Kenmare Q3 revenue up strongly
KENMARE said third-quarter revenue rose strongly from the second quarter mainly on higher production and also helped by increased prices.
The mining company said in a trading statement that ilmenite production rose 5pc to 147,000 tonnes while production of zircon grew 17pc to 11,200 tonnes from its Moma mine in Mozambique.
Overall production of heavy mineral concentrates jumped 27pc to 196,000 tonnes, but was still below capacity due to difficulties operating in a clay-rich zone and because of teething problems associated with new equipment. Kenmare said it had since moved into more productive mining conditions.
The statement contains "incremental rather than transformational news," Davy Stockbroker analyst Caren Crowley said. "Despite the cautious outlook on near-term prices, we are leaving our forecast pricing unchanged."
The Dublin-listed mining firm said in August that it expects a dramatic boost to earnings next year when it will be able to capitalise on higher prices for its key products. Strong demand and supply constraints had led to rises in ilmenite and zircon prices.