Losses narrow at Kenmare Resources despite challenging production environment
Losses shrunk at Irish miner Kenmare Resources in the first half of the year despite a challenging production environment.
The fall in losses was largely due to a large increase gains on foreign exchange. Net losses came to $27.9mk, compared to $31.8m in the same period last year. The company's revenue in the period dropped to $73.9m from $81.2m due to lower average prices.
Managing director Michael Carvill said production in the period "was severely impacted by weather related power outages in Q1, remedial work in Q2 and unofficial industrial action in June - significantly reducing operating hours for the plant during the period."
"Average daily ilmenite production in Q3 to date is up 50pc when compared with H1 2015 as a result of increased power stability. The outlook for the rest of the year will be further supported as the national power utility commissions equipment that will increase grid power capacity and stability. We are pleased to have reached agreement with our lender group, which has reduced our fixed loan payments and provided us with additional headroom and are in constructive dialogue regarding further loan disbursements.”
The company is the subject of a potential takeover by Australian company Iluka. The company's board "believes that it is in Kenmare’s shareholders’ and other stakeholders’ interests for Kenmare to continue to work with Iluka towards satisfaction of the pre-conditions to Iluka’s proposal."