London-listed Kenmare Resources has advised of lower-than-expected production in the first half of the year from the Moma Titanium Minerals mine, in Mozambique, therefore, ilmenite output for the full year will be lower at between 980 000 t and 1.04-million tonnes.

This compares to an original yearly guidance for ilmenite production of between 1.05-million and 1.15-million tonnes.

Although all production volumes suffered from impacts in the first half of the year, Kenmare did not change the yearly guidance of zircon, rutile or heavy mineral concentrates (HMC), retaining these at between 51 000 and 57 000 t, 8 000 and 9 000 t, and 37 000 and 41 000 t, respectively.

Kenmare expects the second half of the year to be a much stronger period of production, benefitting from increased grades and tonnes mined.

It is expected that the shortfall in ilmenite will be partially offset by an increased content of zircon and rutile in feed, particularly from Wet Concentrator Plant (WCP) B.

The company explains the lower end of the revised ilmenite guidance range includes a conservative allowance for unexpected impacts on production.

MD Michael Carvill explains production in the first half of the year has been lower owing to lingering effects of a severe lightning strike experienced in the first quarter and power reliability impacts in the second quarter.

He adds the company’s cash generation remains strong, supported by product pricing and shipments. The company is considering a share buyback of about $30-million, which will be communicated in more detail in the interim results release in mid-August.

In the second quarter, Kenmare’s operations were disrupted by unplanned maintenance conducted by the country’s electricity utility, lower recoveries at WCP A owing to high slime levels and WCP B not being able to operate in a fully automated mode as a result of spares shortages following the lightning strike.

This while WCP C undertook a planned transition through a tailings area from March to reach a new mining zone, which took longer than expected but was completed in June.

Kenmare confirms WCP A has improved recoveries since June and WCP B is now operating on a fully automated basis.

HMC production recorded a 10% decrease to 318 900 t in the second quarter, compared with the second quarter of last year, while ilmenite production was 9% lower year-on-year at 221 300 t. On a half-year basis, HMC production was 14% lower year-on-year, while ilmenite production was 15% lower year-on-year.

Primary zircon and rutile production was between 10% and 15% lower in the second quarter, compared with the second quarter of last year, and between 10% and 13% lower in the first half of the year, compared with the first half of last year.

Kenmare managed to ship 48% more finished products in the second quarter, totalling 285 100 t, compared with the second quarter of last year.

At the end of the first half of the year, Kenmare’s net cash increased to $42.2-million, supported by a drawdown of finished products and robust pricing, compared with net cash of $25.7-million in December last year.