REG-Half-Yearly Financial Report for the six months to 30 June 2025 and interim dividend
Today 07:00
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Kenmare Resources plc
(“Kenmare” or “the Company” or “the Group”)
20 August 2025
Half-Yearly Financial Report for the six months to 30 June 2025 and interim
dividend
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 publishes its
Half-Yearly Financial Report for the six-month period ended 30 June 2025
(“H1 2025”) and announces its interim dividend for 2025.
Statement from Tom Hickey, Managing Director:
“Kenmare generated $159.6 million of mineral product revenue in H1, with
adjusted EBITDA(1) of $47.2 million, representing a margin of 30%. The Board
has recommended a 2025 interim dividend of USc10 per share, and we remain well
capitalised to fund our development project and future shareholder returns.
As we progress further into Q3, Kenmare remains on track to achieve its 2025
production and cost guidance. Shipments are expected to be stronger in H2 and
we are progressing an opportunity to supplement shipping capacity further by
renting a third transshipment vessel for the coming months. Work on the Wet
Concentrator Plant A upgrade project is advancing well, with no change to its
$341 million budget.
Demand for Kenmare’s products remains encouraging and ilmenite prices in H1
2025 were only marginally below those of H2 2024. As announced in our Q2 and
H1 Production Report, we have taken the decision to lower our longer-term
pricing assumptions, which has led us to recognise a non-cash impairment of
just over $100 million on our assets. This is a non-cash charge, with no
anticipated impact on our operations, projects or financing facilities, or the
Company’s ability to pay dividends.
The Company has been in negotiations with the Government of Mozambique for
almost three years regarding the renewal of Moma’s Implementation Agreement
and we are concerned at the continued extension of this process. While we
remain hopeful of a successful conclusion to negotiations, we reserve the
right to safeguard Kenmare’s contractual entitlements, up to and including
arbitration, if an agreement cannot be reached.”
Notes
1. Adjusted EBITDA is EBITDA excluding the impairment loss.
H1 2025 overview
Financials and markets
* Mineral product revenue of $159.6 million in H1 2025, up 3% year-on-year
(“YoY”), due to stronger shipments and increased average price received,
as a result of a higher value product mix
* Impairment loss of $100.3 million primarily due to lower projected future
revenue assumptions associated with an uncertain pricing outlook
* Adjusted EBITDA (excluding the impairment loss) of $47.2 million, down 25%
YoY due to higher operating costs, with a margin for the period of 30%
* Adjusted profit after tax of $6.1 million, down 71% YoY
* Interim dividend of USc10 per share – the impairment loss will not impact
on consideration of the full year dividend
* Cash operating cost of $248 per tonne of finished product, up 14% YoY, due
to a 6% increase in direct operating costs at Moma, accruals relating to the
Implementation Agreement (“IA”) and non-recurring costs
* Cash operating cost per tonne of ilmenite (net of co-products) of $211, up
5% YoY, due to higher cash operating costs partially offset by significantly
stronger co-product revenues YoY
* At the end of H1 2025, net debt was $85.1 million (31 December
2024: $25.0 million) including cash and cash equivalents of $46.5 million –
with $70 million of undrawn Revolving Credit Facility (“RCF”), Kenmare
retains significant financial flexibility to fund its capital requirements and
make shareholder returns
* Demand for Kenmare’s ilmenite remains strong, supported by a stable global
pigment market and consistent growth in the titanium metal market
* Kenmare continues to experience solid demand for its high-quality zircon,
although the wider zircon market remains subdued
Corporate and operations
* Managing Director Tom Hickey met with the President of Mozambique in
June and discussions with the Government are continuing regarding the
extension of Moma’s IA - Kenmare remains focused on bringing these
discussions to a satisfactory conclusion in the short term
* Zero Lost Time Injuries (“LTIs”) incurred in H1 2025, delivering an
exceptional Lost Time Injury Frequency Rate (“LTIFR”) of 0.03 per 200,000
hours worked for the 12 months to 30 June 2025, although one LTI was recorded
in mid-July
* Strong progress made on various sustainability objectives in H1 2025,
including socio-economic impact, reduction in greenhouse gas emissions, and
waste management
* Kenmare is on track to achieve 2025 production and cost guidance, including
930,000-1,050,000 tonnes of ilmenite production, with higher anticipated
excavated ore volumes expected to increase production in H2
* Heavy Mineral Concentrate (“HMC”) production in H1 was 670,600 tonnes,
up 2% YoY, due to higher ore grades offsetting lower excavated ore volumes
* Total finished product production of 500,800 tonnes in H1, up 2% YoY, due to
increased HMC processed
* Total shipments of 488,900 tonnes in H1, up 2% YoY, benefitting from a
strong performance by Kenmare’s marine operations in Q1 2025 but offset by a
weaker Q2
* Kenmare is progressing an opportunity to supplement shipping capacity by
renting a third transshipment vessel for the coming months
* Execution of the Wet Concentrator Plant (“WCP”) A upgrade project
continues to advance, with commissioning on track to begin in Q3 2025
* Approximately $208 million of WCP A expenditure has been incurred to end H1
(60% of the project total) and a further $70 million is expected to be
incurred by year-end (bringing the amount incurred to 80% of project total)
* 2025 development capital guidance has increased from $150 million to $165
million to reflect updated expenditure phasing - total project budget remains
at $341 million
Additional information in relation to Alternative Performance Measures
(“APMs”) is disclosed in the Glossary.
