London-listed Kenmare Resources, which operates the Moma titanium minerals mine, in northern Mozambique, recorded ilmenite production of 204 500 t for the first quarter ended March 31.

This was in line with expectations and the company anticipates that production will increase from the next quarter onwards as the southern hemisphere rainy season has now concluded, MD Tom Hickey says.

Heavy mineral concentrate production was 312 300 t, broadly in line year-on-year.

Kenmare highlights strong co-product production of 14 000 t of primary zircon, up 69% year-on-year; and 2 500 t of rutile, up 67% year-on-year, benefitting from the drawdown of intermediate stockpiles and improved recoveries.

Total shipments of 307 100 t were up 26% year-on-year owing to the marine operations performing well.

The Wet Concentrator Plant (WCP) A upgrade project is progressing on budget, with commissioning on track to begin in the third quarter, ahead of its transition to the large Nataka orezone.

Market conditions continued to be stable in the period and Kenmare says it has a strong order book for its products this year.

Discussions with the government of Mozambique are continuing regarding the extension of the implementation agreement and Kenmare’s existing rights and benefits remain in full force and effect pending conclusion of the extension process, it points out.

“At the end of quarter one, we are on track to achieve our guidance on all metrics and our project to upgrade WCP A is progressing well,” Hickey highlights.

“The markets for Kenmare’s products continue to be resilient, with demand for ilmenite bolstered by the growing titanium metal and beneficiation markets,” he adds.

The company also passed the milestone of four-million hours worked without a lost-time injury in mid-March.

“Our team at Moma has now worked for over seven months without a lost-time injury and I’d like to congratulate them on this outstanding achievement,” Hickey acclaims.

DEADLINE EXTENSION

On March 6, the board announced that it had received a non-binding proposal from Oryx Global Partners and Michael Carvill regarding a possible all-cash offer for the entire issued and to-be-issued share capital of the company.

To facilitate ongoing discussions with the consortium and to provide additional time for it to progress its due diligence, the board has requested, and the takeover panel has consented to, an extension of the current deadline of April 17 to May 15, when the consortium will either announce a firm intention to make an offer for Kenmare or announce that it does not intend to make an offer.

The revised deadline may only be extended further at the request of the board and with the consent of the takeover panel.