REG-2025 Preliminary Results
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Kenmare Resources plc
(“Kenmare” or the “Company” or the “Group”)
25 March 2026
2025 PRELIMINARY RESULTS
Kenmare Resources plc (LSE:KMR, ISE:KMR), one of the leading global producers
of titanium minerals and zircon, which operates the Moma Titanium Minerals
Mine (the "Mine" or "Moma") in northern Mozambique, today announces its
preliminary results for the 12 months to 31 December 2025.
Statement from Tom Hickey, Managing Director:
“While global uncertainty has increased in early 2026, Kenmare remains
focused on operating our business as efficiently as possible. With peak
capital expenditure on the Wet Concentrator Plant A upgrade project behind us,
we have moved to a materially lower spend profile for 2026 and beyond and are
targeting an operating cost reduction of approximately 10% this year.
Kenmare generated adjusted EBITDA of $58.0 million in 2025 from mineral
product revenue of $312.1 million, representing an adjusted EBITDA margin of
19%. In light of the challenging market conditions, we have had to make some
difficult but responsible decisions, including retrenching 15% of our Moma
employees and suspending the 2025 final dividend. This is in line with our
commitment to maintaining balance sheet flexibility and ensuring the Group's
long-term financial stability. The Board recognises the importance of the
dividend to many shareholders, and we are focused on resuming dividend
payments as soon as it is prudent to do so.
Kenmare continues to engage with the Government of Mozambique regarding the
renewal of Moma’s Implementation Agreement. I was pleased to meet with the
Ministers for Mineral Resources and Energy and Economy in mid-February, and I
emphasised the importance of bringing this process to a conclusion. We are in
constructive negotiations and both sides appreciate the importance of a
near-term resolution.”
2025 overview
Financial
* Mineral product revenue of $312.1 million, down 20% year-on-year (“YoY”)
due to a 13% decrease in shipments and a 6% decrease in the average price
received for Kenmare’s products to $338 per tonne (excluding the by-product
ZrTi)
* Impairment charge of $301.3 million, inclusive of the $100.3 million
impairment charge recognised in H1 2025, primarily due to lower future revenue
projections associated with an uncertain pricing outlook and updated
assumptions relating to the potential renewal terms relating to Moma’s
Implementation Agreement (“IA”)
* 2025 final dividend suspended in light of elevated net debt and weak market
conditions – the Board is committed to resuming dividends as soon as it is
prudent to do so and financing facilities permit
* Adjusted EBITDA (excluding the impairment loss) of $58.0 million, a 63%
decrease YoY primarily due to lower sales volumes, representing an adjusted
EBITDA margin of 19%
* Adjusted loss after tax of $23.7 million, compared to profit after tax of
$64.9 million in 2024
* Total cash operating costs of $242.7 million, down 0.4% YoY, due primarily
to a 10% decrease in production of finished products – various cost
reduction initiatives were implemented in H2 2025 and are expected to benefit
2026 operating costs
* Cash operating costs per tonne of $242, up 11% YoY, due to lower production
volumes
* Net debt of $158.8 million at 31 December 2025 compared to $25.0 million at
year-end 2024, with the increase due primarily to peak capital expenditure
during the year of approximately $156 million on the Wet Concentrator Plant
(“WCP”) A upgrade project
* Kenmare is in discussions with its Lender group regarding adjustments to its
Revolving Credit Facility (“RCF”), including amendments to covenant
levels, in light of the prevailing weak market conditions
* Significantly reduced capital expenditure expected in 2026, with
approximately $30 million of development capital on the WCP A upgrade project
and $30 million of sustaining capital – discretionary sustaining capital
items being deferred where safe and practicable to do so
Operational and corporate
* Lost Time Injury Frequency Rate (“LTIFR”) of 0.07 per 200,000 hours
worked to 31 December 2025 (31 December 2024: 0.06)
* Heavy Mineral Concentrate (“HMC”) production of 1,233,300 tonnes in
2025, down 15% YoY, due primarily to lower excavated ore volumes relating to
the WCP A upgrade work
* Ilmenite production of 842,300 tonnes in 2025, down 17% YoY, due to lower
volumes of HMC processed
* Shipments of finished products of 947,900 tonnes in 2025, down 13% YoY –
two shipments were partially loaded at year-end, meaning they will be
reflected in H1 2026 shipping volumes
* All major construction and installation work associated with the upgrade of
WCP A completed
* Demand for Kenmare’s products was stable in 2025, although prices declined
throughout the year due to market oversupply
* Total shipments are expected to be in excess of 1.1 million tonnes in 2026
– Kenmare plans a significant draw down of its finished product stockpiles
by adjusting production
* In line with this approach, Kenmare expects ilmenite production in 2026 to
be in excess of 800,000 tonnes, as previously announced
* Ongoing engagement with the Government of Mozambique regarding the extension
of Moma’s IA, which governs the fiscal terms of Moma’s processing and
export activities, including two Presidential meetings in June and November
2025 – Kenmare continues to work for a near-term resolution
Q1 2026
* With Q1 almost complete, Kenmare is on track to achieve its 2026 guidance on
all metrics and has begun drawing down its finished product stockpiles, in
line with its value over volume approach
* Shipments have been in-line with the run-rate required to achieve 2026
guidance – more of Kenmare’s new concentrates product, ZrTi, has been
shipped in Q1 than in all of 2025
* WCP A is regularly operating at its nameplate capacity of 3,500 tonnes per
hour and while production has been impacted by further challenges relating to
commissioning, WCP A is progressing towards achieving its capacity on a
consistent basis in the near-term
* The titanium feedstocks market continues to be soft in early 2026, with a
decrease in the average ilmenite price received in the quarter-to-date versus
H2 2025, in line with expectations
* The zircon (including concentrates) market is showing signs of recovery,
driving higher received zircon prices in Q2
* Kenmare has to date recovered $4.6 million of the $9.3 million owed by a
customer in financial distress, arising from shipments made in Q3 2025
Analyst and investor webinar via Investor Meet Company
Kenmare will host a webinar for analysts, institutional investors and private
investors via Investor Meet Company at 9:00am UK time today (25 March
2026).
Questions can be submitted via the Investor Meet Company dashboard at any
time during the live presentation.
Investors can sign up to Investor Meet Company for free and register for the
Kenmare webinar at:
https://www.investormeetcompany.com/kenmare-resources-plc/register-investor
Investors who already follow Kenmare on the Investor Meet Company platform
will automatically be invited.
For further information, please contact:
Kenmare Resources plc
Katharine Sutton / David Weeks
Investor Relations
ir@kenmareresources.com
Tel: +353 1 671 0411
Mob: +353 87 663 0875 / +353 87 708 2525
Murray Group (PR advisor)
Paul O’Kane
pokane@murraygroup.ie
Tel: +353 1 498 0300
Mob: +353 86 609 0221
About Kenmare Resources
Kenmare Resources plc is one of the world's largest producers of titanium
minerals. Listed on the London Stock Exchange and the Euronext Dublin, Kenmare
operates the Moma Titanium Minerals Mine in Mozambique. Moma's production
accounts for approximately 6% of global titanium feedstocks and the Company
supplies to customers operating in more than 15 countries. Kenmare produces
raw materials that are ultimately consumed in everyday quality-of-life items
such as paints, plastics and ceramic tiles.
All monetary amounts refer to United States dollars unless otherwise
indicated.
Forward-looking statements
This announcement contains some forward-looking statements that represent
Kenmare's expectations for its business, based on current expectations about
future events, which by their nature involve risks and uncertainties. Kenmare
believes that its expectations and assumptions with respect to these
forward-looking statements are reasonable. However, because they involve risk
and uncertainty, which are in some cases beyond Kenmare's control, actual
results or performance may differ materially from those expressed or implied
by such forward-looking information.
CHAIRMAN’S STATEMENT 2025
The theme of transition continued for Kenmare in 2025 and was seen through all
levels of the business from operations, to finance, to management, to
strategy.
The upgrade of our largest mining plant, WCP A, is substantially complete and
it is now well-equipped to mine in the large Nataka ore zone. WCP A is
expected to begin its transition to Nataka in H2 2026, securing production
from Moma for future generations and allowing Kenmare to continue to deliver
value for all stakeholders.
Transition was also at the forefront of our decision to prioritise “value
over volume”, ensuring we maintain a flexible balance sheet with sufficient
liquidity. This will allow us to navigate fluctuations caused by weaker market
conditions following high levels of capital investment. Although this required
making difficult choices, particularly the retrenchment of approximately 15%
of Moma’s workforce, these changes were essential to safeguard the
Company’s future.
We continued to engage with the Government of Mozambique on Moma’s IA
throughout the year. Although this included two meetings for Managing Director
Tom Hickey with the President, we did not achieve the progress we had hoped
for. Renewal of the IA rights and concessions remains a concern, however
following recent meetings we continue to believe there is scope for a mutually
acceptable negotiated outcome, which would avoid the need for arbitration.
Production at Moma continues unaffected.
We remain committed to being a trusted corporate citizen and this was
recognised by Kenmare being named as the Most Transparent Extractive Company
by Mozambique’s Centre of Public Integrity for the fifth consecutive year.
We were also pleased to enter the FTSE4Good index in June.
WCP A upgrade and transition to Nataka
By the end of 2025, over 80% of the capital investment for the WCP A upgrade
project had been incurred and successfully deployed, with the project now
largely de-risked. The total capital cost for the project remains in line with
previous estimates at $341 million, with the remaining $70 million planned to
be incurred from 2026 to 2032. Although there have been some challenges with
the commissioning process, as is to be expected with a project of this size, I
would like to congratulate the projects team on a job well done, with
outstanding safety performance.
The upgrade of WCP A and the transition to Nataka have been engineered to
ensure Moma’s long-term operational and economic viability and we are
well-placed to benefit from an upswing in the commodity price cycle.
Shareholder returns
Unfortunately, due to continued weakness in our product markets and elevated
net debt, the Board has made the difficult decision not to declare a final
2025 dividend. We appreciate that this will be disappointing to many
shareholders; however financial stability must be our priority during these
challenging times. We have returned more than $300 million to shareholders
through dividends and share buy‑backs since 2019, including the 2025 interim
dividend, and are committed to resuming dividend payments as soon as our
financial position and financing facilities permit.
Rejected takeover proposal for company
In March 2025, following media speculation, Kenmare announced that it had
received an unsolicited and non‑binding proposal from a consortium
consisting of former Managing Director Michael Carvill and Oryx Global
Partners (the “Consortium”), regarding a possible all cash offer for the
Company. The Board carefully considered the proposal and engaged with the
Consortium to facilitate an improved proposal, including granting due
diligence. However, following several extensions of the due diligence period,
the Board rejected the Consortium’s revised proposal in June on the basis
that it undervalued the business and its future potential. At no point did the
Consortium make a firm offer for the Company.
The Board is committed to reviewing all opportunities to create significant,
long-term value for Kenmare’s stakeholders, including shareholders. We were
encouraged by shareholders’ strong support for the Board’s rejection of
the Consortium’s revised proposal and appreciate their patience and
endorsement of the Company’s long-term value proposition.
Sustainability
2025 began against a challenging backdrop, following a short period of social
unrest in Mozambique during December 2024 in response to the General Election.
Thanks to the dedication of our employees and the support of the communities
surrounding Moma, the protests had minimal impact on Kenmare’s operations.
Kenmare’s rolling 12-month Lost Time Injury Frequency Rate to 31 December
2025 was 0.07 per 200,000 hours worked, broadly consistent with 2024 (0.06).