This announcement contains inside information.
Analyst and investor conference call and webcast
Kenmare will host a conference call and webcast for analysts, institutional
investors, and media today at 9:00am UK time. Participant dial-in numbers for
the conference call are as follows:
UK +44 20 3481 4247
Ireland +353 1 582 2023
USA +1 (646) 307 1963
Conference ID 386 34 35
The webcast will be available at
www.kenmareresources.com/investors/financial-results and playback of the
webcast will be available at:
www.kenmareresources.com/investors/reports-and-presentations.
Private investor webinar
There will also be a separate webinar for private investors on Tuesday, 26
August 2025, at 12:30pm UK time. To access the webinar, please register in
advance by clicking here
(https://www.globenewswire.com/Tracker?data=UMkdbXInuSyDyTDxPfkz851NGZolUWcE4npofp-J6DqzIOWsVSpVndsPIWlgUdVTTs-hScGtTT_kCu6cd8Zc02BjSxPgvD-n0Wc8tdg6hattCFrqu2l-7fz_0VpW8BrTpdOBkprwMD-n4xr_LFoNvkWqkXwfAjfnU0tLczOv0eI=).
The Half-Yearly Financial Report for the period ended 30 June 2025 is also
available at
https://www.kenmareresources.com/investors/reports-presentations-webcasts/
This announcement contains inside information as defined in article 7(1) of
the Market Abuse Regulation.
For further information, please contact:
Kenmare Resources plc
Katharine Sutton
Investor Relations
ir@kenmareresources.com
Tel: +353 1 671 0411
Mob: + 353 87 663 0875
Murray (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.
Market Abuse Regulations
The information contained within this announcement would have, prior to its
release, constituted inside information for the purposes of Article 7 of the
Market Abuse Regulation (EU) 596/2014 and for the purposes of Article 7 of the
Market Abuse Regulation (EU) 596/2014 as it forms part of UK domestic law by
virtue of the European Union (Withdrawal) Act 2018. Upon the publication of
this announcement via a regulatory information service, this inside
information will be considered to be in the public domain. The person
responsible for arranging for the release of this information on behalf of
Kenmare is Chelita Healy.
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.
INTERIM MANAGEMENT REPORT
Sustainability
No LTIs were recorded during H1 2025 and the Moma team passed the milestone of
seven million hours worked (over 10 months) without an LTI in early July. The
Company’s rolling 12-month LTIFR to 30 June 2025 improved to 0.03 per
200,000 hours worked (30 June 2024: 0.09). Unfortunately, an LTI occurred in
mid-July 2025. Management remains focused on fostering a strong safety
culture.
Kenmare continued to deliver improvement across various other key
sustainability metrics in H1 2025, as part of the Company’s strategic
objective to operate responsibly. Multiple opportunities have been identified
in the Company’s supply chain to establish community-based micro-businesses,
which advance Kenmare’s local procurement objectives. Kenmare has also
increased the recycling of waste and commissioned an organic composter, which
is successfully diverting waste from landfill. The Company commenced a
biodiesel pilot in April 2025, which is testing the ability of Moma’s fleet
and Mineral Separation Plant to use this fuel. If successful, this project
would further reduce Kenmare’s carbon emissions.
Implementation Agreement
The IA governs the terms under which Kenmare conducts its mineral processing
and export activities. It provides Kenmare with certain key rights and
concessions for an initial period of 20 years, with a clear right of
extension, at Kenmare’s request, for a further 20-year period. Kenmare has
been pursuing the extension process with the Government of Mozambique since
September 2022 and been engaging with the Government on potential amendments
to the applicable terms. Although the original expiry date of certain key
rights and concessions under the IA was 21 December 2024, the Ministry of
Industry and Commerce provided confirmation that Kenmare’s existing rights
and benefits remain in full force and effect pending conclusion of the
extension process. Mining operations at Moma are conducted under a separate
regulatory framework, which is not impacted in any way by the IA process.
