Falling product prices hit Kenmare

Increased costs in labour and engineering also impact mining firm

Zircon production fell in the first half of the year, Kenmare said. Photograph: Carla Gottgens/Bloomberg

Zircon production fell in the first half of the year, Kenmare said. Photograph: Carla Gottgens/Bloomberg

 

Profit and earnings at Kenmare fell in the first half of the year, as declining product prices and increased costs hit the company.

Operating profit for the first half of 2013 was $6.9 million, the company said, down from the $47 million recorded in 2012.

Earnings before interest, taxation, depreciation and amortization was $19 million for the six month period, compares with €56 million a year earlier. Kenmare said production of iIlmenite rose by 9 per cent to 302,600 tones, with zircon production falling by 19 per cent to 19,100, mainly due to disruption linked to the expansionof the company’s facilities.

Capital expenditure was €72 million for the period, with the company expected to invest a further $13 million in completing its expansion.

Kenmare said its phase two expansion facilities were operational and increasing production.