Kenmare revenues jump in Q3

27th Oct 2011 10:28

Irish mining firm Kenmare Resources said revenues during the third quarter had grown strongly compared to the previous three months, due to increased sales volumes and prices.The company also said average prices for its minerals would rise significantly going forward as annual fixed price contracts expired at the end of the year.Mining activities operated at a higher rate during the third quarter, producing 196,000 tonnes of Heavy Mineral Concentrate (HMC) compared with 154,000 tonnes in the second quarter, Kenmare said.However, it warned the 27% increase in HMC production, while "a welcome improvement", was still below capacity.The firm did not provide specific figures for its revenues but investors pushed the firm's share up 4% in morning trading nonetheless.HMC is a class of ore deposit which is an important source of minerals including zircon, titanium and ilmenite.Kenmare said 2011 had been characterised by continued upward movement in titanium feedstockand zircon prices, driven by strong demand and a growing supply deficit.It added that China had significantly increased its imports of ilmenite in recent years.The firm said that HMC production had been inhibited during the quarter by the last part of a clay-rich zone and by some teething problems due equipment upgrades."We are very pleased to have left the difficult clay-rich ore zone behind us and to be moving into an area with high mining faces with free flowing sand, which provide the most productive mining conditions," Kenmare said.