In its 2024 Preliminary Results announcement on 26 March 2025, Kenmare
announced that it had proposed certain modifications to the applicable
investment regime to obtain the agreement of the Government of Mozambique,
notwithstanding its clear right to such an extension. The Company’s most
recent proposal at that time provided for, inter alia, an increase in the
turnover tax applicable to Kenmare Moma Processing (Mauritius) Limited
(“KMPL”) from 1% to 2.5%; the application of withholding tax on payments
to non-Mozambican suppliers providing services out of country (including
inter-company services provided to KMPL by Kenmare Resources plc); and,
further capital investments and contributions to community development
projects by KMAD during the 20-year extension period. This proposal was
subsequently revised to include a phased increase in royalty rate from 2.5% in
2025 to 3.5% over the course of the 20-year agreement, with withholding tax
also applied per the previous proposal. Kenmare has accrued for expenses
relating to the proposed new 2.5% turnover tax (processing royalty) in its H1
2025 operating costs, with withholding tax assumed from the date at which the
renewed IA is signed.
Kenmare’s Managing Director Tom Hickey met with the President of Mozambique,
His Excellency Daniel Chapo, in mid-June. During the meeting, Tom was pleased
to discuss with the President Kenmare’s significant investments into Moma,
its meaningful contribution to the local and national economy and its
ambitious future plans for the business and the region. Tom also highlighted
the importance of a near-term conclusion of this agreement, while reserving
the right to safeguard Kenmare’s contractual entitlements, up to and
including arbitration, if an agreement cannot be reached or if the Government
seeks to impose amended terms unilaterally.
The Company continues to engage with the Government of Mozambique with the
objective of concluding a near-term agreement but is becoming concerned by the
lack of clear process or timeline for the conclusion of negotiations.
Group results
Operational and financial results for H1 2025 were as follows:
H1 2025 H1 2024 % Change
Production (tonnes)
HMC produced 670,600 659,000 2%
HMC processed 664,800 651,100 2%
Finished products production
Ilmenite 449,400 444,100 1%
Primary zircon 27,200 21,300 28%
Rutile 4,800 4,000 20%
Concentrates (1) 19,400 21,400 -9%
Total finished products 500,800 490,800 2%
H1 2025 H1 2024 % Change
Financials
Revenue ($ million) 167.7 165.1 2%
Freight ($ million) 8.0 10.6 -25%
Mineral Product Revenue ($ million) 159.6 154.5 3%
Finished products shipped (tonnes) 488,900 477,600 2%
Average price received per tonne ($/t) 326 323 1%
Total operating costs ($ million) (2) 150.5 132.3 14%
Impairment loss ($ million) 100.3 - 100%
Total cash operating costs ($ million) (3) 124.4 107.2 16%
Cash operating cost per tonne of finished product ($/t) 248 218 14%
Cash operating cost per tonne of ilmenite (net of co-products) ($/t) 211 201 5%
EBITDA ($ million) (4) (53.1) 63.2 N/A
Adjusted EBITDA ($ million) (5) 47.2 63.2 (25%)
(Loss)/profit before tax ($ million) (88.6) 27.7 N/A
(Loss)/profit after tax ($ million) (94.2) 20.9 N/A
Adjusted profit after tax ($ million) (5) 6.1 20.9 (71%)
Net (debt)/cash at period-end (6) (85.1) 58.9 N/A
Notes
1. Concentrates include secondary zircon and mineral sands concentrate. No
ZrTi, the new concentrates product, was shipped during H1 2025 or H1 2024.
2. Total operating costs consist of cost of sales and administration costs as
reported in the income statement. Depreciation and amortisation are included
in the operating costs.
3. Total cash operating costs consist of total operating costs less freight
and non-cash costs, including inventory movements.
4. Additional information in relation to APMs is disclosed in the Glossary.
5. Adjusted figures exclude the impairment loss.
6. Kenmare’s net debt position at period-end was $85.1 million. This
comprises $46.5 million of cash, minus $128.5 million of debt, $1.1 million of
leases, and $2.0 million of transaction costs.
