Production solid for first quarter, Kenmare discloses
Kenmare Resources has said it enjoyed solid production in the first quarter of the year at its exploration facility in Mozambique. Kenmare said that the market for its main revenue generating minerals - ilmenite and zircon - has been recovering in the opening months of the year having come under pressure in the latter part of 2016.
Ilmenite production increased by 39% to 256,500 tonnes in the first quarter, while zircon production was up by 59% to 18,500 tonnes.
The company's shipments of finished products have risen by 91% compared to the same period last year.
"The first quarter in what has traditionally been a lower producing quarter," said Kenmare managing director Michael Carvill.
"Q1 cash generation at the mine has continued the trend of quarter on quarter improvement, since bottoming in the second quarter of 2016," he said.
The company's improved first quarter performance benefited from disruption to the ilmenite market in China due to stricter environmental regulations being enforced.
Kenmare said ilmenite output from India had also declined in recent months due to a government imposed mining ban.
"The company remains on track in its strategy of maximising cash generation through increasing production."