Base produced 87,179 tonnes of ilmenite during the three-month period, 22% lower year-on-year, while rutile output also fell 7% to 20,171t, as did zircon production, which at 6943t was down 24% on the year.

However, the company achieved better recoveries, with ilmenite at 104%, up from 101% a year ago, rutile recoveries at 102%, up from 99%, and zircon steady at 78%

Quarterly production of heavy mineral concentrate (HMC) rose 23% on the year to 154,001t.

The products and HMC were mined from 4.3 million tonnes of ore, more than double the level for the same period a year ago, although the grade fell from 6.88% HM a year ago to 3.59% HM.

Base is switching its mining focus at Kwale to the South Dune orebody in June, which it said was on schedule. The relocation will result in a two-week shutdown of the WCP in June followed by a two-week ramp up on restart. 

Base kept its production guidance for the year unchanged at 88,000-94,000t rutile, 385,000-415,000t of ilmenite and 31,000-34,000t of zircon.

It attributed the lower guidance compared to 2018 to the drop in HM grade of the South Dune orebody, depletion of stockpiled HMC during the transition of mining operations to the South Dune orebody and normal uncertainties associated with mining a new orebody. 

Base's ilmenite sales for the quarter dropped 42% year-on-year to 81,339t, while sales of rutile and zircon were also down 43% and 26.5%, respectively to 14,593t and 7,260t.

The company reported a unit operating costs at $138 per tonne produced, up from $98/t a year ago, due to higher operating costs associated with a 131% increase in mining and wet concentrator plant (WCP) volumes following implementation of the Kwale Phase 2 mine optimisation project.

It said the higher sales volume of higher-value rutile and zircon relative to ilmenite in the quarter, resulted in unit costs of goods sold rising to $151/t sold from $114/t.

Unit revenue for the quarter was $368/t sold, compared to $314/t a year ago.

On the exploration side, Base said all workstreams were progressing on schedule to complete the Toliara mineral sands project's definitive feasibility study (DFS) in the December quarter after the prefeasibility study was released during the March quarter.

It also started drilling of the Vanga exploration license at Kwale on April 1, with the hope of a further mine life extension.

Base rose 2.9% to A28c yesterday, valuing the company at $326.6 million.