Operations
Kenmare is on track to achieve its 2025 production and cost guidance. The
Company expects production to increase in H2 2025, supported by higher
excavated ore volumes from the installation of two new higher-capacity dredges
as part of the WCP A upgrade. This, together with production from the
Selective Mining Operation (“SMO”), is anticipated to offset the three to
four weeks of downtime for WCP A while the upgrade work is undertaken.
HMC production in H1 was 670,600 tonnes, up 2% YoY, due to a 9% increase in
ore grades partially offset by a 6% decrease in excavated ore tonnes. Ore
grades benefitted from WCP B mining a high-grade portion of the Pilivili ore
zone in Q2. Excavated ore volumes were negatively impacted by adverse weather
conditions in Q1, which reduced operating time, and more challenging mining
conditions at all mining plants in Q2. HMC production strengthened as the
period progressed (up 15% in Q2 2025 versus Q1 2025), supported by improving
ore grades and increased production from the SMO, which began commissioning in
Q1.
HMC production was broadly in line with HMC processed in H1 2025 and both were
up 2% YoY, delivering a 2% increase in production of finished products to
500,800 tonnes.
Production of Kenmare’s primary product, ilmenite, was 449,400 tonnes, up 1%
YoY, due to increased HMC processed, but negatively impacted by lower
recoveries in Q2.
Primary zircon production was 27,200 tonnes in H1 2025, up 28% YoY, and rutile
production was 4,800 tonnes, up 20% YoY. This was due to increased HMC
processed and enhanced by drawdown of intermediate stockpiles in Q1 and
stronger recoveries.
Concentrates production was 19,400 tonnes, down 9% YoY, due to maintenance
work undertaken in the secondary zircon circuits in Q1 and lower grade
feedstock. Concentrates production excludes Kenmare’s new concentrates
product, ZrTi, as there was none shipped during the half (ZrTi is a tailings
product and only recognised as production upon shipment).
Total shipments in H1 2025 were 488,900 tonnes, up 2% YoY, supported by a
strong performance by Kenmare’s marine operations in Q1 (307,100 tonnes).
Shipments in Q2 were negatively impacted by poor weather conditions and
maintenance to both transshipment vessels. This led to some shipments being
delayed, including a high-value zircon and rutile shipment, which was shipped
in early Q3. One of the Company’s two transshipment vessels, the Peg, left
for its five-yearly dry dock in early June and is scheduled to return
to Moma in early September. Shipments in H1 2025 comprised 455,100 tonnes of
ilmenite, 14,700 tonnes of primary zircon and 19,200 tonnes of concentrates.
Although Moma is operating at 50% of shipping capacity currently due to the
temporary absence of the Peg transshipment vessel, shipments in early Q3 have
been stronger than expected due to the positive performance of the Bronagh J
transshipment vessel. Kenmare is also progressing an opportunity to rent a
third transshipment vessel, which would have the objective of supplementing
shipment capacity over the coming months to enable a drawdown of finished
product stock.
Closing stock of HMC at the end of H1 2025 was 16,900 tonnes, including a
3,000-tonne stock adjustment, compared to 14,100 tonnes at the end of 2024.
This was due to HMC production exceeding HMC processed during the period.
Closing stock of finished products at the end of H1 2025 was 300,100 tonnes,
compared to 287,200 tonnes at the end of 2024, reflecting production exceeding
shipments. The value of the finished product stock on a sales basis is
significantly higher than it was at year-end 2024 due to strong zircon
production in H1 and limited zircon shipments. This will be realised as
Kenmare completes shipments in H2 and beyond.
Capital projects
WCP A upgrade
WCP A is Kenmare’s largest mining plant and the Company is undertaking a
project to upgrade it in advance of its transition to Nataka. As the largest
ore zone in Moma’s portfolio, Nataka contains approximately 70% of Moma’s
nine billion tonnes of Mineral Resources, and mining this area will secure
production from Moma for decades to come.
Work on WCP A continued to progress well through H1 2025, with $95 million of
capital incurred. Total project capital expenditure in 2025 is now expected to
be approximately $165 million (previous guidance $150 million) due to updated
expenditure phasing and project scheduling. The total capital cost estimate
for the project remains at $341 million, with unallocated contingency still
available within this figure.
By the end of H1, approximately $208 million had been spent in total and all
of the core capital, which represents 80% of the total project budget, was
committed. By the end of 2025, all of the core capital is expected to have
been successfully incurred and deployed, and the project is anticipated to be
largely de-risked. The tail capital of $63 million, which represents 20% of
the total project budget, is expected to be incurred between 2026 and 2032.
Approximately $11 million of tail capital has been deferred until 2031-2032
with this largely pertaining to infrastructure items that will not be required
until that time (in the previous schedule, which concluded in 2028, $20
million was due to be incurred in 2028).
