Business Irish

Monday 25 March 2019

Kenmare performance should please shareholders - analysts

Irish-owned titanium miner Kenmare Resources reported a 162pc increase in profit after tax to $50.9m (€45m) last year, a performance analysts said should please shareholders. Stock photo: Thinkstock
Irish-owned titanium miner Kenmare Resources reported a 162pc increase in profit after tax to $50.9m (€45m) last year, a performance analysts said should please shareholders. Stock photo: Thinkstock
Ellie Donnelly

Ellie Donnelly

Irish-owned titanium miner Kenmare Resources reported a 162pc increase in profit after tax to $50.9m (€45m) last year, a performance analysts said should please shareholders.

"While some of this can be put down to better external market pricing, a much steadier and improved operating performance was also achieved," said Job Langbroek, an analyst at Davy Stockbrokers.

The Dublin-listed company - whose main operations are at the Moma mine in Mozambique - reported a 54pc increase in earnings before interest, taxation, depreciation, and amortisation last year to $93.3m (€82.7m).

Revenue at the group jumped 26pc to $262.2m (€232.5m), primarily due to increased volumes shipped and higher average received prices, according to annual results.

Shipments of finished products increased 3pc to 1,074,400 tonnes, a new annual record.

Managing director Michael Carvill said: "2018 was Kenmare's third consecutive year of achieving our production guidance and delivering record shipment volumes.

"Average received prices for our products were higher in 2018 compared to 2017 and we see a positive outlook due to continued demand growth, depletion of existing mines and limited supply from new mines in the coming years."

At the end of 2018 Kenmare had a net cash position of $13.5m, up from $34.1m net debt at the end of 2017.

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