12th Mar 2014 09:10
LONDON (Alliance News) - Kenmare Resources PLC Wednesday said it swung to a pretax loss in the full year 2013, as revenues fell significantly on lower commodity prices and as it focused on the development of its Moma investment during the period.
The FTSE 250 titanium producer posted a pretax loss of USD42.1 million in 2013, compared with a pretax profit of USD52.8 million the previous year, as revenues fell 41% to USD137.9 million from USD234.6 million in 2012.
The company said its revenues fell as the weighted average product price the company received in 2013 dropped 31%.
During the period, the company completed its investment programme in the Moma Titanium Minerals Mine, a major titanium feedstock and zircon producer and said it is now well placed to improve cashflow from its expected demand recovery in titanium feedstock and zircon markets.
Kenmare added that with an expansion programme complete and commissioned, and with major capital costs behind it, the Moma Mine should reap the benefits of the investment in 2014 and beyond.
The company said that during the period its ore mined increased 22% to 24.0 million tonnes as its Phase II expansion plan, which has increased capacity for the company by 50%, was completed, and its new dredge, Wet Concentrator Plant B and processing plants becoming operational during the year.
Kenmare said its production of heavy mineral concentrate increased 47% to 1.1 million tonnes and its ilmenite production increased 25% to 720,100 tonnes, but that its zircon production fell 33% to 31,400 tonnes during the period.
The company also noted that it is exploring the idea of using diesel generator units to supply power to its mineral separation plant which should ensure stable power supply through December to March when the company experiences power stability problems.
Kenmare shares were down 4.8% to 13.80 pence in early trading Wednesday.
By Tom McIvor; [email protected]; @TomMcIvor1
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