Kenmare Resources H1 Profit Rises; Mineral Products Revenue Up 26%
Kenmare Resources plc (KMR.L) reported that its first-half profit before tax increased to $77.5 million from $68.6 million, prior year. Earnings per share was $0.70 compared to $0.65. EBITDA was $110.4 million, up 6%.
First-half revenue increased to $242.9 million from $197.3 million, last year. Revenue from mineral products was $229.7 million, a 26% increase from prior year, due to a 31% increase in shipment volumes supported by the drawdown of finished product stockpiles offsetting a 4% decrease in average realised prices.
First-half HMC production was 633,900 tonnes, a 14% decrease from prior year. Kenmare expects higher HMC production in second half, 2023.
Michael Carvill, Managing Director, said: “Production in early second half, 2023 has been strong, supported by higher grades, better HMC recoveries and increased tonnes mined. Production in first half, 2023 was unfortunately lower than our expectations, primarily due to a severe lightning strike in first quarter and its lingering impact.”
Kenmare Resources also announced the launch of a proposed tender offer to purchase up to 5.9% of the company’s issued ordinary shares. The company plans to return up to 23.6 million pounds to eligible shareholders by way of the tender offer. Each shareholder is entitled to have up to 5.9% of its shareholding purchased by the company. The tender offer remains open until 1.00 p.m. on 8 September 2023.
The Board has approved an interim 2023 dividend of 17.5 cent per share. The company will pay the interim dividend on 13 October 2023 to shareholders of record at the close of business on 22 September 2023.
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