30th Jan 2015 08:29
LONDON (Alliance News) - Kenmare Resources PLC Friday said production and shipments increased overall quarter on quarter and year on year and said it is expecting to finalise a budget for 2015 in the next few weeks.
During the fourth quarter ended December 31, the company produced 366,600 tonnes of heavy mineral concentrate, a 16% rise quarter on quarter. Zircon production saw a small 1% increase to 14,800 tonnes whilst rutile production jumped 6% to 1,700 tonnes during the quarter.
Production increased partially due to the company averaging a higher grade of 5.24% in the third quarter from 4.29% in the third quarter.
Ilmenite production was the only area to see a decline, down 14% quarter on quarter to 188,800 tonnes. The company said it had curtailed production in the second half of the year in reaction to market conditions, it said.
"Increasing domestic Chinese and international ilmenite production and delayed offtake from pigment and titanium slag plants contributed to soft Chinese market conditions. Therefore, Kenmare continued to curtail shipments to China during the period," it said.
Sales of total finished products in the three months ended December 31, rose by 19% quarter on quarter to 217,500 tonnes. Shipments of finished products in the fourth quarter increased by 19% quarter on quarter to 217,800 tonnes from 183,200 tonnes.
For the full year ended December 31, the company produced 1.3 million tonnes of heavy mineral concentrate, a 13% rise from the 1.1 million tonnes produced in 2013. Zircon production rose by 62% to 50,800 tonnes from 31,400 tonnes.
Full year rutile production increased by 53% year on year to 6,100 tonnes whilst ilmenite production increased by 19% to 854,600 tonnes.
Shipments of finished products in 2014 were also up, by 18% to 800,000 tonnes from 677,900 tonnes in 2013. Of the total shipments, 747,400 tonnes was ilmenite, 50,000 tonnes was zircon, and 7,700 tonnes of zircon.
Kenmare said it has agreed to extend discussions with Absa Bank Ltd about potential funding for 2015 until the end of February, and is expecting to conclude the talks "in the coming weeks," it said.
At the end of 2014, Kenmare reported bank loans totalling USD337.3 million and cash of USD21.8 million.
Kenmare shares were up 6.6% to 3.23 pence per share on Friday morning, the best performer in the FTSE All-Share.
By Joshua Warner; [email protected]; @JoshAlliance
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