The company experienced a significant increase in revenue from mineral products in the first half of the year, reaching $229.7m (€210.3m), a 26% growth compared to the same period in 2022.
Despite a 4% decrease in average realized prices, shipping volumes surged by 31%.
Profit after tax also saw an improvement, rising by 8% to $67.8m (€62.1m) during the period.
However, Kenmare Resources acknowledged that production in the first half of 2023 fell below expectations.
The company operates Moma, one of the largest ilmenite mines globally, located in Mozambique.
Ilmenite, which has various applications including paint and paper production and titanium manufacturing, is processed at the site.
Heavy mineral concentrate (HMC) production at the mine declined by 14% in the period, largely due to a severe lightning strike in February that continues to impact mining activity.
Additionally, power reliability issues in recent months have also hampered productivity, as reported by Kenmare.
Although ilmenite prices remained stable, the consumption of titanium oxide pigment, closely tied to global GDP growth, has slowed down in recent months.
Demand for zircon has also decreased as spot prices fell below contracted prices.
The company has approved an interim dividend of 17.5 US cents per share, representing a 59% increase compared to the same period last year.
Furthermore, Kenmare will launch a $30m share buyback program through a tender offer.
“Production in early H2 2023 has been strong, supported by higher grades, better HMC recoveries, and increased mining capacity,” said managing director Michael Carvill.
“Unfortunately, production in H1 2023 was lower than expected, mainly due to a severe lightning strike in Q1 and its lingering impact,” he added.
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