Saturday 25 March 2017

Kenmare says prices up after weaker first half but overall revenue is reduced

Kenmare Resources managing director Michael Carvill
Kenmare Resources managing director Michael Carvill
Donal O'Donovan

Donal O'Donovan

Dublin and London-listed Kenmare says the ilmenite market has shown signs of recovery in recent months, with production up and prices increasing.

Overall however the mineral exploration and mining company reported revenue for the first half of 2016 of $56.2m, down from $73.9m last year.

The company said the drop reflected lower average prices, and what it called a reduced value sales mix during the period.

However, total shipments of finished products increased 7pc to an all-time record in the first six months of the year to 441,700 tonnes.

The company said it had made significant progress in cutting costs.

And further reductions at Kenmare are expected in the rest of this year.

Cash operating costs per tonne of finished product declined 22pc to US$153, Kenmare said.

"The company has made significant progress in reducing unit operating costs by 22pc during the period, through cost savings and increased production," said managing director Michael Carvill.

Prices received during the period reflected weak market conditions at the end of 2015, when prices were struck, he said.

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