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Annual Results

Kenmare losses narrow

22 March 2017 08:13

Kenmare's pre-tax losses fell to $17.1m in the year to the end of December - down from $61.9m last time following a record year of production and shipments.


- Net debt declined by 88% at the end of 2016 to US$44.8 million following a recapitalisation

- Record annual production of ilmenite, rutile and zircon

- HMC production increased 28% to 1,405,500 tonnes

- Ilmenite production increased 18% to 903,300 tonnes

- Zircon production increased 32% to 68,200 tonnes

- Total shipments of finished products increased 28%, setting a record of 1,024,200 tonnes shipped

- Cash operating costs declined 18% to US$136 per tonne of final product

- EBITDA increased to US$5.2 million in 2016 from negative US$11.5 million in 2015

Managing director Michael Carvill said: "The ilmenite market has been experiencing a strong recovery over the past twelve months, as evidenced by the US$26.6 million increase in EBITDA in the second half of the year, and the market continues to improve.

"The period also benefited from improved shipment volumes and lower unit costs.

"2016 was a record year of production and shipments for all products and the Company expects further production increases and unit cost reductions in 2017.

"Contract prices set for H1 2017 will also benefit from the rise in spot prices experienced in 2016.

"The product market recovery remains at an early stage and we believe higher prices will be required to meet growing titanium feedstock demand."

Kenmare also announced that Peter Bacchus, chairman and chief executive of Bacchus Capital Advisers, had agreed to join the board as a non-executive director.

Kenmare said his appointment would coincide with the retirement of Sofia Bianchi from the board at the company's annual general meeting scheduled for 25 May.

Chairman Steven McTiernan said: "Sofia Bianchi's contribution to Kenmare over the last nine years has been immense.

"On behalf of the whole board, I would like to thank Sofia for her commitment and strategic guidance, and her steadfast service as senior independent non-executive director, especially during the last several challenging years.

"I am delighted that Peter will be joining the board, which will benefit greatly from his outstanding advisory experience and deep knowledge of the mining industry."

At 8:13am: (LON:KMR) Kenmare Resources PLC share price was +8.75p at 327.5p

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