Mozambique-focused Kenmare Resources has increased its interim dividend on the back of a jump in profit.

The group reported revenues of US$167.8m (€143m) in the first half of this year, up 51pc compared to the corresponding period last year, as it benefitted from higher volumes shipped and higher prices, according to interim results.

Kenmare Resources produces ilmenite, the primary ore of titanium, which is used in the manufacture of a number of consumer goods including paints, fabrics, paper, and cosmetics.

Earnings before interest, taxation, depreciation and amortisation (ebidta) increased 121pc to $82.3m (€70m), due to higher pricing and shipments combined with lower unit costs, the company said.

Profit after tax came in at $48m (€41m) for the six months to June, up 278pc on the same period last year, setting a new half-yearly record.

On the back of this the company, which operates the Moma Titanium Minerals Mine in Mozambique, has increased its interim dividend to US 7.29 cent.

Cash operating cost per tonne of finished product fell by 22pc to US$143 per tonne, as higher cash operating costs were more than offset by increased production volumes.

As at June 30 Kenmare had cash and cash equivalents were US$56.5m and gross debt of US$132.7m.

The Moma mine's production accounts for approximately 5pc of traded global titanium feedstocks, and Kenmare supplies to customers operating in more than 15 countries, according to the company.

In the first half of this year heavy mineral concentrate (HMC) production at the mine was 798,500 tonnes, a 43pc year-on-year, due to higher ore grades and tonnes mined.

Total finished product production of 612,100 tonnes increased by 49pc.

Meanwhile, total shipments of 594,100 tonnes were up 44pc.

Michael Carvill, managing director of Kenmare Resources, said: “I am delighted to see the capital investment and the hard work of our teams over the last three years generating significant increases in production and sales volumes. This is also translating into higher profitability.”

Last year the company relocated its Wet Concentrator Plant B (WCB P), in what was one of the largest moves of a single piece of equipment in the world.