The updated anticipated capital phasing for the project is as follows:
Core Tail
Capital cost schedule ($m) 2023 2024 2025 2026 2027 2028-2032 Total
Previous guidance 11 102 150 52 6 20 341
Updated guidance 11 102 165 30 11 22 341
As announced in July, the two new high-capacity dredges were landed safely on
the beach near the Moma Mine. The dredges were then transported by platform
vehicles called Self-Propelled Modular Transporters (SPMTs) to the currently
dry staging pond. With the safe arrival of the two dredges, all the components
of the WCP A upgrade project are now on site.
Construction of the new feed preparation module, which includes an upfront
desliming circuit, is continuing to advance in the staging pond. Currently,
WCP A, is mining an area alongside the staging pond. Once the work on the new
feed preparation module is complete, the staging pond will be flooded and an
existing dredge will mine through the wall separating the staging pond and WCP
A’s current mining pond. WCP A’s existing dredges will then be detached
from the plant and the new dredges will float out of the staging pond to be
attached to WCP A. The existing feed preparation module, which forms part of
WCP A, will also be detached from the remainder of the plant and the new feed
preparation module will be connected in its place. This upgrade work is
expected to take three to four weeks and to be completed by the end of
September 2025.
Work on the new Tailings Storage Facility (“TSF”) is also progressing well
and commissioning is expected to begin in Q3 2025.
The upgraded WCP A is expected to be fully commissioned and operating at its
nameplate capacity by the end of 2025. It will complete its mine path in
Namalope in late Q2 2026 and then begin its 18-month transition to Nataka,
mining lower grade ore, until the end of 2027. From early 2028, WCP A will
begin mining its initial 20-year mine path in Nataka.
Photographs of the WCP A upgrade work and the dredge beach landings can be
viewed at www.kenmareresources.com/media/image-library/#projects. A video of
the landing of the second dredge and an animation of the WCP A upgrade
sequence can be viewed at www.kenmareresources.com/media/videos/.
Selective Mining Operation
In early H1 2025, Kenmare began commissioning a small-scale, low-cost dredge
mining and concentrating operation, or SMO, that will enable mining in
peripheral areas of Moma’s Mineral Resources. It has a targeted run rate of
300 tonnes per hour, delivering approximately 50,000 tonnes of HMC production
per annum. Due to its simple modular nature, it has a capital cost of less
than $6 million.
Production from the SMO was 12,000 tonnes of HMC in H1, its first half year of
operation. Optimisation work, including the use of dry mining to provide
consistent feed to the SMO, was undertaken in Q2. The concentrator is now
performing in line with production expectations and is expected to deliver
approximately 50,000 tonnes of HMC this year.
Building on the success of the SMO to date, an order has been placed for a
second unit, SMO 2, with capacity of 1,000 tonnes per hour. Commissioning of
SMO 2 is expected to begin in H1 2026 and Kenmare anticipates that it will be
fed exclusively by dry mining. The expanded unit, with additional capacity and
upgraded design features for reliability, is expected to cost approximately
$15 million, which will be incurred in 2025 and 2026. This represents a highly
capital efficient alternative to the previously planned WCP B upgrade project.
Corporate update
New Chief Financial Officer
James McCullough joined Kenmare as Chief Financial Officer on 1 May 2025.
James brings extensive mining, strategic and financial experience to Kenmare,
having served for 14 years with Rio Tinto Plc, most recently as General
Manager - Group Strategy. James succeeds Tom Hickey, who was previously
Finance Director before being appointed as Managing Director in August 2024.
Termination of offer discussions
On 19 June 2025, Kenmare announced that it had terminated offer discussions
with Oryx Global Partners Limited and Michael Carvill (together, “the
Consortium”). During the Company’s most recent engagement with the
Consortium, it was made clear by the Consortium that it would only be willing
to proceed with an offer at pricing substantially below the initial proposal
of 530p per Kenmare share. The revised pricing was subject, inter alia, to a
request for an additional period of due diligence to conclude financing and
other arrangements.
Kenmare’s Board, together with its advisers, considered the revised pricing
and unanimously rejected it on the basis that it significantly undervalued
Kenmare’s business and its prospects. Kenmare’s Board will continue to
review all opportunities to create significant long-term value for all
stakeholders, including shareholders.
Market update
Kenmare experienced strong demand for its products during H1 2025, exceeding
the Company’s ability to supply. Although individual prices for Kenmare’s
products softened YoY, with ilmenite prices down 4% YoY and 2% on H2 2024,
Kenmare’s average received price was $326 per tonne, up 1% YoY, benefitting
from a higher value product mix.
