Kenmare Resources (KMR)

Sector:

Mining

Index:

FTSE Small Cap

292.00p
   
  • Change Today:
    -6.00p
  • 52 Week High: 305.00
  • 52 Week Low: 169.00
  • Currency: UK Pounds
  • Shares Issued: 109.74m
  • Volume: 115,933
  • Market Cap: £320.43m
  • RiskGrade: 191

Higher volumes, jump in prices boost Kenmare Resources's bottom-line

By Alexander Bueso

Date: Monday 20 Aug 2018

LONDON (ShareCast) - (Sharecast News) - Kenmare Resources delivered a double-digit increase in sales for the first half of its financial year, on the back of record shipments during the second quarter and plans to increase production.
The company, which supplies titanium feedstock and zircon sands, said total shipments of finished products grew by 10.0% over the six months ending on 30 June, with prices up by 20% to $223 a tonne versus the year-ago period, driving a 37% jump in revenues to $140.1m.

Net profits meanwhile nearly tripled, rising from $9.38m in the first half of 2017 to $26.38m.

To take note of, record production during the second quarter offset the hit to output over the prior three months as its wet concentrator plant A encountered a higher-slimes area.

The resulting lower volumes meant that cash operating costs per tonne increased by 16% to $152 a tonne, although the company guided towards lower unit costs in the back half of 2018, driven by increased production volumes.

Significantly, according to analysts at Canaccord Genuity, during the reporting period Kenmare also approved building its high-grade WCP C Dredge Mining Project, which it anticipated would be completed by the end of 2019.

Canaccord's Des Kilalea and Tim Huff believed the shares' rating had been negatively impacted for a year or more by the lack of certainty around capex projects and the "perception" of little output growth, as well as some overhang of lender-owned shares.

The project, which was scheduled to ramp-up at the end of 2019, would boost output by between 15% and 20%, the broker said.

Kilalea and Huff had a 'buy' recommendation and 475p target price on the company's shares.

Mozambique-focused Kenmare also managed to reduce its debt pile, cutting it from $34.1m as of year-end 2017 to $9.3m.

At period-end, cash on hand stood $84.0m, up from $63.0m in the year ago period.

As of 1512 BST, shares of Kenmare were changing hands at 228.0p and trading up by 0.44% for the session.

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Note 1: Prices and trades are provided by Digital Look Corporate Solutions and are delayed by at least 15 minutes.

Note 2: RiskGrade figures are provided by RiskMetrics.

 

KMR Market Data

Currency UK Pounds
Share Price 292.00p
Change Today -6.00p
% Change -2.01 %
52 Week High 305.00
52 Week Low 169.00
Volume 115,933
Shares Issued 109.74m
Market Cap £320.43m
RiskGrade 191

KMR Star Ratings

Compare performance with the sector and the market.
more star ratings
Key: vs Market vs Sector
Value
69.56% above the market average69.56% above the market average69.56% above the market average69.56% above the market average69.56% above the market average
35.14% above the sector average35.14% above the sector average35.14% above the sector average35.14% above the sector average35.14% above the sector average
Price Trend
79.46% above the market average79.46% above the market average79.46% above the market average79.46% above the market average79.46% above the market average
28.00% above the sector average28.00% above the sector average28.00% above the sector average28.00% above the sector average28.00% above the sector average
Income
48.96% above the market average48.96% above the market average48.96% above the market average48.96% above the market average48.96% above the market average
18.18% below the sector average18.18% below the sector average18.18% below the sector average18.18% below the sector average18.18% below the sector average
Growth
74.73% above the market average74.73% above the market average74.73% above the market average74.73% above the market average74.73% above the market average
38.98% above the sector average38.98% above the sector average38.98% above the sector average38.98% above the sector average38.98% above the sector average

What The Brokers Say

Strong Buy 3
Buy 0
Neutral 0
Sell 0
Strong Sell 0
Total 3
strong_buy
Broker recommendations should not be taken as investment advice, and are provided by the authorised brokers listed on this page.

KMR Dividends

  Latest Previous
  Interim Final
Ex-Div 24-Sep-20 16-Apr-20
Paid 23-Oct-20 19-May-20
Amount 2.31¢ 5.52¢

Trades for 30-Nov-2020

Time Volume / Share Price
16:35 7,436 @ 292.00p
16:29 42 @ 289.00p
16:28 36 @ 289.00p
16:28 600 @ 289.00p
16:28 822 @ 289.00p

KMR Key Personnel

Finance Director Tony McCluskey

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