Kenmare Resources plc is an established mining company, which operates the Moma Titanium Minerals Mine, located on the northeast coast of Mozambique. The Mine has been in commercial production since 2009 and is recognised as a major supplier of mineral sand products to a global customer base operating in over 15 countries. The company is listed on the London Stock Exchange and has a market capitalisation of £270 million.
2023 Full Year Results were published on 20 March and we were delighted to have Michael Carvill, Managing Director, and Jeremy Dibb, Director of Corporate Development and Investor Relations, report on performance over the last year and talk about prospects for the year ahead. A recording of the webinar is available here.
The presentation started with the news that Michael Carvill will be stepping down in August this year after 38years as MD. His focus during his remaining time at the company will be on the renegotiation of the investment agreement with the Mozambique Government and the XCPA move to Nakata. There are some excellent internal candidates and a search firm is running the succession process for both internal and external candidates.
Kenmare’s success is built on three strategic priorities: operating responsibly; delivering long life, low cost production and allocating capital efficiently. Kenmare has a safe and engaged workforce and has a low incidence of lost time injuries at only 0.15 per 200k hrs worked. The company is in the first quartile on the cost curve and produced 986kt of ilmenite in 2023. The mine’s reserves will last for over 100 years and capital spend is focussed on those projects that enable the company to remain in the first quartile of the cost curve. The company has a balanced approach to share buy backs and dividends and last year paid out $50m in dividends as well as $30m in buy-backs leaving the company with a net cash position of $21m at the year end.
2023 was the second best year for Kenmare ever and the company delivered a 50% EBITDA margin. The company generated revenues of $437m, EBITDA of $220m and net profits of $131m. The financial results were impacted by lower prices for Kenmare products, lower production due to a lightning strike earlier in the year and a lower mix of zircon. The impact of revenues being 12% lower than the previous year was felt all the way…