Ilmenite demand remained healthy throughout H1, supported by demand from the
global titanium dioxide pigment and titanium metal markets. Pigment production
in China remained close to record high levels, while sentiment among Western
pigment producers improved following the introduction of anti-dumping duties
on Chinese pigment exports. The chloride pigment market in China, which is a
key market for Kenmare’s ilmenite, achieved record production in H1 2025.
Titanium metal production also remained strong, providing additional support
for ilmenite demand.
The growth of supply from Chinese concentrates producers operating in African
countries and elsewhere in the world slowed during H1 2025, relative to the
sharp increase in production seen in H2 2024. This has eased some pressure on
the market, although oversupply persists, particularly affecting lower-grade
ilmenite and rutile products. Kenmare’s high-quality ilmenite, suitable for
further beneficiation, remains in strong demand. The Company signed two new
long-term contracts in early 2025, with first deliveries completed in Q1.
The zircon market remained subdued in H1, with limited improvement in
end-market demand. Demand was also negatively impacted by the substitution of
zircon for lower cost but lower quality material. Additional supply of zircon
in concentrates has also contributed to a weaker market environment. Despite
this, demand for Kenmare’s high-grade zircon remains robust, supported by
long-term offtake agreements.
Kenmare enters H2 2025 with a strong order book and good visibility across key
markets. Pricing is expected to be modestly lower in H2 than H1, as the
oversupply persists. Current market dynamics, including the oversupply
position outlined above, have led Kenmare and external commentators to take a
more cautious view on the likely pace of pricing recovery and market growth in
the medium term, and to lower long-term pricing assumptions. Nonetheless, the
Company remains well-positioned, as strong demand is expected for Kenmare’s
full product suite. The Company also benefits from the high-quality nature of
its products and its established customer base.
Financial review
Kenmare generated mineral product revenue of $159.6 million in H1 2025, up 3%
YoY. This was due to a 2% increase in shipments and a 1% increase in average
price received, which benefitted from a higher value product mix. Lower
projected future revenue assumptions associated with an uncertain pricing
outlook, combined with the anticipated higher costs of Kenmare’s proposed IA
renewal terms, resulted in an impairment loss of $100.3 million. This led to
negative EBITDA of $53.1 million and a loss after tax of $94.2 million. On an
adjusted basis (excluding the impairment charge), EBITDA was $47.2 million,
delivering an EBITDA margin of 30%, and profit after tax of $6.1 million.
Kenmare’s capital expenditure of $115.0 million (H1 2024: $49.1 million)
during the period was mainly directed to the WCP A upgrade project ($95
million), which is proceeding to plan and remains within its $341 budget. H2
2025 development capital expenditure is expected to be approximately $70
million, resulting in expected full year expenditure of $165 million. This
represents a $15 million increase versus previous guidance ($150 million) due
to project scheduling and phasing of payments. Capital expenditure for the WCP
A upgrade project in 2026 is lower than previous guidance as a result ($30
million versus previous guidance of $52 million). Sustaining and improvement
capital was $20 million during H1 and this is expected to be approximately $50
million for the full year, including expenditure on SMO 2. This represents an
increase of $5 million versus prior guidance ($45 million).
Kenmare also made dividend payments of $15.3 million during the period (H1
2024: $34.7 million). These cash outflows were funded by a combination of
existing cash, net cash from operations of $71.2 million (H1 2024: $125.4
million), and debt drawdown of $50.0 million.
Kenmare’s balance sheet remained strong and flexible at the end of H1, with
net current assets of $199.8 million (31 December 2024: $241.0 million) and
$70.0 million (31 December 2024: $120 million) of undrawn RCF available. Net
debt was $85.1 million. The Company is pleased to announce a 2025 interim
dividend of USc10 per share (H1 2024: USc15) and remains committed to
continued shareholder returns through its full capital investment cycle.
Revenue
Mineral product revenue was $159.6 million in H1 2025, up 3% YoY (H1 2024:
$154.5 million). This was driven by a 1% increase in the average received
price to $326 per tonne (H1 2024: $323 per tonne) as a result of a higher
value product mix, as detailed below, and a 2% increase in shipment volumes.
Freight revenue in H1 2025 was $8.0 million, down 25% YoY (H1 2024: $10.6
million), reflecting lower freight costs and CIF shipments in the period.
