TIM CARSTENS

www.baseresources.com.au

SHARES in Base Resources, a mineral sands mining firm, sank to their lowest in two and a half years in December, reflecting, perhaps, some of Tim Carstens’ frustration in 2022. Chief among these was Base’s failure to agree new fiscal terms with the Government of Madagascar that would finally pave the way for the development of Toliara Sands, a potentially transformational project for Base, and help it lessen its reliance on Kwale in Kenya, its sole means of revenue. Carstens has said all the groundwork is in place, so maybe this year is when Toliara gets lift-off. But we said that last year. There has been frustration too in attempts to build additional resource options in Kenya. A suspension on new mining permit awards has been in place in Kenya for two years, preventing it from exploring Kuranze, a mineral sands project on the border with Tanzania. The hope is that with the election of Kenya’s new president, William Ruto, there can be a lift in the bureaucratic freeze. Kwale has foreseeable production until 2024, so organic growth is the name of the game for Base. The Kwale South Dune extension and Bumamani project will go some way to achieving that. Drilling has also started at Kwale East. It’s worth mentioning that despite these issues, Base is a pretty good business. The company ended its 2022 financial year (June 30) with net cash of $55.4m, enabling it to pay a $24.4.m (unfranked) dividend to shareholders. The market for mineral sands, used in the manufacture of paint pigments among other industrial uses, is pretty good although Carstens has warned of some headwinds in the coming year.

Life Of Tim

A chartered accountant by trade, Carstens has been the MD of Base Resources since formation in 2008. Previously, he circulated through a number of executive positions at Australian and offshore junior and midcap mining companies such as Perilya, North Ltd and Robe River Iron. Last year, he participated in the annual off-road 4x4 racing competition in Kenya known as the Rhino Charge. The race raises money for Rhino Ark Kenya, a nongovernmental organisation that works to conserve and protect Kenya’s mountain-range ecosystems. His car, called ‘Aussie Rules’, placed 31st of 50 entrants.

MICHAEL Carvill’s Kenmare Resources made hay with the ilmenite market last year. It paid out a handsome $32.1m total dividend for its 2021 financial year, and at the time of writing, market conditions were still fairly strong, the aftermath of stringent Covid-19 lockdowns in China notwithstanding. In fact, there may be a positive boost to industrial activity as the world’s second-largest economy emerges from its lockdown. Carvill is philosophical on the market, however, as his quote above attests. Kenmare nearly lost its corporate shirt owing to a prolonged downturn in the ilmenite market between 2014 and 2016, precisely at a time when the company’s balance sheet was heavily leveraged. Carvill’s outlook is also tempered by the fact Kenmare’s Moma mine in northern Mozambique is a 100-yearold orebody that requires long-term custodianship. To this end, a feasibility study is being run on the mine’s next development zone, known as Nataka. The firm said in January the project would absorb “a minimum” $225m in capex. If it checks out well, operations are due to commence from 2025. A near-constant risk for Carvill though is jurisdictional. Social unrest in parts of northern Mozambique hasn’t yet filtered through to Moma but breakdowns of the country’s electricity utility led to a decline in full-year ilmenite production to 1.09 million tons. Commenting on prospects this year, Carvill said “we continue to see a robust market for our products”.

Life Of Michael

Carvill has had a few scrapes since graduating with a BSc in mechanical engineering from Queen’s University, Belfast. He was evicted from Sudan during the Islamic Revolution and trawled around the Philippines post the Ferdinand Marcos regime looking for gold. Then came Mozambique, which may have posed his career’s sternest challenge, when Kenmare almost went into liquidation in 2016. Having survived that test, Carvill is keeping it predictable at Kenmare. Relaxation involves sailing in his preferred retreat –Mullaghmore in County Sligo, Ireland.