Kenmare Resources Kenmare Resources Plc : Moma Mine Operational Update

 
TIDMKMR 
 
 
   Kenmare Resources plc ("Kenmare" or "the Company") 
 
   17 February 2015 
 
   Moma Mine Operational Update 
 
   Kenmare 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, 
provides an operational update. 
 
   As previously announced, Kenmare has been engaged in a substantial cost 
cutting programme in an effort to reduce unit costs and conserve cash. 
Unit cash operating costs per tonne of product produced declined by 14% 
for H1 2014 relative to H1 2013. However, these and subsequent savings 
have been insufficient to offset the decline in prices experienced by 
the Company. 
 
   Kenmare has undertaken a thorough review of operations and staffing 
which has resulted in the identification of areas where further 
efficiencies can be achieved. Unfortunately this will result in a 
focused reduction of employees at the Mine. 
 
   The Company has been engaged with employee representatives to explore 
alternatives including, amendments to pay scales and voluntary 
redundancies. However it is now expected that compulsory redundancies 
will be necessary. The redundancy process is expected to result in a 
reduction of 15-20% of the Mine's work force. Kenmare continues to 
engage with the Government of Mozambique and workers' unions on this 
matter. 
 
   Separately, Kenmare is pleased to announce that grid power has now been 
restored to the Mine following the recent flooding in northern 
Mozambique which caused a prolonged grid power outage. As a result, 
mining and HMC production at both ponds has resumed. 
 
   Kenmare Resources plc 
 
   Michael Carvill, Managing Director 
 
   Tel: [phone] 
 
 
   Mob: + 353 87 674 0110 
 
 
   Tony McCluskey, Financial Director 
 
   Tel: [phone] 
 
 
   Mob: + 353 87 674 0346 
 
   Jeremy Dibb, Corporate Development and Investor Relations Manager 
 
   Tel: [phone] 
 
   Mob: + 353 87 943 0367 
 
   Murray Consultants 
 
 
   Joe Heron 
 
 
   Tel: [phone] 
 
 
   Mob: [phone] 
 
 
   Buchanan 
 
   Bobby Morse /Gordon Poole 
 
   Tel: [phone] 
 
   This announcement contains some forward-looking statements that 
represent Kenmare's expectations for its business, based on current 
expectations about future events, which by their nature involve risks 
and uncertainties. Kenmare believes that its expectations and 
assumptions with respect to these forward-looking statements are 
reasonable. However, because they involve risk and uncertainty, which 
are in some cases beyond Kenmare's control, actual results or 
performance may differ materially from those expressed or implied by 
such forward-looking information. 
 
   The Directors of Kenmare accept responsibility for the information 
contained in this announcement. To the best of their knowledge and 
belief (having taken all reasonable care to ensure that such is the 
case), the information contained in this announcement is in accordance 
with the facts and does not omit anything likely to affect the import of 
such information. 
 
   This announcement is not intended to, and does not, constitute or form 
part of any offer, invitation or the solicitation of an offer to 
purchase, otherwise acquire, subscribe for, sell or otherwise dispose of, 
any securities whether pursuant to this announcement or otherwise. The 
distribution of this announcement in jurisdictions outside Ireland or 
the United Kingdom may be restricted by law and therefore persons into 
whose possession this announcement comes should inform themselves about, 
and observe, such restrictions. Any failure to comply with the 
restrictions may constitute a violation of the securities law of any 
such jurisdiction. 
 
   A person interested in 1% or more of any class of relevant securities of 
Kenmare or Iluka may have disclosure obligations under Rule 8.3 of the 
Irish Takeover Rules, effective from 26 June 2014, the date of the 
commencement of the offer period for Kenmare under the Irish Takeover 
Rules. 
 
   This announcement is distributed by NASDAQ OMX Corporate Solutions on 
behalf of NASDAQ OMX Corporate Solutions clients. 
 
   The issuer of this announcement warrants that they are solely 
responsible for the content, accuracy and originality of the information 
contained therein. 
 
   Source: Kenmare Resources via Globenewswire 
 
   HUG#1894890 
 
 
  http://www.kenmareresources.com/