Irish mining firm, Kenmare Resources is anticipating a stronger production roll-out for the second half of the year, after seeing the first six months blighted by storm-related power failures.
“Power stability is expected to improve following the installation of new power infrastructure in the third quarter,” the Dublin-based company — which owns and operates the Moma titanium mine in Mozambique — said yesterday, via an operational update.
However, the statement —which showed that ilmenite production decresed by 27%, to 324,100 tonnes in the first half of 2015, with zircon rising by 11% to 23,800 tonnes —prompted a 2.5% share price dip, although that was pared back later in the day.
According to managing director, Michael Carvill: “Production in the first half of 2015 was severely impacted by weather-related power outages in the first quarter. Production in quarter two improved, though remained hampered by remedial work to the power line and unofficial industrial action in June — reducing operating hours for the plant. The outlook for production in the second half looks stronger as the national power utility commissions equipment that will increase grid power capacity and stability.”
Goodbody Stockbrokers suggested it was likely to lower its production forecasts for Kenmare for this year, based on latest trading.
“The update... continues to suggest a difficult market backdrop, leading to further downgrades in our production estimates for the current year,” exploration and mining analyst, Gerry Hennigan said.
Goodbody had anticipated total production from Kenmare to reach around 964,000 tonnes this year; up from a total of 912,000 last year.
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