Slowdown hits Kenmare Resources
Kenmare Resources said the global slowdown had begun to impact on its business, although production output and revenues grew during the quarter.
In its interim results published this morning, the mining company said the short term business outlook had been affected by softer markets for titanium minerals feedstock and zircon products, with the pigment market in the US deteriorating the second half of 2012 and shrinking demand in Europe. In China, Kenmare noted there was subdued demand.
“The expected seasonal improvements in pigment demand in the second and third quarters did not materialise, leading to downward pressure on pigment prices,” the company said in a statement.
Some 229,100 tonnes of heavy mineral concentrate was produced in the third quarter, a 16 per cent rise compared with the previous three months.
Production of titanium mineral ilmenite rose 21 per cent to 174,100 tonnes. The company said revenue for the third quarter was mainly generated from ilmenite sales, with prices slightly above the average of the second quarter.
The global market for zircon, meanwhile, continued to be weak, particularly in China and southern Europe.
The company said it was meetings its debt payments as scheduled, with $239 million of net debt.