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Kenmare Resources PLC on Friday lowered its full year guidance for ilmenite and rutile production as heavy mineral concentrate production weakened following unplanned power outages.
Kenmare Resources is a Dublin-based titanium minerals and zircon producer, operating the Moma mine in northern Mozambique.
Kenmare Resources said the production of ilmenite, the group’s’ primary product, was strong in October. However, ilmenite production for the full year is now forecast to range between 1.08 million tonnes to 1.11 million tonnes, compared to the previous guidance of 1.13 million tonnes to 1.23 million tonnes.
Rutile production is expected to range between 8,500 tonnes to 9,500 tonnes in 2022, down from the previous guidance of 9,500 tonnes to 11,500 tonnes.
Kenmare Resources had to revise its guidance due to a recent issue in the electricity transmission grid which created the unplanned power outages, and resulted in lower ilmenite production.
The company is working with the state electricity provider, Electricidade de Mocambique, to identify and rectify the problem.
The fourth quarter of 2022 is expected to be the ‘strongest quarter of the year’ for shipments, however, due to seasonally favourable weather conditions and unrestricted shipping capacity. Kenmare Resources said the fourth quarter will not be impacted by lower production, and added that prices ‘remain strong’.
Production guidance for primary zircon and concentrates is unchanged due to higher zircon content in the heavy mineral concentrate mine and stronger recoveries.
Kenmare Resources shares were up 0.2% to 444.50 pence at midday on Friday in London.
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