Kenmare swings into profit
Published 27/08/2010 | 05:00
KENMARE Resources, an Irish company that owns a mine in Mozambique, said its expansion plans remain on track as it swung to profit after a rise in sales and production of ilmenite, which is used to make titanium.
Kenmare said first-half pre-tax profit jumped to $1.15m (€0.9m) from a loss of $200,000 last year. Sales rose to $40.6m from $26.7m in the same period last year. Rising production continued in the third quarter, the company added.
Dublin-based Kenmare, which may join the FTSE 250 this year, took advantage of higher prices for ore produced at Moma, which also includes zircon, managing director Michael Carvill said yesterday.
The company raised £180m earlier this year to help it capture about 10pc of the world's supply of titanium, which is mainly used in paints and coatings. It also hopes to expand the capacity of its Moma mine by as much as 50pc.
The miner "is generating sufficient cash at the moment to start paying off some of the senior and subordinated debt," J P Morgan said in a note to clients yesterday. "Overall a positive release with the operations starting to generate cash, which, in our view, should be taken positively by the market."
Shares in the company closed up 8.3pc to 21c in Dublin last night.