Kenmare Resources Posts H1 Loss

LONDON (Alliance News) - Kenmare Resources Plc. (KMR.L) reported that net loss for the first-half of 2013 was $10.23 million, compared to profit of $38.79 million in the year ago period. Loss per share was 0.40 cents, compared to profit of 1.60 cents last year.

Loss before tax was $9.23 million, compared to profit before tax of $38.79 million in the same period last year.

Operating profit for the period fell to $6.9 million from the previous year's $47.0 million.

Earnings before interest, tax, depreciation and amortisation or EBITDA for the period amounted to $18.8 million, compared to $55.5 million in the prior year.

While production volumes of Heavy Mineral Concentrate or HMC and ilmenite increased by 24% and 9% respectively on the same period last year, revenues for the period decreased to $79.3 million from last year's 109.1 million. This was principally a result of lower average prices, primarily a reflection of weaker market conditions for the first half of the year compared with 2012.

The company shipped 294,100 tonnes of products in the first-half of 2013 compared with 321,500 tonnes in the first-half of 2012. In first-quarter, shipping levels were very low (48,500 tonnes) primarily because stocks had been sold down to a minimum level at the end of the year, and since production was quite modest in the first two months of 2013, stocks took some time to replenish. In contrast, 245,600 tonnes were shipped in the second-quarter.

Copyright RTT News/dpa-AFX

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