Kenmare Resources shipped a near-record level of ilmenite, a source of titanium, in the fourth quarter while improving its cash position and announcing an increased dividend.
The Dublin- and London-listed company, which operates the Moma titanium mineral mine in Mozambique, is one of the leading producers of titanium minerals which are used in a myriad of consumer products.
In a trading update, manager director Michael Carvill said “2022 was another good year for Kenmare with ilmenite production of 1,088,300 tonnes, despite the challenges of power interruptions in Q4”.
He noted shipments in the fourth quarter were near record levels.
“Despite some macroeconomic headwinds, we continue to see a robust market for our products, with strong pricing achieved in Q4 2022,” Mr Carvill said. “As China further relaxes Covid-19 restrictions, we expect higher domestic demand to support our sales in the region,” he said.
Kenmare said it had a net cash position $27.5 million at the end of 2022, which represents a $110.3 million improvement from the previous year. The company announced a 51 per cent increase in the interim 2022 dividend to 10.98 US cent per share.
“We continue to target a total dividend payment of 25 per cent of profit after tax in respect of 2022,” Mr MCarvill said.
The company said its 2023 ilmenite production guidance range was 1,050,000-1,150,000 tonnes. In 2020, Kenmare moved its mining infrastructure 23km along a purpose-built road from its previous mining area at Namalope to a new high-grade ore zone called Pilivili. The operation — the largest on-land infrastructure move ever undertaken in Africa — has facilitated increased production.