Titanium minerals miner Kenmare Resources said on Wednesday its search for a successor to its managing director of almost four decades, Michael Carvill, “is approaching its conclusion” and the new head before it unveils interim financial results in four weeks.
The Dublin-listed company, one of the leading global producers of titanium minerals and zircon from its Moma mine in Mozambique, also said while its production rose strongly during the second quarter of 2024, shipments dropped 18 per cent on the year to 234,700 tonnes.
This was mainly due to poor weather conditions and operational issues at Kenmare’s shipping facilities, limiting shipping time, it said.
Production of ilmenite, which is used in the manufacture of everything from paints and plastics to ceramics and textiles, rose 8 per cent at the mine to 238,600 tonnes. Production of primary zircon, which is widely used in the foundry industry, jumped 12 per cent to 13,000 tonnes.
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Kenmare experienced “robust demand” for all of its products during the quarter, especially for ilmenite.
Market prices for ilmenite remained relatively stable throughout the first half of the year, however Kenmare’s average received price decreased slightly in the second quarter compared to the previous three months.
Despite this, prices in the first half were above the company’s expectations, Kenmare said.
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“Chinese pigment producers continued to produce at record levels during the quarter. Demand for Kenmare’s ilmenite was also bolstered by an uptick in operating rates among pigment producers in Europe and the United States to meet stronger underlying demand, as well as some restocking of titanium feedstocks,” it added.
“Speculation surrounding potential duties on Chinese pigment entering the European Union further supported demand and prices for European pigment.”
Global supply of titanium feedstocks remains “sufficient to meet demand”, with new supply from Chinese producers in African countries shipping concentrates to China for processing.
Shares in Kenmare are down almost 27 per cent to €3.82 over the past 12 months, with the ongoing depressed share price – relative to the current average €6.67 price target of analysts that cover the company – prompting UK investor JO Hambro to urge the company to put itself up for sale. However, Kenmare has resisted such calls.
The company is currently working on a project upgrade of its main mining plant and moving it to a different location at Moma, which is expected to cost is $341 million by 2027 but will, according to the company, “secure production for decades to come”. The Moma mine is estimated to have a 100-year lifespan from now based on current production rates.
Mr Carvill, who founded the company in 1986, said in March that he planned to step in August, but would be available in a consultancy capacity until at least the end of the year to help with an orderly change at the helm.
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