Kenmare Resources (LON:KMR) says the outlook for 2011 is very positive and it is looking forward to operating at capacity, with continued improvements in selling prices for its minerals.
The FTSE 250 company released its annual report for the period to 31 December 2010 saying that production had improved, the market had strengthened and its expansion had moved into the "construction phase".
The firm's principal operation is running and expanding the Moma Titanium minerals mine in Mozambique.
Prices of titanium minerals and zircon have strengthened in 2011 and this trend is expected to continue, said the firm.
Production is stable and broadly in line with expectations. The expansion programme to increase production capacity by 50 percent is well underway and scheduled for commissioning and ramp-up in 2012.
In 2010, production of ilmenite increased by 44 percent and zircon production grew 76 percent, the company revealed.
Chairman Charles Carvill, who intends to step down, said in the report that the search for his replacement was continuing and that a suitable candidate would be selected in the coming months.
The market, he said, for the firm's products had transformed over 2010 with prices at low levels at the beginning of the year. But the ongoing recovery in world economies - especially developing economies - had resulted in a significant increase in underlying demand.
2010 revenues stood at US$92mln - up from US$42mln for the previous year, and Kenmare says it expects this to improve substantially during 2011.
The firm made a loss for the year of US$16 mln but EBITDA stood at US$17.4 mln.
These results were influenced by the production ramp-up during the early part of 2010 and the period in October the Moma mine was inactive following the breach of the settling pond.
Revenues were affected as some sales in 2010 were based on contracts negotiated during the economic crises, though average prices increased later in the year as the global economy started to recover, said Kenmare.
Cash operating costs were impacted by mining industry inflation, it added.
With regard to expansion plans Carvill said that initial work began in February this year - on the excavation of a new starter pond for new mining operations.
The major contracts for structural, mechanical and electrical work have been awarded and the principal shipping and logistics contractor has been awarded.
"This first expansion is expected to give Kenmare a 10 percent share in the titanium feedstock market and a 7 percent share in the zircon market," he added.