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Kenmare Resources : Q4 2015 Trading Update
Kenmare Resources : Q4 2015 Trading Update.
About this update from Kenmare Resources Plc
[{"type":"text","content":"\n Kenmare Resources : Q4 2015 Trading UpdateKenmare Resources plc (\"Kenmare\" or \"the Company\")1 February 2016 Q4 2015 Trading UpdateKenmare 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 fourth quarter and year ending 31 December 2015, together with update commentary on the ongoing discussions with its lenders.Overview Ore mined in 2015 decreased 19% to 27,532,000 tonnes (2014: 34,120,000 tonnes), mainly due to power interruptions and flooding damage in Q1 2015Heavy Mineral Concentrate (\"HMC\") production decreased 15% to 1,100,600 tonnes (2014: 1,287,300 tonnes)Ilmenite production decreased 11% to 763,500 tonnes (2014: 854,600 tonnes)Zircon production increased 2% to 51,800 tonnes (2014: 50,800 tonnes)Increased primary zircon product quality and improved recovery of secondary zircon volumesTotal shipments of finished products were flat at 800,400 tonnes (2014: 800,000 tonnes)Significant cost per tonne savings have been achieved, notwithstanding increased production from H1 2015 to H2 2015Improved power quality and consistency since the December 2015 installation of additional power transmission infrastructure by Electricidade de Moçambique (\"EdM\")A deleveraging plan has been submitted to lenders for approval, including a US$100m investment by State General Reserve Fund (\"SGRF\") and a further capital raising as part of a balance sheet restructuringStatement from Michael Carvill, Managing Director: \"Power interruptions and instability have been the key bottleneck to production at the Moma Mine in recent years and acutely felt in Q1 2015, when flooding resulting in a prolonged outage. However, the investment by EdM to enhance the transmission infrastructure has resulted in a step change in the quality and consistency of our power supply since coming on line in late December. Prices of ilmenite, our major product, have remained under pressure in Q4 2015. However, the recent closures of titanomagnetite mines in Russia and China and the reduction of feedstock inventories at Chinese ports are encouraging.\"ProductionProduction from ...