2nd Aug 2016 09:05
LONDON (Alliance News) - Kenmare Resources PLC Tuesday said shipments more than doubled in the second quarter compared to the first as production of all of its commodities increased in the period, allowing the company to maintain its full year targets.
The company said shipments of finished products in the second quarter of 2016 amounted to 309,000 tonnes compared to only 132,700 tonnes in the first quarter, delivering a new quarterly record.
Ilmenite production was up 18% quarter-on-quarter to 217,900 tonnes from 185,000 tonnes and zircon production was up 46% to 16,900 tonnes from 11,600 tonnes. Heavy mineral concentrate production was 21% higher at 331,300 tonnes from 274,800 tonnes.
Kenmare said its production guidance of 950,000 tonnes of ilmenite this year remains intact, but that guidance could vary by 10% either way. Importantly, the miner is expecting production to be higher in the second half when compared to the first half as a result of increases in dry mining, grade and operating time.
"The strengthening of the balance sheet, allied with falling cash costs and consistent productivity gains at Moma, positions Kenmare to benefit from the improvement in the titanium feedstock market we are currently experiencing as higher ilmenite prices are reflected in revenues for the second half of 2016," said Managing Director Michael Cavill.
Kenmare also said its capital restructuring and the deleveraging of the balance sheet were both completed at the end of July, resulting in a 74% reduction in gross debt to USD100.0 million and additional cash of USD75.0 million being released for working capital purposes.
Kenmare shares were up 1.5% to 210.09 pence per share on Tuesday morning.
By Joshua Warner; [email protected]; @JoshAlliance
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