Kenmare returns to profitability, achieves record production

JOHANNESBURG (miningweekly.com) – LSE-listed Kenmare Resources has made significant strides as it returned to profitability and delivered record production from its Moma titanium minerals mine, in northern Mozambique, during the year ended December 31.

The titanium minerals and zircon producer on Wednesday reported robust operational progress and much improved financial results in 2017, following product price increases and effective management focus on cost discipline and operational reliability, which, in turn, has led to productivity gains.

“Kenmare achieved record production and shipment volumes in 2017, in line with guidance given at the beginning of the year,” said MD Michael Carvill.

Earnings before interest, taxes, depreciation and amortisation (Ebitda) increased to $59.6-million in 2017, from $5.2-million in 2016, with profit of $19.4-million for 2017 a significant turnaround on the loss of $15.2-million posted in 2016.

The company also retains a strong balance sheet, with just $34.1-million of net debt, while cash operating costs declined 3% to $132/t of final product.

Revenues increased 47% to $208.3-million during the year under review.

Kenmare further achieved record yearly production of ilmenite, rutile and zircon, achieving production guidance for all products.

Ilmenite production increased by 11% to 998 200 t and zircon production increased by 9% to 74 000 t during 2017.

Total shipments of finished products increased by 2%, setting a yearly record of 1.04-million tonnes shipped.