(Alliance News) - Kenmare Resources PLC on Wednesday said it expects "subdued" market conditions to continue in the second half, following an interim period hit by Covid-19 disruption.
In the six months to June 30, revenue fell 4.8% year-on-year to USD116.8 million from USD122.7 million. The titanium minerals and zircon producer's pretax profit fell 30% to USD16.0 million from USD22.8 million.
Heavy mineral concentrate output fell 12% in the half to 558,400 tonnes. Ilmenite production dropped 19% to 368,900 tonnes, rutile output dropped 34% to 2,900 tonnes, while in primary zircon, there was an 8% fall to 21,200 tonnes.
"Our performance during the first half of 2020 demonstrated Kenmare's resilience and agility, effectively managing many challenges posed by the Covid-19 pandemic to continue to produce and ship our products safely. Although production was weaker in the first half of 2020 than in the corresponding period last year, our business remained profitable," Managing Director Michael Carvill said.
Kenmare lowered its payout by 13% to 2.31 cents per share from 2.66 cents a year earlier.
Carvill added: "We have agreements for the majority of our second half ilmenite production, although market conditions are expected to become more subdued in the second half of the year."
Kenmare separately on Wednesday said it has appointed Deirdre Somers as a non-executive director, effective immediately.
Somers was formerly chief executive of the Irish Stock Exchange.
"I am delighted to welcome Deirdre to Kenmare's board. Having served as the chief executive of the Irish Stock Exchange for 11 years, she brings a wealth of governance experience at the highest level. Deirdre's skillset will complement the skills of our current directors to provide a robust balance of knowledge, experience and diversity, benefitting the company greatly in the years ahead," Kenmare Chair Steven McTiernan said.
Kenmare shares were 0.9% lower at 206.00 pence each in London on Wednesday morning.
By Eric Cunha; ericcunha@alliancenews.com
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Kenmare Resources (KMR)