KENMARE Resources tripled the interim dividend following a record half year taxed profit, earned on the back of higher volumes and prices.
The company today posted a profit after tax of $48m, up 278% on the first half of the previous financial year. Earnings before interest, tax, depreciation and amortisation was $82.3m, a 121% increase year on year.
In line with the firm’s dividend policy of paying out 25% of taxed profit, the interim dividend was 7.29 US cents per share which compares to 2.31 c/share at the half year point last year.
“Market conditions for titanium feedstocks remained strong in H1 2021, with pricing strengthening quarter on quarter,” said Kenmare MD Michael Carvill. The average received free on board price for all finished products of $282 per ton was a year on year 5% lift.
“Market conditions for titanium feedstocks remained strong in H1 2021, with pricing strengthening quarter on quarter. The outlook for zircon has also continued to improve, with price increases during the half and continuing into H2 2021 to date,” said Carvill.
Heavy minerals include the products ilmenite and zircon which are used to make paint pigments. The minerals are also used in the ceramics and welding industries.
A major factor in the performance was the increase in sales of heavy minerals. Total shipments for the first half were 594,100 tons representing a 44% increase on the back of higher output.
As of June 30, Kenmare had net debt of $76.2m compared to $64m. The increase in net debt is mainly due to the timing of capital expenditure payments and a reduction in the use of invoice factoring.