KENMARE Resources has increased its loss before tax from £676,007 in 1995 to £2.2 million in 1996. This reversal arose despite an increase in sales from £662,119 to £1.4 million. Kenmare, according the preliminary figures, released yesterday, had to contend with a trebling in the cost of sales to £1.7 million and the substantial rise in operating expenses from £653,560 to £1.65 million. The loss per share increased from 59p to 1.52p.

Kenmare has described 1996 as "good for Kenmare" in a difficult year. It notes that its mineral sands project in Mozambique is now "valued by analysts at a multiple of Kcnmare's current capitalisation". Its graphite project "will henceforth generate cash and we are expanding the plant so as to serve strong sales". Kcnmare signed a joint venture agreement with BHP over the Congolone mineral sands project last year.

The Ancuabe graphite mine is described as a "success". Demand is now "so strong" that plant capacity is being increased to 10,000 tonnes per annum. "We expect that Ancuabe will henceforth generate cash," the statement said.

Kenmare has also extended its Niassa gold exploration acreage and acquired a "high potential" Balkan acreage.