20th Aug 2018 09:49
LONDON (Alliance News) - Titanium minerals producer Kenmare Resources PLC said on Monday it saw a double-digit rise in profit and revenue in the first half of 2018, due to increased prices and sales volumes.
Kenmare reported a pretax profit of USD28.8 million for the six months to the end of June, tripled from USD9.8 million a year before, on revenue that rose by 37% to USD140.1 million from USD102.4 million.
The total shipments of finished products during the period rose by 10% to 589,200 tonnes from 535,700 tonnes the prior year.
However total production saw a decrease, down 3.0% to 688,900 tonnes from 712,700 tonnes a year before. Finished product volumes saw a 11% drop in ilmenite to 449,500 tonnes, a 11% fall in zircon to 33,700 tonnes and a 7% dip in rutile to 4,100 tonnes.
The production fall was due to a planned 180 degree turn at wet concentrator plant A in a high slimes environment, Kenmare said.
More positively, the average price per tonne sold rose by 25% to USD238 from USD191 the year before.
Kenamre said it expects unit costs to decline in the second half of 2018, driven by increased production volumes.
"Our capital projects and studies are progressing well, and we aim to deliver a significant increase in final product production by 2021, funded by internally generated cashflow and our strong balance sheet. The board has now approved the development of the high-grade WCP C dredge mining project, an exciting and capital efficient project which is expected to deliver an IRR of at least 30%," Managing Director Michael Carvill.
Shares in Kenmare Resources were up 1.7% at 230.80 pence on Monday.
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