Mozambique: Kenmare Resources Posts Record 2011 Profit

 Kenmare Resources Posts Record 2011 Profit

Kenmare Resources plc., which operates the Moma Titanium Minerals Mine in Mozambique, today announced its preliminary results for the twelve months to 31 December 2011.

This release incorporates Kenmare’s Interim Management Statement relating to the period from the 1 January 2012 to the 28 March 2012.

Highlights

• EBITDA of US$71.7 million for 2011 (2010: US$17.4 million)

• Profit after tax of US$23.7 million for 2011 (2010: loss of US$16.3 million)

• Robust demand increases market prices strongly in 2011

• 2011 Revenues of US$167.5 million (2010: US$91.6 million)

• Moma’s health and safety record continues to improve, with a lost time injury frequency rate per 200,000 hours worked of 0.23

• 730,400 tonnes of total products were shipped in 2011, up from 712,900 tonnes shipped in 2010

• Total HMC production for the year was 842,900 tonnes (2010: 956,900 tonnes)

• Ilmenite production was 636,800 tonnes (2010: 678,400 tonnes)

• Zircon production was 43,600 tonnes (2010: 37,100 tonnes)

• Combination of dry mining and operation of the dredges set to return mine to target output levels

• Phase II expansion project progressing with delivery of critical items to Moma

• Demand for output from Phase II expansion has been strong, majority of output already allocated to customers

• Kenmare achieved lender “Technical Completion”, resulting in a reduction in the subordinated debt interest rate by 2% (approximately US$3 million pa.).

Justin Loasby, Chairman of Kenmare said, “I hope that, under my stewardship, the Board will continue to develop and grow Kenmare’s value in a sustainable and socially responsible manner, whilst retaining the entrepreneurial spirit that has served the Company so well thus far. With this in mind, increasing and stabilising production is a key success factor. The Board continues to identify and implement actions to reduce risks and to enhance the robustness and resilience of the production system.”

[mappress]

Dredging Today Staff, March 28, 2012; Image: kenmareresources

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