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Kenmare warns of virus uncertainties despite 3pc jump in annual revenue

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Kenmare said ilmenite customer demand remained “strong” and market pricing had continued to advance to date this year. Stock photo: Thinkstock

Kenmare said ilmenite customer demand remained “strong” and market pricing had continued to advance to date this year. Stock photo: Thinkstock

Thinkstock

Kenmare said ilmenite customer demand remained “strong” and market pricing had continued to advance to date this year. Stock photo: Thinkstock

THE Mozambique-focused Kenmare Resources saw its revenue increase by 3pc last year to $270.9m, however it warned that Covid-19 presents "global challenges and uncertainties".

The rise in income was due to increased average sales prices, partially offset by reduced volumes.

Meanwhile, its earnings of $92.6m (€86.5m) for 2019 were in line with the prior year, according to annual results from the group.

Profit after tax fell 12pc to $44.8m, mainly due to increased finance costs, foreign exchange losses and increased depreciation charges.

Average received prices for the company's products increased by 8pc in 2019 compared with 2018, and Kenmare said tight ilmenite market conditions had continued in the first three months of this year.

Ilmenite is used for a number of purposes, including in paints, plastics and paper to brighten colours.

Kenmare said ilmenite customer demand remained "strong" and market pricing had continued to advance to date this year.

However, it warned that it was likely there would be some adverse effects on the business this year due to the coronavirus, but the extent was difficult to predict.

So far, the group has seen no material adverse effects on its production at Moma in Mozambique as a result of the deadly virus.

Michael Carvill, managing director of Kenmare Resources, said: "While 2019 was another year of robust financial and operational performance for Kenmare, the recent outbreak of Covid-19 presents global challenges and uncertainties.

"It is likely that there will be some adverse effects on the business this year but the extent is difficult to predict. We will continue to monitor the situation closely and adjust our plans as appropriate."

Kenmare has declared a first full-year dividend of US8.18 cent per share.

Irish Independent