Kenmare Resources reports a halving of pre-tax losses

EXPLORATION firm Kenmare Resources has reported a near halving of full-year pre-tax losses for 2010, with management adding that its forecast for the current year is “very positive”.

The Dublin-headquartered company, whose chief asset is the Moma titanium mine in Mozambique, yesterday reported a pre-tax loss of just over $16.3 million (€11.4m) for 2010 — significantly down from the $30.4m loss recorded in 2009.

The company’s operating losses also decreased heavily, from $12.1m to $3.5m, while its loss per share figure fell from 3.59c to 0.1c. Its overall revenue figure, meanwhile, jumped from $26.72m in 2009 to just shy of $91.6m.

Last year saw significant increases in production of all minerals from the Moma site, including zircon, rutile and ilmenite.

In total, mineral resources at the mine increased by 20% in the second half of the year.

Kenmare said that if the high-profile settling pond breach, which occurred in October of last year and halted production for four weeks, hadn’t occurred then production would have been even higher.

Managing director, Michael Carvill, said the outlook for the company is good, partly due to prices of titanium minerals and zircon continuing to strengthen this year and likely to continue.

“The mine is operating well and production is broadly in line with expectations. The expansion programme, to increase production capacity by 50%, is well under way and scheduled for commissioning and ramp-up in 2012.

“We believe the outlook for 2011 is very positive for Kenmare,” he said.

Work on Moma’s expansion will probably result in a temporary 10% loss of production this year, but management is confident of increased production levels.

Meanwhile, the company is still searching for a replacement to the outgoing chairman, Charles Carvill, and said they hope to select a candidate “in the coming months”.