Titanium and zircon miner Kenmare Resources has reported lower profits and revenues for 2020 but said its development projects and operations continued during the year, despite significant impacts from the Covid-19 pandemic.
Kenmare operates the Moma Titanium Minerals Mine in northern Mozambique.
Kenmare said its revenues for the year fell by 10% to $243.7m from $270.9m in 2019 as a result of reduced volumes, which were partially offset by increased average prices.
The company said its profits after tax slumped by 63% to $16.7m from $44.8m, due to lower EBITDA, increased depreciation charges and finance costs.
It said that prices for the commodities it produces remained strong last year, despite the significant and materially negative impact of Covid-19 on global growth.
Demand for ilmenite, its main product, remained robust on the back of strong demand for home DIY.
Ilmenite is the main source of titanium dioxide, which is used in paints, printing inks, fabrics, plastics, paper, sunscreen, food and cosmetics.
Kenmare said that ilmenite remains undersupplied due to depleting ore bodies in Africa, mine closures in Australia, and continued restrictions in India.
Average prices for its products increased by 9% in 2020 and this momentum has accelerated in the past few months, particularly for ilmenite.
Kenmare reported ilmenite production of 756,000 tonnes, a 15% decrease compared to 2019's 892,900 tonnes.
Total shipments of finished products fell by 17% to 853,100 tonnes, due to lower production volumes, poor sea conditions and works to upgrade transhipment capacity.
The company's board said it was recommending a 22% increase in dividends for 2020 with a final dividend of 7.69 cent per share.
In line with plans to increase shareholder returns, the company also said it was increasing its target dividend payment from a minimum of 20% profit after tax to 25% for 2021.