Ilmenite revenue was $130.2 million in H1 2025, down 5% YoY (H1 2024: $136.5
million), due to a 4% decrease in the average ilmenite price received to $286
per tonne (H1 2024: $298 per tonne) and a 1% decrease in ilmenite shipments.
Primary zircon revenue was $19.4 million, up 63% YoY (H1 2024: $11.9 million),
due to a 66% increase in primary zircon shipments, partially offset by a 3%
decrease in the average zircon price received to $1,319 per tonne (H1 2024:
$1,355 per tonne). A primary zircon and rutile shipment deferred from Q2 2025
was completed in Q3.
Operating costs
Total cash operating costs(1) were $124.4 million, up 16% YoY (H1 2024: $107.2
million). Direct cash operating costs at Moma were up 6%, mainly driven by
higher labour costs and production overheads. The balance of the cost increase
arose from higher head office costs, including costs arising during the
possible offer process; the accrual of anticipated additional royalty payments
under Kenmare’s proposed IA renewal; and the effect of storm damage
insurance proceeds, reducing H1 2024 costs.
Total cash operating costs per tonne were $248 (H1 2024: $218), up 14% YoY,
with the 2% increase in production of finished products partially offsetting
some of the higher operating costs. Cash operating cost per tonne of ilmenite
was $211, up 5% YoY (H1 2024: $201), supported by significantly stronger
co-product revenues in H1 2025 than in H1 2024 (up 63% YoY) and a 1% increase
in ilmenite production YoY.
Total operating costs in H1 2025 were $150.5 million, up 14% YoY (H1 2024:
$132.3 million), for the same reasons as cash operating costs, while higher
shipment volumes also contributed.
Total cash operating costs are on track to be within 2025 guidance ($228
million to $252 million). While guidance did not include the anticipated
impact of higher royalty and withholding tax payments under the most recently
proposed IA renewal terms, expected to be an additional $8 million to $10
million per annum, Kenmare still expects its total cash operating costs to be
within the guided range.
Notes
1. Cash operating costs include an accrual for anticipated cash costs
associated with increased royalty rates under a renewed Implementation
Agreement; this cost will be accrued until the renewal is concluded.
Finance income and costs
Kenmare recognised finance income of $1.2 million in H1 2025 (H1 2024: $2.4
million), consisting of interest on bank deposits. Finance costs were $6.6
million (H1 2024: $7.5 million), including loan interest of $4.1 million (H1
2024: $2.2 million), and amortisation of a transaction fee of $0.4 million (H1
2024: $3.5 million).
Factoring and other trade facility fees were $0.9 million in the period (H1
2024: $0.5 million) as $75.3 million (H1 2024 $32.6 million) of invoices were
factored in H1.
The unwinding of the mine closure provision amounted to $0.3 million (H1 2024:
$0.4 million). Commitment fees under the debt facilities were $0.8 million (H1
2024: $0.8 million) and lease interest was $0.05 million (H1 2024: $0.06
million).
Tax
The tax expense for H1 2025 amounted to $5.6 million (H1 2024: $6.8 million).
Kenmare’s subsidiary, Kenmare Moma Mining (Mauritius) Limited (“KMML”),
had taxable profits of $13.8 million (H1 2024: $10.1 million), resulting in an
income tax expense of $4.7 million (H1 2024: $3.5 million). KMML had a further
$0.4 million charge reflecting an adjustment to its 2024 tax return. During
the period, Kenmare Resources plc had taxable profits of $1.7 million (H1
2022: $42.4 million) and an income tax expense of $0.5 million (H1 2024: $3.6
million).
Cash flows
Net cash from operations in H1 2025 was $71.2 million (H1 2024: $125.4
million), comprising operating cashflow of $48.1 million (H1 2024: $63.8
million) and a working capital inflow of $23.1 million (H1 2024 inflow: $61.6
million). The working capital inflow reflects the unwinding of year-end trade
receivables of $52.2 million (H1 2024: $87.3 million), net of payments to
suppliers, and inventory build-up of $22.7 million (H1 2024: $16.2 million).
Investing activities of $115.0 million in H1 2025 (H1 2024: $49.1 million)
represented additions to property, plant and equipment. Along with cashflow
generated, $50.0 million of debt was drawn down in H1 2025 (H1 2024:
$48.8 million repaid) to fund this investment and to pay the final 2024
dividend of $15.3 million (2024: $34.7 million). Finance fees of $0.4 million
(H1 2024: $2.6 million) and lease repayments of $0.1 million (H1 2024: $0.05
million) were also made and treasury shares of $0.5 million (H1 2024: $0.9
million) were purchased in the period.
