Base Titanium Limited Earns $21 Million in Net Profits
On 28th August 2017, Base Titanium Limited released its Full Year Results to 30 June 2017. The entire mining operations in Kwale County generated $215.5 million in sales. The resulting net profit was $21.5 million. This was an exemplary performance compared to the year 2016 when the company incurred loses to a tune of $20.9 million. This was a 200 percent improvement in performance.
Base Titanium reduced its debt burden by $76 million in 2017 compared to $47.5 million paid towards clearing debts in 2016. Currently, the net debt outstanding is $128.2 million from $204.2 million in 2016.
Base Titanium Limited spent an average of $139 (Ksh. 11,323.81) to produce each tonne of minerals (rutile, zircon, ilmenite) and sold each tonne at an average of $338 (Ksh. 27,535.61).
The main driver of the good performance was the rising price of ilmenite. The cost of goods sold stood at $88.6 million for the year ending 30th June 2017. This was a better performance compared with the previous year when the cost of sales was $86.6 million.
The Vision 2030 Delivery Board (VDB) signed an Memorandum of Understanding (MOU) with Base Titanium Limited making the Kwale Sands Project a flagship project under the Vision 2030 economic blueprint. According to Vision 2030 website the mine in Kwale is the largest mining project in Kenya since independence.
The Kenya National Bureau of Statistics through its Economic Survey Report 2017 indicated that Base Titanium mine contributed a total of Ksh. 13.3 billion or 60% of the total Ksh. 23.3 billion total mineral output in 2016. This is an indicator that the project is huge.
Finally, the Sand Mining Project provides employment to 642 employees out of which 96% are Kenyans and 64% are residents of Kwale County.
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Exchange Rates (All figures are in Australian dollars)
1 Australian dollar = Ksh. 81.4663
