AMN - MOZAMBIQUE: Record shipments from Moma project

For the third successive year, Kenmare Resources delivered record shipment volumes in 2018 from its Moma Titanium Project in northern Mozambique. It was also the third year in which the company achieved production guidance.

Managing director Michael Carvill said: "We recorded a 54% increase in EBITDA to US$93.3 million, which was up US$32.8 million, and a year-end net cash position of US$13.5 million, compared to US$34.1 million of net debt at the end of 2017.

"Importantly, we also achieved a significant improvement in our safety performance, with a Lost Time Injury Frequency Rate of 0.12 per 200,000 man-hours worked in 2018, the lowest level to date."

Michael Carvill said: "In terms of our development program, we made good progress towards our core objective of delivering an approximate 20% increase in our production rate to 1.2 million tonnes per annum of ilmenite by 2021.

“The first of our three development projects, the 20% expansion of Wet Concentrator Plant (WCP) B, was commissioned during the year, more than 25% under budget. The second project, WCP C, is well underway and expected to commission in Q4 2019. The definitive feasibility study for the third project, the move of WCP B to the high-grade Pilivili ore zone, is on track for completion in H1 2019.

"Average received prices for our products were higher in 2018 compared to 2017 and we see a positive outlook due to continued demand growth, depletion of existing mines and limited supply from new mines in the coming years.”

There was a 26% increase in revenues to US$262.2 million, primarily due to increased volumes shipped and higher average received prices, while there was a 162% increase in profit after tax to US$50.9 million.

The mid-point of original 2018 production guidance was exceeded for all products.

There was a 4% increase in Heavy Mineral Concentrate (HMC) production to 1,370,800 tonnes, ilmenite production was down slightly to 958,500 tonnes from 998,200 tonnes and primary zircon production was on par at 48,400 tonnes.

Kenmare recorded a 3% increase in total shipments of finished products to 1,074,400 tonnes, a new annual record.

Production guidance of between 900,000 and 960,000 tonnes of ilmenite has been set for FY 2019.

Chairman Steven McTiernan said: “Kenmare has a market-leading position and a well-established business model. The Moma mine is a tier-one asset with a resource life of over 100 years at planned production levels, supporting increased global demand for titanium feedstocks.

“During 2018 we announced plans to expand mining and processing capacity to deliver an approximate 20% production increase by 2021. Capital investment of approximately US$145 million will be required during the next two years to secure this platform for future growth, which will also reduce unit costs and expand margins.

“We have also identified opportunities to generate additional revenues through the production of Mineral Sands Concentrate, including the rare earth mineral monazite, with production having started in 2018 and the first sales scheduled for 2019.”

www.kenmareresources.com