Business
Q2 and H1 2020 Production Report
Q2 and H1 2020 Production Report.
About this update from Kenmare Resources Plc
[{"type":"text","content":"\n \n \n Q2 and H1 2020 Production Report\n \n \n \n \n Kenmare Resources plc (“Kenmare” or “the Company”)\n \n 14 July 2020\n \n Q2 and H1 2020 Production Report\n \n Kenmare 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 2020 (“Q2 2020” and “H1 2020”).\n \n Statement from Michael Carvill, Managing Director:\n \n “I would like to thank our team at the Moma Mine for how they have risen to meet the challenges posed by the COVID-19 pandemic. It is through their exemplary organisation, hard work and commitment that Kenmare has continued to produce and ship our products.\n We have been working hard to mitigate COVID-19 related delays to the relocation of Wet Concentrator Plant B and we expect mining at Pilivili to begin in Q4. In recent days the Government of Mozambique has authorised the issuance of business visas to allow specialist contractors to mobilise to site. Taking into account the project timeline and the current risk profile, we now expect to produce 700,000 to 800,000 tonnes of ilmenite in 2020. We remain financially well-resourced to complete the WCP B move and maintain a strong balance sheet, with close to US$100 million of cash at the end of June.\n All production metrics improved strongly in Q2 2020 compared to Q1 2020, in particular excavated ore volumes, which increased by 27%. This represents a quarterly record for excavated ore, benefitting from contribution from the new WCP C.\n Prices for ilmenite, our main product, increased for the fifth consecutive quarter in Q2 2020. We expect the market to be more subdued in the second half of the year, as the pandemic impacts both demand and supply of titanium feedstocks, but the long-term fundamentals for all of our products remain strong.”\n \n Q2 2020 overview \n \n \n Strict access controls, hygiene protocols and social distancing measures have been in place at the Mine for several months, with production and shipments continuing\n Lost time injury frequency rate (“LTIFR”) of 0.32 per 200,000 man-hours worked for the 12 months to 30 June 2020 (30 June 2019: 0.12) – safety review underway to strengthen safety culture\n Heavy Mineral Co...