While we were disappointed to record three Lost Time Injuries in H2 2025, the
Company achieved its lowest ever All Injury Frequency Rate of 0.75 (2024:
0.93) for the year, supported by our Trabalho Seguro (“Safe Work”)
initiative.
Independent research by industry consultant TZMI reaffirmed Kenmare’s
position as one of the lowest carbon intensity mineral sands miners for Scope
1 emissions. However, our climate transition plan and goal to reduce emissions
by 30% by 2030 faced headwinds, as it has proved difficult to structure a
major decarbonisation project on an economically viable basis. We remain
committed to working towards this target, but we will only pursue projects
that meet necessary financial hurdles. Therefore the Board determined that it
could not approve a defined pathway to achieving Net Zero by 2040 at this
time, although it remains committed to pursuing this ambition.
Board development and effectiveness
We continued to strengthen the Board in 2025 and were delighted to welcome
Katia Ray as an independent Non‑Executive Director and member of the
Remuneration Committee in November. Katia brings extensive leadership
experience from Rio Tinto and Anglo American and her insights will be
invaluable as Kenmare continues to evolve.
Graham Martin retired from the Board in January 2026, including as Senior
Independent Director (“SID”) and Chair of the Remuneration and Nomination
Committees. I would like to thank him for his nine years of dedicated service
and sound counsel. Following Graham’s retirement, Elaine Dorward‑King
agreed to assume the role of SID, while continuing to be Chair of the
Sustainability Committee. Deirdre Somers became Chair of the Nomination
Committee, as well as the Audit & Risk Committee, and Katia Ray became Chair
of the Remuneration Committee. We are pleased that female Board members hold
the roles of SID and all Committee Chairs, helping the Company to meet the
Listing Rules target for women in senior positions on the Board and
underlining our commitment to gender diversity throughout the business.
During the year, an external performance evaluation of the Board and all its
committees was conducted by Sustainable Boards, in accordance with the UK
Corporate Governance Code. I am pleased to report that the evaluation found
that Kenmare’s Board is operating well with “high calibre directors who
bring a range of skills and expertise highly relevant to the Company’s
strategy and ambition.” A number of focus areas for improvement were
identified, and the Board has agreed an action plan to address these. A
summary of outcomes and actions from the evaluation will be available in the
2025 Annual Report.
We also welcomed James McCullough as our new Chief Financial Officer in May
2025. We are benefitting from James’ strong technical, financial and
strategic expertise, as he previously served as General Manager – Group
Strategy at Rio Tinto plc.
Outlook
2025 was a challenging year for Kenmare, requiring difficult but necessary
decisions to secure the long‑term future of the business. While the economic
backdrop and geopolitical environment remain complex, I believe Kenmare is a
strong and resilient business that is well positioned to navigate these
challenges. With our major capital project largely complete, a strengthened
leadership team with a right-sized workforce, and competitive positioning in
our markets, we are well-placed to benefit when market conditions improve. The
Board will review the opportunity to resume dividend payments on a continuous
basis.
The continued extension of the renewal process relating to IA rights and
concessions is a concern, and while we welcome the supportive words of the
President of Mozambique towards the Company and our long-term partnership, it
is in all our interests that these sentiments are supported by a clear process
towards finalisation of this critical renewal. The Board and management team
are continuing to prioritise a near-term resolution.
Acknowledgements
Finally, I would like to extend my thanks to everyone who has contributed to
Kenmare during the past year. I am deeply grateful to my colleagues on the
Board for their strategic insight and counsel, to our employees and
contractors for their professionalism and commitment, and to our host
communities for their continued partnership.
To our shareholders, customers and other stakeholders: thank you for your
ongoing trust and support. We are committed to managing this period of change
with discipline and clarity, while always remaining true to our purpose of
‘Transforming resources into opportunity for all.’
Andrew Webb
Chairman
MANAGING DIRECTOR’S STATEMENT 2025
Introduction
I am pleased to present this year’s Managing Director’s statement,
following the completion of my first full year in the role. It has been a
dynamic period, with a major capital project underway, a bid approach,
continuing negotiations on Moma’s Implementation Agreement, and weakening
product markets. I have been encouraged by how our team members have supported
each other through this period of significant change, guided by our purpose of
‘Transforming resources into opportunity for all.’
The upgrade of our largest mining plant, WCP A, has largely gone well. WCP A
is progressing towards operating at its nameplate capacity on a consistent
basis in the near-term and it is expected to begin its transition to Nataka in
H2, where it is now well-equipped to mine for the rest of its economic life.
However, 2025 was a challenging year for operations at Moma and the wider
titanium minerals market. Unfortunately, some delays in the commissioning of
WCP A led to lower production and financial performance was also weaker
year-on-year due to softer product pricing, which meant Kenmare recognised an
impairment charge of $301.3 million. Considering the industry context, we have
chosen to prioritise value over volume, with liquidity and financial
flexibility as our core, near-term objectives.
This approach means that production guidance for 2026 is lower than in recent
years, while market conditions remain subdued. However, the impact on sales
will be limited by our relatively high product stockpiles and we are targeting
in excess of 1.1 million tonnes of shipments in 2026. The Board has also made
the difficult but prudent decision to suspend the 2025 final dividend.
Securing the renewal of the rights and concessions under Moma’s IA, which
governs the terms under which Kenmare conducts its mineral processing and
export activities, was a key focus throughout 2025. I was pleased to meet with
the President of Mozambique twice during the year and we continue to engage
constructively with the Government, while retaining our right to utilise the
IA’s dispute resolution provisions if necessary.
Safety
I was delighted with Kenmare’s excellent safety performance in H1 2025. Our
team at Moma passed the remarkable milestone of seven million hours worked
without a Lost Time Injury (“LTI”) and the WCP A Projects team remained
LTI-free for the entirety of the project. We also delivered our lowest ever
All Injury Frequency Rate of 0.75 in 2025, more than a 30% improvement versus
our three-year rolling average, meaning that Kenmare is safer now than it ever
has been before.
These achievements were recognised with the Safety Excellence Award at the
Mining Magazine Awards 2025. Kenmare also achieved a five-star rating for
occupational health, safety and environment by the National Occupational
Safety Association (NOSA) for the tenth consecutive year.
However, three LTIs in H2 2025 meant that our Lost Time Injury Frequency Rate
for the 12 months to 31 December 2025 was 0.07 (2024: 0.06). We will be
increasing focus on our Trabalho Seguro (“Safe Work”) initiative to
further strengthen our safety performance in 2026.
I was deeply saddened by a fatal incident involving a police officer at Moma
in September. The incident was motivated by theft, with the electrical cable
feeding a pump station stolen during the incident. Security provision was
increased at Moma following this tragedy.
Operations
Due to some delays with the commissioning of WCP A, production guidance for
our primary product, ilmenite, had to be revised downwards during the year. We
produced 842,300 tonnes of ilmenite in 2025 and a record 164,800 tonnes of
co-products (including ZrTi). Shipments were impacted by poor weather
conditions in H1, a five yearly dry dock for one of our transshipment vessels
and by weak market conditions, which led to a customer in financial distress
cancelling two Q4 shipments.
More pleasingly, our new concentrates product, ZrTi, launched commercially in
2025. Previously a waste stream, it is increasing cashflows whilst reducing
costs previously associated with returning it to mine tailings. We have been
very encouraged by the market reaction to ZrTi, which enables us to target
materially higher shipments in 2026 and more ZrTi was shipped in Q1 2026 than
in all of 2025.
Ilmenite production in 2026 is expected to be in excess of 800,000 tonnes, in
line with our plan to prioritise value over volume while markets are
depressed. Shipments should not be impacted by lower production levels as we
will draw down our relatively high levels of inventory.
Production is expected to increase to approximately 1.2 million tonnes per
annum of ilmenite from 2028, when WCP A begins mining its higher-grade path in
Nataka.
Sustainability
Kenmare is committed to being a trusted corporate citizen, with the
Company’s entrance into the FTSE4Good index in June 2025 a testimony to our
strong ESG performance.
We have always been focused on ensuring our host communities in Mozambique
share in the benefits of the Mine. We established the Kenmare Moma Development
Association (KMAD) over 20 years ago and 2025 highlights included constructing
a new water system to supply three villages; connecting five villages to the
electricity grid; and funding an education programme for Grade 4 pupils, which
saw an 18% and 27% improvement in literacy and numeracy, respectively.
Kenmare reported in accordance with the Irish transposition of the Corporate
Sustainability Reporting Directive (“CSRD”) for the first time in last
year’s Annual Report; however, proposed changes to CSRD suggest that we may
not be required to do so from year-end 2026. Kenmare will always be committed
to delivering best-in-class sustainability performance regardless of how we
are obliged to report on it.
Product markets
The titanium minerals sector experienced notable headwinds in 2025. Weaker
global demand for titanium minerals reflected softer underlying end markets,
such as housing and construction and at the same time, the market saw
increased supply from Chinese concentrates producers. This impacted product
pricing globally and Kenmare’s average price received decreased by 6%
year-on-year.
Challenging market conditions impacted one of Kenmare’s customers and its
corporate group entered a restructuring and sales process. Approximately $9.3
million of invoices for shipments made by Kenmare in Q3 were unpaid at
year-end; however $4.6 million has recently been received from the new owner
of the customer’s Spanish operations. Kenmare is arranging to take control
of the product at the customer’s Malaysian operations for resale elsewhere.
More broadly, the current wider geopolitical volatility is impacting on some
customers’ ability to plan for volumes and shipment timings on a predictable
basis.
Kenmare is well-positioned to navigate these difficult times due to Moma’s
long mine life and flexible suite of products. This allows us to target the
strongest market segments (like beneficiation and the titanium metal market)
and pleasingly, we added two new customers in 2025.
The zircon market weakened in 2025, with soft underlying demand.
Encouragingly, prices now look to have stabilised, with demand exceeding
Kenmare’s ability to supply over the past few quarters and recent supply
interruptions driving stronger zircon prices for Q2 shipments.
Despite the current volatility, I firmly believe that the medium and long-term
fundamentals of our products remain strong due to limited new, conventional
supply coming onstream. Kenmare is well-placed to benefit from the upswing in
commodity prices when it occurs.
Capital projects
The upgrade of WCP A was substantially completed in 2025 and the plant is
progressing towards operating at nameplate capacity in the near-term. At the
end of 2025, over 80% of project capital had been incurred and successfully
deployed, with the remaining 20% (approximately $70 million) scheduled between
2026 and 2032. This is the last major, non-discretionary, capital project that
Kenmare plans to undertake, with significantly lower development capital
required from this point onwards. Consequently, free cash flow is expected to
increase significantly from 2026 onwards.
A new, low-capital, Selective Mining Operation (“SMO”) was commissioned at
Moma in Q1 2025 to enable mining in peripheral areas of the orebody. The
Company is planning a second SMO, subject to market conditions, as Kenmare
believes that SMOs will have a valuable role to play in supporting production
in a capital-efficient manner over the coming years.
Outlook and acknowledgements
I would like to thank all of our employees for their commitment and
perseverance during an uncertain year, in addition to our shareholders,
customers, and partners in Mozambique for their continued support. Also, thank
you to Terry Fitzpatrick (Group General Manager – Technical), who retired in
late 2025 after 27 years with Kenmare, and Jeremy Dibb (Head of Corporate
Development and Investor Relations) who had served for more than 10 years.
