Base Resources (BSE.AX, BSE.L) has released an updated production guidance for its financial years 2023 and 2024. In 2024, the company expects to produce around 70,000 tonnes of rutile, about 285,000 tonnes of ilmenite and about 25,000 tonnes of zircon but the guidance for 2024 looks a bit grim as the South Dune will be fully depleted by then. This will have a major impact on the total production as the rutile production will likely drop below 40,000 tonnes while the ilmenite and zircon production will come in at 145,000 tonnes and 14,500 tonnes respectively. That’s basically a 50% decrease compared to FY 2023.
The ore bodies that will be mined in FY 2024 will have a lower average grade than the grade that has historically been mined at Kwale while the processed volumes will be lower than anticipated as the North Dune mining operations have come in weaker than expected. And of course, the company anticipates a full shutdown of the South Dune operations in March 2024 which will allow the equipment to be relocated to the Bunamani orebody which should start producing later that year. Meanwhile, Base Resources continues its regional exploration program in an attempt to squeeze a few more years out of the Kwale operations, but it looks like the mine is really running on its last legs.
Disclosure: The author has no position in Base Resources. Please read our disclaimer.
