Business
Kenmare Resources plc : 2014 Half-Yearly Results
Kenmare Resources plc : 2014 Half-Yearly Results.
About this update from Kenmare Resources Plc
[{"type":"text","content":"\n Kenmare Resources plc : 2014 Half-Yearly Results Kenmare Resources plc (\"Kenmare\" or \"the Company\")Kenmare Resources plc Half-Yearly ResultsSix Months Ended 30 June 2014(LSE/ISE: KMR)27 August 2014Kenmare Resources plc, which operates the Moma Titanium Minerals Mine (the \"Mine\" or \"Moma\") in Mozambique, today announces its half year results for the six month period ended 30 June 2014 (\"H1 2014\").Overview · Record production of finished products in H1 2014, with further production growth expected in H2· Heavy Mineral Concentrate production up 26% on H1 2013 to 604,200 tonnes Ilmenite production up 47% on H1 2013 to 445,600 tonnes, zircon production up 12% to 21,400 tonnes Average realised prices in H1 2014 have declined 23% for ilmenite and 7% for primary zircon from H1 2013 as markets remain subduedTotal shipments of finished product up 36% on H1 2013 to 399,000 tonnesRevenues of US$81.2 million (H1 2013: US$79.3 million)Cash production cost per tonne of finished products reduced by 14% from H1 2013EBITDA of US$2.3million (H1 2013: US$18.9 million)Net loss of US$31.8 million (H1 2013: net loss US$10.2 million)Debt repayment schedule amended providing greater financing flexibilityThe diesel-powered electricity generating plant is now installed and has been successfully testedMichael Carvill, Managing Director, said: \"Revenues have remained broadly flat as higher sales volumes have been offset by a reduction in product pricing, particularly for ilmenite. A significant proportion of global production is struggling to cover cash operating costs, before debt service or return on capital: this is an unsustainable situation. However, although there have been some production cuts these have been negated by new supply coming on stream which was incentivised by previously high prices and these new volumes are delaying a recovery in prices.Kenmare has made substantial progress in reducing unit costs, conserving cash and improving production. We expect results for the full year to benefit from a more favourable sales mix, increased volumes and targeted cost reductions. ...