PUNT OF THE WEEK: Mineral sand miner Base Resources ‘is able to work through the coronavirus pandemic’
AIM-listed Base Resources mines mineral sands
WHAT IS IT?
An AIM-listed firm that mines mineral sands, which can be used in everyday products such as toothpaste, adhesives and paint.
Base Resources is focused on Kenya and Madagascar.
WHAT’S THE LATEST?
Base said in April it will have to wait until at least September to get a final decision from the Malagasy government about whether it can restart operations at its Toliara mine project, which were suspended last year.
WHO BACKS IT?
Mining private equity specialist Pacific Road Capital owns 26.5 per cent. Others include Fidelity International and the Australian arms of Credit Suisse, Bank of America and UBS.
WHY SHOULD YOU INVEST?
John Meyer, head of research at SP Angel, said: ‘In Kenya the company operates in a remote location and is able to work through the coronavirus pandemic.
‘And the closure of rival mines may serve to keep the market tight for some time.’
AND WHY SHOULDN’T YOU?
Meyer added: ‘If demand for pigments – which represent more than 95 per cent of the market for mineral sands – falls then prices might pull back.’