The theme of transition will continue for Kenmare in 2026. Central to that is
WCP A beginning its journey to Nataka, unlocking the majority of Moma’s nine
billion tonnes of Mineral Resources. Our focus remains on operating as
efficiently as possible to ensure the business is well-positioned for when
stronger market conditions return.
Despite near-term headwinds, I am excited about the years ahead as we continue
to deliver on our purpose. We have a globally significant asset, an
experienced team, and a market-leading position, and we have built the
resilience into our business to emerge stronger once this storm has passed.
Tom Hickey
Managing Director
UNAUDITED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2025
UNAUDITED
NOTES 2025 $’000 2024 $’000
Revenue 2 328,573 414,747
Cost of sales 4 (310,209) (319,371)
Gross profit 18,364 95,376
Administration expenses 4 (17,413) (6,160)
Impairment loss 8 (301,341) -
Operating (loss)/profit (300,390) 89,216
Finance income 5 1,976 3,638
Finance costs 5 (17,182) (10,784)
(Loss)/profit before tax (315,596) 82,070
Income tax expense 6 (9,452) (17,179)
(Loss)/profit for the financial year and total comprehensive income for the financial year (325,048) 64,891
Attributable to equity holders (325,048) 64,891
$ per share $ per share
Basic (loss)/earnings per share 7 (3.64) 0.73
Diluted (loss)/earnings per share 7 (3.64) 0.71
The accompanying notes form part of these financial statements.
UNAUDITED CONSOLIDATED STATEMENT OF FINANCIAL POSITION
AS AT 31 DECEMBER 2025
NOTES UNAUDITED 2025 $’000 2024 $’000
Assets
Non-current assets
Property, plant and equipment 8 875,868 1,017,973
Right-of-use assets 9 821 1,095
876,689 1,019,068
Current assets
Inventories 10 112,492 112,796
Trade and other receivables 11 70,553 119,494
Current tax assets 17 - 1,278
Cash and cash equivalents 12 48,624 56,683
231,669 290,251
Total assets 1,108,358 1,309,319
Equity
Capital and reserves attributable to the
Company’s equity holders
Called-up share capital 13 97 97
Share premium 545,950 545,950
Other reserves 231,375 229,274
Retained earnings 37,351 385,763
Total equity 814,773 1,161,084
Liabilities
Non-current liabilities
Bank loans 14 198,866 77,991
Lease liabilities 9 664 971
Provisions 15 22,566 20,007
222,096 98,969
Current liabilities
Bank loans 14 5,792 –
Lease liabilities 9 307 285
Trade and other payables 16 62,992 47,755
Current tax liabilities 17 986 –
Provisions 15 1,412 1,226
71,489 49,266
Total liabilities 293,585 148,235
Total equity and liabilities 1,108,358 1,309,319
The accompanying notes form part of these financial statements.
UNAUDITED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2025
UNAUDITED CALLED-UP SHARE CAPITAL $’000 UNAUDITED SHARE PREMIUM $’000 UNAUDITED OTHER RESERVES $’000 UNAUDITED RETAINED EARNINGS $’000 UNAUDITED TOTAL $’000
Balance at 1 January 2024 97 545,950 229,740 367,504 1,143,291
Total comprehensive income for the year
Profit for the financial year – – – 64,891 64,891
Total comprehensive income for the year – – – 64,891 64,891
Transactions with owners of the Company –
Contributions and distributions
Recognition of share-based payment expense – – 3,584 – 3,584
Exercise of share-based payment awards – – (3,244) 1,486 (1,758)
Shares acquired by The Kenmare Resources plc Employee Benefit Trust – – (3,169) – (3,169)
Shares distributed by The Kenmare Resources plc Employee Benefit Trust – – 2,363 – 2,363
Dividends paid – – – (48,118) (48,118)
Total contributions and distributions – – (466) (46,632) (47,098)
Balance at 1 January 2025 97 545,950 229,274 385,763 1,161,084
Total comprehensive income for the year
Loss for the financial year – – – (325,048) (325,048)
Total comprehensive income for the year – – – (325,048) (325,048)
Transactions with owners of the Company –
Contributions and distributions
Recognition of share-based payment expense – – 3,063 - 3,063
Exercise of share-based payment awards – – (1,673) 807 (866)
Shares acquired by The Kenmare Resources plc Employee Benefit Trust – – (540) – (540)
Shares distributed by The Kenmare Resources plc Employee Benefit Trust – – 1,251 – 1,251
Dividends paid – – – (24,171) (24,171)
Total contributions and distributions – – 2,101 (23,364) (21,263)
Balance at 31 December 2025 97 545,950 231,375 37,351 814,773
UNAUDITED CONSOLIDATED STATEMENT OF CASH FLOWS
FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2025
NOTES UNAUDITED 2025 $’000 2024 $’000
Cash flows from operating activities
(Loss)/profit for the financial year after tax (325,048) 64,891
Adjustment for:
Expected credit losses 18 3,839 177
Share-based payments 3,063 3,584
Finance income 5 (1,976) (3,638)
Finance costs 5 17,182 10,784
Income tax expense 6 9,452 17,179
Impairment loss 8 301,341 –
Depreciation 8, 9 57,142 67,969
64,995 160,946
Change in:
Provisions 3,239 1,496
Inventories 304 (13,539)
Trade and other receivables 45,105 33,978
Trade and other payables 2,978 7,976
Exercise of share-based payment awards 384 606
Cash generated from operating activities 117,005 191,463
Income tax paid (7,185) (25,378)
Interest received 1,976 3,638
Interest paid 9, 14 (6,826) (5,216)
Factoring and other trade facility fees 5 (1,996) (2,592)
Debt commitment fees paid and other fees 5 (1,012) (2,085)
Net cash from operating activities 101,962 159,830
Investing activities
Additions to property, plant and equipment 8 (205,025) (152,591)
Net cash used in investing activities (205,025) (152,591)
Financing activities
Dividends paid (24,171) (48,118)
Market purchase of equity under Kenmare Restricted Share Plan (540) (3,169)
Drawdown of debt 14 120,000 131,370
Repayment of debt 14 – (98,512)
Transaction costs of debt 14 – (2,911)
Payment of lease liabilities 9 (285) (264)
Net cash used in financing activities 95,004 (21,604)
Net decrease in cash and cash equivalents (8,059) (14,365)
Cash and cash equivalents at the beginning of the financial year 56,683 71,048
Cash and cash equivalents at the end of the financial year 12 48,624 56,683
UNAUDITED NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2025
1. Statement of accounting policies
Kenmare Resources plc (the Company) is domiciled in the Republic of Ireland.
The Company’s registered address is Styne House, Hatch Street Upper, Dublin
2. The Company has an Equity Shares (Commercial Companies) listing on the Main
Market of the London Stock Exchange and a secondary listing on Euronext
Dublin. These consolidated financial statements comprise the Company and its
subsidiaries (the “Group”). The principal activity of the Group is the
operation and further development of the Moma Titanium Minerals Mine in
Mozambique (“Moma” or the “Mine”).
On 24 March 2026, the Directors approved the preliminary results for
publication. While the consolidated financial statements for the year ended 31
December 2025, from which the preliminary results have been extracted, are
prepared in accordance with International Financial Reporting Standards
(“IFRS”) as adopted by the European Union, these preliminary results do
not contain sufficient information to comply with IFRS. The Directors expect
to publish on 10 April 2026 the full financial statements that comply with
IFRS as adopted by the European Union.
The auditor, KPMG, has not yet issued their audit opinion on the financial
statements in respect of the year ended 31 December 2025. This audit opinion
will most likely include a Material Uncertainty Related to Going Concern which
will draw the members attention to the Going Concern disclosures in the
Directors Report and Statement of Accounting Policies where the Directors have
set out their assessment of the Group’s ability to continue as a going
concern and the material uncertainties which exist as detailed below. The
financial information included within this unaudited preliminary results
statement for the year ended 31 December 2025 does not constitute the
statutory financial statements of the Group within the meaning of section 293
of the Companies Act 2014. The Group financial information in this preliminary
statement for the year ended 31 December 2025 is unaudited. A copy of the
statutory financial statements in respect of the year ended 31 December 2025
will be annexed to the next annual return and filed with the Registrar of
Companies.
The Group financial information for the year ended 31 December 2024 included
in this preliminary statement represents an abbreviated version of the
Group’s financial statements for that year. The statutory financial
statements for the Group for the year ended 31 December 2024, upon which the
auditor, KPMG, has issued an unqualified opinion, were annexed to the annual
return of the Company and filed with the Registrar of Companies.
None of the new and revised standards and interpretations which are effective
for accounting periods beginning on or after 1 January 2025, have a material
effect on the Group’s financial statements.
BASIS OF PREPARATION
The consolidated financial statements have been prepared in accordance with
International Financial Reporting Standards (IFRSs) issued by the
International Accounting Standards Board (IASB) and interpretations issued by
the IFRS Interpretations Committee (IFRIC) as adopted by the EU and those
parts of the Companies Act 2014 applicable to companies reporting under IFRS
and Article 4 of the IAS Regulation.
GOING CONCERN
The Group forecast has been prepared by management with best estimates of
production, pricing and cost assumptions over the period. Key assumptions upon
which the Group forecast is based include a mine plan covering production
using the Namalope, Nataka, Pilivili and Mualadi Ore Reserves and Mineral
Resources. Specific Mineral Resource material is included only where there is
a high degree of confidence in its economic extraction. Production levels for
the purpose of the forecast are, approximately, 1.0 million tonnes of ilmenite
plus co-products, zircon, concentrates and rutile, and by-product ZrTi over
the next 12 months. Assumptions for product sales prices are based on contract
prices as stipulated in marketing agreements with customers or, where contract
prices are based on market prices or production is not presently contracted,
prices are forecast taking into account independent expertise on mineral sands
products and management expectations. Operating costs are based on approved
budget costs for 2026, taking into account the current running costs of the
Mine and escalated by 2% per annum thereafter. Capital costs are based on the
capital plans and include escalation at 2% per annum. The 2026 operating costs
and forecast capital costs take into account the current inflationary
environment. The 2% inflation rate used from 2027 to escalate these costs over
the life of mine is an estimated long-term inflation rate.
Implementation Agreement
The Implementation Agreement (“IA”) grants certain rights and concessions
to Kenmare Moma Processing (Mauritius) Limited (“KMPL”) in connection with
its processing and export activities. Certain of those rights and concessions
expired in December 2024. Since the expiry date, KMPL has been able to
continue operating substantially on the basis of those legacy rights and
concessions while negotiating their renewal with the Government of Mozambique
(the “Government”).
However, in July 2025, the Government unilaterally adopted an Internal
Resolution granting KMPL a 20-year extension of its terms of authorisation but
on different terms to those it is entitled to under the IA. The Mozambique Tax
Authority began to implement some but not all of the Internal Resolution terms
in early 2026. If applied in full, the Internal Resolution terms could be
materially detrimental to Kenmare’s economic interests or liquidity through
the imposition of additional royalties, indirect taxes (VAT, Customs Duties)
and direct taxes (Corporation Tax, Withholding Tax), among others.
Kenmare is in active negotiations with the Government to conclude the IA
renewal process on mutually agreed terms; the outcome and timing of renewal of
the rights and concessions remain uncertain.
Revolving Credit Facility (“RCF”)
The Group has been in discussions with its Lender syndicate (Absa Bank,
Nedbank, Rand Merchant Bank and Standard Bank) regarding amendments to its
RCF, including adjustments to its financial covenant levels, in light of the
prevailing weak market conditions and outlook. There is a risk that these
amendments are not agreed on a timely basis, or at all. Failure to secure the
terms may lead to a breach of financial covenants in the future; any such
breach would constitute an Event of Default.
