Kenmare Resources (LON:KMR) reported an improvement in its interim financial results and said its production should increase substantially in the second half of 2012.
Earnings before interest, tax, depreciation and amortisation (EBITDA) jumped 182 percent from the same period of 2011 to US$55.5 million as revenues nearly doubled, soaring 95 percent to US4109 million.
Production reached 276,600 tonnes of ilmenite and 23,600 tonnes of zircon – compared with production of 323,700 tonnes and 19,800 tonnes a year earlier.
The group said that output has improved in the second half and is expected to show a significant improvement from the first six months of the year.
In the meantime, the Phase II expansion of the Moma mine in Mozambique, which will increase production capacity by 50 percent, is expected before the end of the year.
Ramp up of the expanded facility to full production will be achieved during next year, which Kenmare said will enable it to take advantage of the structural shortage in feedstock supply.
It added that all of the 2013 projected production from Phase II has been committed.
“Revenues and profits this year have benefited greatly from price increases and the falling away of legacy contracts,” said managing director of Kenmare Michael Carvill.
“While production was challenging during the first half of 2012, we have taken steps to address the issues and have experienced a significant step up in production since June.
“We remain focused on delivering the Phase II expansion with commissioning scheduled to commence by the end of the year.”