Friday 24 May 2019

Record year-end lifts Kenmare

Stock photo: Thinkstock
Stock photo: Thinkstock
Ellie Donnelly

Ellie Donnelly

Kenmare Resources, a global producer of titanium minerals and zircon, has said record year-end has led to a "strong" 2018 outcome.

In December the group reported a record monthly production of ilmenite, achieving a run rate of 1.2 million tonnes per annum, according to a trading update.

Its heavy mineral concentrate ("HMC") production increased 4pc to 1,370,800 tonnes over the year to 31 December, while there was a 3pc increase in total shipments of finished products to 1,074,400 tonnes for the 12 months, a new annual record.

Meanwhile the group received higher average received prices for all products when compared with 2017.

At the end of 2018 Kenmare had a net cash position of $13.5m, up from $34.1m net debt at the end of 2017.

It added that its production guidance was 2019 was between 900,000 and 960,000 tonnes of ilmenite.

"In 2018 Kenmare achieved production guidance for a third consecutive year and total shipments of all products also set new annual record levels," Michael Carvill, MD of Kenmare, said.

"Production in 2019 is expected to decrease slightly, due to an anticipated reduction in grade, although ilmenite shipment volumes are expected to be maintained as finished goods inventory is drawn down."

Mr Carvill added that the average received prices in the first half of 2019 are expected to show improvement on 2018.

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