Last checked at 17 Dec 2019 07:00
Production guidance update
Kenmare Resources plc (“Kenmare” or “the Company”)
17 December 2019
Production guidance update
Kenmare Resources plc (LSE:KMR, ISE:KMR), one of the leading global producers of titanium minerals and zircon, which operates the Moma Titanium Minerals Mine in northern Mozambique, announces that it does not expect to achieve its full year (“FY”) 2019 production guidance of 900,000 to 960,000 tonnes of ilmenite. FY 2019 ilmenite production is now expected to be up to 3% below the lower end of the guidance range. Guidance for all other products and shipping volumes remains unchanged.
Following the successful automation of WCP B’s dredge, Kenmare is in the process of automating the first of the two dredges at WCP A, with the objective of increasing plant throughput and utilisation. Implementation of this project has been more challenging than expected, resulting in unplanned production downtime, and tipping the balance of Kenmare’s FY 2019 ilmenite production below 900,000 tonnes. In recent weeks the Company has also experienced reduced power reliability, due to upgrade work being undertaken on the national power grid, contributing to decreased heavy mineral concentrate production during Q4 2019. This upgrade work on the transmission grid is now complete.
Accordingly, FY 2019 ilmenite production guidance is revised to 870,000 to 900,000 tonnes. Whilst total cash operating cost guidance remains unchanged (US$151-167 million), cash operating cost per tonne guidance is revised to US$160-165 per tonne from US$150-160 per tonne, due to reduced production volumes.
FY 2019 production guidance for Kenmare’s co-products is maintained at 44,500-52,000 tonnes of primary zircon, 8,100-9,500 tonnes of rutile and 33,500-43,500 tonnes of concentrates. Kenmare also still expects total shipments in FY 2019 to be above 1 million tonnes, due to strong inventory availability, and the Company continues to experience tight market conditions and upward price momentum for titanium feedstocks.
This press release contains inside information as defined in article 7(1) of the Market Abuse Regulation.
For further information, please contact:
Kenmare Resources plcJeremy Dibb / Katharine SuttonInvestor RelationsTel: +353 1 671 0411Mob: + 353 87 943 0367 / + 353 87 663 0875
Murray (PR advisor)Joe Heron Tel: +353 1 498 0300Mob: +353 87 690 9735
About Kenmare Resources
Kenmare Resources plc is one of the world’s largest producers of mineral sands products. Listed on the London Stock Exchange and the Euronext Dublin, Kenmare operates the Moma Titanium Minerals Mine in Mozambique. Moma’s production accounts for approximately 7% of global titanium feedstocks and the Company supplies to customers operating in more than 15 countries. Kenmare produces raw materials that are ultimately consumed in everyday “quality-of life” items such as paints, plastics and ceramic tiles.