Monday 16 December 2019

Kenmare says first-half output soared at Moma

Michael Carvill from Kenmare Resources
Michael Carvill from Kenmare Resources

Patrick Edwards

Kenmare Resources, the titanium mining company focused on Mozambique, said first-half shipments of finished products jumped 36pc from the same period in the previous year.

First-half shipments from the Moma mine hit 399,000 tonnes, the Dublin-listed company said. Ilmenite production soared 47pc to 445,600 tonnes while Zircon production advanced 12pc to 21,400 tonnes.

Kenmare added that the slow recovery in global pigment markets was still dragging on market prices for titanium feedstocks and weakness in the Chinese market has led to softer ilmenite prices.

"On balance, we expect production at Moma to continue to ramp-up towards our production estimates," Goodbody analyst Gerry Hennigan 

"The commentary on pricing, which is not surprising in our view, continues to suggest little evidence as yet of a turnaround in mineral sands pricing."

Kenmare rejected a takeover bid from Australian rival Iluka Resources last month, saying the share-for-share offer did not place sufficient value on its largest mine.

Iluka has also suffered from weak prices in its core markets in recent months

Shares soared following confirmation of the approach which came at a time when both companies are suffering from weak prices for mineral sands products like zircon and titanium.

Shares in Kenmare had lost more than half their value so far this year before the offer.

Iluka is the world's top producer of zircon which is used in ceramic tiles.

Last month's failed move on Kenmare, fitted with Iluka's strategy to hunt for cheap bargains amid the market slump in demand for titanium.

Irish Independent

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