AMN - MOZAMBIQUE: Production continues at Moma

Despite the impact of the COVID-19 pandemic, Kenmare Resources, a leading global producer of titanium minerals and zircon, is continuing production at the Moma Titanium Minerals Mine in northern Mozambique.

During the March quarter, there was Heavy Mineral Concentrate (HMC) production of 248,100 tonnes, representing a 31% decrease compared to the corresponding quarter of 2019. This was as a result of a 17% anticipated decrease in ore grades and a 12% decrease in excavated ore. Average monthly HMC production is forecast to increase from this quarter onwards.

There was also reduced production in the March quarter of all finished products due to reduced HMC availability.

Total shipments of finished products were 194,600 tonnes, an increase on the 176,500 tonnes in the March quarter of 2019.

Wet Concentrator Plant (WCP) C is ramping up following first HMC production in late February 2020 and the company is targeting 500 tonnes per hour nameplate capacity during the current quarter.

The timeline for the relocation of WCP B is being impacted by restrictions relating to COVID-19 in Mozambique, South Africa and elsewhere and Kenmare is working to mitigate their effect.

Kenmare's managing director Michael Carvill said: "The safety and well-being of our people and host communities are our highest priorities, especially in light of the global COVID-19 outbreak.

"Our objective is to keep our operations running safely and although production from the Moma Mine was lower than anticipated in Q1, the mine has not been materially affected by COVID-19 to date and we are continuing to ship our products.

"However, recent COVID-19 restrictions are having an operational impact and may also result in a delay to the move of Wet Concentrator Plant B, which would negatively affect production for 2020.

"Due to the uncertain outlook, we have taken the decision to suspend our 2020 guidance until further notice.

"Prices for ilmenite, our main product, increased for the fourth consecutive quarter in Q1 2020 as demand continued to outstrip supply. Whilst there is evidence of near-term disruption to both the supply and demand of titanium feedstocks, inventories in the supply chain remain low and the market is expected to require additional production to meet future demand.

"In order to provide us with maximum liquidity and flexibility during this unprecedented period, we have taken the decision to draw our debt facilities. At the end of Q1 we had over US$100 million of cash and we remain well-resourced to complete the move of Wet Concentrator Plant B."

www.kenmareresources.com