Profit fall dents Kenmare Resources dividend cheer
Irish mining company Kenmare Resources is confident of improving profits and meeting full-year production targets despite turbulent weather in its focus country of Mozambique damaging first-half profitability.
The company owns and operates the Moma titanium mine in the south-eastern African nation. While the mine was not hit by the two cyclones which devasted parts of the country earlier this year, shipping of product from Moma was impacted.
This partly drove a 21% year-on-year fall in first-half pre-tax profit to $22.8m (€20.6m) and a 12% drop in revenue to $122.7m. Kenmare's shares dropped as much as 4% on the results.
The company also announced a maiden interim dividend - of 22.6c per share - and said improved profitability in the second half should strengthen its first full-year dividend.
Kenmare is aiming to pay shareholders 20% of after-tax profits in any given foreseeable dividend, something which may strengthen on improved cash generation when production from Moma is increased by around 25% from 2021.
Kenmare still expects to produce 900,000-960,000 tonnes of ilmenite this year.
