8th Jul 2014 08:39
LONDON (Alliance News) - Kenmare Resources PLC Tuesday said its production rates jumped in its first half following scheduled upgrades at its mineral separation plant.
The titanium producer said it also continues to identify ways to reduce its unit costs.
Kenmare said its ilmenite production in the six months ended June 30 increased 47% to 445,600 tonnes from 302,600 tonnes the previous year, and its zircon production increased 12% to 21,400 tonnes from 19,100 tonnes.
The company said the production increases resulted from record production of ilmenite and primary zircon in its second quarter following scheduled upgrades to the non-magnetic circuits in its mineral separation plant at the Moma site in Mozambique.
As a result, shipments of finished products from Kenmare increased 36% to 399,000 tonnes from 294,100 tonnes and its closing stock of finished products at June 30 was 177,900 tonnes.
In addition, the company said it is soon to install a backup diesel-powered generating plant in July, and it continues to look at ways to reduce costs and conserve cash in the subdued market conditions.
"Unit cost reduction will be driven by further production increases in the second half of the year and complemented by the operational efficiencies we are targeting to reduce costs. We will provide a further update on these initiatives with our half-yearly results in August," Managing Director Michael Carvill said in a statement.
Kenmare shares were down 2.6% to 15.82 pence during early trading on Tuesday.
By Tom McIvor; [email protected]; @TomMcIvor1
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