The Group’s financial forecasts and projections for the next twelve months
indicate that the Group would be able to meet its obligations as they fall due
on the assumption that suitable amendments or waivers are secured under the
Senior Facility Agreement (“SFA”) and, in relation to the IA, that the
relevant rights and concessions are renewed on agreed terms, or that KMPL is
able to continue to operate substantially on the basis of the legacy terms.
This assessment is sensitive to typical downside risks such as further
deterioration in product prices, potential disruption to the Group’s
production or shipping activity due to operational, geopolitical or other
factors impacting Kenmare or its customers, and the crystallisation of other
risks such as those described in the Principal Risks and Uncertainties in the
Annual Report, particularly if such downside risks were to materialise in
combination.
The Directors recognise that the combination of the circumstances described
above represents a material uncertainty that may cast significant doubt as to
the Group’s ability to continue as a going concern and that it may be unable
to realise its assets and discharge its liabilities in the normal course of
business. Accordingly, the auditors will most likely include a Material
Uncertainty Related to Going Concern in their audit opinion. The Directors
have a reasonable expectation that, subject to resolution of the uncertainties
set out above, the Group will be able to continue in operation. Accordingly,
the financial statements have been prepared on a going concern basis.
2. Revenue
2025 $’000 2024 $’000
Revenue from contracts with customers
Revenue derived from the sale of mineral products 312,085 392,052
Revenue derived from freight services 16,488 22,695
Total Revenue 328,573 414,747
REVENUE BY MINERAL PRODUCT
The principal categories for disaggregating mineral products revenue are by
product type and by country of the customer’s location. The mineral product
types are ilmenite, zircon, rutile and concentrates. Concentrates include
secondary zircon and mineral sands concentrate. During the financial year, the
Group sold 924,100 tonnes (2024: 1,088,600 tonnes) of finished products to
customers at a sales value of $312.1 million (2024: $392.1 million). The Group
earned revenue derived from freight services of $16.5 million (2024: $22.7
million).
2025 $’000 2024 $’000
Revenue derived from sales of mineral products by primary product
Ilmenite 226,679 291,622
Primary zircon 58,912 70,952
Concentrates 19,446 21,452
Rutile 7,048 8,026
Total revenue from mineral products 312,085 392,052
Revenue derived from freight services 16,488 22,695
Total revenue 328,573 414,747
REVENUE BY DESTINATION
In the following table, revenue is disaggregated by the primary geographical
market. The Group allocates revenue from external customers to individual
countries and discloses revenues in each country where revenues represent 10%
or more of the Group’s total revenue. Where total disclosed revenue
disaggregated by country constitutes less than 75% of total Group revenue,
additional disclosures are made on a regional basis until at least 75% of the
Group’s disaggregated revenue is disclosed. There were no individual
countries within Europe, Asia (excluding China) or the Rest of the World with
revenues representing 10% or more of the Group’s total revenue during the
year.
2025 $’000 2024 $’000
Revenue derived from sales of mineral product by destination China 89,166 146,434
Europe 57,738 83,363
Asia (excluding China) 55,526 67,641
Saudia Arabia 42,436 35,433
USA 35,125 59,181
Rest of the World 32,094 -
Total revenue from mineral products 312,085 392,052
Revenue derived from freight services 16,488 22,695
Total revenue 328,573 414,747
REVENUE BY MAJOR CUSTOMERS
The Group evaluates the concentration of mineral product revenue by major
customer. The following table disaggregates mineral product revenue from the
Group’s three largest customers.
2025 $’000 2024 $’000
Revenue from external customers
Largest customer 56,715 58,934
Second largest customer 42,436 44,350
Third largest customer 38,991 43,520
Total 138,142 146,804
All Group revenues from external customers are generated by the Moma Titanium
Minerals Mine in Mozambique. Further details on this operating segment can be
found in Note 3. Sales to and from Ireland were $nil (2024: $nil) in the year.
3. Segment reporting
Information on the operations of the Moma Titanium Minerals Mine in Mozambique
is reported to the Executive Committee for the purposes of resource allocation
and assessment of segment performance. The Executive Committee reports to the
Board on the performance of the Group. Information regarding the Group’s
operating segment is reported below:
2025 2024
CORPORATE $’000 MOZAMBIQUE $’000 TOTAL $’000 CORPORATE $’000 MOZAMBIQUE $’000 TOTAL $’000
Revenue & results
Revenue* – 328,573 328,573 – 414,747 414,747
Cost of sales – (310,209) (310,209) – (319,371) (319,371)
Gross profit – 18,364 18,364 – 95,376 95,376
Administrative expenses (8,978) (8,435) (17,413) (9,137) 2,977 (6,160)
Impairment loss – (301,341) (301,341) – – –
Segment operating (loss)/profit (8,978) (291,412) (300,390) (9,137) 98,353 89,216
Finance income 218 1,758 1,976 1,349 2,289 3,638
Finance expenses (44) (17,138) (17,182) (59) (10,725) (10,784)
(Loss)/profit before tax (8,804) (306,792) (315,596) (7,847) 89,917 82,070
Income tax expense (618) (8,834) (9,452) (7,157) (10,022) (17,179)
(Loss)/profit for the financial year (9,422) (315,626) (325,048) (15,004) 79,895 64,891
Segment assets & liabilities
Segment assets 2,737 1,105,621 1,108,358 9,571 1,299,748 1,309,319
Segment liabilities 3,666 289,919 293,585 4,514 143,721 148,235
Additions to non-current assets
Segment additions to non-current assets – 214,826 214,826 – 153,805 153,805
Depreciation of property, plant and equipment and right of use assets 308 56,834 57,142 308 67,660 67,968
* Revenue excludes inter-segment revenue of $20.9 million (2024:
$22.8 million) earned by the corporate segment relating to marketing and
management services fee income. Inter-segment revenue is not regularly
reviewed by the Chief Operating Decision Maker.
Corporate assets consist of the Company’s property, plant and equipment
including right-of-use assets, cash and cash equivalents and prepayments at
the reporting date. Corporate liabilities consist of trade and other payables
at the reporting date.
4. Cost and income analysis
2025 $’000 2024 $’000
Expenses by function
Cost of sales 310,209 319,371
Administrative expenses 17,413 6,160
Impairment loss 301,341 –
Total 628,963 325,531
Expenses by nature can be analysed as follows:
2025 $’000 2024 $’000
Expenses by nature
Staff costs 82,449 77,843
Repairs and maintenance 42,444 40,734
Power and fuel 43,561 48,760
Freight 16,488 22,695
Other production and operating costs 85,628 79,921
Impairment loss 301,341 –
Movement of mineral products inventory (90) (12,390)
Depreciation of property, plant and equipment and right-of-use assets 57,142 67,968
Total 628,963 325,531
Mineral products consist of finished products and HMC as detailed in Note 10.
Mineral stock movement in the year was an increase of $0.09 million (2024:
$12.4 million). Freight costs of $16.5 million (2024: $22.7 million) arise
from sales to customers on a CIF or CFR basis. An impairment loss of $301.3
million (2024: $nil) was recognised within operating loss in 2025.
5. Net finance costs
2025 $’000 2024 $’000
Finance costs
Interest on bank borrowings (12,677) (3,863)
Transaction costs on debt financing (708) (1,398)
Interest on lease liabilities (106) (126)
Factoring and other trade facility fees (1,996) (2,592)
Commitment and other fees (1,012) (2,085)
Unwinding of discount on mine closure provision (683) (720)
Total finance costs (17,182) (10,784)
Interest earned on bank deposits 1,976 3,638
Total finance income 1,976 3,638
Net finance costs recognised in profit or loss (15,206) (7,146)
All interest has been expensed in the financial year. The Group has classified
factoring and other trade facility fees in net cash from operating activities
in the Consolidated Statement of Cashflows.
6. Income tax expense
2025 $’000 2024 $’000
Corporation tax 9,452 17,179
Deferred tax – –
Total 9,452 17,179
Reconciliation of effective tax rate
(Loss)/profit before tax (315,596) 82,070
(Loss)/profit before tax multiplied by the applicable tax rate (12.5%) (39,450) 10,259
Impairment loss adjustment 37,668 –
Under provision in respect of prior years 1,131 2,046
Non-taxable income – (1,351)
Non-deductible expenses 327 458
Differences in effective tax rates on overseas earnings 9,776 5,767
Total 9,452 17,179
During the year, Kenmare Moma Mining (Mauritius) Limited (“KMML”)
Mozambique Branch had taxable profits of $23.7 million (2024: $27.7 million),
resulting in an income tax expense of $8.3 million (2024: $10.0 million) being
recognised. The income tax rate applicable to taxable profits of KMML
Mozambique Branch is 35% (2024: 35%).
KMML Mozambique Branch has elected, and the fiscal regime applicable to mining
allows for, the option to deduct, as an allowable deduction, depreciation of
exploration and development expense and capital expenditure over the life of
mine. Tax losses may be carried forward for three years. There are no tax
losses carried forward at 31 December 2025.
KMPL Mozambique Branch is entitled to Industrial Free Zone (“IFZ”) status.
As an IFZ Branch, it is exempt from corporation taxes and, hence, its income
is non-taxable.
During the year, Kenmare Resources plc had taxable profits of $0.2 million
(2024: $53.5 million) as a result of management and marketing service fee
income earned on services provided to subsidiary undertakings, resulting in a
corporate tax expense of $0.05 million (2024: $7.1 million). There was an
under provision in the prior year of $1.1 million (2024: $2.0 million)
recognised in the year.
7. Earnings per share
The calculation of the basic and diluted earnings per share attributable to
the ordinary equity holders of the Company is based on the following data:
2025 $’000 2024 $’000
(Loss)/profit for the financial year attributable to equity holders of the Company (325,048) 64,891
2025 NUMBER OF SHARES 2024 NUMBER OF SHARES
Weighted average number of issued ordinary shares for the purpose of basic earnings per share 89,228,161 89,228,161
Effect of dilutive potential ordinary shares:
Share awards 2,933,207 2,699,029
Weighted average number of ordinary shares for the purposes of diluted earnings per share 92,161,368 91,927,190
$ PER SHARE $ PER SHARE
Basic (loss)/earnings per share (3.64) 0.73
Diluted (loss)/earnings per share (3.64) 0.71
8. Property, plant and equipment
PLANT AND EQUIPMENT $’000 DEVELOPMENT EXPENDITURE $’000 CONSTRUCTION IN PROGRESS $’000 OTHER ASSETS $’000 TOTAL $’000
Cost
At 1 January 2024 1,055,574 273,146 80,085 75,140 1,483,945
Additions during the financial year 1,858 14 151,933 – 153,805
Transfer from construction in progress 3,454 3,363 (14,094) 7,277 –
Disposals – – – (6,207) (6,207)
Adjustment to mine closure cost (3,985) – – – (3,985)
At 31 December 2024 1,056,901 276,523 217,924 76,210 1,627,558
Additions during the financial year 2,701 25 211,943 157 214,826
Transfer from construction in progress 14,880 1,353 (29,711) 13,478 –
Disposals (33,917) – – (2,783) (36,700)
Adjustment to mine closure cost 1,279 – – – 1,279
At 31 December 2025 1,041,844 277,901 400,156 87,062 1,806,963
Accumulated depreciation
At 1 January 2024 348,831 156,820 – 42,446 548,097
Charge for the financial year 47,976 9,438 – 10,281 67,695
Disposals – – – (6,207) (6,207)
At 31 December 2024 396,807 166,258 – 46,520 609,585
Charge for the financial year 42,669 5,541 – 8,659 56,869
Disposals (33,917) – – (2,783) (36,700)
Impairment 248,435 41,712 – 11,194 301,341
At 31 December 2025 653,994 213,511 – 63,590 931,095
Carrying amount
At 31 December 2025 387,850 64,390 400,156 23,472 875,868
At 31 December 2024 660,094 110,265 217,924 29,690 1,017,973
An adjustment to the mine closure cost of $1.3 million (2024: $4.0 million)
was made during the year as a result of an update in the mine closure cost
estimate as detailed in Note 15.
