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Mozambique Rare Earths Mining: Kenmare Interim Management Statement

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Kenmare Resources plc (“Kenmare” or “the Company”)

Kenmare Resources plc (LSE:KMR, ISE:KMR), one of the leading global producers of titanium minerals, issues the following trading update with respect to the period from 1 January 2014 to 23 April 2014 and covering production and shipments from 1 January 2014 to 31 March 2014 (“Q1” or “Q1 2014”) in accordance with the Disclosure and Transparency Rules.

 

Overview

 • Ore mined up 81% to 7,543,000 tonnes (Q1 2013: 4,156,000 tonnes)

• Production of heavy mineral concentrate (“HMC”) up 51% to 287,000 tonnes (Q1 2013: 189,800 tonnes)

• Production of ilmenite up 53% to 210,800 tonnes (Q1 2013: 137,500 tonnes)

• Production of primary zircon up 35% to 7,700 tonnes (Q1 2013: 5,700 tonnes)

• Sales of finished products up 299% to 193,900 tonnes (Q1 2013: 48,500 tonnes)

• Debt restructuring completed in February 2014

• Continued focus on increasing production

• Contract signed for rental of 7.5MW diesel-powered electricity generation plant, expected to be available for use at site from early H2 2014

• Programme to reduce operating and capital costs underway

 

Michael Carvill, Managing Director, said:

 “The first quarter of the year saw a significant increase in mining and production compared to Q1 2013 following the completion of the expansion of Moma in late 2013. Q1 has historically been our lowest production quarter due to the issues associated with power supply in the Southern Hemisphere summer months. Consequently, we are pleased to have reached an agreement to bring a diesel-powered electricity generating plant on site as an auxiliary power source, providing the Mineral Separation Plant (“MSP”) with increased security of power supply to more effectively utilise our new expanded facilities. With the rescheduling of debt payments completed and the problem of power fluctuation having been mitigated, we look forward to reporting further progress on lowering unit operating costs and ramping up production to nameplate capacity.”

 A conference call to discuss this update with investors and analysts will be hosted at 9:30am BST. Participant dial-in numbers are as follows:

 UK number: 0808 237 0030

Alternative number: +44 (0) 203 139 4830

Conference ID: 23130462#

For more numbers are available here:

http://www.kenmareresources.com/~/media/Files/K/Kenmare-Resources-PLC/pdf/press-releases/2014/IMS%20News%20240414.pdf

 

Kenmare Mozambique Office

Rua de Chuindi No.67, Maputo, Mozambique. Tel: +258 21 499 701 Fax: +258 21 499 731

Website: www.kenmareresources.com Email : info@kenmareresources.com

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