Kenmare Resources plc : Moma Mine Operational U...

Kenmare Resources plc ("Kenmare" or "the Company")

17 February 2015

Moma Mine Operational Update

Kenmare Resources plc (LSE:KMR, ISE:KMR), one of the leading global producers of titanium minerals and zircon, which operates the Moma Titanium Minerals Mine (the "Mine" or "Moma") in northern Mozambique, provides an operational update.

As previously announced, Kenmare has been engaged in a substantial cost cutting programme in an effort to reduce unit costs and conserve cash. Unit cash operating costs per tonne of product produced declined by 14% for H1 2014 relative to H1 2013. However, these and subsequent savings have been insufficient to offset the decline in prices experienced by the Company.

Kenmare has undertaken a thorough review of operations and staffing which has resulted in the identification of areas where further efficiencies can be achieved. Unfortunately this will result in a focused reduction of employees at the Mine.

The Company has been engaged with employee representatives to explore alternatives including, amendments to pay scales and voluntary redundancies. However it is now expected that compulsory redundancies will be necessary. The redundancy process is expected to result in a reduction of 15-20% of the Mine's work force. Kenmare continues to engage with the Government of Mozambique and workers' unions on this matter.

Separately, Kenmare is pleased to announce that grid power has now been restored to the Mine following the recent flooding in northern Mozambique which caused a prolonged grid power outage. As a result, mining and HMC production at both ponds has resumed.

Kenmare Resources plc
Michael Carvill, Managing Director                                    
Tel: [phone]                                                             
Mob: + 353 87 674 0110                                                      

Tony McCluskey, Financial Director
Tel: [phone]                                                             
Mob: + 353 87 674 0346

Jeremy Dibb, Corporate Development and Investor Relations Manager
Tel: [phone]
Mob: + 353 87 943 0367

Murray Consultants                                                              
Joe Heron                                                                                 
Tel: [phone]                                                             
Mob: [phone]                                                       

Buchanan
Bobby Morse /Gordon Poole
Tel: [phone]

This announcement contains some forward-looking statements that represent Kenmare's expectations for its business, based on current expectations about future events, which by their nature involve risks and uncertainties. Kenmare believes that its expectations and assumptions with respect to these forward-looking statements are reasonable. However, because they involve risk and uncertainty, which are in some cases beyond Kenmare's control, actual results or performance may differ materially from those expressed or implied by such forward-looking information.

The Directors of Kenmare accept responsibility for the information contained in this announcement. To the best of their knowledge and belief (having taken all reasonable care to ensure that such is the case), the information contained in this announcement is in accordance with the facts and does not omit anything likely to affect the import of such information.

This announcement is not intended to, and does not, constitute or form part of any offer, invitation or the solicitation of an offer to purchase, otherwise acquire, subscribe for, sell or otherwise dispose of, any securities whether pursuant to this announcement or otherwise. The distribution of this announcement in jurisdictions outside Ireland or the United Kingdom may be restricted by law and therefore persons into whose possession this announcement comes should inform themselves about, and observe, such restrictions. Any failure to comply with the restrictions may constitute a violation of the securities law of any such jurisdiction.

A person interested in 1% or more of any class of relevant securities of Kenmare or Iluka may have disclosure obligations under Rule 8.3 of the Irish Takeover Rules, effective from 26 June 2014, the date of the commencement of the offer period for Kenmare under the Irish Takeover Rules.

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Source: Kenmare Resources via Globenewswire

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