24th Apr 2014 12:55
LONDON (Alliance News) - Kenmare Resources PLC Thursday said production across its operations increased in its first quarter and a programme to reduce its operating and capital costs has started.
The titanium producer said its production of heavy mineral concentrate increased 51% to 287,000 tonnes for the three months ended March 31 from 189,800 tonnes the previous year following the completion of an expansion programme at its Moma site in Mozambique.
The company also said its production of ilmenite increased 53% to 210,800 tonnes from 137,500 tonnes and its production of primary zircon increased 35% to 7,700 tonnes from 5,700 tonnes.
As a result, Kenmare Resources said its sales of finished products saw an almost four-fold increase to 193,900 tonnes from 48,500 tonnes.
However, the company did note that its average grade of production fell 25% to 4.21% from 5.59% the previous year.
Kenmare said it is continuing to focus on increasing production and has signed a contract for the rental of a 7.5 megawatt diesel-powered electricity generation plant, which is expected to be available for use at the site for early in the second-half of the year.
It also noted that it has rescheduled certain debt payments and has mitigated certain problems with power fluctuation at its operations, which should lead to lower unit operating costs and a continuing ramp up of production.
Kenmare Resources shares were up 9.5% to 13.41 pence Thursday.
By Tom McIvor; [email protected]; @TomMcIvor1
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