Tuesday 17 September 2019

Kenmare announces first dividend, despite decline in profit

Michael Carvill, managing director of Kenmare Resources
Michael Carvill, managing director of Kenmare Resources
Ellie Donnelly

Ellie Donnelly

Irish-owned titanium miner Kenmare Resources has announced its first dividend of US 2.66cents per share.

This is despite a 20pc decrease in profit before tax to $28.8m (€26m) in the six months to 30 June, according to interim results from the group.

Meanwhile, earnings before interest, taxation, depreciation, and amortisation fell 11pc to $42.8m (€38.5m).

The fall in profits at Mozambique-focused Kenmare came on the back of a decline in revenue, which was down 12pc to $122.7m (€110.6m) in the first half of the year, as previously reported bad weather impacted the shipment of finished products.

However, the group expect strong shipping volumes in the second half of the year, which, combined with what it said was "positive pricing dynamics", are expected to boost its revenues and profitability.

"Operationally, we continue to deliver robust results," Michael Carvill, managing director of Kenmare Resources, said.

"Excavated ore volumes in Half One 2019 set a new record and we are on track to achieve our full year guidance on all stated metrics," he added.

In terms of production, Kenmare produced just over half a million tonnes of finished product in the first half of 2019.

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