Dual-listed Kenmare Resources recorded solid results for the quarter and half-year ending June 30, despite the pandemic.
“I would like to thank our team at the Moma mine for how they have risen to meet the challenges posed by the Covid-19 pandemic. It is through their exemplary organisation, hard work and commitment that Kenmare has continued to produce and ship our products,” Kenmare MD Michael Carvill said on July 14.
Kenmare operates the Moma titanium minerals mine, in northern Mozambique.
“We have been working hard to mitigate Covid-19-related delays to the relocation of wet concentrator plant (WPC) B and we expect mining at Pilivili to begin in quarter four. In recent days, the government of Mozambique has authorised the issuance of business visas to allow specialist contractors to mobilise to site.
"Taking into account the project timeline and the current risk profile, we now expect to produce 700 000 t to 800 000 t of ilmenite in 2020. We remain financially well-resourced to complete the WCP B move and maintain a strong balance sheet, with close to $100-million of cash at the end of June,” he noted.
Carvill indicated that all production metrics, in particular excavated ore volumes, which increased by 27%, had improved strongly in the second quarter, compared with the first quarter.
This represented a quarterly record for excavated ore, benefitting from contribution from the new WCP C.
“Prices for ilmenite, our main product, increased for the fifth consecutive quarter in the second quarter. We expect the market to be more subdued in the second half of the year, as the pandemic impacts both demand and supply of titanium feedstocks, but the long-term fundamentals for all of our products remain strong,” he said.
Strict access controls, hygiene protocols and physical distancing measures have been in place at the mine for several months, with production and shipments continuing.
Kenmare recorded heavy mineral concentrate (HMC) production of 310 300 t for the second quarter, representing a 13% year-on-year increase.
Ilmenite production was 209 900 t in the quarter, representing a 5% decrease year-on-year, primarily as a result of the contribution of a significant spillage retreatment campaign in the prior period.
The company produced 11 600 t of primary zircon, representing a 5% increase year-on-year, owing to increased HMC consumption.
Total shipments of finished products reached 219 100 t, representing a 29% decrease year-on-year, but a 13% increase compared with the first quarter.
The WCP C delivered throughput of 500 t/h on a consistent basis in the quarter under review.