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(Sharecast News) - Titanium and zircon producer Kenmare Resources updated the market on operations at the Moma Titanium Minerals Mine in northern Mozambique on Wednesday, reporting significant year-on-year improvements in a number of key metrics.
The London-listed firm said the lost time injury frequency rate (LTIFR) for the 12 months to 30 June improved to 0.09 per 200,000 hours worked, down from 0.18 in the prior year
That safety record coincide with Kenmare remaining on track to meet its 2024 production guidance, driven by higher forecast grades expected to boost production in the second half of the year
In the second quarter, Kenmare produced 342,600 tonnes of heavy mineral concentrate (HMC), marking a 7% year-on-year increase.
The rise was put down to an 8% increase in excavated ore volumes and higher heavy mineral recoveries, which offset a 5% decline in ore grade.
Ilmenite production also saw an 8% increase on the year to 238,600 tonnes, attributed to a 6% rise in HMC processed and higher ilmenite content.
Primary zircon production grew 12% to 13,000 tonnes, benefiting from increased HMC processing, drawdown of intermediate stocks, and higher recoveries.
However, total shipments of finished products dropped by 18% to 234,700 tonnes, primarily due to poor weather conditions and additional operational maintenance that limited shipping time.
Kenmare's board approved the final part of the definitive feasibility study (DFS) for upgrading and transitioning wet concentrator plant (WCP) A to the large Nataka ore zone in the second quarter of 2024
Market conditions remained favourable, with strong demand for Kenmare's ilmenite and a robust order book for the third quarter.
Financially, Kenmare's net cash position increased by $36.4m to $57.1m at the end of the first half, up from $20.7m at the end of 2023.
"At the end of the first half we are on track to achieve our 2024 guidance on all stated metrics," said managing director Michael Carvill.
"Higher ore grades in the second half are expected to support stronger production and shipments are also expected to rise.
"Demand for all of our products remains robust and ilmenite prices in the first half were above our expectations, bolstered by increasing global pigment production."
Carvill noted that Kenmare ended the period with $58.5m of cash, having paid $34.4m in dividends and repaid all debt.
"The company is well capitalised to fund the upgrade and transition of Wet Concentrator Plant A and to continue making shareholder returns."
Managing director Carvill was set to step down from his executive role and board position on 14 August, with the search for his successor reportedly nearing completion.
Kenmare said it would update the market on that transition ahead of its interim results.
At 1021 BST, shares in Kenmare Resources were up 0.31% at 326p.
Reporting by Josh White for Sharecast.com.