At each reporting date, the Group assesses whether there is any indication
that property, plant and equipment may be impaired. The Group considers the
relationship between its market capitalisation and its book value, among other
factors, when reviewing for indicators for impairment. As at 31 December 2025,
the market capitalisation of the Group was below the book value of net assets,
which is considered an indicator of impairment. The Group carried out an
impairment review of property, plant and equipment as at 31 December 2025. As
a result of the review, and given the performance and outlook of the Group, an
impairment loss of $301.3 million was recognised in the current financial
year. The Directors consider that the main cause of the impairment is due to
lower projected future revenue assumptions associated with an uncertain
pricing outlook. The impairment loss has not been applied against construction
in progress as the cost of these assets is the same as their carrying value.
The cash-generating unit for the purpose of impairment testing is the Moma
Titanium Minerals Mine. The basis on which the Mine is assessed is its value
in use. The cash flow forecast employed for the value in use computation is
from a life of mine financial model. The value in use methodology uses the
next five years’ cashflows and then uses year five as a basis for the
remaining 35 years to align with the 40-year life of mine assumption. The
recoverable amount obtained from the financial model represents the present
value of the future discounted pre-tax, pre-finance cash flows discounted at
13% (2024: 13.41%).
Key assumptions include the following:
• The discount rate is based on the Group’s weighted average cost of
capital. This rate is a best estimate of the current market assessment of the
time value of money and the risks specific to the Mine, taking into
consideration country risk, currency risk and price risk.
The Group’s estimation of the country risk premium included in
the discount rate has remained unchanged from the prior year. The Group does
not consider it appropriate to apply the full current country risk premium for
Mozambique to the calculation of the Group’s weighted average cost of
capital as it believes the specific circumstances that have impacted on the
risk premium in recent years are not relevant to the specific circumstances of
the Mine. Hence, country risk premium applicable to the calculation of the
cost of equity has been adjusted accordingly.
Using a discount rate of 13%, the recoverable amount is less than
the carrying amount by $301.3 million (2024: $83.0 million greater). The
discount rate is a significant factor in determining the recoverable amount. A
1% change in the discount rate to 14% reduces the recoverable amount by $77.0
million, assuming all other inputs remain unchanged.
• The Implementation Agreement governs the terms under which Kenmare
conducts its mineral processing and export activities. Mining operations are
conducted under a separate regulatory framework, which is not impacted in any
way by the IA process. The IA granted certain rights and benefits for a period
of 20 years to 21 December 2024, subject to extension upon request. Kenmare
has been engaging constructively with the Government of Mozambique regarding
the extension and, in connection with the extension, has proposed certain
modifications to the applicable investment regime, which have been included in
the Group forecast. The Group forecast assumes that the Company’s existing
rights and benefits remain in full force and effect pending conclusion of the
renewal. Kenmare continues to process minerals and export final products in
the same manner as it did, prior to 21 December 2024.
• The initial term of the Group’s Mining Licence over the orebody
will expire in 2029. A renewal of the Mineral Licensing Contact (MLC) has been
applied for by the Group in February 2026 for an extension of 15 years to
2044. Under the terms of the MLC, the Group can apply for subsequent
extensions post-2044 provided the life of the Mine allows and subject to the
same conditions as the first renewal. Since the Group signed its MLC in 2002
with the Government of Mozambique under Mining Law 2/86, mining law has been
amended on a number of occasions. However, the various amended mining
legislation contain grandfathering provisions that confirm the ongoing
validity of the mining contracts that were entered into with the Government of
Mozambique, before the entry into force of the amended legislation. The
grandfathering provisions provide for an opt in or opt out regime for
companies that signed contracts under an earlier legal regime; the Group has
not exercised the right to move to either Mining Law 14/2002 or Mining Law
20/2014 and, as a result, the Group continues to be regulated by the
legislation in force at the time of the signature of the MLC.
The mine plan is based on the Namalope, Nataka, Pilivili and
Mualadi Proved and Probable Ore Reserves and Mineral Resources. Specific
Mineral Resource material is included only where there is a high degree of
confidence in its economic extraction. Average annual production of finished
products is, approximately, 1.1 to 1.2 million tonnes over the next two years
with 1.3 million tonnes from 2028 onwards. Certain minimum stocks of final and
intermediate products are assumed to be maintained at period ends.
• Product sales prices are based on contract prices as stipulated in
marketing agreements with customers, or where contracts are based on market
prices or production is not currently contracted, prices are forecast by the
Group taking into account independent titanium mineral sands expertise (TZMI
and TiPMC) and management expectations, including general inflation of 2% per
annum. Average forecast product sales prices have decreased over the life of
mine from the prior year-end review as a result of revised forecast pricing
and market outlook. A 5% reduction in average sales prices over the life of
mine reduces the recoverable amount by $159 million, assuming all other inputs
remain unchanged.
• Operating costs are based on approved budget costs for 2026, taking
into account the current running costs of the Mine and estimated forecast
inflation for 2026. From 2027 onwards, operating costs are escalated by 2% per
annum as management expects inflation to normalise and average 2% over the
life of mine period. Average forecast operating costs have decreased from the
prior year-end review as result of cost reduction initiatives implemented and
forecast. A 2.5% increase in operating costs over the life of mine reduces the
recoverable amount by $48 million, assuming all other inputs remain unchanged.
• Capital costs are based on a life of mine capital plan including
inflation at 2% per annum from 2027. Average forecast capital costs have
decreased from the prior year-end review based on updated sustaining and
development capital plans required to maintain the existing plant over the
life of mine. A 5% increase in capital costs over the life of mine reduces the
recoverable amount by $23.0 million, assuming all other inputs remain
unchanged.
• The Board and management have set a medium-term decarbonisation
target of 30% reduction by 2030 from a 2021 baseline. Kenmare has an ambition
to achieve net zero for its operational (Scope 1 & 2) emissions by 2040, also
from a 2021 baseline, and will continue to work to achieve a higher
decarbonisation rate. Management has included the costs of implementing the
Climate Transition Plan (“CTP”) (2025 to 2030) into the cashflow
forecasts. CTP specific costs total $11.7 million over the period 2025 to
2030. A change in these costs (for overruns or required additional projects to
meet targets) are not anticipated to have a material impact on the forecast
cashflows. The balance of spend on the move of WCP A to Nataka is included in
the capital forecasts. No savings associated with the Company’s ambition to
become net zero have been factored into the forecast.
9. Right-of-use assets and lease liabilities
LAND AND BUILDINGS $’000 TOTAL $’000
Cost
At 1 January 2025 2,450 2,450
Additions – –
Disposals – –
At 31 December 2025 2,450 2,450
Accumulated depreciation
At 1 January 2025 1,355 1,355
Depreciation expense 273 273
Disposals – –
At 31 December 2025 1,629 1,629
Carrying amount
At 31 December 2025 821 821
At 31 December 2024 1,095 1,095
The Group recognised a lease liability of $1.7 million in respect of the
rental of its Irish head office. The lease has a term of 10 years commencing
August 2017 and rental payments are fixed to the end of the lease term. This
lease obligation is denominated in Euros.
The Group recognised a lease liability of $0.7 million in respect of its
Mozambican country office in Maputo. The lease has a term of 10 years
commencing December 2022. This lease obligation is denominated in US Dollars.
At each reporting date, the Company assesses whether there is any indication
that right-of-use assets may be impaired. No impairment indicators were
identified as at 31 December 2025 or 31 December 2024.
The Group has recognised a rental expense of $8.4 million (2024: $11.9
million) in relation to short-term leases of machinery and vehicles, which
have not been recognised as a right-of-use asset.
Set out below are the carrying amounts of lease liabilities at each reporting
date:
2025 $’000 2024 $’000
Current 307 285
Non-current 664 971
Total 971 1,256
The consolidated income statement includes the following amounts relating to
leases:
2025 $’000 2024 $’000
Depreciation expense 273 273
Interest expense on lease liabilities 106 126
Total 379 399
Reconciliation of movements of lease liabilities to cash flows arising from financing activities 2025 $’000 2024 $’000
Lease liabilities
Balance at 1 January 1,256 1,520
Cash movements
Lease interest paid (106) (126)
Principal paid (285) (264)
Non-cash movements
Lease interest accrued 106 126
Balance at 31 December 971 1,256
10. Inventories
2025 $’000 2024 $’000
Mineral products 70,885 70,795
Consumable spares 41,607 42,001
112,492 112,796
At 31 December 2025, total final product stock was 344,000 tonnes (2024:
287,200 tonnes). Closing stock of HMC was 29,200 tonnes (2024: 14,100 tonnes).
Net realisable value is determined with reference to forecast prices of
finished products expected to be achieved. There is no guarantee that these
prices will be achieved in the future, particularly in weak product markets.
During the financial year, there was a write-down of $14.4 million (2024: $0.2
million) to mineral products charged to cost of sales to value mineral
products at net realisable value.
11. Trade and other receivables
2025 $’000 2024 $’000
Trade receivables 38,126 91,451
VAT receivable 6,336 6,410
Prepayments 26,091 21,633
70,553 119,494
Trade receivables included sales of 108,800 tonnes of finished product (2024:
204,800 tonnes) at an average price of $399/t (2024 $455/t).
Further details on trade receivables can be found in Note 18.
12. Cash and cash equivalents
2025 $’000 2024 $’000
Bank balances 48,624 56,683
Cash and cash equivalents comprise cash balances held for the purposes of
meeting short-term cash commitments and investments that are readily
convertible to a known amount of cash and are subject to an insignificant risk
of change in value. Where investments are categorised as cash equivalents, the
related balances have a maturity of three months or less from the date of
investment.
13. Called-up share capital
2025 €’000 2024 €’000
Authorised share capital
181,000,000 ordinary shares of €0.001 each 181 181
181 181
2025 $’000 2024 $’000
Allotted, called-up and fully paid
Opening balance
89,228,161 (2024: 89,228,161) ordinary shares of €0.001 each 97 97
Acquired and cancelled
Nil (2024: Nil) ordinary shares of €0.001 each – –
Closing balance
89,228,161 (2024: 89,228,161) ordinary shares of €0.001 each 97 97
Total called-up share capital 97 97
No ordinary shares were issued during the year (2024: $nil).
14. Bank loans
2025 $’000 2024 $’000
Borrowings 204,658 77,991
The borrowings are repayable as follows:
Less than one year 5,792 –
Between two and five years 198,866 77,991
Total carrying amount 204,658 77,991
BORROWINGS
On 4 March 2024, the Group entered into a secured senior debt facility
agreement (“Senior Facility Agreement”) with Absa Bank Limited (acting
through its Corporate and Investment Banking Division) (“Absa”), Nedbank
Limited (acting through its Nedbank Corporate and Investment Banking division)
(“Nedbank”), Rand Merchant Bank and Standard Bank Group (“Standard
Bank”).
