Kenmare cuts debt on back of record shipments of products
The titanium and zircon miner said net debt fell by $25 million in the first six months
The company said it was seeing some season weakness in the Chinese ilmenite market
Irish titanium and zircon miner Kenmare Resources reported a record shipment of its products in the second quarter.
The Dublin-listed company also said average product prices received increased over the last three months, resulting in stronger cash flow generation.
Kenmare said net debt fell to $9.1 million in June, as against $34.1 million at the end of last year.
Gross bank loans amounted to $93.3 million at the end of June, while cash and cash equivalents were $84.2 million.
During the second quarter, Kenmare said it mined 8.4 million tonnes of ore at an average grade of 4.68 per cent, producing 377,900 tonnes of heavy mineral concentrate (HMC).
Finished product volumes for the period included 238,500 tonnes of ilmenite, 16,800 tonnes of zircon and 2,000 tonnes of rutile.
The company said it was seeing some season weakness in the Chinese ilmenite market, which coupled with disruption to pigment plant operating rates is leading to a slowdown in ilmenite purchasing activity.
“The zircon market continues to benefit from steady demand and constrained supply, driving higher prices. Further price increases were achieved in the second quarter and are being implemented in the third quarter in line with the prevailing movement in the market,” Kenmare said.