LONDON (dpa-AFX) - Kenmare Resources Plc (KMR.L), an Irish miner, said on Thursday reported a decline in mineral and related production for the first quarter than its previous estimates due to the impact of poor weather conditions.
However, the Group said the strong market conditions for all of Kenmare's products continued throughout the three-month period as the demand continued to be higher than supply, while inventories remained low throughout the value chain for all products.
For the first three-month period of the fiscal 2022, the total shipments of finished products decreased by 33 percent to 231,500 tons, compared with the last year's 344,400 tons, due to poor weather and customer-chartered vessel delays due to tight shipping markets.
The mining company also noted that it is not sure how the war in Ukraine will impact its product markets, adding that the 'combined with high levels of inflation, the war has the potential to impact global growth, which could dampen demand for Kenmare's products. However, 4.5% of global titanium feedstocks production is attributable to Ukraine and disruption to this supply has exacerbated tight market conditions.'
Michael Carvill, Managing Director of the Group said: 'Strong market conditions for all of our products continued through Q1 2022, supported by low inventories in the global supply chain. Production in Q1 2022 was lower than we had expected, impacted by poor weather conditions. However, the weather at the Mine typically improves after Q1, and we maintain production guidance for the year.'
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