LONDON (ShareCast) - (Sharecast News) - Analysts at Berenberg raised their target price on mining company Kenmare Resources from 390.0p to 460.0p on Wednesday after the group's fourth-quarter earnings topped estimates.
Berenberg highlighted that Kenmare's fourth-quarter production beat estimates, coming in at 219,000 tonnes ilmenite, ahead of forecasts for 195,000 tonnes.

The German bank pointed out that Kenmare's beat was a result of high-grade ore, which was above its 3.8% expectation and drove a beat of heavy mineral concentrate production at 339,000 tonnes, also ahead of its 290,000-tonne estimate.

Berenberg also noted that importantly, shipments were strong, totalling 321,000 tonnes and ahead of its 281,000 estimates, with ilmenite shipments of 283,000 beating its 245,000-tonne estimate.

The analysts also acknowledged that Kenmare noted that mineral sands markets remained "buoyant", with tight ilmenite markets in the fourth quarter of 2020 flowing into the first quarter of 2021, underpinned by demand for feedstock from pigment producers and limited new supply.

"This is encouraging, in our view," concluded Berenberg.

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