The Senior Facility Agreement provides the Group with a $200 million Revolving
Credit Facility (“RCF”). The finance documentation also provides for a
Mine Closure Guarantee Facility (provided by either the existing lenders or
other finance providers) of up to $50 million, with the provider(s) of such a
facility sharing in the common security package.
The RCF has a maturity date of 4 March 2029. Interest is at SOFR plus a margin
of 4.85% per annum. The RCF can be repaid or drawn down at any stage
throughout the term of the loan.
The security package consists of: (a) security over the Group’s bank
accounts (subject to certain exceptions); (b) pledges of the shares of KMPL
and KMML (the “Project Companies”); and (c) security over intercompany
loans.
The carrying amount of the secured bank accounts of the Group was $44.2
million as at 31 December 2025 (2024: $56.3 million). The shares of the
Project Companies and intercompany loans are not included in the consolidated
statement of financial position as they are eliminated on consolidation. They,
therefore, do not have a carrying amount, but, upon enforcement of the pledges
on behalf of the Lender group, the shares in the Project Companies would cease
to be owned or controlled by the Group. The secured rights and agreements do
not have a nominal amount.
The Group entered into a mine closure guarantee facility with Standard Bank SA
effective from 1 July 2025 for an amount of $41.0 million. This guarantee
shares the security package with the RCF on a pro rata and pari passu basis.
Reconciliation of movements of debt to cash flows arising from financing activities 2025 $’000 2024 $’000
Bank loans
Balance at 1 January 77,991 47,873
Cash movements
RCF drawdown 120,000 131,370
Loan interest paid – Term Loan – (2,694)
Loan interest paid – RCF (6,720) (2,396)
Principal paid – Term Loan – (47,142)
Principal paid - RCF – (51,370)
Transaction costs paid – (2,911)
Non-cash movements
Loan interest accrued – Term Loan – 1,050
Loan interest accrued – RCF 12,677 2,813
Transaction costs amortised 710 1,398
Balance at 31 December 204,658 77,991
Loan interest paid excludes lease liability interest as it is accounted for in
Note 9.
COVENANTS
The finance documents contain a number of representations, covenants and
events of default on customary terms, the breach of which could lead to the
secured parties under the finance documentation accelerating the outstanding
loans and taking other enforcement steps, such as the enforcement of some, or
all, of the security interests, which could lead to, in extremis, the Group
losing its interest in the Mine. The most salient of the relevant terms that
could lead to acceleration of the loans and/or enforcement of security relate
to the effectiveness of key governmental licences and agreement (including the
Implementation Agreement) and the financial covenants.
All covenants have been complied with during the year. In December 2025,
following a request by the Company, the lenders granted a reset of the net
debt to EBITDA covenant for the 31 December 2025 to a level of 3.0x. The key
financial covenants are detailed below:
AS AT 31 DECEMBER 2025 COVENANT
Interest Coverage Ratio 6.86 Not less than 4.00:1
Net Debt to EBITDA 2.72 Not greater than 3.00:1
Liquidity $48,624,000 Not less than $25,000,000
The definition of the covenants under the debt facilities are set out below:
• Interest Coverage Ratio is defined as the ratio of EBITDA to Net
Interest Cost
• Net Debt is defined as total financial indebtedness, excluding
leases less consolidated cash and cash equivalents
• Liquidity is defined as consolidated cash and cash equivalents plus
undrawn amounts of the RCF
15. Provisions
2025 $’000 2024 $’000
Mine closure provision 16,237 14,275
Mine rehabilitation provision 7,741 6,958
23,978 21,233
Current 1,412 1,226
Non-current 22,566 20,007
23,978 21,233
MINE CLOSURE PROVISION $’000 MINE REHABILITATION PROVISION $’000 TOTAL $’000
At 1 January 2024 17,540 5,462 23,002
Increase in provision during the financial year (3,985) 3,718 (267)
Provision utilised during the financial year – (2,222) (2,222)
Unwinding of the discount 720 – 720
At 1 January 2025 14,275 6,958 21,233
Increase in provision during the financial year 1,279 3,123 4,402
Provision utilised during the financial year – (2,340) (2,340)
Unwinding of the discount 683 – 683
At 31 December 2025 16,237 7,741 23,978
The Mine closure provision represents the Directors’ best estimate of the
Project Companies’ liability for close-down, dismantling and restoration of
the mining and processing site. A corresponding amount equal to the provision
is recognised as part of property, plant and equipment. The costs are
estimated on the basis of a formal closure plan, are subject to regular review
and are estimated based on the net present value of estimated future costs.
Mine closure costs are a normal consequence of mining, and the majority of
close-down and restoration expenditure is incurred at the end of the life of
the Mine. The unwinding of the discount is recognised as a finance cost and
$0.7 million (2024: $0.7 million) has been recognised in the statement of
comprehensive income for the financial year.
The main assumptions used in the calculation of the estimated future costs
include:
• A discount rate of 4.8% (2024: 4.8%);
• An inflation rate of 2% (2024: 2%);
• An estimated life of mine of 40 years (2024: 40 years). It is
assumed that all licences and permits required to operate will be renewed or
extended during the life of mine; and
• An estimated closure cost of $44.1 million (2024: $36.8 million) and
an estimated post-closure monitoring provision of $3.8 million (2024: $2.6
million).
As of December 2025, the mine closure provision has been discounted using a
rate of 4.8%. This discount rate is based on the US Treasury 30-year bond
yield, which serves as a benchmark for long-term, risk-free rates, with
adjustments to reflect the Company’s specific risk profile.
The inflation rate applied to estimate future closure costs is based on
projected US inflation rates. This approach ensures that cost estimates remain
aligned with expected economic conditions over the closure period, providing a
realistic assessment of future obligations.
The life of mine plan is based on the Namalope, Nataka, Pilivili and Mualadi
Ore Reserves and Mineral Resources. Specific Mineral Resource material is
included only where there is a high degree of confidence in its economic
extraction.
The discount rate is a significant factor in determining the Mine closure
provision. A 1% increase in the estimated discount rate results in the Mine
closure provision decreasing by $4.8 million (2024: $4.5 million). A 1%
decrease in the estimated discount rate results in the Mine closure provision
increasing by $6.4 million (2024: $6.7 million).
The Mine rehabilitation provision represents the Directors’ best estimate of
the Company’s liability for rehabilitating areas disturbed by mining
activities. Rehabilitation costs are recognised based on the area disturbed
and estimated cost of rehabilitation per hectare, which is reviewed regularly
against actual rehabilitation cost per hectare. Actual rehabilitation
expenditure is incurred, approximately, 12 months after the area has been
disturbed. During the financial year, there was a release of $2.3 million
(2024: $2.2 million) to reflect the actual mine rehabilitation costs incurred,
and an addition to the provision of $3.1 million (2024: $3.7 million) for
areas newly disturbed.
16. Trade and other payables
2025 $’000 2024 $’000
Trade payables 19,400 13,480
Deferred income 2,199 2,415
Accruals 41,393 31,860
62,992 47,755
Included in accruals at the financial year-end is an amount of $0.2 million
(2024: $2.5 million) for payroll and social insurance taxes. Deferred income
relates to sales contracts, which contain separate performance obligations for
the sale of mineral products and the provision of freight services. The
portion of the revenue representing the obligation to perform the freight
service is deferred and recognised over time as the obligation is fulfilled,
along with the associated costs.
17. Current tax (asset)/liabilities
2025 $’000 2024 $’000
Current tax liabilities/(asset) 986 (1,278)
Refer to Note 6 for further information on the Group’s tax expense.
18. Financial instruments
2025 2024
CARRYING AMOUNT $’000 FAIR VALUE $’000 CARRYING AMOUNT $’000 FAIR VALUE $’000
Financial assets at fair value through Other Comprehensive Income
Trade receivables (1) 8,325 8,325 28,148 28,148 Level 2
Financial assets not measured at fair value
Trade receivables (2) 35,397 35,397 65,060 65,060 Level 2
Cash and cash equivalents 48,624 48,624 56,683 56,683 Level 2
92,346 92,346 149,891 149,891
Financial liabilities not measured at fair value
Bank loans 204,659 205,957 77,991 80,417 Level 2
1 Relates to trade receivables, which may be discounted through the
Barclay’s bank facility.
2 Relates to trade receivables, which will not be discounted.
The carrying amounts and fair values of financial assets and financial
liabilities, including their levels in fair value hierarchy, are detailed
above. The table does not include fair value information for other
receivables, prepayments, trade payables and accruals as these are not
measured at fair value.
Trade receivables where it is not known at initial recognition if they will be
factored are classified as fair value through other comprehensive income.
Trade receivables which will not be factored and for which balances will be
recovered under the sale contract credit terms are initially measured at fair
value and, subsequently, measured at amortised cost.
In the case of factored receivables, the Group derecognises the discounted
receivable to which the arrangement applies when payment is received from the
bank as the terms of the arrangement are non-recourse. The payment to the bank
by the Group’s customers are considered non-cash transactions for the
purposes of the consolidated statement of cashflows.
The valuation technique used in measuring Level 2 fair values is discounted
cash flows, which considers the expected receipts or payments discounted using
adjusted market discount rates, or, where these rates are not available
estimated discount rates.
The Group has exposure to credit risk, liquidity risk and market risk arising
from financial instruments.
RISK MANAGEMENT FRAMEWORK
The Board is ultimately responsible for risk management within the Group. It
has delegated responsibility for the monitoring of the effectiveness of the
Group’s risk management and internal control systems to the Audit & Risk
Committee. The Board and Audit & Risk Committee receive reports from Executive
management on the key risks to the business and the steps being taken to
mitigate such risks. The Audit & Risk Committee is assisted in its role by
internal audit. Internal audit undertakes both regular and ad hoc reviews of
risk management controls and procedures, the results of which are reported to
the Audit & Risk Committee.
CREDIT RISK
Credit risk is the risk of financial loss to the Group if a customer or a
counterparty to a financial instrument fails to meet its contractual
obligations and arises, principally, from the Group’s trade receivables from
customers. The carrying amount of financial assets represents the maximum
credit exposure.
The Group’s exposure to credit risk is influenced by the individual
circumstances of each customer. The Group also considers the factors that may
influence the credit risk of its customer base, including the default risk
associated with the industry and country in which customers operate.
Before entering into sales contracts with new customers, the Group uses an
external credit scoring system to assess the potential customer’s credit
quality. The credit quality of customers is reviewed regularly during the year
and, where appropriate, credit limits or limits to the number of shipments,
which can be outstanding at any point, are imposed.
The Group’s customers have been transacting with the Group for a significant
number of years. Invoices totalling $9.3 million for shipments made to a
customer during the year are unpaid at the financial year-end. A loss
allowance of $4.7 million has been recognised at the financial year-end in
respect of this customer. The Group is pursuing all avenues for recovery,
primarily on the basis of its retention of title. The shipments in question
were delivered to two separate customer operations, which are subject to
individual restructuring and sales processes. In monitoring other customer
credit risk, customers are reviewed individually and the Group has not
identified any factors that would merit reducing exposure to any particular
customer. The Group does not require collateral in respect of trade
receivables.
The gross exposure to credit risk for trade receivables by geographic region
was as follows:
2025 $’000 2024 $’000
Europe 19,104 38,831
USA 9,846 23,551
China 3,045 21,127
Asia (excluding China) 5,969 7,808
Africa 162 134
Total 38,126 91,451
At 31 December 2025, $10.2 million (2024: $53.6 million) is due from the
Group’s three largest customers.
