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Kenmare Resources plc (“Kenmare” or “the Company”) 9 April 2020 Q1 2020 Production Report and Guidance Update Market update The ilmenite market remained strong in Q1 2020, continuing the momentum of 2019 and leading to a fourth consecutive quarter of higher average prices received. Kenmare has secured offtake agreements for the majority of its ilmenite production in 2020. The effects of COVID-19 are uncertain for the ilmenite market. Kenmare estimates global inventories of feedstocks are below normal levels, whilst global ilmenite supply remains constrained by government policy in India and Vietnam and depleting mines, primarily in Africa and Australia. The reduced ilmenite availability, coupled with growing demand for ilmenite upgrading in China, has led to increased demand for Kenmare’s ilmenite products from both existing and new customers in Q1 2020. However, downstream demand for titanium pigment is likely to be negatively impacted by lower global economic activity as a result of the COVID-19 outbreak. Whilst there have been examples of titanium feedstock producers also facing disruption to production, the extent and length of these shutdowns is difficult to forecast. Despite these uncertainties, Q2 2020 looks strong and the medium term outlook for Kenmare’s ilmenite products remains solid, with demand expected to outstrip supply and additional sources of supply required to balance the market in the coming years. The oversupply in the zircon market continued into Q1 2020, resulting in lower achieved zircon prices compared to Q4 2019. As with the ilmenite market, both the downstream demand for zircon and the production of zircon sand have been impacted by the COVID-19 outbreak. Kenmare expects challenging market conditions to persist in the short term but to improve in the medium term, as zircon sand production reduces from depleting major mines. https://www.globenewswire.com/news-release/2020/04/09/201404… |
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| aus der Diskussion: | Melior Resources |
| Autor (Datum des Eintrages): | Reiners (25.05.20 15:50:36) |
| Beitrag: | 5,224 von 5,367 (ID:63794621) |
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