Kenmare Resources upbeat on full-year prospects

Kenmare Resources has forecast increased production for the second half of this year as conditions continue to improve at its operations in southern Africa.

The Irish mining firm — which owns and operates the Moma titanium mine in Mozambique — yesterday reported record quarterly shipments and strong rises in production for the second quarter of this year. It is due to report half-year financial results later this month.

Earlier in the summer, Kenmare copperfastened a major fundraising deal allowing for the slashing of $200m of debt.

That strengthening of the balance sheet — along with falling costs and improving productivity gains — positions Kenmare well to benefit from the improved titanium feedstock market and higher prices for mined product, according to managing director Michael Carvill.

Total shipments from Moma rose 133% to 309,000 tonnes in the three months to the end of June, representing a record quarterly result for Kenmare.

Production of zircon was up by 46% to 16,900 tonnes but, more importantly, production of ilmenite — the main ore of titanium — rose by 18% to 217,900 tonnes.

Second-half production, at Moma, is set to grow on the back of increases in dry mining, grade and operating time, Kenmare said.

Ilmenite supply reductions — particularly from mine closures in markets like Russia and Australia — and price rises have led to an improvement in the market in recent months, and Kenmare said these changes should be positively reflected in its second-half revenues.

Kenmare’s share price was up by close to 1% yesterday on the back of its update.