Kenmare Resources Production Guidance Update
17 December 2019 - 6:00PM
UK Regulatory
TIDMKMR
Kenmare Resources plc ("Kenmare" or "the Company")
17 December 2019
Production guidance 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 in northern Mozambique, announces that it does
not expect to achieve its full year ("FY") 2019 production guidance of
900,000 to 960,000 tonnes of ilmenite. FY 2019 ilmenite production is
now expected to be up to 3% below the lower end of the guidance range.
Guidance for all other products and shipping volumes remains unchanged.
Following the successful automation of WCP B's dredge, Kenmare is in the
process of automating the first of the two dredges at WCP A, with the
objective of increasing plant throughput and utilisation. Implementation
of this project has been more challenging than expected, resulting in
unplanned production downtime, and tipping the balance of Kenmare's FY
2019 ilmenite production below 900,000 tonnes. In recent weeks the
Company has also experienced reduced power reliability, due to upgrade
work being undertaken on the national power grid, contributing to
decreased heavy mineral concentrate production during Q4 2019. This
upgrade work on the transmission grid is now complete.
Accordingly, FY 2019 ilmenite production guidance is revised to 870,000
to 900,000 tonnes. Whilst total cash operating cost guidance remains
unchanged (US$151-167 million), cash operating cost per tonne guidance
is revised to US$160-165 per tonne from US$150-160 per tonne, due to
reduced production volumes.
FY 2019 production guidance for Kenmare's co-products is maintained at
44,500-52,000 tonnes of primary zircon, 8,100-9,500 tonnes of rutile and
33,500-43,500 tonnes of concentrates. Kenmare also still expects total
shipments in FY 2019 to be above 1 million tonnes, due to strong
inventory availability, and the Company continues to experience tight
market conditions and upward price momentum for titanium feedstocks.
This press release contains inside information as defined in article
7(1) of the Market Abuse Regulation.
For further information, please contact:
Kenmare Resources plc
Jeremy Dibb / Katharine Sutton
Investor Relations
Tel: +353 1 671 0411
Mob: + 353 87 943 0367 / + 353 87 663 0875
Murray (PR advisor)
Joe Heron
Tel: +353 1 498 0300
Mob: +353 87 690 9735
About Kenmare Resources
Kenmare Resources plc is one of the world's largest producers of mineral
sands products. Listed on the London Stock Exchange and the Euronext
Dublin, Kenmare operates the Moma Titanium Minerals Mine in Mozambique.
Moma's production accounts for approximately 7% of global titanium
feedstocks and the Company supplies to customers operating in more than
15 countries. Kenmare produces raw materials that are ultimately
consumed in everyday "quality-of life" items such as paints, plastics
and ceramic tiles.
(END) Dow Jones Newswires
December 17, 2019 02:00 ET (07:00 GMT)
Copyright (c) 2019 Dow Jones & Company, Inc.
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