Revenues increase 82pc as price increases pay dividends for Kenmare
Revenues have increased 82pc to $102.4m at Kenmare Resources in the six months to 30 June, according to the latest financial results from the mining company.
Profits increased to $9.4m in the six month period, at the global producer of titanium minerals and zircon, from a $47.1m loss in the first six months of 2016.
Earnings before interest, taxation, depreciation, and amortization (EBITDA) – a measure of a company’s operating cash flow – increased to $29m.
The improved performance has been driven by a 50pc rise in average selling prices and increased sales volumes, with total shipments of finished products in the first six months of 2017 increasing 21pc to 535,700 tonnes.
Read more: Mineral production boost for Kenmare
Commenting on the results, Michael Carvill, Managing Director of Kenmare said that the mining company had produced a record one million tonnes of ilmenite in the twelve months to June 2017 and remains "on target for 2017 production guidance".
"We have also produced record levels of zircon and are capturing more of it in higher quality products. Increased shipments, higher average received prices, and lower unit costs have resulted in first half EBITDA increasing to $29.8m.
We look forward to building on these achievements," Mr Carvill said.
In further positive news from the company, which operates the Moma Titanium minerals mine in northern Mozambique, unit cash operating costs declined 14pc in the first six months of 2017 as a result of higher production and continued cost control.
The company did note that it has experienced some recent softening of ilmenite prices in China but believes this will be temporary.