Kenmare, operator of the Moma mine in northern Mozambique, one of the world’s largest producers of titanium and zircon, recorded a sharp 69% drop in its profits in the first half of 2024. Profits after tax fell to 1.32 billion meticais (20.9 million dollars), compared to 4.28 billion meticais (67.8 million dollars) in the same period last year, according to the Lusa news agency on Thursday, August 15.
According to Kenmare, the fall in profits was largely the result of a drop in mineral shipments, which significantly affected the company’s financial performance. However, Andrew Webb, Kenmare’s chairman, expressed optimism for the second half of 2024, citing “strong visibility of customer orders, high stocks of finished products and improved seasonal weather conditions” as factors that should drive revenue growth in the coming months.
Revenues from the export of mineral products from the Moma mine totaled 9.76 billion meticais (154.5 million dollars), down 33% compared to the first quarter of 2023, as a result of the decrease in the number of shipments and the fall in prices.
Despite the challenges faced in the first half of the year, Kenmare ended the period with assets valued at almost 12.6 billion meticais (200 million dollars), including record net cash of 3.72 billion meticais (58.9 million dollars). The company said it was “well positioned to finance” its capital commitments and return to shareholders.
The drop in shipments, which fell 18% in the second quarter compared to the previous year, was attributed to adverse weather conditions and the need for operational maintenance, which reduced shipping times. However, Kenmare reported that market conditions proved encouraging in the second quarter, with particularly robust demand for the company’s ilmenite. The mining company also revealed that it has a strong order book for the third quarter of 2024.
Kenmare, an Irish company listed on the London and Dublin stock exchanges, continues to play a key role in the global mineral sands market, with its operation in Mozambique accounting for around 7% of global titanium raw materials. The company supplies customers in more than 15 countries, who use heavy minerals such as titanium, ilmenite, rutile and zircon in the production of paints, plastics and ceramics.
In 2023, Kenmare paid 1.92 billion meticais (30.5 million dollars) to the Mozambican state in fees and taxes, consolidating its contribution to the national economy. In April of the same year, the mining company announced plans to explore a new lode within two years, signaling the longevity and potential continued profitability of the Moma mine.
