Kenmare revenues up 83 per cent

Mining company Kenmare Resources revenues rose 83 per cent to $167.5 million in 2011, compared to $91.6 million a year earlier.

In a trading update issued this morning, Kenmare said it shipped 730,400 tonnes of finished products from the mine last year, up from 712,900 in 2010.

The exploration firm said production rose by 15 per cent during the final quarter of 2011 to 225,600 tonnes from 195,700 tonnes in the preceding three months.

Ilmenite and zircon production was up by 13 per cent and 12 per cent respectively from the third to the fourth quarter.

The company said demand for all its products was robust during 2011 and prices grew strongly.

The market price for ilmenite at the start of 2011 of around $100 per tonne increased three to four fold throughout the year, driven by tight market conditions.

Going into 2012, Kenmare has secured pricing for new contracts in the range of $300 to $400 per tonne for ilmenite for the first half of the year, it said.

Meanwhile, Zircon prices more than doubled last year, with standard grade zircon prices increasing from around $1,000 per tonne to $2,400 per tonne by the end of 2011. Rutile prices increased strongly also and market prices are now above $2,000 per tonne.