Kenmare announced year-on-year growth in first-half profit

Kenmare Resources plc(LSE:KMR, ISE code:KMR), one of the world's leading producers of titanium and zircon, operates Moma titanium ores ("Mine" or "Moma") in northern Mozambique, released its six-month semi-annual financial report for the period ended June 30, 2023 ("First Half of 2023") and announced its 2023 interim dividend.

Statement from General Manager Michael Carvill:

"Production is strong in the early second half of 2023, supported by higher grades, better HMC recovery and increased tonnage production. Unfortunately, production in the first half of 2023 fell short of our expectations, mainly due to severe lightning strikes in the first quarter and its ongoing impact.

Outlook market in 2023

Due to declining production and cost inflation, finished goods cash operating costs were US$230 per ton, an increase of 24% from the first half of 2022 (US$185 per ton); cash operating costs were US$137 per ton of ilmenite (excluding by-products), an increase of 28% compared to the first half of 2022 (US$107 per ton).

Supported by reduced finished products and strong revenue, net cash increased to US$42.3 million in the first half of 2023 (December 31, 2022: US$25.7 million) Ilmenite prices remained stable in the first half of 2023, although the titanium pigment market slowed down in the second half of 2023. Global macroeconomic conditions have also affected demand for zircon, with spot prices lower than contract prices.

For the 12 months ending June 30, 2023, the lost time injury frequency (LTIFR) is 0.18 per 200,000 hours (June 30, 2022:0.00)

Heavy ore concentrate ("HMC") production in the first half of 2023 was 633,900 tons, a decrease of 14% compared to the first half of 2022 (738,300 tons), mainly due to the impact of severe lightning strikes and grade reduction

Due to the decline in HMC production, total finished product production was 472,600 tons, a decrease of 10%(first half of 2022:550,700 tons)

Due to reduced finished goods inventories, total shipments were 556,800 tons, an increase of 31%(first half of 2022:424,300 tons)