Kenmare Resources plunges to $88.6m loss after taking $100m hit on mining assets
The titanium miner, which operates the Moma titanium mine in the southeast African country, announced earlier this year that it had lowered its future revenue assumptions amid uncertainty around the pricing of ilmenite, its main product.
The Dublin-listed company has also been embroiled in protracted negotiations with the government in Mozambique to extend its mining contract since 2022.
In half-year results published on Wednesday morning, Kenmare, which abandoned takeover talks with its former managing director Michael Carvill earlier this summer, confirmed that it took a $100.3 million impairment charge loss in the six months to the end of June.
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Excluding the charge, adjusted earnings fell by 25 per cent to $47.2 million compared to the same period last year due to rising costs.
Operating costs at Kenmare soared by 14 per cent in the first half of the year to $150.5 million. Costs directly related to the Moma mine rose 6 per cent, 'mainly driven by higher labour costs and production overheads', it said.
Before tax, the miner fell to an $88.6 million loss for the period from a $27.7 million profit last year.
Still, chief executive Tom Hickey said demand for Kenmare's products remains 'encouraging' while ilmenite prices in the first half were only 'marginally below' 2024 levels.
He said the company remains 'well capitalised' to fund 'future shareholder returns', including an interim dividend of $0.10 per share that has been approved by the board.
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