Kenmare revenue rises in first half

Mining company Kenmare Resources said revenues rose in the first half of 2011, as it ramped up production to take advantage of rising prices.

In its interim management report, the company said average prices for ilmenite rose by 30 per cent, while zircon prices were 38 per cent higher compared with the first half of 2010.

Revenues increased from $40.6 million last year to $56 million in the first half of 2011. Some $20 million in revenue was moves to the second half of the year due to shipping delays.

Earnings before interest, taxation, depreciation and amortisation was $19.7 million for the first half, compared with $4.4 million a year earlier.

Ilmenite production rose to 323,700 tonnes, up from 319,800 a year ago, while Zircon production reached 19,800 tonnes, up from 16,800 tonnes.

"We are in a very positive product market environment and working hard to increase current levels of production to enable us to take full advantage of the increasing prices," said managing director Michael Carvill.

"The scheduled expiry this year of a number of lower priced legacy ilmenite contracts will also support increased revenue generation given the favourable pricing environment. We are also implementing the first expansion of the Moma Mine, which will enable us to capture increased growth in the market as well as increasing our existing market share, further enhancing Kenmare's reputation as a major established supplier to the titanium minerals and zircon industries."