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It only takes the slightest tweak to commodity forecasts for a miner’s earnings to disappear. That’s exactly what has happened with mineral sand producer Kenmare Resources (KMR) which is no longer expected to make any money when it reports 2016 results on 22 March 2017.
Investment bank Canaccord previously forecast $16.8m EBITDA (earnings before interest, tax, depreciation and amortisation) for Kenmare. That’s now dropped to a mere $0.2m after Canaccord took guidance from figures released by sector peer Iluka Resources to update its commodity slate.
It remains positive on the investment case in the belief that Kenmare’s commodity prices will soon recover, in particular ilmenite.
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