Kenmare Resources reports low revenue due to lower shipments
Dublin based mining company Kenmare Resources has reported lower revenue and profits for the first half of the year.
The company operates the Moma Titanium Minerals Mine in Mozambique.
It reported revenue from mineral products of US$154.5 million, down 33% on the same time last year due to lower shipments, pricing and product mix.
However, it said shipments are expected to increase and the product mix is anticipated to reverse.
The company said it is on track to achieve 2024 guidance.
“Shipments have strengthened in early H2, supported by strong visibility of customer orders, high finished product inventories and seasonally better weather conditions,” said Andrew Webb, Chairman of Kenmare Resources.
“Consequently, revenue is expected to be second-half weighted,” he added.
Despite the lower shipments, at the end of the first half of the year net cash increased to a record US$58.9 million, having paid US$34.7 million in dividends and invested US$49.1 million in capital expenditure.
Earnings before interest, taxes, depreciation, and amortization dropped 43% to US$63.2 million due to lower revenues, while profit after tax fell 69% to US$20.9 million.
“With net current assets of almost US$200 million at the half year, including record net cash of US$58.9 million, we are well positioned to fund our capital commitments and shareholder returns,” Mr Webb said.
Yesterday, Kenmare announced that Finance Director Tom Hickey has been appointed as Managing Director. He will begin the new role on 15th August.
“As previously announced, Michael Carvill, Kenmare’s founder, today steps down as Managing Director after almost four decades,” said Mr Webb.
“I would like to again express the Board’s appreciation and thanks to Michael, who leaves the company with a robust balance sheet, strong and capable team, a tier one asset, a market-leading position and a robust balance sheet,” he added.
