Kenmare flags mixed third quarter, reports public fatality

The London-listed company, which operates the Moma Titanium Minerals Mine in northern Mozambique, said it was on track to meet its 2024 guidance, but reported challenges including lower ore grades and reduced production in key areas.

Heavy mineral concentrate (HMC) production dropped 14% year-on-year to 355,400 tonnes, reflecting lower ore quality, while ilmenite production declined 12% to 257,400 tonnes.

Primary zircon production rose 4% to 14,600 tonnes due to improved recoveries, however.

Shipments of finished products surged 85% on the year to 302,700 tonnes, largely due to the timing of shipments in the third quarter of last year, and improved weather conditions.

Kenmare said it continued to progress on its Wet Concentrator Plant A upgrade, which remained on budget, with construction to begin soon.

A new small-scale dredge-mining operation was meanwhile set to be commissioned by the end of the fourth quarter.

In other developments, Kenmare said it was engaging with the Mozambican government over the renewal of its implementation agreement, due in December.

The company also announced ongoing efforts to find a successor for chief financial officer Tom Hickey, who was recently appointed managing director.

Kenmare reported a lost time injury frequency rate of 0.06 per 200,000 hours worked for the 12 months ended 30 September, down from 0.21 in the prior year.

“I visited Moma in September for the first time since taking on the role and it was encouraging to see the significant progress being made on the Wet Concentrator Plant A upgrade,” said managing director Tom Hickey.

“It was also exciting to discuss the near-term commissioning of a small-scale dredge-mining and concentrating operation to support production in 2025 and beyond.

“Additionally, we made the first trial shipment of a new concentrates product during the quarter.”

Hickey said production strengthened in the third quarter compared to the second, as expected, due to higher excavated ore volumes, adding that Kenmare was on track to achieve its 2024 guidance on all metrics.

“Shipments also improved significantly, with over 300,000 tonnes of products shipped, and this is expected to drive stronger financial performance in the second half versus the first.

“Market conditions for all of our products continue to be robust, with the healthy demand we experienced in the third quarter extending into the fourth.

“Our order book is largely committed for the remainder of the year.”

In a separate announcement on Thursday, Kenmare reported that a 75-year-old pedestrian was struck and killed by a pontoon being transported to the mine site.

The firm said the convoy, escorted by police, was travelling at 35 kilometres per hour when the incident occurred.

An investigation was underway, with Kenmare working with local authorities and the family of the deceased.

“This is a tragic event and we offer our heartfelt sympathies to the gentleman’s family,” Tom Hickey added.

“Operating responsibly is one of Kenmare’s three strategic priorities and ensuring the safety and wellbeing of everyone associated with our activities is a key part of this.

“We are supporting the investigations into the incident and co-operating with local authorities.”

At 1400 BST, shares in Kenmare Resources were down 0.3% at 332p.

Reporting by Josh White for Sharecast.com.