Base Resources Ltd on Monday said it expects its output of rutile, ilmenite and zircon from Kwale County, Kenya to be lower in financial year 2024 than in the current financial year that ends on Friday.

The West Perth, Australia-based African-focused mineral sands producer and developer said it expects rutile output for the financial year ending June 30, 2024 to be between 35,000 and 41,000 tonnes, at least 34% lower than 62,000 to 73,000 tonnes for financial 2023.

Ilmenite output is set to be at least 38% lower at 130,000 to 160,000 tonnes compared to 260,000 to 310,000 tonnes.

Zircon is anticipated to be at least 27% lower at 13,000 to 16,000 tonnes, compared to 22,000 to 27,000 tonnes.

Base Resources said that since the start of operations on the North Dune in February, mining rates have been lower than expected in the lower ore zones due to elevated oversize and slimes.

Slimes are small particles in ore deposits.

‘The FY24 guidance reflects the planned continuation of the concurrent mining of the South Dune and the P199 and P200 pits on the North Dune, which began in February 2023, until the South Dune is fully depleted. This is expected to occur in March 2024, at which point, the South Dune mining operation will transition to the Bumamani orebody, with mining at the North Dune continuing uninterrupted,’ the company said.

Base Resources shares fell 6.8% to 9.18 pence each on Monday morning in London.

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