Mining Roundup

Kenmare Resources (LON:KMR) – one of the leading global producers of titanium minerals and zircon – reports a record year of both production and shipments of all products in 2016.

Kenmare – which operates the Moma titanium minerals mine in northern Mozambique – said Heavy Mineral Concentrate production increased 28% to 1,405,500 tonnes (2015: 1,100,600 tonnes); ilmenite production increased 18% to 903,300 tonnes (2015: 763,500 tonnes) and zircon production increased 32% to 68,200 tonnes (2015: 51,800 tonnes).

Total shipments of finished products were up 28%, setting a record of 1,024,200 tonnes shipped (2015: 800,400 tonnes).

Production guidance of 950,000-1,050,000 tonnes of ilmenite in 2017, up 5-16% on achieved 2016 production.

Managing director Michael Carvill said: “2016 saw Kenmare deliver a record year of both production and shipments of all products. Q4 2016 was another record quarter, continuing the increasing production trend and improving on the record set in the prior quarter. Production in 2017 is expected to rise further as mine optimisation continues, while unit costs of production are anticipated to fall further.

“Cash generation at the Mine has shown quarter on quarter improvements since bottoming in Q2 2016. Nevertheless, average Kenmare realised ilmenite prices lagged the spot market increases in 2016 as contracts had been agreed prior to the market resurgence. Spot prices have been steadily rising for the past nine months and Kenmare expects this trend to continue as demand remains strong. Average received prices for H1 2017 will show a significant improvement on 2016, benefiting from new contract prices and higher spot prices.”

* * *

Kibo Mining (LON:KIBO) says the Tanzania National Environmental Management Council approved and accepted both the Mbeya coal mine and Mbeya power plant environmental and social impact assessment (ESIA) scoping reports.

Approval and acceptance of the scoping reports concludes stage 2 of the required three stage statutory ESIA approval process. Completion of stage 2 now paves the way for final ESIA certification of both the Mbeya coal mine and the Mbeya power plant.

Chief executive Louis Coetzee said: “Approval and acceptance of the MCPP ESIA scoping reports represents a critical point in the overall ESIA approval process. At this stage the majority of the ESIA work, i.e. specific ESIA terms of reference, required specialist studies as well as consultation, have been completed, submitted and accepted by the NEMC as compliant for certification.

“We expect Stage 3, (i.e. certification process), to be completed in a shorter time frame than usual, given the fact that the preparation work for an accelerated conclusion of Stage 3 was done whilst awaiting approval of the scoping reports.”

* * *

Vedanta (LON:VED) said it has made substantial operational progress during Q3 with the enhancement of production from Zinc India and the ramp up of its Aluminium capacities.

“The 1,980 MW TSPL power plant continues to operate at a high availability of 77%,” said CEO Tom Albanese in a statement.

“In our Oil and Gas business, the EOR program at the Mangala oil field in Rajasthan continued to yield positive results. We are very excited about our Gamsberg Zinc project in South Africa where pre-stripping is well underway and first ore is expected in mid CY2018.

“We will continue our sustained focus on costs alongside rising capacity utilizations thus driving free cash flow growth.”

Q3 HIGHLIGHTS:

Zinc India:

– Mined metal production up 44% q-o-q in line with mine plan

– Integrated metal production increased q-o-q: zinc 38%, lead 26% and silver 10%

– Environment clearances received for expansion of Zawar and Sindesar Khurd mines

Aluminium:

– Continued ramp up of Jharsuguda-II and BALCO-II smelters; third line of the 1.25 mtpa Jharsuguda-II smelter commenced ramp up in December 2016

– Supply of coal has commenced from the 6mtpa coal linkages secured earlier this year

Power:

– 1,980MW TSPL plant fully operational with 77% plant availability

Oil & Gas:

– Rajasthan production impacted by planned shutdown; strong performance from Mangala EOR with production level of 55,000 barrels per day despite shutdown

Iron Ore:

– Expected to achieve annual mining cap at Karnataka and Goa in the current month; received additional mining allocation in Goa for FY 2017.

* * *

The sector’s biggest risers were Edenville Energy (LON:EDL) and Red Rock Resources (LON:RRR) – up by more than 19.8% and over 19.0% respectively in late trading. The biggest fallers were Anglo Asian (LON:AAZ) and Jubilee Platinum (LON:JLP) – down by more than 8.3% and over 5.5% respectively.

At 4:11pm:

(LON:BEM) Beowulf Mining PLC share price was +0.63p at 8.5p

(LON:BKY) Berkeley Energia Ltd share price was +0.5p at 67.5p

(LON:CEY) Centamin PLC share price was +1.2p at 152p

(LON:CZA) Coal of Africa Ltd share price was +0.07p at 3.57p

(LON:EDL) Edenville Energy PLC share price was +0.17p at 0.92p

(LON:FDI) Firestone Diamonds PLC share price was -1p at 49.5p

(LON:FRES) Fresnillo PLC share price was +20.5p at 1433.5p

(LON:GEMD) Gem Diamonds Ltd share price was +0.5p at 114.5p

(LON:HOC) Hochschild Mining PLC share price was -2.75p at 233.05p

(LON:KIBO) Kibo Mining share price was +0.13p at 6p

(LON:KMR) Kenmare Resources PLC share price was +19p at 284p

(LON:RRR) Red Rock Resources PLC share price was +0.1p at 0.63p

(LON:VED) Vedanta Resources PLC share price was +15.5p at 1031.5p

Story provided by StockMarketWire.com

Merryn

Claim 12 issues of MoneyWeek (plus much more) for just £12!

Let MoneyWeek show you how to profit, whatever the outcome of the upcoming general election.

Start your no-obligation trial today and get up to speed on:

  • The latest shifts in the economy…
  • The ongoing Brexit negotiations…
  • The new tax rules…
  • Trump’s protectionist policies…

Plus lots more.

We’ll show you what it all means for your money.

Plus, the moment you begin your trial, we’ll rush you over THREE free investment reports:

‘How to escape the most hated tax in Britain’: Inheritance tax hits many unsuspecting families. Our report tells how to pass on up to £2m of your money to your family without the taxman getting a look in.

‘How to profit from a Trump presidency’: The election of Donald Trump was a watershed moment for the US economy. This report details the sectors our analysts think will boom from Trump’s premiership, and gives specific investments you can buy to profit.

‘Best shares to watch in 2017’: Includes the transcript from our roundtable panel of investment professionals – and 12 tips they’re currently tipping. The report also analyses key assets, including property, oil and the countries whose stock markets currently offer the most value.