Business Irish

Tuesday 17 September 2019

Kenmare upbeat despite global uncertainty and slide in profits

Confident: Kenmare head Michael Carvill has played down economic concerns
Confident: Kenmare head Michael Carvill has played down economic concerns
Ellie Donnelly

Ellie Donnelly

The head of Mozambique- focused Kenmare Resources, Michael Carvill, has played down any potential impact from global economic uncertainty on the company.

"A trade war drops all boats, there is no way anybody can be insulated completely, but mining is a depletive industry; we are replacing supply rather than relying on new homes for our products," Mr Carvill said.

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His comments came after the group announced its first dividend of 2.66 US cents per share after a 20pc decrease in profit before tax to $28.8m (€26m) in the six months to June 30.

This came after a 12pc decline in revenue, to $122.7m, in the first half of the year.

Meanwhile, the Irish group mined record quantities of ore during the period.

However, the overall grade of the ore mined was lower, leading to an 8pc decrease in production to 633,400 tonnes.

In addition, adverse weather conditions hit the shipment of finished products, according to interim results from the group. Kenmare expects strong shipping volumes in the second half of the year, which, combined with what it said were "positive pricing dynamics", are expected to boost its revenues and profitability.

Despite analysts' commentary describing the update as "a very solid performance across the board", shares in Kenmare were down as much as 5.5pc in afternoon trading Tuesday.

Irish Independent

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