Kenmare reports lower FY output on power supply challenges
JOHANNESBURG (miningweekly.com) – The share price of LSE-listed Kenmare Resources fell by as much as 26% on Monday morning, as the company announced lower output at its Moma mine, in Mozambique.
The mineral sands miner produced 1.1-million tonnes of heavy mineral concentrate in 2015 – 15% less than the 1.29-million tonnes produced the year before. Ilmenite production fell 11% year-on-year to 763 500 t but rutile output rose 2% year-on-year to 51 800 t.
“Power interruptions and instability have been the key bottleneck to production at the Moma mine in recent years and acutely felt in the first quarter of 2015, when flooding resulted in a prolonged outage,” said Kenmare MD Michael Carvill.
Production stoppages related to the installation of new electricity infrastructure had further hampered output in the last quarter of the year.
Carvill noted, however, that the quality and consistency of power supply had improved since State-owned utility Electricidade de Moçambique, in December, installed additional power transmission infrastructure, which had increased transmission capacity to 163 MW.
Dredge operating times were expected to improve this year, following the upgrade to the power lines.
Kenmare was also targeting improvements in its dredge operations this year through the implementation of improved maintenance tactics, improved operator routines and additional engineering skills.
Meanwhile, the miner reported that it had successfully contained its cash operating costs in 2015.
Kenmare’s bank loans stood at $341.9-million and its cash equivalents at $14.3-million as at December 31.
The company’s share price on the LSE fell by 26% to 0.48p a share on Monday morning, compared with Friday’s close of 0.65p, but was trading at 0.57p a share on Monday afternoon – down 12.71% on Friday’s close.
Comments
Research Reports
Projects
Latest Multimedia
Latest News
Showroom
Goodwin Submersible Pumps Africa is sole distributors for Goodwin electrically driven, submersible, abrasion resistance slurry pumps.
VISIT SHOWROOM
Weir Minerals Europe, Middle East and Africa is a global supplier of excellent minerals solutions, including pumps, valves, hydrocyclones,...
VISIT SHOWROOM
Press Office
Announcements
What's On
Subscribe to improve your user experience...
Option 1 (equivalent of R125 a month):
Receive a weekly copy of Creamer Media's Engineering News & Mining Weekly magazine
(print copy for those in South Africa and e-magazine for those outside of South Africa)
Receive daily email newsletters
Access to full search results
Access archive of magazine back copies
Access to Projects in Progress
Access to ONE Research Report of your choice in PDF format
Option 2 (equivalent of R375 a month):
All benefits from Option 1
PLUS
Access to Creamer Media's Research Channel Africa for ALL Research Reports, in PDF format, on various industrial and mining sectors
including Electricity; Water; Energy Transition; Hydrogen; Roads, Rail and Ports; Coal; Gold; Platinum; Battery Metals; etc.
Already a subscriber?
Forgotten your password?
Receive weekly copy of Creamer Media's Engineering News & Mining Weekly magazine (print copy for those in South Africa and e-magazine for those outside of South Africa)
➕
Recieve daily email newsletters
➕
Access to full search results
➕
Access archive of magazine back copies
➕
Access to Projects in Progress
➕
Access to ONE Research Report of your choice in PDF format
RESEARCH CHANNEL AFRICA
R4500 (equivalent of R375 a month)
SUBSCRIBEAll benefits from Option 1
➕
Access to Creamer Media's Research Channel Africa for ALL Research Reports on various industrial and mining sectors, in PDF format, including on:
Electricity
➕
Water
➕
Energy Transition
➕
Hydrogen
➕
Roads, Rail and Ports
➕
Coal
➕
Gold
➕
Platinum
➕
Battery Metals
➕
etc.
Receive all benefits from Option 1 or Option 2 delivered to numerous people at your company
➕
Multiple User names and Passwords for simultaneous log-ins
➕
Intranet integration access to all in your organisation
