Revenue at Kenmare rises 50% on growth in global demand

REVENUE AT Kenmare Resources rose by more than 50 per cent to $92 million (€64 million) last year on the back of increased global demands.

The mining and exploration group yesterday reported an annual pretax loss of $16.3 million (€11.4 million) for 2010, significantly lower than the $30.4 million loss recorded in 2009.

The company, which operates the Moma titanium mine in Mozambique, said the mine was operating well, with production broadly in line with expectations.

Production of heavy minerals at the mine was hampered last year due to a flooding incident which caused a shut-down of operations in October and the death of a four-year-old girl in a nearby village.

“This was a deeply distressing incident for the residents of the village, many of whom are employees of Kenmare,” chairman Charles Carvill said in a statement accompanying the results.

Kenmare, which is listed in Dublin and London, is now one of the leading producers of titanium feedstock, a material which is used in paints, pigments and cement, and its alloys are used in the manufacture of components for a range of industrial equipment.

Managing director Michael Carvill said prices of titanium minerals and zircon have continued to strengthen in 2011 and this trend was expected to continue.

The company raised $270 million in equity last year to fund the expansion of the mine.

“The expansion programme to increase production capacity by 50 per cent is well under way . . . We believe the outlook for 2011 is very positive,” said Mr Carvill.

The company said it had provided $1.8 million to cover the non-recoverable costs of the flooding.

It has also allocated $1.3 million for legal costs associated with its Supreme Court appeal against a €10 million defamation award to former director Donal Kinsella and related matters.