11th Apr 2019 10:41
LONDON (Alliance News) - Miner Kenmare Resources PLC on Thursday said adverse weather, including Cyclone Idai, have hampered first quarter shipments.
Shipments came in lower than anticipated, 345 lower year-on-year at 176,500 tonnes, for the three months to March due to poor weather and unscheduled maintenance.
However, Kenmare said 2019 shipments will not be affected.
Kenmare, which mines from the Moma titanium minerals mine in Mozambique, reported a 15% rise in heavy mineral concentrate production to 358,700 tonnes.
Ilmenite production was up 13% to 238,100 tonnes, and zircon by 7% to 12,100 tonnes. Concentrates production increased 80% to 10,100 tonnes.
Kenmare said ilmenite demand is improving, with a further tightening of supply expected in 2019, while zircon remained stable.
Ilmenite is a titanium ore, while zircon is used to make things such as ceramics and pottery more opaque.
"Production in first quarter 2019 was robust, benefiting from increased contribution from WCP B following the upgrade work in 2018. Shipments were lower than anticipated due to poor sea conditions and unplanned maintenance work," said Managing Director Michael Carvill.
"However, we are confident 2019 total sales volumes will not be impacted."
"Titanium feedstock markets strengthened in the first quarter and we expect ilmenite prices to continue to rise in second quarter 2019, driven by increasing Chinese demand," he added.
"We are deeply saddened by the devastating effect of Cyclone Idai on the people of central Mozambique and commend our employees' collective initiative to support the relief effort."
Shares were 0.1% higher Thursday morning at 197.97 pence each.
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