2022 Was “Strong Year” Says Kenmare

2022 Was “Strong Year” Says Kenmare

Maputo, 25 Jan (AIM) – The Irish company Kenmare Resources, which operates the Moma Titanium Minerals Mine, in the northern Mozambican province of Nampula, has claimed that 2022 was “a strong year” for its products, despite a 16 per cent decrease in shipment volumes compared with 2021.

The company says this decrease (from 1,295,300 to 1,075,600 tonnes) was mainly due to a four month period of planned maintenance, which occurs every five years.

Nonetheless, according to Managing Director Michael Carvill, cited in a Kenmare press release, “Shipments in the fourth quarter were near record levels”.

“Despite some macro-economic headwinds, we continue to see a robust market for our products, with strong pricing achieved in the fourth quarter of 2022”, said Carvill. “As China further relaxes COVID-19 restrictions, we expect higher domestic demand to support our sales in the region”.

“Kenmare has moved to a net cash position of 27.5 million US dollars at the end of 2022, which represents a 110.3 million dollar improvement on the previous year, whilst also having paid record dividends”, added Carvill. “We continue to target a total dividend payment of 25% of profit after tax in respect of 2022.”

The Kenmare release noted that “record average prices were received for all products. Prices received for ilmenite, the Company’s primary product, increased 29% on an FOB basis compared with 2021 due to tight market conditions, most notably in the first half when pigment producers were constrained due to shortages of titanium feedstocks”.

The world demand for pigments “decreased through the year as the global economic outlook weakened and the Chinese zero COVID-19 policy muted industrial activity”, it added. “The conflict in Ukraine contributed to energy price inflation, particularly in Europe, pressuring pigment producer margins due to their energy-intensive operations. From a supply perspective, there have been increases in the supply of low-quality ilmenite products entering China, particularly from Mozambique”.
“Despite these factors impacting the market, Kenmare continued to see robust demand for its high-quality ilmenite products, achieving a ninth consecutive ilmenite price increase in the fourth quarter of 2022, as customers continue to value supply security”, Kenmare declared.
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