Base Resources, the Australian
company licensed to mine titanium in Kwale, has posted a Sh1.6 billion
($16 million) net loss for its global operations for the year ending
June 30.
Increased operating costs and royalties were responsible for the reduction in earnings during the period.
The company incurred Sh1.1 billion ($10.5 million) in royalty expenses, up from Sh201 million ($1.9 million) last year.
Its operating costs went up from Sh1.6 billion ($15.5 million) to Sh6.8 billion ($64.7 million) during the period under review.
KENYA LOSSES
The
company, however, managed to reduce its net loss from Kenyan operations
by 79 per cent to Sh115.5 million ($1.1 million) from Sh556.5 million
($5.3 million) incurred last year.
“Base
is currently in the process of seeking to refinance the Kwale Project
Debt Facility which would deliver a repayment profile more appropriate
to the cash flow forecast of the Kwale Project. Confirmations of credit
approval have been received from majority lenders with remaining lenders
credit approval processes in progress,” reads a statement from the
company.
The Australian mining firm commenced commercial production of minerals from the Kwale project in April last year.
During the trading period, Base made a combined mineral sale worth Sh15.3 billion ($145.5 million).
The firm processes and exports three minerals (rutile, ilmenite and zircon) from the titanium ore.
TAX REFUND
Base is opposed to a Sh6,000 ($57) per tonne levy imposed by the Kwale County government on the basis that it is unconstitutional.
It is also seeking a Sh2.6 billion ($25 million) Value Added Tax refund from the Kenya Revenue Authority.
The
firm secured a Sh2.1 billion ($20 million) loan facility from its major
shareholder, Taurus Funds Management, to fund its operations at the
Kwale Mineral Sands project that was drawn down in two tranches during
2015.
The company’s total debt as of
June 30 was Sh30.7 billion ($292.6 million) compared with Sh24 billion
($232.5 million) at the same period last year
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