The company attributed a 9% increase in final product production quarter-on-quarter to high availabilities, increased throughput and improved recoveries at its mineral separation and wet concentrator plants.
A total of 2.3 million tonnes of ore were mined over the quarter with a heavy mineral content of 9.2% heavy mineral content for 206,123t of heavy mineral concentrate produced – steady compared with the 206,324t produced the previous quarter.
However, improved efficiencies in the treatment processes resulted in higher mineral recoveries during the June quarter.
Ilmenite production increased 7% from 105,753t in the March quarter to 113,476t as a result of improvements in the mineral separation plant recoveries and increased throughput.
Ilmenite recoveries through the plant stood at 109% as a result of altered ilmenite not defined as ilmenite in the resource being recovered to production.
Production of rutile increased 16% to 19,499t from 16,754t after mineral separation plant recoveries were improved from 91% to 98% during the June quarter.
A total of 429t of the improvement was attributed to a program implemented to retreat rutile from the oversize reject stockpile, which Base said would continue into the current quarter.
Without the program, rutile recoveries increased 5% to 96%.
Zircon production improved as the ramp-up to design capacity at the mineral separation plant continued.
Average recoveries increased to 62% from 54% during the March quarter, and were further boosted by higher throughput rates.
Upgrades planed for wet zircon pumping systems at Kwale were deferred during the June quarter due to delays in equipment deliveries, but are expected to be implemented in the September quarter and will allow greater flow control and flexibility in the treatment process.
Further improvements to primary magnet separation capacity and efficiencies are planned for the year, and expected to take zircon recoveries to the design rate of 78%.
Cash operating costs for the quarter fell from $US14.2 million ($A19.5 million) during the March quarter to $13.5 million as a result of higher throughput.
On a unit cost basis, costs fell from $111 per tonne of rutile, ilmenite and zircon produced to $97/t.
In terms of sales, 121,727t of ilmenite, 25,382t of rutile and 7621t of zircon was shipped over the June quarter – a record result for all products.
On the corporate side, the project completion operational components required under the Kwale debt facility were achieved during the June quarter, and the first payment of $11 million was made.
Base is currently working to finalise the remaining regulatory and compliance components required for under the facility before September 30. The company is also pursuing a refinancing of the debt facility.
Base drew down $17 million remaining under a separate $20 million unsecured debt facility with Taurus Funds Management in June, and has submitted tax refund claims worth $25 million to the Kenyan government during July.
The company had $A40.9 million in unrestricted cash and $6.5 million in restricted cash at the end of June, and had drawn debt of $US224 million.
Base said its focus would firmly remain on driving product recovery through the mineral separation plant at Kwale moving forward.
Shares in Base were steady yesterday at A11c.
