Business Irish

Tuesday 12 December 2017

ISEQ joins European stock slide as Kenmare jumps

Kenmare's Moma titanium project in Mozambique
Kenmare's Moma titanium project in Mozambique
Sarah Stack

Sarah Stack

SHARES in Kenmare Resources jumped by more than 5pc yesterday as it revealed the amount of ore mined in Mozambique has risen by more than a fifth.

Overall Irish shares fell yesterday as European stocks dropped from a six-year high.

By the close in Dublin, the ISEQ Overall Index was down 0.79pc, or 38.53 points, to 4,815.08.

Kenmare shares were 23.3 cent each last night after the resources firm revealed 24 million tonnes of ore had been unearthed at Moma Mine by the end of last year, up 22pc.

Heavy mineral concentrate production increased 47pc, while shipments of finished products fell slightly to 677,900 tonnes.

Michael Carvill, managing director, said completion of a mine expansion was another important milestone in Kenmare's development.

"Kenmare will use the leverage of additional production capacity to drive down unit costs," he said.

"We will also identify and realise operational efficiencies."

In Dublin, the main leaders were Aminex PLC, up 12.5pc to 1.8 cent each, while Fastnet Oil and Gas climbed 11.8pc to 18 cent and Permanent TSB rose 11.25pc to 8.9 cent each.

AIB shares were up as Finance Minister Michael Noonan said the Government could try to sell shares in the bank before the next election in 2016.

On the opposite side of the scale, the laggers of the day were Conroy Gold and Natural Resources, which plummeted 30pc down to 3.5 cent, and Karelian Diamond, also at 3.5 cent and down 12.5pc.

PetroNeft Resources also fell 11.43pc, down to 62 cent.

Elsewhere, European stocks dropped from a six-year high as a report showed manufacturing in China probably contracted this month, and media and technology companies slid.

The Stoxx Europe 600 Index fell 1pc to 332.69 at the close of trading, its biggest decline in more than seven weeks.

The equity gauge has still gained 1.4pc so far this year, led by a rally in banks. The index trades at 14 times its members' projected earnings after ending 2013 at its highest valuation in four years.

Irish Independent

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