Titanium miner Kenmare Resources has reported lower profits and revenues for the six months to the end of June due to reduced shipment volumes and lower freight costs.

Kenmare said its profit after tax fell to $12.7m from $21.9m the same time last year, while revenues were down 5% to $116.8m from $122.7m.

Kenmare, which operates the Moma Titanium Minerals Mine in northern Mozambique, also said it was proposing an interim dividend of 2.31 cent per share.

It said it excavated ore volumes of 18.5 million tonnes, including a new quarterly record of 10.3 million tonnes in the second quarter of the year.

The company said that strict access controls, hygiene protocols and social distancing measures have been in place at the mine since March due to Covid-19, with production and shipments continuing safely.

Kenmare said that market conditions for titanium feedstocks continued to strengthen in the first half of 2020, driving a 28% increase in received ilmenite prices, to $217 a tonne, compared to last year.

It also said it had agreements for the majority of its ilmenite production for the second half of the year, although market conditions are expected to become more subdued in the months from July to December.

“Our performance during the first half of 2020 demonstrated Kenmare’s resilience and agility, effectively managing many challenges posed by the Covid-19 pandemic to continue to produce and ship our products safely,” commented Michael Carvill, Kenmare’s Managing Director.

“Although production was weaker in H1 2020 than in the corresponding period last year, our business remained profitable and I am pleased to announce an interim dividend of 2.31 cent per share.

This represents 20% of profit after tax, in line with our dividend policy,” he added.

Kenmare also announced today that Deirdre Somers is joining the company as a non-executive director. She will also become a member of Kenmare’s Audit & Risk Committee.