Mineral exploration company Kenmare Resources returned a loss of £1.25 million in the year to the end of December last, compared to a loss of £12.8 million the previous year.

Kenmare chairman Mr Charles Carvill told shareholders at the company's a.g.m. yesterday that production from the Ancuabe Mine, a graphite mine in Mozambique, had been disappointing. It had resulted in losses for the year under review. He said Kenmare had asked for a plan to improve production.

Mr Carvill said the company's gold exploration programme in Guinea had commenced and had yielded positive results. However, he said the current low price of gold had reduced the ability of most companies in the industry "to embrace such an extensive exploration project". During the year, several directors resigned from the Kenmare Board, allegedly because of internal differences. Mr Carvill thanked them for their contributions.