Kenmare Resources Production Guidance Update

 
TIDMKMR 
 
 
   Kenmare Resources plc ("Kenmare" or "the Company") 
 
   17 December 2019 
 
   Production guidance 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 in northern Mozambique, announces that it does 
not expect to achieve its full year ("FY") 2019 production guidance of 
900,000 to 960,000 tonnes of ilmenite. FY 2019 ilmenite production is 
now expected to be up to 3% below the lower end of the guidance range. 
Guidance for all other products and shipping volumes remains unchanged. 
 
   Following the successful automation of WCP B's dredge, Kenmare is in the 
process of automating the first of the two dredges at WCP A, with the 
objective of increasing plant throughput and utilisation. Implementation 
of this project has been more challenging than expected, resulting in 
unplanned production downtime, and tipping the balance of Kenmare's FY 
2019 ilmenite production below 900,000 tonnes. In recent weeks the 
Company has also experienced reduced power reliability, due to upgrade 
work being undertaken on the national power grid, contributing to 
decreased heavy mineral concentrate production during Q4 2019. This 
upgrade work on the transmission grid is now complete. 
 
   Accordingly, FY 2019 ilmenite production guidance is revised to 870,000 
to 900,000 tonnes. Whilst total cash operating cost guidance remains 
unchanged (US$151-167 million), cash operating cost per tonne guidance 
is revised to US$160-165 per tonne from US$150-160 per tonne, due to 
reduced production volumes. 
 
   FY 2019 production guidance for Kenmare's co-products is maintained at 
44,500-52,000 tonnes of primary zircon, 8,100-9,500 tonnes of rutile and 
33,500-43,500 tonnes of concentrates. Kenmare also still expects total 
shipments in FY 2019 to be above 1 million tonnes, due to strong 
inventory availability, and the Company continues to experience tight 
market conditions and upward price momentum for titanium feedstocks. 
 
   This press release contains inside information as defined in article 
7(1) of the Market Abuse Regulation. 
 
   For further information, please contact: 
 
   Kenmare Resources plc 
 
   Jeremy Dibb / Katharine Sutton 
 
   Investor Relations 
 
   Tel: [phone] 
 
   Mob: + 353 87 943 0367 / + 353 87 663 0875 
 
   Murray (PR advisor) 
 
   Joe Heron 
 
   Tel: [phone] 
 
   Mob: [phone] 
 
   About Kenmare Resources 
 
   Kenmare Resources plc is one of the world's largest producers of mineral 
sands products. Listed on the London Stock Exchange and the Euronext 
Dublin, Kenmare operates the Moma Titanium Minerals Mine in Mozambique. 
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. 
 
 
 
 
 
 

(END) Dow Jones Newswires

December 17, 2019 02:00 ET (07:00 GMT)

Copyright (c) 2019 Dow Jones & Company, Inc.