Mineral sands producer Kenmare Resources has turned a £6.4 million loss into annual pre-tax profits of £230,000.

Mineral sands producer Kenmare Resources has turned a £6.4 million loss into annual pre-tax profits of £230,000.

The fully listed company, which had to contend with cyclone damage and problems with its construction contractor during 2008, says it is now well placed to achieve full production targets at its Moma titanium mine in Mozambique by late 2009. Kenmare has agreed to defer capital repayments to its lenders and taken steps to rectify deficiencies in plant and equipment. The company says that production of heavy mineral concentrate increased 18 per cent in the first quarter of this year, while estimated heavy mineral reserves at its Namalope ore body have risen 25 per cent to 26 million tonnes, adding five years to the life of the mine.

Kenmare shares, which slumped from 67p to 7p between mid-2007 and last November, have bounced to 13.75p, valuing the company at £109.4 million. They could rally further if the company meets its targets.