Saturday 24 March 2018

Revenue jumps 47pc at Kenmare Resources

Michael Carvill of Kenmare
Michael Carvill of Kenmare
Ellie Donnelly

Ellie Donnelly

Kenmare Resources, a global producer of titanium minerals and zircon, has reported revenue of $208m (€168m) for 2017, a 47pc jump on the previous year.

Earnings before interest, taxation, depreciation, and amortisation at the Dublin-listed company increased to $59.6m, a $55m increase on the previous year, according to the company’s preliminary results for 2017.

During the year the company produced 998,200 tonnes of ilmenite and 74,000 tonnes of zircon, a record for annual production, while the group’s total shipments of finished products increased 2pc, year-on-year, setting an annual record of 1,040,400 tonnes shipped.

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.

Meanwhile net debt at the company declined by $11m to $34.1m.

"Kenmare achieved record production and shipment volumes in 2017, in line with guidance given at the beginning of the year," Michael Carvill, managing director of Kenmare Resources, said.

"We are developing plans for a series of low capital-intensity brownfield expansion projects to increase mining capacity and fully utilise our installed plant capacity and export facilities, while helping to meet market demand as required," he continued.

The company noted in its results that the Chinese Government's increased commitment to enforcement of environmental regulations and its requirement for environmentally positive process improvements had caused it some disruption in this segment of its market, as its pigment customers rush to implement required changes.

However, the company said it believed that this disruption is temporary in nature and is in the interests of building a long-term sustainable titanium value chain in China.

Going forwards, the group described the demand outlook for ilmenite and particularly zircon markets in 2018 as “favourable”.

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