Kenmare Resources, a Mozambique-focused mining company, has revised its full-year ilmenite production guidance after experiencing weaker-than-expected output in the first half of the year.
Decreased Production Numbers
In the first half of the year, Kenmare Resources saw a decline in its production of heavy mineral concentrate, with only 633,900 metric tons produced—a 14% decrease compared to the previous year. This drop can be attributed to lower grades and mining rates, mainly due to power interruptions. Additionally, the production of ilmenite, a crucial economic titanium-iron oxide mineral, dropped to 425,500 tons—a 15% decrease from the previous year.
Revised Production Guidance
As a result of these lower production numbers, Kenmare Resources has adjusted its full-year ilmenite production guidance. The new range now falls between 980,000 tons and 1.04 million tons, as opposed to the previous range of 1.05 million tons to 1.15 million tons. However, the company has maintained its guidance for primary zircon, rutile, and concentrates. The guidance for total cash operating costs remains unchanged as well.
Prospects for Improved Second Half
Looking ahead, Kenmare Resources is optimistic about significantly stronger production in the second half of the year. They expect higher grades and increased mining yields to support this uptick in production.
Share Buyback Under Consideration
Furthermore, Kenmare Resources is currently considering a share buyback program worth approximately $30 million. More updates on this matter will be provided with the release of the company’s interim results in mid-August.
Christian Moess Laursen