Kenmare Resources Releases Q1 2016 Trading Update
Kenmare Resources plc, an Irish incorporated mining company, has just released a trading update for the first quarter ending 31 March 2016.
The principal activity of the Group is the operation of the Moma Titanium Minerals Mine which is located on the north east coast of Mozambique and has been in commercial operation since 2009.
During Q1 2016, Kenmare mined 7,061,000 tonnes of ore at an average grade of 4.32% and produced 274,800 tonnes of Heavy Mineral Concentrate (HMC).
Finished product volumes for the period included 185,000 tonnes of ilmenite and 11,600 tonnes of zircon (including 3,300 tonnes of a lower grade secondary zircon product).
Michael Carvill, Managing Director, said: “A proposed capital restructuring was announced separately this morning. A successful implementation of this plan will reduce outstanding debt to not more than $100 million, provide a significant working capital buffer and a stable and sustainable platform for the Group pending a recovery in mineral sands prices.”
“In addition, costs have been substantially reduced and the electricity supply, which has materially impeded production for the last several years, has been dramatically improved.”
Lower HMC production limited production of final products in the first quarter. Mining conditions vary through the year, however, shallow dredging and the harder mining conditions experienced in Q4 2015 continued into Q1 2016, as expected.
Dry mining was restarted towards the end of the quarter and is helping to augment the more difficult mining conditions.
A focused program of organizational and management improvements has also been put in place with the aim of reducing downtime and ensuring more consistent production levels.
Closing stock of HMC at the end of Q1 2016 was 14,800 tonnes, compared with 11,800 tonnes at the start of the year.