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Base Resources rides minerals sands price revival

Published: 18:11 12 Apr 2017 AEST

picture of Kenya
Kwale is in Kenya

Base Resources Ltd (LON:BSE) is benefiting from a strong recovery in ilmenite prices with further hikes already locked in for the coming quarter.

June quarter prices are 200% higher than at the start of the financial year said the miner, which operates the Kwale minerals sands mine in Kenya.

In addition, Base produced a record 23,107 tonnes of the more valuable rutile in the three months just past.

This helped average sale prices per tonne across its portfolio rise to US$258 per tonne from US$250 and US$208 three months and a year ago respectively, though costs were also higher.

Base is bullish on the future. Ilmenite, an oxide of titanium, is used to make white pigments and the industry went from 'strength to strength' through the March quarter it said .

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Production disruptions in India and China helped, the miner said and are likely to support the rising trend. Pigment producers raised prices early in 2017 and again in April.

Rutile demand has been more subdued but here too Base expects prices to pick up through 2017 especially at the high end of the market.

Production this year to June is expected to total 88,000 to 93,000 tonnes of rutile, 450,000 to 480,000 tonnes of ilmenite and 33,000 to 37,000 tonnes of zircon.

Net debt was reduced by US$7.0mln to US$122.5mln.

Shares rose 5% to 20.1p.

-- adds share price --

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