KRA pays out Ksh.255 million in VAT refund to titanium firm Base

The Kenya Revenue Authority (KRA) has paid out a further Ksh.254.9 million in VAT refund claims to Kwale based titanium firm Base Titanium.

The payments due for the construction of and operation of the Kwale project bring down the tax man’s obligation to the firm to Ksh.2.1 billion ($19.5 million) at the end of the year’s first quarter.

The payments serve to enhance the liquidity of the firm which has fully drawn on its Ksh.8 billion ($75 million) revolving credit facility to provide flexibility under the ongoing Covid-19 pandemic.

Base Titanium’s Kwale operations continue uninterrupted, supported in large part by sustained consumer demand.

Production in three months to March soared to 138,661 tons from 119,687 tons in December.

Sales were similarly sustained during the quarter in spite of volatility from the firm’s main Chinese market to stand at 120,476 tons from 127,328 tons in the last quarter.

“Base is closely monitoring the impact Covid-19 is having on the demand from its customers. So far, all product orders have been made in line with planning and we have seen no material impact on the demand side,” noted the firm in its quarterly operations update Thursday.

Base’s production forecast for 2020 remain unchanged but is subject to uncertainties related to the coronavirus pandemic.

“Due to the inherent uncertainties associated with the COVID19 pandemic, a halt to, or curtailment of, operations at some point in the future is possible.  In such an event, the company may update or withdraw its FY20 production guidance, as appropriate in the circumstances,” added the firm.

The firm remains keen on extensional exploration of deposits subject to anticipated approvals from the Ministry of Mining and Petroleum.

Base has since begun a pre-feasibility study for the mining of North Dune Mineral Resources even as it faces delays in the drilling of other sections due to ongoing community access disputes.