18th Aug 2021 11:22
(Alliance News) - Kenmare Resources PLC on Wednesday reported soaring profit and revenue in the first half of 2021, as production and shipping increased from its Moma titanium mine in Mozambique, southeast Africa.
The Dublin-based company, which is a titanium minerals and zircon miner, produces raw material for use in everyday products, such as paints, plastics and ceramic tiles.
It booked pretax profit of USD50.6 million for the six months ended June 30, more than tripled from USD16.0 million for the same period last year. Pretax profit for the full year 2020 was USD22.8 million.
The miner made interim revenue of USD178.2 million, up 53% from USD116.8 million in the first half of 2020.
Kenmare benefited from a higher ore grade in the 798,500 tonnes it mined, meaning production for the period increased by 43% year-on-year.
As a result, there was total finished product production of 612,100 tonnes, a 49% increase from 410,600 tonnes in 2020. Total shipments increased by 44% year-on-year.
"I am delighted to see the capital investment and the hard work of our teams over the last three years generating significant increases in production and sales volumes. This is also translating into higher profitability," said Managing Director Michael Carvill.
Off the back of the improved performance, Kenmare declared an interim dividend of 7.29 US cents per share, more than triple on last year's 2.31 cents.
"Increased production, reduced unit costs and strong markets for Kenmare's products in H1 2021 resulted in strong earnings growth. We plan to build on these positive trends for the remainder of this year," Carvill added.
Shares were up 1.0% at 427.00 pence in London on Wednesday.
By Josie O'Brien; [email protected]
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