Kenmare shares up on full production forecast

SHARES in Kenmare Resources – the Irish mineral exploration specialist – crept up over 3.5% yesterday, to 29c, on the back of a positive set of interim results and an indication that it will reach full production at its chief asset by the end of this year.

The company – whose main asset is the Moma Titanium Minerals mine in Mozambique – yesterday reported a pre-tax loss of $199,000 (€138,740) for the first six months of 2009; significantly down from a loss of just under $8.1 million for the same period last year. Kenmare’s loss per share level was up slightly – year-on-year – from just above the 1c mark to 2c.

Management backed up yesterday’s results and loss reduction by saying that it is close to completing its performance improvement project and is totally focused on delivering on its previous forecast of reaching full production at Moma before the end of December. “We are delighted that the performance improvement project is virtually finished and has been completed according to schedule. As a consequence, we are on target for full production before the end of the year,” Kenmare’s chairman Charles Carvill said.