Kenmare losses rise to $27.1m
Published 29/08/2015 | 02:30
Operating losses at Dublin-based mining firm Kenmare Resources widened to $27.1m in the first half of this year from $17.8m a year earlier as it struggled with power supply issues and depressed demand for global mineral resources.
The company, whose ilmenite mine in Mozambique is one of the world's largest of its type, also continues to be stalked by Australian mining firm Iluka, but no offer has yet been made .
Kenmare's revenue fell 9pc to $73.9m in the first half due to lower average prices. When $17.3m in favourable foreign exchange movements are taken into account, Kenmare's pre-tax loss narrowed to $27.9m from $32.1m a year earlier.
Kenmare said production during the first half was constrained by 57 days of storm-related grid power outages, as well as other sporadic outages caused by remedial working being undertaken on the supply lines. The company was also hit by unofficial industrial action.
Production of ilmenite - the ore used to make titanium - fell 27pc at the Moma mine in Mozambique, to 324,100 tonnes in the first half. The mine also produces zircon and rutile. Total shipments from it rose 3pc in the period, to 412,000 tonnes.
Kenmare spent months renegotiating terms of existing loans and securing additional facilities. It reached agreement this year, and received an initial disbursement of $10m in financing. It's in talks with lenders in relation to waivers and planned further disbursements.