Base Resources Ltd on Monday upped its dividend due to a sharp rise in full-year profit, as a result of higher sales volumes and product prices.
Shares were trading 9.1% higher at 19.63 pence each in London on Monday morning.
Base Resources is a Perth, Australia-based mineral sands developer with assets in Kenya and Madagascar.
For the year which ended June 30, the company posted a pretax profit of $113.8 million - more than tripled from $29.3 million the year before.
This was on revenue of $279.1 million, reflecting a 40% increase from $198.2 million year-on-year.
The company credited this to higher sales volumes. Further, it recorded a 33% increase in the average price of products sold to $621 per tonne from $467 per tonne. The higher prices were achieved across all products.
Base Resources declared a final dividend of A$3.0 cents per share, roughly 1.8 pence, taking its total dividend to A$6.0. This reflects a 50% increase from A$4.0 cents the year prior.
Looking ahead, Base Resources said it is looking for additional mine life extension opportunities in the Kwale East sector in Kenya, and plans for exploration to intensify in northern Tanzania in the coming year.
Managing Director Tim Carstens said: ‘We have completed another operationally strong year and, with the continued improvement in mineral sands prices throughout the period, we were able to achieve record financial outcomes. This, and our disciplined management of costs, has enabled the continuation of robust returns to shareholders.’
‘Now that the Kenyan General Election has concluded, we are hopeful that various prospecting licence applications lodged in prior years will progress toward issuance. Our stakeholders – employees, communities, governments, customers and shareholders – are aligned in a desire to extend our successful presence in East Africa.’
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