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ISEQ higher-Kenmare Resources examined

Tuesday, March 12 09:26:30

The ISEQ is higher this morning at 3,865, up 19 points as European markets started weak but moved into positive territory as the morning progresses.

Davy Stockbrokers examines comments from Kenmare Resources: Management has described its efforts to protect the integrity of the mining pond as its moves up the side of a hill as successful. While there are still some metres to go before the pond reaches the dunal plateau (on which it will mine for the next 12 years), the heavy, preparatory civil engineering works are behind the group.

Once on the plateau, productivity for the remainder of 2013 is forecast to improve as slimes moderate and the grade of the ore increases. The transition of the existing dredging operation from a lowlying area to a dunal plateau will be substantially complete by end Q1. Work to improve the stability of power supply to site and to protect against any power dips that do arise is on-going. Full production under Phase II anticipated by the end of 2013

The expansion of the facilities at Moma, which will increase production capacity by 50pc, is now in the commissioning phase. The new dredge and Wet Concentrator Plant (WCPB) are now floating in a second mining pond. Pipe work on the WCP-B and the new separation plant is in the final stages of being completed. Feed or ore will start running through the new plant in Q2 with full production under Phase II targeted before year end according to Davy Stockbrokers.