A summary of the Group’s exposure to credit risk for trade receivables is as
follows:
2025 $’000 2024 $’000
External credit ratings at least Baa3 (Moody’s) 8,325 28,148
Other 35,397 65,060
Total gross carrying amount 43,722 93,208
Loss allowance (5,596) (1,757)
Total 38,126 91,451
The following table provides ageing information relevant to the exposure to
credit risk for trade receivables from individual customers. $9.3 million were
considered credit impaired at 31 December 2025 (2024: nil).
CURRENT $’000 MORE THAN 30 DAYS PAST DUE $’000 MORE THAN 60 DAYS PAST DUE $’000 MORE THAN 90 DAYS PAST DUE $’000 TOTAL $’000
2025 34,398 – – 9,324 43,722
2024 93,208 – – – 93,208
EXPECTED CREDIT LOSS ASSESSMENT OF TRADE RECEIVABLES
For trade receivables measured at fair value through other comprehensive
income and trade receivables measured at amortised cost, the Group allocates
to each customer a credit risk grade based on data that is determined to be
predictive of the risk of loss (including but not limited to external ratings,
financial statements and available market information about customers) and
applying experienced credit judgement.
The following table provides information about the exposure to credit risk and
expected credit losses as at 31 December 2025.
Equivalent to Moody’s credit rating WEIGHT AVERAGE LOSS RATE GROSS CARRYING AMOUNT $’000 IMPAIRMENT LOSS ALLOWANCE $’000 CREDIT IMPAIRED
Customer 50.0% 9,324 4,683 Yes
Other 3.5% 26,073 913 No
The following table provides information about the exposure to credit risk and
expected credit losses as at 31 December 2024.
Equivalent to Moody’s credit rating WEIGHT AVERAGE LOSS RATE GROSS CARRYING AMOUNT $’000 IMPAIRMENT LOSS ALLOWANCE $’000 CREDIT IMPAIRED
Other 2.7% 65,060 1,757 No
The movement in expected credit losses, in respect of trade receivables
measured at amortised cost or fair value through other comprehensive income
during the year, was as follows:
2025 $’000 2024 $’000
Balance at 1 January 1,757 1,580
Net remeasurement of loss allowance 3,839 177
Balance at 31 December 5,596 1,757
The credit risk on cash and cash equivalents is limited because funds are
deposited with banks with high credit ratings assigned by international credit
rating agencies. For deposits in excess of $75 million the Group requires that
the institution has an A- (S&P)/A3 (Moody’s) long-term rating. For deposits
in excess of $50 million, the Group requires that the institution has a BB-
(S&P)/Ba3 (Moody’s) long-term rating. There were no individual deposits in
excess of these amounts in 2025.
At 31 December 2025 and 2024, cash was deposited with the following banks:
2025 2024
LONG-TERM CREDIT RATING LON
G
-TE
RM
CRE
DIT
RAT
ING
$ MILLION S&P MOODY’S $ MILLION S&P MOODY’S
Barclays Bank plc 43.7 A+ / Stable A1/ Stable 23.4 A+ / Stable A1/ Stable
Absa Bank Mauritius Limited 4.1 – Baa3 10.2 – Baa3
Standard Bank Mauritius Limited 0.1 – Ba2 10.0 – Ba2
LIQUIDITY RISK
Liquidity risk is the risk that the Group will encounter difficulty in meeting
the obligations associated with its financial liabilities that are settled in
cash payments. The Group’s objective when managing liquidity is to ensure
that it will have sufficient liquidity to meet its liabilities when they are
due.
The Group monitors mine payment forecasts, both operating and capital, which
assist it in monitoring cash flow requirements and optimising its cash return
on investments. The Group aims to maintain the level of its cash and cash
equivalents at an amount in excess of expected cash outflows on financial
liabilities. The Group monitors the level of expected cash inflows on trade
receivables, together with expected cash outflows on trade and other payables.
The Group has a trade facility with Barclays Bank for customers, which it
sells to under letter of credit terms. Under this facility, Barclays Bank
confirms the letter of credit from the issuing bank and, therefore, assumes
the credit risk. Barclays Bank may also discount these letters of credit,
thereby providing early payment of receivables to the Group. There is no limit
under the Barclays Bank facility. During the year, trade receivables of $125.4
million (2024: $152.5 million) were discounted under this facility. At the
year-end, there were $8.3 million (2024: $28.1 million) of trade receivables,
which can be discounted under this facility. $20.1 million of trade
receivables due for payment in 2026 were factored at the year-end (2024: $30.5
million). The cost of this facility for the period, which amounted to $2.0
million (2024: $2.6 million), is included in finance costs in the statement of
comprehensive income and in net cash from operating activities in the
statement of consolidated cash flows. The table below summarises the maturity
profile of the Group’s financial liabilities at 31 December 2025 based on
the gross contractual undiscounted payments. The bank loans are assumed not be
repaid until maturity on 3 March 2029.
Financial liabilities TOTAL $’000 LESS THAN ONE YEAR $’000 BETWEEN TWO AND FIVE YEARS $’000 MORE THAN FIVE YEARS $’000
Bank loans 243,691 23,623 220,068 –
Lease liabilities 971 307 563 101
Trade and other payables 62,992 62,992 – –
307,654 86,922 220,631 101
The table below summarises the maturity profile of the Group’s financial
liabilities at 31 December 2024 based on the gross contractual undiscounted
payments:
Financial liabilities TOTAL $’000 LESS THAN ONE YEAR $’000 BETWEEN TWO AND FIVE YEARS $’000 MORE THAN FIVE YEARS $’000
Bank loans 112,056 8,060 103,996 –
Lease liabilities 1,629 390 899 340
Trade and other payables 47,755 47,755 – –
161,440 56,205 104,895 340
As disclosed in Note 14, the Group has bank loans that contain loan covenants.
A future breach of covenant may require the Group to repay the loan earlier
than indicated in the above table. Under the loan agreement, the covenants are
monitored on a regular basis by Group finance and regularly reported to
management and the lenders to ensure compliance with the agreement. In
December 2025, following a request by the Company, the lenders granted a reset
of the net debt to EBITDA covenant for the 31 December 2025 to a level of
3.0x. All covenants have been complied with during the year.
Furthermore, the group has authorised and committed expenditure on
operations-related capital projects amounting to $57.9 million (2024: $246.9
million).
RISK CONCENTRATION
Concentrations arise when a number of counterparties are engaged in similar
business activities, or activities in the same geographical region, or have
economic features that would cause their ability to meet contractual
obligations to be similarly affected by changes in economic, political or
other conditions. Concentrations indicate the relative sensitivity of the
Group’s performance to developments affecting a particular industry.
The Group evaluates the concentration of risk with respect to trade
receivables as low, as its customers are located in several jurisdictions and
industries and operate in largely independent markets. Details of
concentration of revenue are included in Note 2.
MARKET RISK
Market risk is risk that changes in market prices, foreign exchange rates and
interest rates will affect the Group’s income statement. The objective of
market risk management is to manage and control market risk exposures while
optimising returns.
CURRENCY RISK
The Group is exposed to transactional foreign currency risk to the extent that
there is a mismatch between the currencies in which sales, purchases,
receivables and borrowings are denominated and the respective functional
currencies of Group companies. The functional currency of all Group entities
is US Dollars. The presentational currency of the Group is US Dollars. Sales
and bank loans are denominated in US Dollars, which significantly reduces the
exposure of the Group to foreign currency risk. Payable transactions are
denominated in Mozambican Metical, South African Rand, Euro, Sterling,
Australian Dollar and Renminbi.
The Group has a forward contracts facility with Absa Bank Mauritius Ltd for
the purchase and sale of US Dollars and South African Rand. The limit on the
facility is $24 million and the maximum tenor is three months. The Group also
has a forward contracts facility with Standard Bank Mauritius Ltd for the
purchase of South African Rand. The limit on the facility is, approximately,
$12.0 million and the maximum tenor is six months. There were no forward
contracts in place at the year-end.
EXPOSURE TO CURRENCY RISK
The Group’s gross exposure to currency risk as at 31 December 2025 is as
follows:
MOZAMBICAN METICAL $’000 SOUTH AFRICAN RAND $’000 EURO $’000 STERLING $’000 AUSTRALIAN DOLLAR $’000 RENMINBI $’000
Trade and other receivables 17,640 1,688 310 – – –
Cash and cash equivalents 344 1,040 516 617 2 –
Bank loans – – – – – –
Leases (576) – (395) – – –
Trade and other payables (31,406) (4,654) (1,301) (118) 265 –
Net exposure (13,998) (1,926) (870) 499 267 –
The Group’s exposure to currency risk as at 31 December 2024 is as follows:
MOZAMBICAN METICAL $’000 SOUTH AFRICAN RAND $’000 EURO $’000 STERLING $’000 AUSTRALIAN DOLLAR $’000 RENMINBI $’000
Trade and other receivables 8,067 1,405 1,349 15 335 –
Cash and cash equivalents 5,152 1,010 945 95 2 28
Bank loans – – – – – –
Leases – – (971) – – –
Trade and other payables (25,429) (5,059) (77) – (74) –
Net exposure (12,210) (2,644) 1,246 110 263 28
SENSITIVITY ANALYSIS
A strengthening or weakening of the Mozambique Metical, South African Rand,
Euro, Sterling, Australian Dollar and Renminbi by 10% against the US Dollar
would have affected profit or loss by the amounts shown below. The analysis
assumes that all other variables remain constant.
Profit or loss MOZAMBICAN METICAL $’000 SOUTH AFRICAN RAND $’000 EURO $’000 STERLING $’000 AUSTRALIAN DOLLAR $’000 RENMINBI $’000
31 December 2025
Strengthening (1,400) (193) (87) 50 27 –
Weakening 1,400 193 87 (50) (27) –
31 December 2024
Strengthening (1,221) (264) 125 11 26 3
Weakening 1,221 264 (125) (11) (26) (3)
INTEREST RATE RISK
The loan facilities are arranged at variable rates and expose the Group to
cash flow interest rate risk. Variable rates are based on one, three or
six-month SOFR. The borrowing rate at the financial year-end was 8.86% (2024:
9.63%). The interest rate profile of the Group’s loan balances at the
financial year-end was as follows:
2025 $’000 2024 $’000
Variable rate debt 204,658 77,991
Under the assumption that all other variables remain constant, a reasonable
possible change of 1% in the SOFR rate results in a $2.0 million (2024: $0.8
million) change in finance costs for the financial year.
The above sensitivity analyses are estimates of the impact of market risks
assuming the specified change occurs. Actual results in the future may differ
materially from these results due to developments in the global financial
markets, which may cause fluctuations in interest rates to vary from the
assumptions made above and, therefore, should not be considered a projection
of likely future events.
19. Events after the statement of financial position date
There have been no material events after the financial year-end that would
require adjustment or disclosure in these financial statements.
GLOSSARY – ALTERNATIVE PERFORMANCE MEASURES
Certain financial measures set out in the 2025 Preliminary Results are not
defined under International Financial Reporting Standards (IFRS), but
represent additional measures used by the Board to assess performance and for
reporting both internally and to shareholders and other external users.
Presentation of these Alternative Performance Measures (APMs) provides useful
supplemental information which, when viewed in conjunction with the Group’s
IFRS financial information, allows for a more meaningful understanding of the
underlying financial and operating performance of the Group.
These non-IFRS measures should not be considered as an alternative to
financial measures as defined under IFRS. Descriptions of the APMs included in
this report, as well as their relevance for the Group, are disclosed below.
