Portfolio

Kenmare Resources nearly doubles output at Mozambique pit

By Philip Waller

Date: Thursday 24 Apr 2014

Kenmare Resources nearly doubles output at Mozambique pit

Titanium mineral producer Kenmare Resources announced a near-doubling of production in the last three months after expanding its Moma mine in Mozambique.

Kenmare, which produces minerals such as ilmenite, zircon and rutile, said it mined 7,543,000 tonnes of ore between January 1st and March 31st, up 81% on the same quarter a year ago.

The group said sales of finished products were up 299% to 193,900 tonnes in the quarter and it was continuing to focus on increasing production while reducing operating and capital costs.

Kenmare, which completed a debt restructuring in February 2014, also said it had taken steps to improve power supplies at Moma.

Managing Director Michael Carvill said: "The first quarter of the year has historically been our lowest production quarter due to the issues associated with power supply in the Southern Hemisphere summer months.

"With the rescheduling of debt payments completed and the problem of power fluctuation having been mitigated, we look forward to reporting further progress on lowering unit operating costs and ramping up production."

Shares in Kenmare rose 1p or 8.2% to 13.25p by 09:07 in London.

PW

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