Kenmare resources has recorded its first profit from its titanium mine in Mozambique, in what the company described as a “major milestone” for the exploration firm.

Preliminary results for the year ended December 31st 2011 showed a profit after tax of $23.7 million, compared with a loss of $16.3 million in 2010.

Revenue for the year rose to $167.5 million from $91.6 million a year earlier, with "robust" demand driving prices higher. Earnings before interest, taxation, depreciation and amortisation were $71.7 million for 2011, up from $17.4 million in 2010.

Kenmare said 730,400 tonnes of total products were shipped in 2011, an increase on the 712,900 tonnes in the previous year. Ilmenite production was 636,800 tonnes, down on 678,400 tonnes in 2010, but zircon production was up from 43,600 tonnes to 37,100 tonnes.

"I hope that, under my stewardship, the Board will continue to develop and grow Kenmare's value in a sustainable and socially responsible manner, whilst retaining the entrepreneurial spirit that has served the company so well thus far," chairman Justin Loasby said in a statement.

“With this in mind, increasing and stabilising production is a key success factor. The board continues to identify and implement actions to reduce risks and to enhance the robustness and resilience of the production system.”