Thursday 16 August 2018

Output down at Irish mining firm, but guidance maintained

Kenmare Resources MD Michael Carvill. Photo: Damien Eagers
Kenmare Resources MD Michael Carvill. Photo: Damien Eagers
Ellie Donnelly

Ellie Donnelly

Kenmare Resources, a global producer of titanium minerals and zircon, has reported a dip in production in the first three months of 2018.

However the group has maintained its guidance for the year.

In a statement to the stock exchange, the Dublin-listed company said that the reduction in heavy mineral concentrate production – down 12pc in the first three months of 2018 – as well the reductions in production in ilmenite and zircon were largely due to a planned turn in the mine, as well as some "unforeseen" stoppages.

The group also said that prices for its products were rising this year, while total shipments of finished products were up 4pc year-on-year to 267,200 tonnes.

"Product shipments have started the year strongly, the markets for our products have tightened and we have agreed higher ilmenite and zircon prices for Q2 2018," Michael Carvill, managing director of Kenmare Resources, said.

"We are expecting higher production volumes for the following quarters and still anticipate achieving the mid-range of 2018 guidance."

Earlier this year the group announced revenue of $208m (€168m) for 2017, a 47pc jump on the previous year.

Profit after tax was $19.4m for the year, a swing on the $15m loss recorded in 2016, with the strong performance being driven by price increases for all its products during the year.

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