Kenmare back in profit as prices rise

Kenmare Resources returned to profit in the first half of the year and recorded an 82% annualised increase in revenues on the back of increased commodity prices and sales volumes.

The Dublin-based company, whose sole operating asset is the Moma titanium mine in Mozambique, yesterday reported a pre-tax profit of $9.83m (€8.36m) for the six months to the end of June; a turnaround from a $49.1m pre-tax loss for the same period last year. Revenues jumped by 82% to $102.4m.

Kenmare produced record levels of ilmenite and zircon in the 12 months to June and managing director Michael Carvill said the company remains on target to meet its production guidance for the current year.

“In relation to our medium-term objective of optimising mining capacity, several development options are under assessment, some of which may significantly reduce or defer previously-guided capital expenditure, while optimising production volumes. Capital investment decisions will be made in the context of market conditions and maintaining balance sheet strength,” Mr Carvill said.

Kenmare said ilmenite prices continued to recover in the first half of this year, although there has been a softening of prices in the lucrative Chinese market in recent times. That trend, however, is expected to prove only temporary.

Market conditions improved for zircon, in the first half, and Kenmare expects that positive momentum to continue. Earnings on an earnings before tax, interest, depreciation and amortisation came to $29.8m and analysts expect earnings to improve into next year.


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