Kenmare Resources shares jump amid dividend boost

Shares in Kenmare Resources jumped on Wednesday after the company said mineral product revenues increased 18 per cent and EBITDA rose by 39 per cent last year to $298 million (€276 million).

The rare earths miner, which operates in Mozambique, is “tracking within guidance for 2023, despite suffering an extremely severe lightning strike which halted production for an extended period in February, albeit towards the bottom end of our range for ilmenite and rutile” managing director Michael Carville said in a statement.

“In 2023 the market for our products remains buoyant, although at marginally lower levels than the highs of Q3 2022, with strong customer demand for volume.”

Shares in the company rose 6.5 per cent in Dublin.

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The firm moved to a net-cash positive position of $27 million during the year, and plans to pay a dividend of 54.3 cents per share for 2022. That’s an increase of two thirds on a year earlier.

Overall, heavy mineral production increased 2 per cent to 1.6 million tonnes, while ilmenite production fell 3 per cent, falling below 1.1 million tonnes.

The company is guiding ilmenite production of 1.05 million-1.15 million tonnes for this year.