Business
Q4 & FY 2019 Production Report and FY 2020 Guid...
Q4 & FY 2019 Production Report and FY 2020 Guid....
About this update from Kenmare Resources Plc
[{"type":"text","content":"\n Q4 & FY 2019 Production Report and FY 2020 GuidanceKenmare Resources plc (“Kenmare” or “the Company” or “the Group”)9 January 2020Q4 & FY 2019 Production Report & FY 2020 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 full year (\"FY\") and fourth quarter ending 31 December 2019 (“Q4 2019”) and production guidance for FY 2020.Statement from Michael Carvill, Managing Director: “In 2019 Kenmare continued to advance its outlined strategy of delivering growth, margin expansion and shareholder returns. We achieved record shipments in Q4 2019 and record excavated ore in FY 2019. Ilmenite production was within one per cent of the original guidance range and we achieved guidance for all other products.We are targeting ilmenite production of 1.2 million tonnes per annum from 2021, to be achieved through increased mining capacity and higher average ore grades. The construction of Wet Concentrator Plant C represents the final step in increasing our mining capacity and the move of Wet Concentrator Plant B to the high grade Pilivili ore zone later this year completes our outlined development programme.These growth projects are expected to enhance our margins, provide stronger cashflow stability and position us in the first quartile of the industry revenue to cost curve. Following the completion of the capital expenditure programme, free cash flow will also benefit significantly.In combination with these growth and margin expansion initiatives, we paid our maiden dividend in Q4 2019. We also secured new debt facilities, increasing our balance sheet strength and extending the maturity profile of our debt beyond the current short period of increased capital expenditure.”Overview Lost time injury frequency rate (“LTIFR”) of 0.27 per 200,000 man-hours worked for the 12-months to 31 December 2019 (31 December 2018: 0.12)Ilmenite production within 1% of original FY 2019 guidance range and original guidance achieved for all other productsRecord annual excavated ore of 36.8 million tonnes in FY 2019, representing the fourth consecutive year of increase and benefitting from a 20% capacity increase of WCP B undertaken i...