Kenmare Resources has reported an operating profit of almost $6.9 million for the first six months of the year, significantly lower than the figure from the same period of 2012.
Revenue at the mining and exploration firm, which operates the Moma Mine in Mozambique, was down 27% to $79.3 million, while the cost of sales also rose by more than $8 million.
The company blamed the drop in revenue on lower average prices, primarily due to a weaker market than the one enjoyed in the first half of 2012.
Kenmare recently completed a phase of investment that will see capacity at its mine increase by up to 50%.
The company mined close to 100,000 more tonnes of heavy mineral concentrate in the first half of this year when compared to the same period of 2012, while the amount of Ilmenite mined also rose.
Zircon production fell slightly, however, while the quantity of shipments was also lower.
Managing Director Michael Carvill said the firm’s focus would now be on controlling costs, as we as “conserving cash and de-risking the business”.
He said a three-year wage agreement had been reached with unions, while a new system had been introduced to reduce disruption caused by an unreliable electricity supply.