Profits from the Moma mine in northern Mozambique, one of the world’s largest producers of titanium and zircon, fell 69% in the first half of this year, compared to 2023, to 1.32 billion meticals (20.9 million dollars), the Lusa news agency reported on Thursday, 15 August .
According to information provided to the market by Kenmare, which operates the mine, these profits after tax compare with 4.28 billion meticals (67.8 million dollars) in the first half of 2023, with the mining company justifying the drop in mineral shipments, which ‘impacted financial performance’.
‘Shipments strengthened at the start of the second half of the year, supported by the strong visibility of customer orders, high stocks of finished products and improved seasonal weather conditions,’ explained Andrew Webb, Kenmare’s chairman, quoted in the same report today (15), guaranteeing that revenue is expected to grow in the second half of the year.
The mine recorded revenues from the export of mineral products totalling 9.76 billion meticals (154.5 million dollars), a drop of 33% compared to the first quarter of 2023, due to the decrease in the number of shipments and in prices.
Kenmare closed the half year with assets of almost 12.6 billion meticals (200 million dollars), ‘including record net cash’ of 3.72 billion meticals (58.9 million dollars), being ‘well positioned to finance’ capital commitments and returns to shareholders.
The profit after tax compares with 4.28 billion meticals (67.8 million dollars) in the first half of 2023, a decrease justified by the mining company by the drop in mineral shipments, which impacted financial performance.
Kenmare
Exports from the Moma mine fell by 18 per cent in the second quarter of this year, compared to 2023, but the operator previously guaranteed that it had a ‘strong order book’.
According to Kenmare data, in three months shipments were made of various finished minerals totalling 234,700 tonnes (heavy sands, zircon, ilmenite and rutile), also down 3% on the first quarter, which in turn amounted to 477,600 tonnes in the first half of the year, a year-on-year drop of 14%.
Kenmare Moma Mine – November 2019
‘The drop in shipments from the operation off the coast of Nampula province was mainly due to poor weather conditions and operational maintenance, which affected shipping times,’ the company explained.
‘The encouraging market conditions continued in the second quarter of 2024, with particularly robust demand for Kenmare’s ilmenite, and the company has a strong order book for the third quarter,’ reads the same report.
The company ended the same period paying out 2.1 billion meticals (34.4 million dollars) in dividends, having also ‘repaid all its debts’, being ‘well capitalised to finance the upgrade and transition’ of the mine.
Kenmare, which is of Irish origin and operates in Mozambique through subsidiaries in Mauritius, previously announced that it had paid 1.92 billion meticals (30.5 million dollars) in 2023 to the state, in fees and taxes.
It is one of the world’s largest producers of mineral sands, listed on the London and Dublin stock exchanges, and production in Mozambique accounts for approximately 7 per cent of global titanium raw materials.
The encouraging market conditions continued in the second quarter of 2024, with particularly robust demand for Kenmare’s ilmenite, and the company has a strong order book for the third quarter
Kenmare
The company supplies customers operating in more than 15 countries who use the heavy minerals in paints, plastics and ceramics. The Moma mine contains reserves of heavy minerals including titanium, ilmenite and rutile, which are used as raw materials to produce titanium dioxide pigment, as well as the relatively high-value zirconium silicate mineral.
The mining company announced in April 2023 that it plans to explore a new lode within two years, in the Moma concession, signalling the longevity and profitability of the mine.
