Kenmare Resources swung into profit – its first in years – and cut net debt amid a much improved market for ilemnite and zircon which were likely to remain elevated price-wise through the current financial year, the UK-listed company said in its full-year results commentary, published today.
Taxed profit came in at $19.4m, a swing of some $34m year-on-year – a performance largely informed by record production of both ilmenite and zircon whilst the markets were supportive. There was also a 3% reduction in cash operating costs. The combination of these factors enabled the company to reduce net debt to $34m, a decline of $11m as of December 31. The outlook is positive.
“Received prices are expected to average at higher levels in 2018, supported by continued demand growth and a reduction of low quality ilmenite supplied from stockpiles,” the company said. Kenmare Resources operates the Moma mineral sands mine in northern Mozambique.