Revenue at mining company Kenmare for the first six months of 2016 fell by $17.7m to $56.2m, when compared with the same period last year.
The firm said this drop was as a result of lower average prices due to pricing and subsequent contracts being at the bottom of the cycle late in 2015, as well as a reduced value sales mix during the period.
Half-year earnings after day-to-day expenses (EBITDA) was negative $10.7m, $0.1m more than for the first six months of last year.
This led to an operating loss for Kenmare between January and June of $24.9m, however this has improved from a $27.2m loss for the same period in 2015.
The H1 results also show ilmenite production increased by 24% to 402,900 tonnes compared with H1 2015, while zircon production during the period was 20% higher at 28,500 tonnes.
There was also a new half-year record, with total shipments of finished products in the first six months increasing by 7% to 441,700 tonnes.
Kenmare said the ilmenite market has shown signs of recovery in recent months with prices increasing.
Kenmare Resources, a global producer of titanium minerals and zircon, operates the Moma Titanium Minerals mine in northern Mozambique.
The firm’s Managing Director Michael Carvill said Kenmare “has made significant progress in reducing unit operating costs by 22% during the period, through cost savings and increased production.
“Further reductions are expected in the second half of the year as higher production is generated from increased grade levels, volumes of ore mined, recoveries and operating time.
“Prices received for our products in H1 2016 are a reflection of the weak market conditions experienced at the end of 2015, when prices for the majority of H1 2016 shipments were struck.”
Mr Carvill added: “The conclusion of the capital restructuring has provided the Company with a robust balance sheet, reduced interest payments and enhanced liquidity and will position the business to take advantage of what we believe will be a sustained recovery in the market.”
Source: RTE News