Irish mining company Kenmare Resources has recorded record revenues in the first half of the year following an increase in shipment volumes.
The company reported revenue from mineral products of $229.7 million (€210.3 million) in the first half of the year, up 26pc compared to the corresponding period in 2022.
Shipping volumes jumped 31pc, offsetting a 4pc decrease in average realised prices.
Profit after tax rose by 8pc to $67.8 million (€62.1 million) in the period.
Kenmare Resources said that production had been lower than expected in the first half of 2023.
The company operates one of the world’s largest ilmenite mines, Moma, in Mozambique.
After processing, ilmenite has a number of applications, ranging from paint and paper production, to the manufacture of titanium.
Heavy mineral concentrate (HMC) production at the site was down 14pc in the period.
This performance follows a severe lightning strike at the company’s site in northern Mozambique in February, which is continuing to impact mining activity.
Power reliability issues in recent months have also hampered productivity, Kenmare reported last month.
Ilmenite prices were stable in the first half, while, titanium oxide pigment consumption. which correlates closely to global GDP growth, has been slower in recent months.
Demand for zircon is also down as spot prices move below contracted prices.
The company has approved an interim dividend of 17.5 US cents per share, up 59pc from the same period last year.
Kenmare will also launch a $30 million share buyback programme via a tender offer.
“Production in early H2 2023 has been strong, supported by higher grades, better HMC recoveries and increased tonnes mined,” managing director Michael Carvill said.
“Production in H1 2023 was unfortunately lower than our expectations, primarily due to a severe lightning strike in Q1 and its lingering impact,” he added.
