Business
Q2 & H1 2018 Production Report
Q2 & H1 2018 Production Report.
About this update from Kenmare Resources Plc
[{"type":"text","content":"\n Q2 & H1 2018 Production ReportKenmare Resources plc (\"Kenmare\" or \"the Company\")17 July 2018Q2 & H1 2018 Production ReportKenmare 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 quarter and half year ending 30 June 2018.Statement from Michael Carvill, Managing Director: \"I am pleased to report that production in Q2 2018 increased from Q1 2018, in line with expectations and guidance for the full year. Final product shipment also achieved new records, whilst average product prices received increased, resulting in strong cash flow generation in H1 2018. Our net debt has consequently been reduced by a further US$25.0 million. This strong cash flow has been achieved in spite of planned spending on capital projects to expand mining capacity. I have been encouraged by the progress of the WCP B upgrade, which is currently commissioning, ahead of time and below budget. Kenmare looks forward to providing more clarity on our plans for the future at a Capital Markets Day scheduled for October this year. The focus will be on our drive to increase production and reduce unit costs by 2021, funded by internally generated cashflow. We will also provide an outline of our dividend policy.\"Overview Heavy Mineral Concentrate (\"HMC\") production increased by 5% to 377,900 tonnes (Q2 2017: 359,200 tonnes).Ilmenite production decreased by 4% to 238,500 tonnes (Q2 2017: 248,300 tonnes) but increased 13% on Q1 2018 figures.Primary zircon production decreased by 9% to 11,700 tonnes (Q2 2017: 12,900 tonnes) but increased 4% relative to Q1 2018.Total shipments increased 15% to 322,000 tonnes (Q2 2017: 279,600 tonnes) setting a new quarterly record.Wet Concentrator Plant B (\"WCP B\") upgrade currently being commissioned, ahead of time and under budget.Average received final product prices increased in Q2 2018, led by zircon.Net debt reduced to US$9.1 million (31 December 2017: US$34.1 million), with cash on hand of US$84.2 million.Capital Markets Day scheduled for 16 October 2018.ProductionProduction from the Moma Mine in Q2 & H1 2018 was as follows: Q2-2018Q2-2017Q1-2018H1-2018H1-2017Tonnes% Change% ChangeTonnes% Change E...