Record prices drive Irish mining company Kenmare’s sales and earnings growth

Record-high prices have seen Irish mining company Kenmare’s profits and after-tax profits soar by around a third so far this year, allowing shareholders to receive a bigger dividend.

Earnings before interest, taxes, depreciation and amortization (EBITDA) were $105.5 million, up 28 percent from 2021.

The Dublin and London-listed company’s profit after tax was $62.5 million, up 30 percent from 2021.

Half-year revenue for the first six months of 2021 increased 9 percent to $182.1 million on a free-on-board basis.

Kenmare announced an interim dividend of 10.98 cents per share, a 51 percent increase over the first half of last year.

Results have fallen to record average prices for all finished products of $429 per tonne, up 52 percent from the first half of 2021, the group said in its half-year results on Wednesday.

Net debt decreased $17.3 million to $65.5 million for the first half, reflecting the partial repayment of a $110 million term loan and the full repayment of a $40 million revolving credit facility. USD is due.

The Company operates one of the world’s largest ilmenite mines, Moma, in Mozambique. Ilmenite is processed for use as a pigment in a range of products including paint, ink, tiles, fabrics, food and sunscreen.

Moma accounts for approximately 8 percent of the world’s titanium reserves and Kenmare serves customers in more than 15 countries.

Managing Director Michael Carvill said the strong results were due to continued “strong market conditions for all of Kenmare’s products”.

“After a challenging first five months of the year, production improved in late May and this has continued through the 12 weeks since,” he said.

“At this run rate, we remain on track to meet guidance, albeit at the lower end of the range.

“We assume that our financial situation will continue to improve [the second half of 2022]as deliveries are expected to increase and our order book is largely tied up.”

Colin Grant, an analyst at Davy Stockbrokers, said strong prices, particularly for ilmenite, should be positive for the order book despite “increasing macro risks to demand”.

Earlier this year, Kenmare’s finance director Tony McCluskey said the company was open to potential acquisitions but hadn’t seen anything that matched the potential of its Moma mine. Record prices drive Irish mining company Kenmare’s sales and earnings growth

Fry Electronics Team

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