Titanium and zircon miner Kenmare Resources has reported higher revenues and profits for the six month to the end of June and also announced a share buyback of $30m via a tender offer.
Kenmare operates the Moma Titanium Minerals Mine in northern Mozambique and its products are used in such items as paints, plastics and ceramic tiles.
The company's half year revenues rose by 23% to $242.9m from $197.3m the same time last year, while its pre-tax profits increased by 13% to $77.5m from $68.6m.
Kenmare said that production in the first half of the year was lower than its expectations, mainly due to a severe lightning strike in the first quarter of 2023 and its lingering impact.
But it added that production at the start of the second half of 2023 has been strong, supported by higher grades, better Heavy Mineral Concentrate (HMC) recoveries and increased tonnes mined.
The company noted that ilmenite prices were stable in the first six months of 2023.
But the titanium pigment market is slower in the second half of the year as underlying demand in China has not rebounded as quickly as expected.
Global macroeconomic conditions are also affecting demand for zircon with spot prices moving below contracted prices, it added.
Michael Carvill, Kenmare's managing director said that good product pricing and strong shipment volumes in the first half of the year drove record revenues.
"EBITDA was up 6%, while profit after tax increased to $67.8m. We are increasing our interim dividend by 59% to 17.5 per share, in line with our policy to maintain dividend payments of approximately $50 million per annum," he added.
Kenmare reported Heavy Mineral Concentrate production of 633,900 tonnes in the first half of 2023, a 14% decrease compared to the 738,300 tonnes the same time last year.
Its total finished product production came to 472,600 tonnes, a 10% decrease on the 550,700 tonnes in the first half of 2022, as a result of the lower HMC produced.
It also said that total shipments amounted to 556,800 tonnes, a 31% increase on the 424,300 tonnes shipped last year, on the back of the drawdown of finished product stockpiles.
