Kenmare Resources shares up after earnings jump 60pc

Kenmare Resources managing director Michael Carvill
Kenmare Resources managing director Michael Carvill

Shares in Kenmare Resources were up 6.28pc on the Irish Stock Exchange yesterday after the group reported a surge in earnings in the six months to June 30.

Earnings before interest, taxation, depreciation, and amortisation increased 59pc to $47.5m (€41.6m), according to a trading update from the group.

Revenue at the producer of titanium minerals and zircon increased 37pc to $140.1m year-on-year, driven by increased prices and sales volumes.

Profits were $26.4m for the period.

Total shipments of finished products increased 10pc year-on-year to 589,200, while average received prices rose in the first half of 2018 to $223 per tonne, a 20pc increase year-on-year.

“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,” Michael Carvill, managing director of Kenmare Resources, said.

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 December 31, while the group had cash on hand of $84m at June 30 2018.

The company also confirmed that the commissioning of an upgrade at a plant is “progressing well.”

Job Langbroek, analyst with Davy Stockbrokers, said Kenmare’s results indicate that the group looks to be “well in control of its operations and markets generally continue to be supportive”.

Irish Independent

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