Revenues at Kenmare Resources rose to more than $40 million in the first half of the year, as production and sales showed a significant rise.
The Dublin-headquartered mining company reported revenues of $40.6 million in the first six months of the year, up from $26.7 million in the second half of 2009. Earnings before interest, tax, depreciation and amortisation were $4.4 million.
Managing director Michael Carvill said the first half of the year had seen “considerable improvement” in production and sales at its Moma mine in Mozambique, a trend that had continued into the third quarter of the year.
Increased demand for titanium feedstocks combined with reduced supply in the market caused prices to rise, the company said. Kenmare said global demand for titanium feedstocks is expected to grow by about 15 per cent in 2010 driven by strong recovery in underlying demand and restocking.
The mine at Moma moved into full production late last year. In March, Kenmare sought new funding through a share issue to expand the mine’s capacity to meet anticipated increased demand for the commodity on world markets. The proposals are expected to increase its production capacity by 50 per cent.
“Kenmare is in a strong position to take advantage of improved pricing arrangements as our production increases,” Mr Carvill said. “The expansion of Moma is advancing as planned and, once complete, Kenmare’s share of the global titanium feedstock and zircon markets will increase to 10 per cent and 6 per cent respectively."
The company said its shipment levels during the quarter rose compared to the preceding three months, with ilmenite up 33 per cent and zircon up 94 per cent.
Brokers viewed the announcement as positive, with JP Morgan noting that the company, in its opinion, is currently generating enough cash at the moment to begin paying off some of the senior and subordinated debt.
