Kenmare's broker reduced its valuation of the mining company's assets yesterday following a visit to Kenmare's titanium mine in Mozambique.
"We visited Kenmare's Moma titanium mineral sands operation from January 31 through to February 1," Davy Stockbrokers said in a note. "The trip served as a reminder that new supply can be fragile as opposed to secure which will have wider implications as the market picks up."
Kenmare's mine in Mozambique has been dogged by production problems, power cuts and a flood that left a girl dead and destroyed part of a village. Falling commodity prices and technical issues at the mine mean the company's shares are sitting at about half the level they were a year ago.
Davy said 2012 production was "disappointing" and the first quarter of this year "will not be a great quarter" for production. Things should then pick up.
"All things being equal, we think Kenmare's share price will oscillate about its current position until mid-May," it added.
Davy now values London and Dublin-listed Kenmare's assets at 45p per share, shaving a penny off the net asset value. Davy cut the company's net asset value several times last year.