Kenmare Resources boosts shareholder dividend on profit surge

Kenmare Resources managing director Michael Carvill: 'We remain confident in the outlook for annual production.' File picture

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.

Shares up by 2%

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.