KMR Kenmare Resources Plc

 
TIDMKMR 
 
Kenmare Resources plc ("Kenmare" or "the Company") 
 
18 November 2009 
 
Interim Management Statement 
 
Kenmare Resources plc, issues the following Interim Management 
Statement for the period 1 July 2009 to 18 November 2009, in 
accordance with reporting requirements of the EU Transparency 
Directive. 
 
Production performance at the Company's Moma Titanium Minerals Mine 
in Mozambique has continued to improve quarter on quarter. 
Significant progress has been made in both the mine and the mineral 
separation plant. The mining operation produces heavy mineral 
concentrate which is separated in the mineral separation plant to 
produce final products ilmenite, zircon and rutile. Third quarter 
production of heavy mineral concentrate from the mine was 230,000 
tonnes, up 30% compared with quarter two. The mine is currently 
operating at full design production levels with 97,000 tonnes of 
heavy mineral concentrate produced in October. 
 
The mineral separation plant is now capable of operating at the 
target feed rate of 135tph and plant optimisation work is underway to 
further improve recovery rates.  Ilmenite production in the third 
quarter was 130,000 tonnes, up 23% compared to the second quarter. 
October production at 51,000 tonnes continues this improvement. 
Zircon production for the third quarter remained static at 6,000 
tonnes, mainly as a result of delayed delivery of additional 
equipment and disruption associated with the implementation of 
circuit changes. These changes to both the zircon and rutile circuits 
have recently been commissioned and are now being optimised. It is 
anticipated that ilmenite output will be close to full capacity by 
the end of the year and zircon output will be at 80% of target, 
reaching full capacity in the first quarter of 2010 following the 
completion of plant optimisation work. 
 
Shipping volumes for the third quarter were 131,000 tonnes, a 38% 
increase in tonnages shipped in quarter two. The marine operation has 
been further strengthened with Kenmare's purchase of a second 
transhipment barge and tug combination which will increase load out 
capacity at Moma as well as reducing operational risk. Arrangements 
are being made to transport these vessels to Moma next year. 
 
Titanium feedstock demand, which declined in the first two quarters 
of 2009 due to a combination of weak demand and inventory 
de-stocking, showed signs of recovery in the third quarter as the 
major pigment producers reported expectations of more favourable 
market conditions for the remainder of 2009. The industry forecast 
for 2010 is for a further rebound in pigment demand. 
 
As the pigment sector accounts for around 92% of titanium feedstock 
demand, the expected recovery in pigment demand will have a positive 
effect on TiO2 feedstock consumption during this period with 
significant re-stocking expected over the coming months as pigment 
producers continue to ramp-up production. 
 
In October, Kenmare's development association, KMAD, was awarded a 
prestigious Nedbank Capital Green Mining Award for its activities 
aimed at social and economic enhancement of the communities 
surrounding the Moma Mine. This followed the presentation to Kenmare 
in September of the President's Award for the best International CSR 
Programme from the Chambers of Commerce of Ireland, in association 
with the Irish Government Department of Community Affairs.  KMAD 
works alongside the community, business, Non-Governmental 
Organisations and Government to run and support projects in 
education, income generation, health, savings & credit, sports and 
food security. 
 
The Directors are pleased to announce that each of the resolutions 
proposed at the Extraordinary General Meeting of the Company held 
today were passed.  The resolutions provided for the increase in 
authorised share capital, renewal of directors' authority to allot 
and issue shares and to authorise the calling of an Extraordinary 
General Meeting on 14 days notice. The increase in authorised share 
capital was necessary to provide headroom for the exercise of 
outstanding warrants. The full text of each resolution was set out in 
the Notice of Extraordinary General Meeting that Kenmare circulated 
to the Shareholders on 26 October, 2009. 
 
 
For more information: 
 
Kenmare Resources plc 
Michael Carvill, Managing Director 
Tel: +353 1 671 0411 
Mob: + 353 87 674 0110 
 
Murray Consultants 
Jim Milton/Joe Heron 
Tel: +353 1 498 0345 
Mob: + 353 86 255 8400 
 
Conduit PR Ltd 
Leesa Peters/Charlie Geller 
Tel: +44 207 429 6600 
Mob: +44 781 215 9885 
 
www.kenmareresources.com 
 
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This announcement was originally distributed by Hugin. The issuer is 
solely responsible for the content of this announcement. 
 

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