JOHANNESBURG (miningweekly.com) – London-listed Kenmare Resources on Wednesday announced a loss after tax for the year ended December 31 of $44.1-million as opposed to a profit of $49.5-million in the prior year, as the company completed its investment programme in the Moma titanium mineral mine, in Mozambique, during a challenging commodity price environment.

The company’s revenue for the year amounted to $137.9-million, compared with $234.6-million previously, and earnings before interest, tax, depreciation and amortisation for the period of $29-million, Kenmare said.

“2013 saw the end of a long period of investment in Moma. With the expansion completed and commissioned, and with the capital cost behind us, the Moma mine will reap the benefits of this investment not only in 2014 but for years to come,” Kenmare MD Michael Carvill commented.

During the year under review, Kenmare completed the Moma Phase 2 expansion, including a new dredge and the wet concentrator plant B.

This expansion had increased the mine’s production capacity by 50%, providing Kenmare with the ability to meet 8% of global titanium feedstock demand and 4% of global zircon demand.

During 2013, ore mined at Moma increased by 22% to 23-million tonnes, with heavy mineral concentrate production increasing by 47% to 1.14-million tons, up from the 772 300 t previously produced.

The mine also produced 720 100 t of ilmentite and 31 400 t of zircon, which included 10 300 t of secondary zircon product, during the period under review.

“Zircon production was lower than expected, mainly due to an extended shutdown as part of the expansion,” Kenmare said.

Meanwhile, Kenmare chairperson Justin Loasby pointed out that the mine’s resource base was expected to last more than 100 years and, in conjunction with an ongoing focus on cost control now that the expansion had been delivered, Moma allowed for low-cost mining operations. 

“Through an equity placement and debt restructuring, the balance sheet has been re-engineered to better suit the subdued market environment in which we are operating.  Despite power supply difficulties, the expansion has demonstrated its ability to run at nameplate throughput capacity.

“[Moving forward] we are continuing to [focus on] improving the efficiency of our business and driving down our cost per tonne, while tackling the challenges of maintaining consistent power to our operations," Carvill stated.