Titanium and zircon miner Kenmare Resources has reported EBITDA of $220.3m for 2023 - the second strongest in its history - but its profit after tax fell by 36% to $131m.
Kenmare Resources, which operates the Moma Titanium Minerals Mine in northern Mozambique, said today that markets for its products have been stronger than anticipated so far this year.
The board is proposing a full year dividend of 56.04 cent per share for 2023, up 3% on 2022. It said this brings shareholder returns to over $250m since 2019.
Kenmare today reported mineral product revenue of $437.1m, a 12% decrease compared to 2022 on the back of a 10% lower average price received for its products, due to weaker markets and a 3% reduction in shipments.
It report Heavy Mineral Concentrate (HMC) production of 1,448,300 tonnes for 2023, a 9% decrease compared to 2022 due to lower ore grades and mining rates impacted by power interruptions as well as a severe lightning strike in the first quarter of the year.
It also reported ilmenite production of 986,300 tonnes for the year, a 9% decrease on 2022 and broadly in line with a 9% reduction in HMC processed.
Shipments of finished products came to 1,045,200 tonnes in 2023, a 3% decrease on 2022, due to weaker product markets and poor weather conditions in final quarter of the year.
Kenmare said that production in 2024 will be second half weighted, with first quarter production expected to be in line with the same time last year and a material uplift in production expected in the second quarter of the year.
Michael Carvill, Managing Director of Kenmare, said the company's "sound" financial performance last year was delivered against a backdrop of operational challenges and a weaker product market.
"With 2024 well underway, Kenmare is on track to achieve its annual production guidance, although production is still expected to be second half weighted. The markets for our products have been stronger than anticipated in 2024 to date, driven by improving demand for titanium pigment," he added.
The company said earlier this month that Managing Director Michael Carvill will step down from his executive role and Board position later this year.
"I am very proud of what Kenmare has achieved over the past 38 years and I am confident that the Company will continue to create value for all stakeholders," Mr Carvill said in today's results statement.
