“Base Titanium, distributed US$40 million of surplus cash, via dividend, to the Group’s ultimate parent entity, Base Resources. The dividend distribution by Base Titanium incurred Kenyan dividend withholding tax at a rate of 15%, totalling US$6.0 million, which has been recorded as an income tax expense, thus contributing to a net loss after tax of US$1.6 million for the Group,” the company wrote in its report.
The mining company also paid US$6.7 million to the Kenyan government as royalties this financial year, which indicates a 54% reduction from the F/Y 2023 period. Last year, Base Titanium said that they would complete their mining activities by December this year.
“After exploring all avenues to further extend mine life, mining at Kwale Operations will end in December 2024 when ore reserves are fully depleted as planned. Planning for closure and the transition to post-mining land use is well advanced, with the clear objective of cementing a reputation for excellence in the full life cycle of mining,” Managing Director of Base Resources, Tim Carstens.
At their entry into the Kenyan market, Base Titanium was charged 2.5% as royalties to the government but after seven years, it was increased to 5%. The company became one of the most crucial investors in a fledgling mining sector that accounts for a diminutive percentage of Kenya’s GDP.
Base Titanium also paid US$9.8 million to the government as income tax in the period under review. The company used US$12.6 million at Kwale Operations for land acquisition, implementation of mining operations at the Bumamani deposit and extension of operations in Kwale North. This capital expenditure reduced from US$ 28.5 million in the previous year.
“The 2024 financial year has been another successful one for Base Resources. The Kwale Operations team overcame the dual challenges of new ore bodies and lower grades to deliver production volumes at the top end of guidance, while continuing to keep tight control of costs, contributing to the Group’s strong closing cash position of US$88.1 million,” said Tim Carstens.
The company has shifted its focus to finalizing an agreement with the Madagascan government to mine Monazite after the completion of an explorational study. However, the company intends to kickstart prospective activities in Kenya to discover possible mineral sites it can renew operations in the country.
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