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Trading statements

Kenmare reports record output

16 January 2017 07:39

Kenmare Resources - one of the leading global producers of titanium minerals and zircon - reports a­­ record year of both production and shipments of all products in 2016.

Kenmare - which operates the Moma titanium minerals mine in northern Mozambique - said Heavy Mineral Concentrate production increased 28% to 1,405,500 tonnes (2015: 1,100,600 tonnes); ilmenite production increased 18% to 903,300 tonnes (2015: 763,500 tonnes) and zircon production increased 32% to 68,200 tonnes (2015: 51,800 tonnes).

Total shipments of finished products were up 28%, setting a record of 1,024,200 tonnes shipped (2015: 800,400 tonnes).

Production guidance of 950,000-1,050,000 tonnes of ilmenite in 2017, up 5-16% on achieved 2016 production.

Managing director Michael Carvill said: "2016 saw Kenmare deliver a­­ record year of both production and shipments of all products. Q4 2016 was another record quarter, continuing the increasing production trend and improving on the record set in the prior quarter. Production in 2017 is expected to rise further as mine optimisation continues, while unit costs of production are anticipated to fall further.

"Cash generation at the Mine has shown quarter on quarter improvements since bottoming in Q2 2016. Nevertheless, average Kenmare realised ilmenite prices lagged the spot market increases in 2016 as contracts had been agreed prior to the market resurgence. Spot prices have been steadily rising for the past nine months and Kenmare expects this trend to continue as demand remains strong. Average received prices for H1 2017 will show a significant improvement on 2016, benefiting from new contract prices and higher spot prices."

Story provided by StockMarketWire.com

Related Company: KMR

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