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 price, partially offset by reduced volumes.
Meanwhile, its earnings of $92.6m for 2019 were inline 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 to 2018 and Kenmare said tight ilmenite market conditions have 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 remains “strong” and market pricing has continued to advance to-date this year.
However, it warned that it is likely there will be some adverse effects on the business this year due to the coronavirus, but the extent is 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 will has declared a first full year dividend of US8.18 cents per share.