AMN - MOZAMBIQUE: First HMC production from WCP C

Kenmare Resources produced its first Heavy Mineral Concentrate (HMC) from the Wet Concentrator Plant (WCP) C development project at Moma Titanium Minerals Mine in northern Mozambique late last month. London Stock Exchange-listed Kenmare is one of the world's largest producers of mineral sands products.

As part of its growth strategy to increase annual production to 1.2 million tonnes of ilmenite from 2021, Kenmare is undertaking three development projects.

The first development project, a 20% expansion of WCP B, was commissioned successfully in late 2018.

The second project was for the development of a third mining operation. WCP C delivered its first HMC production in late February and acceptance and performance testing will begin shortly.

After this management of WCP C will be transferred from the development team to the operations team. The project remains on track to be completed within its US$45 million budget.

The third project, the relocation of WCP B from Namalope to the high-grade ore zone at Pilivili, is on schedule to take place in the third quarter of 2020.

Approximately 60% of contracts in relation to this project have been awarded and construction of the purpose-built road is well underway.

Kenmare's managing director Michael Carvill said: "The construction of Wet Concentrator Plant C represents the last phase of our outlined mining capacity increase. Later this year we will move Wet Concentrator Plant B from Namalope to the high-grade Pilivili ore zone, positioning us to achieve our targeted production rate of 1.2 million tonnes per annum of ilmenite from 2021.

"These 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 our capital expenditure program, we expect to generate significantly stronger free cash flow, which will enable us to provide higher returns to shareholders."

Moma's production accounts for approximately 7% of global titanium feedstocks and the company supplies to customers operating in more than 15 countries.

Kenmare produces raw materials that are ultimately consumed in everyday 'quality-of-life' items such as paints, plastics and ceramic tiles.

www.kenmareresources.com