Irish mining firm Kenmare Resources braced for coronavirus hit but 'well-placed' to cope
Irish mining firm Kenmare Resources has said its 2020 profits may be impacted by a coronavirus-led slowdown in industrial activity, but it is “well-placed” to survive most scenarios that may play out as a result of the virus.
Managing director Michael Carvill said a global recession would be “a big deal” but Kenmare has good liquidity levels – with $80m in cash and a further $80m in undrawn debt.
“That will help us absorb a lot of bounce that might occur,” Mr Carvill said. “We expect an adverse impact, but we don’t know the extent nor the duration,” he said.
Customer demand is strong and selling prices are on the rise. Furthermore, new shipments are being made to China – a key market for Kenmare.
The company – a major producer of ilmenite and other minerals from its Moma titanium mine in Mozambique – has reported a 3% rise in annual revenue, for 2019, to $271m (€247m) and flat earnings of just under $93m.
Kenmare has also declared a maiden full-year dividend of US8.18c per share. The company is currently sticking to its plan to continue a conservative dividend policy and is still hoping to add to that basic dividend, in 2021, with either a share buyback or a special dividend.
The company is also pressing ahead with its third phase expansion plans at Moma.
[snippet1]987600[/snippet1]
