Business
Q4 2020 Production Report and FY 2021 Guidance
Q4 2020 Production Report and FY 2021 Guidance.
About this update from Kenmare Resources Plc
[{"type":"text","content":"\n \n \n Q4 2020 Production Report and FY 2021 Guidance\n \n \n \n \n Kenmare Resources plc (“Kenmare” or “the Company” or “the Group”)\n \n 13 January 2021\n \n Q4 2020 Production Report and FY 2021 Guidance\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 full year (“FY”) and fourth quarter ending 31 December 2020 (“Q4 2020”) and production guidance for FY 2021.\n \n Statement from Michael Carvill, Managing Director: \n \n \n “Q4 2020 was a pivotal quarter for Kenmare, as we began mining the Pilivili ore zone, following the successful move of Wet Concentrator Plant B in Q3. WCP B began operating in late October and made a significant contribution to our best production quarter of 2020, benefitting from exceptionally high grades mined. It was also pleasing to see a strong quarter for shipments, with over 300,000 tonnes shipped during the period.\n \n \n We achieved or exceeded the midpoint of our August 2020 guidance ranges for all finished products and we are targeting an uplift of ilmenite production in 2021 of between approximately 45% and 60%. In addition to higher revenues, increased production will deliver lower unit costs, significantly increasing cash flows and bringing us closer to our target of becoming a first quartile producer on the industry revenue to cost curve.\n \n \n Global demand for ilmenite, our primary product, exceeded supply in Q4 2020 and led to significant price increases. Following our second and third consecutive dividends paid in 2020, these positive operational and market dynamics are expected to support increased cashflow, and in turn our objective to increase shareholder returns.”\n \n \n Overview \n \n \n Lost time injury frequency rate (“LTIFR”) of 0.25 per 200,000 man-hours worked for the 12-months to 31 December 2020 (31 December 2019: 0.27)\n Increased COVID-19 positive test results were received for employees and contractors in December 2020 as cases in Mozambique, and other parts of the world, have also seen a recent upward trend - management remains focused on limiting transmission and mitigating the impact of the virus\n Production of all finished products at or above the mi...