Kenmare Resources Kenmare Resources Plc : Moma Mine Operational Update
17 February 2015 - 6:01PM
UK Regulatory
TIDMKMR
Kenmare Resources plc ("Kenmare" or "the Company")
17 February 2015
Moma Mine Operational Update
Kenmare Resources plc (LSE:KMR, ISE:KMR), one of the leading global
producers of titanium minerals and zircon, which operates the Moma
Titanium Minerals Mine (the "Mine" or "Moma") in northern Mozambique,
provides an operational update.
As previously announced, Kenmare has been engaged in a substantial cost
cutting programme in an effort to reduce unit costs and conserve cash.
Unit cash operating costs per tonne of product produced declined by 14%
for H1 2014 relative to H1 2013. However, these and subsequent savings
have been insufficient to offset the decline in prices experienced by
the Company.
Kenmare has undertaken a thorough review of operations and staffing
which has resulted in the identification of areas where further
efficiencies can be achieved. Unfortunately this will result in a
focused reduction of employees at the Mine.
The Company has been engaged with employee representatives to explore
alternatives including, amendments to pay scales and voluntary
redundancies. However it is now expected that compulsory redundancies
will be necessary. The redundancy process is expected to result in a
reduction of 15-20% of the Mine's work force. Kenmare continues to
engage with the Government of Mozambique and workers' unions on this
matter.
Separately, Kenmare is pleased to announce that grid power has now been
restored to the Mine following the recent flooding in northern
Mozambique which caused a prolonged grid power outage. As a result,
mining and HMC production at both ponds has resumed.
Kenmare Resources plc
Michael Carvill, Managing Director
Tel: +353 1 671 0411
Mob: + 353 87 674 0110
Tony McCluskey, Financial Director
Tel: +353 1 671 0411
Mob: + 353 87 674 0346
Jeremy Dibb, Corporate Development and Investor Relations Manager
Tel: +353 1 671 0411
Mob: + 353 87 943 0367
Murray Consultants
Joe Heron
Tel: +353 1 498 0300
Mob: +353 87 690 9735
Buchanan
Bobby Morse /Gordon Poole
Tel: +44 207 466 5000
This announcement contains some forward-looking statements that
represent Kenmare's expectations for its business, based on current
expectations about future events, which by their nature involve risks
and uncertainties. Kenmare believes that its expectations and
assumptions with respect to these forward-looking statements are
reasonable. However, because they involve risk and uncertainty, which
are in some cases beyond Kenmare's control, actual results or
performance may differ materially from those expressed or implied by
such forward-looking information.
The Directors of Kenmare accept responsibility for the information
contained in this announcement. To the best of their knowledge and
belief (having taken all reasonable care to ensure that such is the
case), the information contained in this announcement is in accordance
with the facts and does not omit anything likely to affect the import of
such information.
This announcement is not intended to, and does not, constitute or form
part of any offer, invitation or the solicitation of an offer to
purchase, otherwise acquire, subscribe for, sell or otherwise dispose of,
any securities whether pursuant to this announcement or otherwise. The
distribution of this announcement in jurisdictions outside Ireland or
the United Kingdom may be restricted by law and therefore persons into
whose possession this announcement comes should inform themselves about,
and observe, such restrictions. Any failure to comply with the
restrictions may constitute a violation of the securities law of any
such jurisdiction.
A person interested in 1% or more of any class of relevant securities of
Kenmare or Iluka may have disclosure obligations under Rule 8.3 of the
Irish Takeover Rules, effective from 26 June 2014, the date of the
commencement of the offer period for Kenmare under the Irish Takeover
Rules.
This announcement is distributed by NASDAQ OMX Corporate Solutions on
behalf of NASDAQ OMX Corporate Solutions clients.
The issuer of this announcement warrants that they are solely
responsible for the content, accuracy and originality of the information
contained therein.
Source: Kenmare Resources via Globenewswire
HUG#1894890
http://www.kenmareresources.com/
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