Kenmare Resources saw its shares rose on Monday as the titanium minerals and zircon miner’s fourth-quarter production levels in its Moma mine in Mozambique topped analysts’ estimates, even as the country grappled with civil unrest.
Still, prices for titanium minerals like ilmenite, which used in the manufacture of everything from paints and plastics to ceramics and textiles, fell over the course of 2024 as very strong global demand was outstripped by a spike in production.
Shares in the Dublin-based company rose 1.6 per cent in early trading in London, where activity in the stock was higher than on the Irish market.
Global demand for titanium feedstocks reached a record high during the year, supported by strong demand from emerging markets such as South America and Asia, excluding China, the Dublin-based company said.
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However, supply grew more strongly, with increased exports of heavy mineral concentrate to China from Mozambique, Sierra Leone, and Indonesia.
Davy analyst Colin Grant said that the price downcycle is expected to continue for a third straight year in 2025.
[ Kenmare shares dip as new Mozambique deal drifts amid civil unrestOpens in new window ]
Meanwhile, Mozambique has been affected by civil unrest since a presidential election in October, in which the ruling Frelimo party’s candidate, Daniel Chapo, was declared winner amid claims from opposition parties that the process was marred by voting irregularities. Mr Chapo was inaugurated last week under heavy guard as protests continued.
Ilminite production by Kenmare rose by 14 per cent in the fourth quarter to 307,400 tonnes, while primary zircon, which is widely used in the foundry industry, rose 5 per cent to 14,700 tonnes, the company said.
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“Kenmare delivered a strong finish to 2024, exceeding the midpoint of our production guidance for ilmenite and the upper end of the guidance ranges for all other products,” said group managing director Tom Hickey.
“We also passed the milestone of two million hours worked without a Lost Time Injury in late December. These achievements are testament to the hard work and commitment of our team at site during a challenging period.”
Kenmare said in December that a final agreement extending a processing and exports accord in Mozambique will was finalised before the existing 20-year deal expired that month.
However, the Irish company has agreed in principle the terms of an extension and, crucially, that it is being allowed to continue activities until a new agreement is sealed.
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