KMR Kenmare Resources Plc

 
TIDMKMR 
 
Kenmare Resources plc ("Kenmare" or "the Company") 
 
20 May 2010 
                                  Moma Update 
 
At  its Annual General Meeting today  Kenmare Resources updated its shareholders 
on progress at its Moma Titanium Minerals Mine in Mozambique. 
 
Production  figures  for  April  show  a  continuation  of the positive trend in 
production  volumes with  production of  ilmenite, (a  titanium mineral, and the 
project's  main product),  up 14% to  57,307 tonnes from  the monthly average of 
50,300 tonnes  achieved in the first quarter.  Production of zircon (a zirconium 
mineral,  the  project's  main  co-product)  is  up 20% to 3,231 tonnes from the 
monthly  average of  2,670 tonnes for  the first  quarter.  These figures are in 
line  with expectations.  Production of  rutile, a minor co-product representing 
only 5% of project revenues at full rutile output, has also increased, albeit at 
a  slower rate. We anticipate that  rutile production will improve significantly 
during  the coming months following the introduction of new separation equipment 
in  the  circuit.  Operating  cash  generation  from  the  project  continues to 
increase. 
 
The  market for titanium minerals  continues to improve both  in terms of higher 
demand  and pricing.  This is a result  of growth in emerging economies, the end 
of  the  contraction  in  developed  economies,  and  the  depletion of ilmenite 
stockpiles  bought at  depressed prices  by major  Chinese producers  during the 
downturn. The market for zircon is also firming with significant price increases 
being  announced by major  suppliers of zircon.   This underpins our strategy of 
expanding  production at  Moma and  investing to  capitalise on  more favourable 
market conditions. 
 
To  this end,  Kenmare is  progressing with  the engineering  design of its 50% 
expansion  of output from  Moma.  An Owner's  Team has been  appointed and is in 
place  in Johannesburg.   The Owner's Team  will supervise the completion of the 
Definitive  Engineering Study,  the appointment  of an  EPCM contractor  and the 
implementation of the expansion project. 
 
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 0300 
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 <http://www.kenmareresources.com/> 
 
 
[HUG#1417545] 
 

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