Kenmare Resources moves back into profit

Mining group reports jump in revenues on back of increased prices and sales volumes

Michael Carvill, managing director of Kenmare Resources, said the mining group looks forward to building on its achievements. Photograph: David Sleator

Michael Carvill, managing director of Kenmare Resources, said the mining group looks forward to building on its achievements. Photograph: David Sleator

 

Revenues at Kenmare Resources rose by 82 per cent in the first six months of the year on the back of increased prices and sales volumes, as the mining group moved back into profit.

Kenmare Resources, which operates the Moma Titanium Minerals Mine in northern Mozambique, said that revenues rose to $102.4 million in the six months to June 30th, 2017, as ilmenite production increased 25 per cent to 504,800 tonnes and zircon production advanced by 32 per cent to 37,700 tonnes. Pretax profits for the period were $9.8 million, up from a loss of $47 million in the same period in 2016. Earnings (EBITDA) advanced to $29.8 million, up from a negative $10.7 million in 2016. The price of ilmenite continued over the six months, although Kenmare noted “some recent softening” in the Chinese market.

Michael Carvill, managing director of Kenmare Resources, said the mining group looks forward “to building on these achievements”.

“In relation to our medium-term objective of optimising mining capacity, several development options are under assessment some of which may significantly reduce or defer previously guided capex, whilst optimising production volumes. Capital investment decisions will be made in the context of market conditions and maintaining balance sheet strength,” he added.