Kenmare Resources plc lowered its full-year ilmenite production guidance due to lower-than-expected production in the first half. The Mozambica-focused mining company said its heavy concentrate production fell to 633,900 tons in the first half of the year, down 14% year-on-year, as power outages led to declines in grades and mining rates. The output of ilmenite, an important economic titanium iron oxide mineral, fell to 425,500 tons, a year-on-year decrease of 15%.
Therefore, the company lowered its guidance for ilmenite production for the whole year, from the previous 1.05 million tons to 1.15 million tons to 980,000 tons to 1.04 million tons. Guidance for raw zircon, rutile and concentrates remains unchanged, as does guidance for total cash operating costs. Kenmare said production is expected to increase significantly in the second half due to improved grades and increased tonnage produced. The company added that it was considering buying back approximately $30 million in stock and would provide a further update on its interim results in mid-August.