Kenmare Resources reports $9.6 million

Exploration firm Kenmare Resources today blamed the weak dollar and equipment problems for a $9.6 million loss last year.

Last year’s loss is up on the $4.3 million loss reported for 2006. In the year to December 31st, 2007, Kenmare had operating expenses of $12.5 million compared with $7.255 million for the same period in 2006.

In a statement to the Dublin stock market Kenmare chairman Charles Carvill said production at its mine in Mozambique had been hit by “considerable problems with certain equipment supplied under the construction contract”.

This meant that production had been lower than expected. Following the installation of newer, more robust, equipment Mr Carvill said the company was now “set to achieve its targeted production rate, albeit somewhat later than was originally envisaged”. The new equipment was installed by the contractor under warranty.

Kenmare would continuing to plan for the expansion of the Mozambique mine to 1.2 million tonnes per annum of ilmenite, the main ore of titanium, the statement said.

Demand from China had seen the price of imported ilmenite there rise by around 50 per cent since the start of the year. Slowing demand from the US was being more than compensated for by strong growth in Europe and Asia.

Mr Carvill said although the mine was experiencing some salary and fuel cost increases “we are very confident that Moma will achieve its targeted production rates in 2008”.

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