Kenmare Resources shares jump on increased ilmenite production

Shares in FTSE 250-listed mining and exploration company Kenmare Resources rose on Tuesday after the company reported an increase in its ilmenite and zircon production in the first quarter of 2013.

Shares in FTSE 250-listed mining and exploration company Kenmare Resources rose on Tuesday after the company reported an increase in its ilmenite and zircon production in the first quarter of 2013.

Production of Heavy Mineral Concentrate (HMC) was 189,800 tonnes, up 20.9% from the fourth quarter of 2012, when it was 157,000 tonnes.

This was processed into 137,500 tonnes of ilmenite and 10,400 tonnes of zircon including 4,700 tonnes of a secondary zircon product. This compared to 123,600 tonnes of ilmenite, 10,700 tonnes of zircon and 4,500 tonnes of secondary zircon in the fourth quarter of 2012.

The company said that production for March increased from previous months as the dredge pond came towards the end of its transition from the low lying Namalope Flats zone onto a raised dunal plateau where it is to mine for the coming years.

Some 48,500 tonnes of ilmenite was shipped during the first quarter of 2013, compared to 201,400 tonnes in the fourth quarter of 2012.

Kenmare Resources said that the lower level of shipment was due to both low levels of stocks at year end and subdued market demand. It said that shipments had picked up in the second quarter, with six scheduled for April and five for May.

The company reported that construction activity relating to the development of expanded facilities at Moma is nearing a close, with handover of Wet Concentrator Plant B and the new dredge from the contractor expected in the coming weeks.

Ilmenite is a magnetic material comprised of titanium-iron oxide which is commonly used by the steelmaking industry. Zircon is a mineral which is frequently used in the decorative ceramics sector.

Kenmare Resources' share price rose 6.21% to 29.95p at 09:28 on Tuesday.

MF

Recommended

Three dividend stocks from the dynamic Asia/Pacific region
Share tips

Three dividend stocks from the dynamic Asia/Pacific region

Professional investor Sat Duhra of the Henderson Far East Income investment trust highlights three of his favourite stocks.
18 Oct 2021
Share tips of the week – 15 October
Share tips

Share tips of the week – 15 October

MoneyWeek’s comprehensive guide to the best of this week’s share tips from the rest of the UK's financial pages.
15 Oct 2021
Trading: stash the family cash in this cheap wealth management firm
Trading

Trading: stash the family cash in this cheap wealth management firm

Wealth management is a growth market. Rathbone Brothers should be a prime beneficiary – and looks cheap. Matthew Partridge explains the best way to pl…
12 Oct 2021
What the best-performing investment trusts of the past 20 years can teach us
Investment trusts

What the best-performing investment trusts of the past 20 years can teach us

Forty-two trusts have risen more than tenfold over the last two decades. What made the winners stand out? And how can we identify future outperformers…
12 Oct 2021

Most Popular

How to invest as we move to a hydrogen economy
Energy

How to invest as we move to a hydrogen economy

The government has started to roll out its plans for switching us over from fossil fuels to hydrogen and renewable energy. Should investors buy in? St…
8 Oct 2021
How to invest in SMRs – the future of green energy
Energy

How to invest in SMRs – the future of green energy

The UK’s electricity supply needs to be more robust for days when the wind doesn’t blow. We need nuclear power, says Dominic Frisby. And the future of…
6 Oct 2021
Why the world’s most important economic data release has unnerved markets
US Economy

Why the world’s most important economic data release has unnerved markets

The US added only 194,000 jobs in September, far shorter than the 500,000 that were expected. John Stepek explains why markets didn't react as they no…
11 Oct 2021