Record low commodity prices stymied first-half growth at Kenmare Resources, although the company remains upbeat about its prospects for the full year.
The Dublin-headquartered mining firm, which owns and operates the Moma titanium mine in Mozambique, yesterday reported revenues of $56.2m (€49.9m) for the six months to the end of June; down 24% on a year-on-year basis. First half losses were down by 1% at $10.7m.
Kenmare has already forecast increased production rates for the second half of the year, adding that conditions at Moma have continued to improve.
The company saw total production rise by 24% in the first half, with key ilmenite production rising annually from 324,100 tonnes to 402,900 tonnes.
Ilmenite prices are also set to continue their recovery, after four years of decline, and further reductions in Kenmare’s operating costs — down 22% in the first half thanks largely to increased production — are anticipated.
Kenmare also recently copperfastened a major fundraising and balance sheet restructuring — slashing more than $200m from its debt mountain — and the resultant robust balance sheet, reduced interest payments, and enhanced liquidity “will position the business to take advantage of what we believe will be a sustained recovery in the market”, according to managing director Michael Carvill.
He said the low commodity prices seen in the first half of the year were a reflection of the weak market conditions experienced at the end of 2015. Kenmare’s share price was down marginally in London yesterday.
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