Business
2017 Preliminary Results
2017 Preliminary Results.
About this update from Kenmare Resources Plc
[{"type":"text","content":"\n 2017 Preliminary ResultsKenmare Resources plc (\"Kenmare\" or \"the Company\")14 March 20182017 Preliminary ResultsKenmare 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, today announces its preliminary results for the twelve months to 31 December 2017. Statement from Michael Carvill, Managing Director: \"Kenmare achieved record production and shipment volumes in 2017, in line with guidance given at the beginning of the year. EBITDA increased to US$59.6 million, while the Company retains a strong balance sheet, with just US$34.1 million of net debt. We are developing plans for a series of low capital-intensity brownfield expansion projects to increase mining capacity and fully utilise our installed plant capacity and export facilities, while helping to meet market demand as required. Ilmenite prices continued to rise through 2017, albeit at a slower rate in the second half of the year as low-grade concentrates were induced into the market and Chinese environmental inspections caused disruption. Received prices are expected to average at higher levels in 2018, supported by continued demand growth and a reduction of low quality ilmenite supplied from stockpiles. The zircon market remains tightly supplied, with strong price increases throughout 2017 and significant further rises already in 2018. Zircon prices remain far below the previous peaks achieved in 2012, though tight supply conditions are expected to continue and may lead to some thrifting and substitution.\"OverviewRecord annual production of ilmenite, rutile and zircon - achieving production guidance for all productsIlmenite production increased 11% to 998,200 tonnes (2016: 903,300 tonnes)Zircon production increased 9% to 74,000 tonnes (2016: 68,200 tonnes)Total shipments of finished products increased 2%, setting an annual record of 1,040,400 tonnes shippedLost time injury frequency rate of 0.39 per 200,000 man hours worked in 2017 (2016: 0.20)Revenues increased 47% to US$208.3 million (2016: US$141.5 million)Cash operating costs declined 3% to US$132 per tonne of final product (2016: US$136 per tonne)EBITDA increased to US$59.6 million, up by US$55 million (2016: US$5.2 million)Profit after tax was US$19.4 mill...