Kenmare cuts 2022 production guidance for ilmenite and rutile due to power outages in Mozambique
(Kitco News) - Kenmare Resources (LSE: KMR), one of the leading global producers of titanium minerals and zircon, announced today that its heavy mineral concentrate (HMC) production has weakened recently due to unplanned power outages.
Consequently, the company said that its 2022 guidance for production of ilmenite and rutile is updated, with ilmenite production expected to be 1,080,000-1,110,000 tonnes (previous guidance: 1,125,000-1,225,000 tonnes) and rutile production expected to be 8,500-9,500 tonnes (previous guidance: 9,500-11,500 tonnes).
Kenmare added that the lower end of the revised guidance ranges assumes a continuation of recent power disruptions until the end of the year.
However, the company pointed out it is working with the state electricity provider, Electricidade de Moçambique, to identify and rectify the issues as a matter of urgency.
Production guidance for primary zircon and concentrates is unchanged due to higher zircon content in the HMC mined and stronger recoveries, it said.
“Q4 2022 is anticipated to be the strongest quarter of the year for shipments, due to seasonally favorable weather conditions and unrestricted shipping capacity,” Kenmare noted in a statement.
Additionally, the company said that total cash operating costs are anticipated to be very slightly above the top end of 2022 guidance ($190-210 million), due primarily to higher fuel prices.
Kenmare Resources is one of the world's largest producers of mineral sands products. Kenmare operates the Moma titanium minerals mine in Mozambique. Moma's production accounts for approximately 8% of global titanium feedstocks and the group supplies to customers in more than 15 countries.