Kenmare Resources posts 'grim' first results as loss narrows

28th Aug 2015 13:49

(ShareCast News) - Kenmare Resources posted a narrower loss, in first half results analysts at Shore Capital labelled 'grim.'Shares in the company, which mines titanium minerals in Mozambique, were down by 8.36% to 2.52p at 1400 BST.The miner posted a pre-tax loss of $27.93m from a loss of $32.094m in the first six months of last year.Revenues were down to $73.89m from $81.22m, while costs were higher, resulting in a bigger gross loss to $18.05m from a loss of $1.62m the year before.First half production was "severely impacted" by weather related power outages, remedial work, and unofficial industrial action, Kenmare said.Ilmenite production was up by 50% compared with the first half to day as a result of power stability."The outlook for the rest of the year will be further supported as the national power utility commission's equipment that will increase grid power capacity and stability," Kenmare said.Shore Capital said first half results made for "grim reading" with a "balance sheet scary at first glance", but noted conditions improved after the period ended."The company is essentially hoping that the market strengthens and prices improve, as the "increased production is expected to generate significant free cash flow from operations," analysts said.