Shares in Kenmare Resources rose after the Irish mining firm posted record first-half profits and mineral production and a surge in its shareholder dividend.
Kenmare, which owns and operates the Moma mine in Mozambique, has more than trebled its interim dividend to US7.29c a share after seeing a 278% surge in after-tax profit, for the first six months of the year, to $48m (€41m).
Total mineral production rose by just under 50% to 612,100 tonnes and revenues rose by 51% to $167.8m.
“We remain confident in the outlook for annual production and reiterate our guidance of 1.1-1.2m tonnes of ilmenite in 2021,” said Kenmare managing director Michael Carvill.
"Market conditions for titanium feedstocks remained strong in the first half, with pricing strengthening quarter-on-quarter. The outlook for zircon has also continued to improve, with price increases during the half and continuing into the second half to date,” he said.
Kenmare's shares were up by around 2% on the back of its update.
Earnings, on an EBITDA basis, were up 121% at $82.3m.
Davy said it will likely upgrade its full-year EBITDA outlook for Kenmare from $174m to around $190m. Kenmare also reduced its net debt to just $76m in the first half.