9th Jan 2020 12:03
(Alliance News) - Kenmare Resources PLC on Thursday reported a sharp fall in production across all main commodities in the last quarter of 2019.
Heavy mineral concentrate production in the quarter fell 34% year-on-year to 264,700 tonnes, ilmenite by 26% to 203,900 tonnes, zircon by 28% to 10,900 tonnes, and rutile by 21% to 1,900 tonnes.
Overall excavated ore in the quarter declined by 11% to 8.3 million tonnes, with grades down 21% to 3.60%.
However, for the whole of 2019, Kenmare excavated a record 36.8 million tonnes of ore, 8% higher than the year before.
Annual HMC production fell 12% to 1.2 million tonnes, ilmenite slipped 7% to 892,900 tonnes, with zircon falling 3% to 46,900 tonnes. Rutile rose 1%, however, to 8,300 tonnes. Grades in the year fell 18%.
Kenmare, which is based in Dublin, mines from the Moma titanium minerals mine in northern Mozambique. Ilmenite and rutile are titanium ores, while zircon is used to make things such as ceramics and pottery more opaque.
Looking at the market, Kenmare achieved higher average prices for ilmenite and rutile during the year compared to 2018, but zircon prices were lower.
"In 2019 Kenmare continued to advance its outlined strategy of delivering growth, margin expansion and shareholder returns," said Managing Director Michael Carvill.
"We achieved record shipments in fourth-quarter 2019 and record excavated ore in 2019. Ilmenite production was within 1% of the original guidance range and we achieved guidance for all other products."
For 2020, the firm sees ilmenite production between 800,000 tonnes to 900,000 tonnes, zircon between 44,500 tonnes and 50,1000 tonnes, and rutile between 7,700 tonnes and 8,700 tonnes.
Shares were 1.3% lower on Thursday in London at a price of 237.32 pence each.
By George Collard; [email protected]
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