13th Mar 2019 12:36
LONDON (Alliance News) - Kenmare Resources PLC on Wednesday said its profit grew significantly in 2018 on higher sales volume and prices, but output declined due to orebody depletion.
The producer of titanium minerals and zircon from the Moma Mine In Mozambique said pretax profit tripled to USD56.1 million in 2018 from USD18.5 million a year earlier, as revenue increased by 26% to USD262.2 million from USD208.3 million.
The strong performance was primarily driven by increased volumes shipped and higher average received prices, Kenmare said.
The company said it saw a 3% increase in total shipments of finished products to 1.1 million tonnes, a new annual record versus 1.0 million tonnes in 2017.
Ilmenite output of 958,500 tonnes in 2018 was 4.0% lower than 998,200 tonnes produced a year earlier, while primary zircon production of 48,400 tonnes was broadly flat compared to 48,600 tonnes.
More positively, Kenmare reported a 4% increase in heavy mineral concentrate production to 1.4 million tonnes from 1.3 million tonnes year-on-year.
"2018 was Kenmare's third consecutive year of achieving our production guidance and delivering record shipment volumes," said Managing Director Michael Carvill.
"Average received prices for our products were higher in 2018 compared to 2017 and we see a positive outlook due to continued demand growth, depletion of existing mines and limited supply from new mines in the coming years," added Carvill.
Kenmare shares were trading 3.4% lower on Wednesday at 199.90 pence each.
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