TIDMKMR
Kenmare Resources plc
("Kenmare" or the "Company")
25 November 2022
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 (the "Mine" or "Moma") in northern
Mozambique, announces an update to its 2022 guidance.
Statement from Michael Carvill, Managing Director:
"Production of ilmenite, our primary product, was strong in
October 2022 and we maintained the 1.2 million tonne per annum run
rate we achieved in Q3. However, a recent issue in the electricity
transmission grid has created unplanned power outages. Kenmare is
actively working with the state electricity provider, Electricidade
de Moçambique, to identify and rectify the problem but the outages
have resulted in lower production, and consequently, we are
revising our ilmenite guidance.
Q4 is expected to be our strongest quarter of shipments, which
will not be impacted by lower production, and Q4 prices remain
strong."
2022 guidance
Kenmare informed the market in its Q3 2022 Production Report,
dated 13 October 2022, that it expected production to be at or
around the bottom of the Company's 2022 guidance ranges. During
October 2022, Kenmare achieved an annualised run rate of 1.2
million tonnes per annum of ilmenite production, in line with
original guidance and driven by the Company's robust performance in
Q3 2022. However, more recently, Heavy Mineral Concentrate ("HMC")
production weakened due to unplanned power outages.
Consequently, 2022 guidance for production of ilmenite and
rutile is updated as follows:
Updated Previous
Unit 2022 Guidance 2022 Guidance
---------------- ------- ------------------- -------------------
Production
---------------- ------- ------------------- -------------------
Ilmenite tonnes 1,080,000-1,110,000 1,125,000-1,225,000
---------------- ------- ------------------- -------------------
Primary zircon tonnes Unchanged 54,400-63,200
---------------- ------- ------------------- -------------------
Rutile tonnes 8,500-9,500 9,500-11,500
---------------- ------- ------------------- -------------------
Concentrates(1) tonnes Unchanged 40,300-46,800
---------------- ------- ------------------- -------------------
1. Concentrates include secondary zircon and mineral sands concentrate.
The lower end of the revised guidance ranges assumes a
continuation of recent power disruptions until the end of the year.
However, Kenmare is working with the state electricity provider,
Electricidade de Moçambique, to identify and rectify the issues as
a matter of urgency.
Production guidance for primary zircon and concentrates is
unchanged due to higher zircon content in the HMC mined and
stronger recoveries.
Q4 2022 is anticipated to be the strongest quarter of the year
for shipments, due to seasonally favourable weather conditions and
unrestricted shipping capacity.
Total cash operating costs are anticipated to be very slightly
above the top end of 2022 guidance ($190-210 million), due
primarily to higher fuel prices. Cash operating costs per tonne
will be a function of lower production volumes and higher operating
costs.
Kenmare expects to announce its Q4 and Full Year 2022 Production
Report, which will include 2023 guidance, in mid-January 2023.
For further information, please contact:
Kenmare Resources plc
Jeremy Dibb / Katharine Sutton
Investor Relations
ir@kenmareresources.com
https://www.globenewswire.com/Tracker?data=lRHCR0tLfGH9coy-YDmYpNaP-Kl076_OsRJa7P2yYu0aIb_LNrf7lBjIpuid2OHaHBECfbYWs3PMQc6PQI7Bv-j0QfKFPBwCorRZ4FtlQmJHkAnq13pIO9xfFwDs1QL0N-Xypt6HCRdOpMZ4nCKYcaflRBxqazEKVz9VRVW_a4Z9vT-c0mKa_-lkMuV33fAtnTjfrqdbvs3dt7Uy5C-x13XYaLelL2qwvTM6JggNmQaU1cC7ogxQdvMbbRzq7ckS36jm8fTJjCWsCeA1b2PTfQ5X1cN-tkrrCU6FaNL-5_3CMs6jm4yxJtkFzctOSfVvhQT6VcNLvl2O8ykGhE2VPvNShaLb3T694iofPbmcIFwY0rPrJa2HFOuPdS1ot_xOL3_AJw9bvQGNzYwWXanUxNcu2KE3H4x7qgZHpMYfskExIgl288Ds4krzZH42L8rG3Hkj5fFXH_nZpbHQ8kpff4wCBqedAcjvmp_1wLxDKZ6ooINXtlAGAaSuWMTMarix
Tel: +353 1 671 0411
Mob: +353 87 943 0367 / +353 87 663 0875
Murray (PR advisor)
Paul O'Kane
pokane@murraygroup.ie
https://www.globenewswire.com/Tracker?data=3pWEr42eJ88o4AzCs_evGMcQPiv2vbOdon4C5e0T6O1IkwQYhlK0D7FyrOkLT1u5nCI0uWRXS_WUVqZd7bb9RlswmXAcr6Pg6tBiq0EUQtw=
Tel: +353 1 498 0300
Mob: +353 86 609 0221
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 8% 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.
All monetary amounts refer to United States dollars unless
otherwise indicated.
Forward Looking Statements
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.
(END) Dow Jones Newswires
November 25, 2022 02:00 ET (07:00 GMT)
Copyright (c) 2022 Dow Jones & Company, Inc.
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