Earnings up almost 60pc at Kenmare Resources

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Earnings up almost 60pc at Kenmare Resources


Michael Carvill of Kenmare
Michael Carvill of Kenmare

Kenmare Resources has seen its earnings before interest, taxation, depreciation, and amortisation increase 59pc to $47.5m (€41.6m) in the six months to 30 June.

Revenue at the global producer of titanium minerals and zircon increased 37pc to $140.1m year-on-year, driven by increased prices and sales volumes, the company said in a trading update today.

The group reported profits of $26.4m for the period, more than doubling its margin to 19pc.

During the six month period total shipments of finished products increased 10pc to 589,200 tonnes, compared with the first half of 2017. While averaged received prices rose in the first half of 2018 to $223 per tonne, a 20pc increase year-on-year.

“I am pleased to report that H1 2018 was an excellent period for sales and shipments, with a record 589,000 tonnes shipped at increased prices, generating $48.4m in operating cash flow,” Michael Carvill, MD of Kenmare Resources, said.

“Our capital projects and studies are progressing well and we aim to deliver a significant increase in final product production by 2021, funded by internally generated cashflow and our strong balance sheet.”

Unit cash operating costs increased 16pc in the first half of the year to $152 per tonne, principally as a result of 2018 production guidance being weighted towards the second half of 2018, the company said.

Net debt reduced to $9.3m from $34.1m at 31 December, while the group had cash on hand of $84m at 30 June 2018.

Meanwhile the company said that the commissioning of Wet Concentrator Plant B (“WCP B”) upgrade is “progressing well.”

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