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Kenmare Resources : Q1 2016 Trading Update & 20...
Kenmare Resources : Q1 2016 Trading Update & 20....
About this update from Kenmare Resources Plc
[{"type":"text","content":"\n Kenmare Resources : Q1 2016 Trading Update & 2016 GuidanceKenmare Resources plc (\"Kenmare\" or \"the Company\")29 April 2016 Q1 2016 Trading Update & 2016 GuidanceKenmare 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, is pleased to provide a trading update for the first quarter ending 31 March 2016.Overview Ore mined in Q1 2016 increased 120% to 7,061,000 tonnes (Q1 2015: 3,211,000 tonnes), mainly due to improved power supply quality and consistency in 2016Heavy Mineral Concentrate (\"HMC\") production in Q1 2016 increased 90% in to 274,800 tonnes (Q1 2015: 144,500 tonnes)Ilmenite production increased 39% to 185,000 tonnes (Q1 2015: 132,900 tonnes)Zircon production increased 12% to 11,600 tonnes (Q1 2015: 10,400 tonnes)Total shipments of finished products were down 37% at 132,700 tonnes (Q1 2015: 209,600 tonnes) as the delayed arrival of a vessel and inclement weather at the end of March delayed the departure of two large ilmenite shipmentsProduction guidance of 950,000 tonnes of ilmenite production in 2016 (+/- 10%), up 24% on achieved 2015 productionVastly improved power quality and consistency since the December 2015 installation of additional power transmission infrastructure by Electricidade de Moçambique (\"EdM\")Update on proposed deleveraging announced separately this morningStatement from Michael Carvill, Managing Director: \"A proposed capital restructuring was announced separately this morning. A successful implementation of this plan will reduce outstanding debt to not more than US$100m, provide a significant working capital buffer and a stable and sustainable platform for the Group pending a recovery in mineral sands prices. In addition, costs have been substantially reduced and the electricity supply, which has materially impeded production for the last several years, has been dramatically improved.Our analysis shows that the market for merchant sulphate ilmenite (our largest product) is in global supply deficit and inventories appear to be declining. This view is evidenced by the price increases we have been seeing in the Chinese ilmenite spot market ...