Kenmare Resources posts hike in annual profits

12th Mar 2013 08:11

Kenmare Resources, operator of the Moma titanium minerals mine in Mozambique, on Tuesday unveiled a jump in profits and revenues for 2012.Revenues rose to $234.6m from $167.5m the year before while pre-tax profits climbed to $49.5m from $23.7m. Earnings before interest, tax, depreciation and amortisation were up $98.9m from $71,7m in 2011."The markets for Kenmare's products were strong for much of 2012 and, despite a slowdown in demand towards the end of the year, Kenmare was able to sell more than it produced in 2012 at significantly higher prices than in 2011," Chairman Justin Loasby explained in a statement. The company managed to overcome reduced production, due in part to wet weather and electrical storms in the first quarter of 2012.Kenmare expects output to increase this year as the expansion of facilities at Moma begins. The project is now in the commissioning phase and is anticipated to grow production capacity by 50%. "In my view, 2013 is going to be a watershed year for Kenmare," Loasby said."Until now the company has been developing and building its assets at Moma. With the 50% expansion coming on stream, we are now at the point where we can concentrate on operating the assets to achieve a sustainable return on the investment which has gone into their development."RD