Kenmare sees first-half profits soar
Profits at Kenmare Resources soared and revenue climbed higher as market conditions improved and the company moved towards market-based contracts.
Gross profit was 218 per cent higher in the first half of the year, at $55.0 million for the first six months of the year, up from $17.3 million in the same period in 2011.
Operating profit was 370 per cent higher at $47 million.
Revenue for the period soared 95 per cent to $109 million, with earnings before interest and at $55.5 million, a rise of 182 per cent on 2011.
Managing director Michael Carvill said revenues and profits had benefitted from price increases and the falling away of legacy contracts.
The group predicted a "significant" improvement in its production of ilmenite and zircon in the second half of the year.
"While production was challenging during the first half of 2012, we have taken steps to address the issues and have experienced a significant step up in production since June," Mr McCarvill said. "We remain focused on delivering the Phase II expansion with commissioning scheduled to commence by the end of the year."
The company has raised $60 million in equity, which will mainly be used for its phase II expansion. The expansion, which which will increase production capacity by 50 per cent, is expected to be completed by the end of the year and the the expanded facility will be at full production at some point in 2013.