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(Kitco News) - Kenmare Resources (LSE: KMR), one of the leading global producers of titanium minerals and zircon, reported today that heavy mineral concentrate production increased 2% in 2022 to 1,586,200 tonnes (2021: 1,555,900 tonnes), benefitting from higher excavated ore volumes mined.
However, the company said that ilmenite production decreased 3% in 2022 to 1,088,300 tonnes (2021: 1,119,400 tonnes).
Kenmare added that shipments of finished products were 1,075,600 tonnes in 2022, a 16% decrease compared to record tonnes shipped in 2021, reflecting four months planned maintenance on a transshipment vessel.
The company also reported an 18% increase in mineral product revenue to $498.4 million in 2022 (2021: $420.5 million), benefitting from a 42% increase in the average price received for Kenmare's products.
The company's profit after tax increased by 60% to $206.0 million (2021: $128.5 million) due to higher product prices, and diluted earnings per share increased by 83% to $2.12 (2021: $1.16).
Kenmare also announced that its Board has recommended a 2022 dividend of $51.5 million or USc54.31 per share (2021: USc32.71), up 66% on 2021, comprising an interim dividend of USc10.98 per share (paid in October 2022) and a final dividend of USc43.33 per share (payable May 2023).
Managing Director Michael Carvill commented, "2022 was a record year of financial performance for Kenmare. Our financial results were driven by steady production volumes and record product prices. Mineral product revenues increased 18% and EBITDA rose by 39% to $298 million.
"We are tracking within guidance for 2023, despite suffering an extremely severe lightning strike which halted production for an extended period in February, albeit towards the bottom end of our range for ilmenite and rutile. In 2023, the market for our products remains buoyant, although at marginally lower levels than the highs of Q3 2022, with strong customer demand for volume."
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 7% of global titanium feedstocks and the company supplies to customers operating in more than 15 countries.
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