London-listed ilmenite miner Kenmare Resources says 2020 had been a year of transition for the company, with the company already seeing benefits of having moved its Wet Concentrator Plant B from the Namalope site to Pilivili.
The move has resulted in an increase in production volumes and a decrease in unit costs.
This, coupled with a rising commodity price environment, has led the board to recommend a 22% increase in dividends for the year, with a final dividend of $0.0769 apiece declared.
Kenmare posted a $0.0231 interim dividend, bringing the full-year dividend to $0.10 apiece.
Despite posting a 63% year-on-year decrease in profit after tax to $16.7-million in the year ended December 31, 2020, the company is increasing its target dividend payment from a minimum of 20% profit after tax to 25% for 2021.
Kenmare produced 756 000 t of ilmenite in 2020, which was 15% lower than the 892 900 t produced in 2019, owing to heavy mineral concentrate consumption changes, changes in intermediate stocks and lower ilmenite recoveries.
Kenmare is targeting an increase in ilmenite production in 2021 of between 45% and 60%, as well as being in the first-quartile of the industry revenue cost curve.
Global demand for ilmenite has remained strong and prices rose throughout 2020.
Ilmenite remains undersupplied owing to depleting orebodies in Africa, mine closures in Australia and continued restrictions in India. Average prices for ilmenite increased by around 9% in 2020 and this momentum has accelerated in the past few months.
The company operates the Moma titanium minerals mine, in Mozambique.