Kenmare Resources, the company that operates the Moma titanium mine in Mozambique, reported this Thursday, April 11, that it is on track to meet its production guidelines for 2024, despite having presented a set of unimpressive first quarter results.
According to the British magazine Shares, Kenmare’s shares fell 6.0% on the London Stock Exchange this Thursday morning, explaining that in the quarter ending in March, the company excavated 9.2 million tons of ore at a grade of 4.15%, compared to 9.3 million tons at 4.13% in the first quarter of 2023. Shipments fell 11% to 242,900 tons in the first quarter of 2024, compared to 271,700 tons a year earlier.
“Production rates fell for almost all commodities, except ilmenite, which increased 0.6% to 205,500 from 204,300 tons. Primary zircon registered the sharpest decline, with a 27% drop to 8300,” the magazine reveals.
Kenmare said in a statement that the zircon market has shown some signs of recovery since January, thanks in part to growing demand for the commodity in India, although European demand remains weak. “The firm recorded higher than expected demand in the three months and has a strong order book for the second quarter,” the company revealed.
Looking ahead, the mining company pointed out that it is on track to meet its guidance for 2024, with production expected to strengthen throughout the rest of the year “due to improved energy stability in the dry season”.
For 2024, Kenmare expects to produce between 950,000 and 1.1 million tons of ilmenite, 45,000 to 50,000 tons of primary zircon, eight to nine thousand tons of rutile and between 37,000 and 41,000 tons of concentrates.
The mining company’s managing director, Michael Carvill, commented: “Production in the first quarter was in line with our expectations and consistent with guidance. We expect production to strengthen during the rest of the year, due to a stronger quality profile and, typically, fewer seasonal power outages.”
“The markets for our products were encouraging in the first quarter, with stronger than expected demand, particularly for ilmenite. This was driven by a recovery in demand for titanium pigments and continued growth in the titanium metal market,” he added.
