Kenmare Resources plc
Kenmare Resources plc
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Mozambique miner Kenmare Resources says more drastic COVID-19 restrictions have prompted it to withdraw its FY2020 guidance for the Moma titanium minerals mine. Kenmare previously forecast ilmenite production of 800,000-900,000t for the year following its 892,000t output in FY2019.
Although Moma’s March qtr (Q1) heavy mineral concentrate production was below expectations at 248,100t, down from 264,700t in the Dec qtr, Kenmare says it was not materially affected by the pandemic.
Global titanium minerals/zircon major Kenmare Resources’ Dec 2019 year (FY/CY19) profit after tax has fallen 12% on the previous year to $US44.8M, primarily on lower production, increased net finance costs, FX losses and increased depreciation charges.
The bottom line came despite revenues up 3% to $270.9M, due to increased average product sales prices up an average 8%, partially offset by reduced volumes. EBITDA of $92.6M was in line with FY/CY18’ $93.3M.
Increased product prices received for a 3% revenue jump has failed to offset a 12% fall in Kenmare’s FY19 profit to $45M, with warnings of uncertain times ahead
Anticipated lower grades have seen Kenmare Resources post a 12% decrease in heavy mineral concentrate production for the Dec year (FY2019) at its Moma titanium minerals mine on Mozambique's NE coast despite its fourth successive year of increased ore excavation.
Total HMC production of 1.202Mt (FY2018: 1.371Mt) delivered 892,900t (958,500t) ilmenite, 46,900t (48,400t) primary zircon and 8,300t (8,200t) rutile.
Kenmare Resources, one of the world’s leading global titanium minerals and zircon producers, has cut Dec 2019 year (FY/CY19) ilmenite production from its sole producing Moma Titanium Minerals Mine in N Mozambique, 3% below the lower end of guidance to 870,000t-900,000t, with cash operating costs up to $US160t-$165t from $150t-$160t.
Global titanium minerals and zircon major Kenmare Resources has declared a maiden $US2.66cps dividend after a June 2019 half (H1 19) 17% net profit after tax fall to $21.9M on H1 18.
The result was on a 2% revenues fall to $122.7M due to an 18% reduction in finished product shipments to 483,500t because of adverse weather conditions, and Heavy Mineral Concentrate (HMC) production from the Moma Titanium Minerals Mine in N Mozambique, down 8% to 633,400t.
Maiden Kenmare dividend follows 17% H1 19 profit fall on HMC production down 8%, but with ilmenite, zircon and rutile all up
The planned weakest grade qtr forecast for 2019 and despite a 7% increase in ore tonnes excavated at its sole-producing Moma mine in N Mozambique, titanium minerals-zircon major Kenmare Resources has seen June 2019 qtr (Q2 19) heavy mineral concentrate (HMC) output plunge 23% on Q1 19 to 274,700t, albeit with grades expected to improve in Q3 2019.
The lower HMC output also saw ilmenite production down 8% to 220,100t and primary zircon slipping 9% to 11,000t.
It was partially expected, but still tough with Q2 19 HMC, ilmenite and zircon production all well down
Titanium minerals-zircon major Kenmare Resources has seen Mar 2019 qtr (Q1 19) shipments from its sole-producing Moma Titanium Minerals Mine in N Mozambique plunge 38% on Q4 18 to 176,500t as a result of adverse weather conditions, including Cyclone Idai, and unscheduled maintenance work on the product dispatch conveyor.