Operating profit of Kenmare Resources in Mozambique falls 85 pct in 1st half to US$6.8 million

5 September 2013

Operating profit posted by Kenmare Resources from its heavy sands project in Moma, Mozambique, fell by 85 percent to US$6.8 million in the first half of the year due to increased production costs, a drop in prices, and lower demand on the international market, the company said in a statement.

According to financial information for the first six months of the year, Kenmare Resources posted turnover from the sale of heavy minerals concentrates, ilmenite and zircon, US$79.2 million, which compares to US$109 million in the same period of 2012. It posted a loss of US$10.2 million against a profit of US$38.7 million in the January to June period of 2012.

In the first half of the year the company increased its production of heavy minerals concentrate (480,000 tons against 386,200 tons in the same period of 2012) and ilmenite (302,600 tons against 276,600 tons), but lowered its zircon production from 23,600 tons to 19,100 tons.

Despite a rise in production, exports of Kenmare’s products fell from 321,500 tons in the first half of 2012 to 294,100 tons in the same period of 2013.

The report also said that in July of this year the company produced 80,000 tons of ilmenite, which was a significant increase against the previous months due to the start of operations at the processing plant built for Phase II of the project’s expansion. (macauhub)