Kenmare Resources plc is one of the world’s largest producer of mineral sands products and operates the Moma Titanium Minerals Mine, located on the north east coast of Mozambique. The Mine has been in commercial production since 2009 and accounts for approximately 8% of global titanium feedstocks. These raw materials ultimately go into everyday “quality of life” items such as paints, plastics and ceramic tiles. The company is listed on the premium segment of the London Stock Exchange and has a market capitalisation of £430million.
Michael Carvill MD and Jeremy Dibb Head of Corporate Development and IR presented record full year results to a packed webinar audience interested in hearing about how this was achieved and the prospects for 2022. A recording of the webinar is available here.
Michael started the presentation by announcing the achievement of an impressive safety record - for the first time on 6 January 2022 the company completed a whole year without a single lost time injury. This was achieved whilst growing production 46%, a record, and the output was sold into a buoyant market enabling record revenues and profits to be generated.
These record results were built around the three strategic pillars used to manage the business: namely to operate responsibly, to manage the long life assets in the lowest cost quartile and to allocate capital efficiently. The business has always operated in a responsible and sustainable manner but more emphasis has been placed on this recently and the company published its first Sustainability report in 2021. Women in the work force have increased from 4% to 12% over the last 5 years and steps are in place to improve this further. The company has always worked with the local community and they strive to ensure that these local communities see real benefits from Kenmare operating the Moma mine and so far they believe they have achieved that. They are also working to improve the natural environment and have a policy to move to zero carbon emissions by 2040.
In terms of headline numbers, shipments were up to a record 1.3m tonnes, achieved prices rose from $272/tonne to $327/tonne, EBITDA increase from $77m to $216m and net profit rose from $17m to $129m. This has enable the company to raise the dividend from 10c to 32.7c per share, an increase of 227%. Net debt now stands at $83m and this was…
