Kenmare eyes 2012 price hike
Kenmare Resources expects a dramatic boost to earnings next year when it will be able to capitalise on higher prices for its key products, the Irish mining firm said yesterday. Kenmare, which mines ilmenite and zircon from its Moma mine in Mozambique, has not been able to take full advantage of price leaps due to existing contracts, which run out at the end of this year. “Unless there is a dramatic change in prices back down again... there will be a dramatic change in our revenue per tonne gained and therefore a huge difference in our EBITDA,” managing director Michael Carvill (pictured) said.
Premier Oil pushes back targets
Premier Oil expects a delay in meeting its daily average production target for 2012 due to financial difficulties faced by its partner in the Huntington project in the North Sea. Premier said it planned to drill up to 20 exploration and appraisal wells over the next 12 months, targeting about 300m barrels of oil equivalent. The company also reiterated its full-year production outlook of 40,000-45,000 barrels of oil equivalent per day (boepd). The company expects a year-end production run rate of 60,000 boepd. Premier also reported a huge drop in its first-half pre-tax profit at $32.5m (£20m), compared with $111.6m a year ago, hurt by exploration write-off costs of $80.6m.
Heritage Oil narrows losses
Heritage Oil has posted net losses of $11.4m for the six months to the end of June – down from $14.2m last year. Operating losses at the company rose to $12.5m from $9.9m, but losses from continuing operations narrowed to $9.7m.
Salamander swings to gains
Salamander Energy posted first-half pre-tax profit of $62.42m versus a pre-tax loss of $90.3m last year. The explorer said revenues rose by 41 per cent on last year to $187.7m, thanks to a 23 per cent increase in average production – with another jump expected in the second half.
Petropavlovsk is back in black
Russian gold miner Petropavlovsk returned to a net profit in the first half of the year, beating analyst expectations, while maintaining its production target for 2011 at 600,000 ounces. The company said that net profit came in at $108.2m for the six months to the end of June. It produced 219,100 ounces of gold in the first half, in line with expectations, and 506,810 ounces in 2010, compared to a target of 510-530,000 ounces.