Revenue falls at Kenmare after major move of infrastructure

Kenmare Resources has reported a 10 per cent fall in headline revenue to $243.7 million for 2020 on the back of decreased production and shipment volumes from its Moma titanium mineral mine in Mozambique.

However, the Dublin and London-listed mining firm said the lower volumes were due to disruption during the planned move of infrastructure and offset by strong prices in 2020.

The company transported its WCP B dredging infrastructure 23km along a purpose-built road from its previous mining area at Namalope to a new high-grade ore zone called Pilivili. The operation – the largest on-land infrastructure move ever in Africa – is expected to cost $127 million.

Publishing its annual results for 2020, the company said the move would allow it progress to the goal of 1.2 million tonnes of ilmenite production per annum.

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"2020 was a groundbreaking year for Kenmare as we moved WCP B in one piece from Namalope to Pilivili," said managing director Michael Carvill.

“This represents the final step in our multi-year growth programme, and we are targeting an increase in ilmenite production in 2021 of between 45 per cent and 60 per cent.”

The company said development projects and operations continued throughout 2020 despite significant impacts of the Covid-19 pandemic, and that the number of people in isolation due to the illness had reduced to 177.

Its latest annual numbers show it mined 756,000 tonnes of ilmenite, its primary product, a 15 per cent decrease on the previous year.

It said total shipments of finished products was 853,100 tonnes, down 17 per cent year on year due to lower production volumes, poor sea conditions, and works to upgrade transhipment capacity.

It reported a profit after tax of $16.7 million, down 63 per cent on the previous year. The company recommended a full-year 2020 dividend of 10 cent per share, up 22 per cent on 2019.

Mr Carvill also noted that global demand for ilmenite had remained strong and prices rose through 2020.

"Ilmenite remains undersupplied due to depleting ore bodies in Africa, mine closures in Australia, and continued restrictions in India, " he said.