APM DESCRIPTION RELEVANCE
Adjusted EBITDA Operating profit/loss before depreciation and amortisation and impairment losses Eliminates the effects of financing, tax, depreciation and impairment losses to allow assessment of the earnings and performance of the Group
Adjusted EBITDA margin Percentage of Adjusted EBITDA to Mineral Product Revenue Provides a group margin for the earnings and performance of the Group
Capital costs Additions to property, plant and equipment in the period Provides the amount spent by the Group on additions to property, plant and equipment in the period
Cash operating cost per tonne of finished product produced Total costs less freight and other non-cash costs, including depreciation and inventory movements divided by final product production (tonnes) Eliminates the non-cash impact on costs to identify the actual cash outlay for production and, as production levels increase or decrease, highlights operational performance by providing a comparable cash cost per tonne of product produced over time
Cash operating cost per tonne of ilmenite net of co-products Cash operating costs less revenue of zircon, rutile and concentrates, divided by ilmenite production (tonnes) Eliminates the non-cash impact on costs to identify the actual cash outlay for production and, as production levels increase or decrease, highlights operational performance by providing a comparable cash cost per tonne of ilmenite produced over time
Net cash/debt Bank loans before transaction costs, loan amendment fees and expenses plus lease liabilities net of cash and cash equivalents Measures the amount the Group would have to raise through refinancing, asset sale or equity issue if its debt were to fall due immediately, and aids in developing an understanding of the leveraging of the Group
ROCE Return on capital employed Measures how efficiently the Group generates profits from investment in its portfolio of assets
Shareholder returns Dividends and share buy-backs Shareholder returns comprise the interim dividend, the proposed final dividend to be approved by shareholders at the AGM and any share buy-backs
ADJUSTED EBITDA
2021 $M 2022 $M 2023 $M 2024 $M 2025 $M
Operating profit/(loss) 151.1 233.4 155.1 89.2 (300.4)
Depreciation 63.1 64.6 65.2 67.9 57.1
Impairment loss – – – – 301.3
Adjusted EBITDA 214.2 298.0 220.3 157.1 58.0
ADJUSTED EBITDA MARGIN
2021 $M 2022 $M 2023 $’M 2024 $’M 2025 $’M
Adjusted EBITDA 214.2 298.0 220.3 157.1 58.0
Mineral product revenue 420.5 498.4 437.1 392.1 312.1
Adjusted EBITDA margin (%) 51% 60% 50% 40% 19%
CASH OPERATING COST PER TONNE OF FINISHED PRODUCT
2021 $M 2022 $M 2023 $M 2024 $M 2025 $M
Cost of Sales 295 282.7 294.9 319.4 310.2
Administrative expenses 9.8 9.9 8.4 6.2 17.4
Total operating costs 304.8 292.6 303.3 325.6 327.6
Freight (35.4) (27.6) (21.4) (22.7) (16.5)
Total operating costs less freight 267.5 265.0 281.9 302.9 311.1
Non-cash costs
Depreciation and amortisation (63.1) (64.6) (65.2) (67.9) (57.1)
Other non-cash costs (0.2) (1.1) – (0.2) (8.3)
Share-based payments (1.1) (2.2) (3.3) (3.6) (3.1)
Mineral product inventory movements (9.3) 21.6 14.7 12.4 0.1
Total cash operating costs 195.7 218.7 228.1 243.6 242.7
Final product production tonnes 1,228,500 1,200,800 1,091,500 1,115,300 1,004,000
Cash operating cost per tonne of finished product $159 $182 $209 $219 $242
CASH OPERATING COST PER TONNE OF ILMENITE
2021 $M 2022 $M 2023 $’M 2024 $’M 2025 $’M
Total cash operating costs 195.7 218.7 228.1 243.6 242.7
Less revenue from co-products zircon, rutile and concentrates (85.8) (150.9) (122.0) (100.4) (85.4)
Total cash costs less co-product revenue 109.9 67.8 106.1 143.2 157.3
Ilmenite product production tonnes 1,119,400 1,088,300 986,300 1,008,900 842,300
Cash operating cost per tonne of ilmenite $98 $62 $108 $142 $187
NET CASH/DEBT
2021 $’M 2022 $’M 2023 $’M 2024 $’M 2025 $’M
Bank debt (148.1) (78.6) (47.9) (78.0) (204.7)
Transaction costs (3.8) (2.2) (0.9) (2.4) (1.7)
Gross debt (151.9) (80.8) (48.8) (80.4) (206.4)
Lease liabilities (2.2) (1.8) (1.5) (1.3) (1.0)
Cash and cash equivalents 69.1 108.3 71.0 56.7 48.6
Net cash/(debt) (85.0) 25.7 20.7 (25.0) (158.8)
RETURN ON CAPITAL EMPLOYED
RESTATED $M 2022 $’M 2023 $’M 2024 $’M 2025 $’M
Operating profit (excluding impairment loss) 151.1 233.4 155.1 89.2 -
Total Equity and Non-Current Liabilities 1,045.4 1,170.4 1,180.9 1,260.1 1,036.9
ROCE 15% 20% 13% 7% 0%
GLOSSARY – TERMS
TERM DESCRIPTION
CIF This term means the seller delivers when the goods pass the ship’s rail in the port of shipment. Seller must pay the cost and freight necessary to bring goods to named port of destination. Risk of loss and damage are the same as CFR. The seller also has to procure marine insurance against buyer’s risk of loss/damage during the carriage. Seller must clear the goods for export. This term can only be used for sea transport
CFR This term means the seller delivers when the goods pass the ship’s rail in port of shipment. The seller must pay the costs and freight necessary to bring the goods to the named port of destination, but the risks of loss or damage, as well as any additional costs due to events occurring after the time of delivery, are transferred from seller to buyer; seller must clear goods for export. This term can only be used for sea transport
Chloride slag Chloride slag is a high-grade titanium dioxide feedstock, typically containing 85–90% TiO (2), specifically produced for use in chloride pigment and titanium manufacturing processes
CSRD Corporate Sustainability Reporting Directive
CTP Climate Transition Plan
The Company or Parent Company Kenmare Resources plc
Decarbonisation The process of reducing carbon dioxide emissions, often through energy efficiency, electrification, or carbon capture
DFS Definitive Feasibility Studies. These are the most detailed studies and are used to determine definitively whether to proceed with a project. A Definitive Feasibility Study will be the basis for capital appropriation and will provide the budget figures for the project. Detailed Feasibility Studies require a significant amount of formal engineering work and are accurate to within approximately 10–15%
EdM Electricidade de Moçambique
EMP Environmental Management Plan
ESIA Environmental and Social Impact Assessment
FOB This term means that the seller delivers when the goods pass the ship’s rail at the named port of shipment. This means the buyer has to bear all costs and risks to the goods from that point. The seller must clear the goods for export. This term can only be used for sea transport
Free Cash Flow Free Cash Flow is the cash generated by the Group in a reporting period before distributions to shareholders
GISTM Global Industry Standard of Tailings Management
Group or Kenmare Kenmare Resources plc and its subsidiary undertakings
GTMI Global Tailings Management Institute
Ha Hectares
HCB Hidroelectrica de Cahora Bassa
HMC Heavy Mineral Concentrate extracted from mineral sands deposits and which include ilmenite, zircon, rutile and other heavy minerals and silica
Implementation Agreement The agreement for the Moma Heavy Mineral Sands Industrial Free Zone Project between Kenmare Moma Processing Limited (a company incorporated in Jersey whose rights and interests were transferred to KMPL in November 2002), a wholly owned subsidiary of Kenmare, and Mozambique dated 21 January 2002
Incoterms International Commercial Terms are eleven internationally recognized, three-letter rules published by the International Chamber of Commerce (ICC) that define seller and buyer responsibilities in global trade.
KMAD Kenmare Moma Development Association
KMML Kenmare Moma Mining (Mauritius) Limited
KMML Mozambique Branch Mozambique branch of KMML
KMPL Kenmare Moma Processing (Mauritius) Limited
KMPL Mozambique Branch Mozambique branch of KMPL
KRSP Kenmare Resources plc Restricted Share Plan
Lenders Absa Bank Limited (acting through its Corporate and Investment Banking Division) (Absa), Nedbank Limited (acting through its Nedbank Corporate and Investment Banking division) (Nedbank), Rand Merchant Bank and Standard Bank Group (Standard Bank)
LTI Lost Time Injury. This measures the number of injuries at the Mine that result in an employee not being able to attend his next shift
LTIFR Lost Time Injury Frequency Rate; measures the number of LTIs per 200,000 man hours worked on site
Marketing – finished products shipped Finished products shipped to customers during the period
Mining – HMC produced Heavy Mineral Concentrate extracted from mineral sands deposits and which includes ilmenite, zircon, rutile, concentrates and other heavy minerals and silica. Provides a measure of Heavy Mineral Concentrate extracted from the Mine
Moma, Moma Mine, the Mine or Site The Moma Titanium Minerals Mine consisting of a heavy mineral sands mine, processing facilities and associated infrastructure, which is located in the northeast coast of Mozambique under licence to the Project Companies
Mine Closure Guarantee Facility $41 million mine closure guarantee facility between the Group and Standard Bank SA effective from 1 July 2025
MSP Mineral Separation Plant
Mtpa Million tonnes per annum
Ordinary shares Ordinary shares of €0.001 each in the capital of the Company
PFS A Feasibility Study is an evaluation of a proposed mining project to determine whether the mineral resource can be mined economically. Pre-Feasibility Study is used to determine whether to proceed with a detailed feasibility study and to determine areas within the project that require more attention. Pre-Feasibility Studies are done by factoring known unit costs and by estimating gross dimensions or quantities once conceptual or preliminary engineering and mine design
has been completed
Possible offer The non-binding proposal from Oryx Global Partners Limited and Michael Carvill regarding a possible all cash offer for the entire issued and to be issued ordinary share capital of Kenmare which was announced by the Company on 6 March 2025.
Processing – finished products produced Finished products produced by the mineral separation process; provides a measure of finished products produced from the processing plants
Project Companies KMML and KMPL, both wholly owned subsidiary undertakings of Kenmare Resources plc, which are incorporated in Mauritius
RAP Resettlement Action Plan
Revolving Credit Facility $200 million Revolving Credit Facility made available under the Senior Facilities Agreement dated 4 March 2024 between the Lenders, the Lenders’ agents, KMML Mozambique Branch and KMPL Mozambique Branch as borrowers, and the Company, Kenmare C.I. Limited and Congolone Heavy Minerals Limited
REE Rare Earth Elements
RUPS Rotary Uninterruptible Power Supply
SASB Sustainability Accounting Standards Board
SMO Selective Mining Operation
SOFR Secured Overnight Financing Rate
Tailings management The handling and storage of leftover material after ore extraction, which can contain toxic elements
THM Total Heavy Minerals in the ore of which ilmenite (typically 82%), rutile (typically 2.0%) and zircon (typically 5.5%) total approximately 90%
TSF Tailings Storage Facility
UK United Kingdom of Great Britain and Northern Ireland
WCP Wet Concentrator Plant
WCP A The original WCP, which started production in 2007
WCP B The second WCP, which started production in 2013
WCP C The third WCP, which started production in 2020
WHIMS Wet High Intensity Magnetic Separation PlantRecent news on Kenmare Resources
See all newsREG-2025 Preliminary Results
AnnouncementREG-Update on Implementation Agreement
AnnouncementREG-Analyst and investor visit to Moma Mine
AnnouncementREG-Board Update
AnnouncementREG-Holding(s) in Company
Announcement