17th Oct 2024 12:34
(Alliance News) - Kenmare Resources PLC on Thursday said both heavy mineral concentrate and ilmenite production fell during its third quarter, but it expects a full-year outturn in line with expectations.
The Mozambique-focused producer of titanium minerals and zircon said heavy mineral concentrate production in the third quarter ended September 30 fell 14% to 355,400 tonnes from 414,600 tonnes the year before. This was the result of lower ore grades, in line with expectations.
Total excavated ore in the three-month period was 11.1 million tonnes, up 2.8% year-on-year from 10.8 million tonnes.
Ilmenite production fell 12% to 257,400 tonnes from 291,200 tonnes as a result of reduced heavy mineral concentrate production, whilst primary zircon production grew 3.5% to 14,600 tonnes from 14,100 tonnes due to improved recoveries and the processing of intermediate stocks.
Shipments in the three-month period rose 85% to 302,700 tonnes from 163,400 tonnes last year, due to the timings of third-quarter shipments. Improved weather conditions led to a 29% growth from the previous quarter.
Managing Director Tom Hickey said: "Production strengthened in the third quarter compared to the second quarter, as expected, due to higher excavated ore volumes, and Kenmare is on track to achieve its 2024 guidance on all metrics. Shipments also improved significantly, with over 300,000 tonnes of products shipped, and this is expected to drive stronger financial performance in the second half versus the first half.
"Market conditions for all of our products continue to be robust, with the healthy demand we experienced in the third quarter extending into the fourth quarter. Our order book is largely committed for the remainder of the year."
Earlier this year, it forecast ilmenite production between 950,000 and 1.1 million tonnes for 2024.
Kenmare Resources also on Thursday reported the death of a member of the public, after a 75-year-old pedestrian was struck by a pontoon travelling in convoy in northern Mozambique.
The convoy of five pontoons was under escort by Mozambican police and travelling at approximately 35 kilometres per hour along a tar road between Namialo and Nampula when the incident occurred. The convoy's progression to the Moma titanium minerals mine a further 250 kilometres away has been halted, and an investigation is underway to determine the cause of the accident.
Shares in Kenmare Resources were up 0.3% at 334.00 pence each in London on Thursday afternoon.
By Emily Parsons, Alliance News reporter
Comments and questions to [email protected]
Copyright 2024 Alliance News Ltd. All Rights Reserved.