Kenmare announces maiden dividend for shareholders

Dublin and London-listed mining firm says dividends would be based on 20% of profits

Michael Carvill , Managing Director Kenmare Resources  .Photograph: Bryan O’Brien

Michael Carvill , Managing Director Kenmare Resources .Photograph: Bryan O’Brien

 

Kenmare Resources is to provide its first dividend to shareholders in the first half of next year.

The Dublin and London-listed mining firm, which operates the Moma Titanium Minerals Mine in northern Mozambique, described it as a watershed moment for the company.

It said dividends would be based on a minimum of 20 per cent of profits after tax.

In a trading update, the mining group said ore mined in the third quarter increased 8 per cent to 8.4 million tonnes, benefitting from increased supplementary dry mining.

It also said total shipments of finished products in the the quarter decreased 5 per cent to 198,900 tonnes, in line with previous guidance, due to the timing of shipments and the weighting of 2018 sales.

Managing Director Michael Carvill said: “We believe that industry fundamentals are supportive of higher prices, and while global growth concerns and normal seasonal weakness have driven some buying caution, this appears to be lifting.”

“Prices of ilmenite, our main product, remain at less than 50 per cent of the previous peak and, in our view, are unlikely to be sufficient to incentivise the necessary new supply to replace depleting mines and meet continued demand growth in the medium term,” he said.