Consequently, Kenmare finished H1 2025 with $46.5 million (H1 2024: $60.3
million) of cash and cash equivalents, down $10.2 million compared to year-end
2024 ($56.7 million).
Balance sheet
In H1 2025 there were additions to property, plant and equipment of
$115.0 million (H1 2024: $49.1 million). Additions consisted of $95.0 million
in relation to the upgrade of WCP A, and $20.0 million of sustaining and
improvement capital.
Depreciation of $30.1 million was in line with the prior period (H1 2024:
$30.5 million).
The Group conducted an impairment review of property, plant and equipment at
the period-end. Lower revenue assumptions associated with the uncertain
pricing outlook outlined in the Market Update above have resulted in a lower
estimated recoverable value attributable to Kenmare’s mining and processing
assets as at 30 June 2025. Accordingly, as this value is less than the
carrying value of property, plant and equipment, an impairment loss of $100.3
million has been recognised. The key assumptions of this review are set out in
Note 8 of the financial statements. This impairment loss, which also reflects
the latest proposed amendments to the IA and updated sustaining and
SMO-related capital costs in the forecast cashflows, is a non-cash charge and
does not impact Kenmare’s continuing operations, development programmes,
ability to pay creditors, or debt covenant compliance. There is no impairment
to the Company’s investment in subsidiary undertakings on the balance sheet
(i.e. on a non-consolidated basis), and therefore there is no impact to
Kenmare’s distributable reserves or ability to pay dividends. If the
assumptions used in the Group cashflow forecast were to change in the future
this could lead to this impairment being reversed.
Inventory at period-end amounted to $124.0 million (31 December 2024: $112.8
million). This consisted of intermediate and finished products of $83.6
million (31 December 2024: $70.8 million), which increased due to higher
production and costs in the period, and consumables and spares of $40.5
million (31 December 2024: $42.0 million).
Trade and other receivables amounted to $68.0 million (31 December
2024: $119.5 million). This was comprised of $34.6 million of trade
receivables from the sale of finished products (31 December 2024:
$91.5 million), $27.1 million of supplier prepayments and other
miscellaneous debtors (31 December 2024: $21.6 million), and $6.3 million of
VAT receivable (31 December 2024: $6.4 million). Trade receivables relate to
shipments made before period-end and credit terms specific to the relevant
customer. Use of factoring facilities reduced debtors at 30 June by $19.2
million. There have been no credit impairments or bad debts during the period.
The expected credit loss was reduced by $0.7 million (H1 2024: decreased $1.2
million).
Cash and cash equivalents decreased by $10.2 million in H1 2025 and at 30
June 2025 amounted to $46.5 million (31 December 2024: $56.7 million).
Lease liabilities amounted to $1.1 million (31 December 2024: $1.3 million) at
period-end.
Tax liabilities amounted to $0.9 million (31 December 2024: $1.3 million tax
asset) and trade and other payables amounted to $36.0 million (31 December
2024: $47.8 million).
Debt facilities
On 4 March 2024, the Group entered into a $200 million RCF with its existing
lenders: Absa Bank, Nedbank, Rand Merchant Bank and Standard Bank. The
facility supports Kenmare’s planned capital programme. At the period end,
total debt amounted to $128.5 million (31 December 2024: $78.0 million).
Financial outlook
Kenmare’s purpose is “Transforming resources into opportunity for all”,
underlining how the Company uses its extensive resources, including high
quality, long life Mineral Resources and a strong and experienced team, to
create value for all stakeholders. Kenmare is focused on maintaining a robust
and flexible balance sheet to deliver its purpose, particularly to fund its
capital investment requirements and shareholder returns.
Total investment in the WCP A upgrade project to the end of H1 was $208
million, representing over 60% of total anticipated project spend. Expenditure
in 2025 is weighted to H1, with development capital spending in H2 expected to
be approximately $70 million ($95.0 million in H1). Sustaining and improvement
capital is expected to total approximately $50 million in 2025, slightly
higher than previous guidance of $45 million.
Kenmare expects stronger sales volumes in H2 due to seasonally better weather
and the return of the Peg transshipment vessel, increasing shipping capacity.
The Company is progressing an opportunity to supplement shipping capacity
further with the potential addition of a third transshipment vessel over the
coming months, which may enable a modest drawdown of finished product stocks.
The Company plans to continue to use factoring and similar trade finance
arrangements in H2 to enhance financial flexibility. These, plus current cash
balances and the undrawn portion of RCF ($70 million), are expected to provide
ample liquidity to cover anticipated spending on development capital,
sustaining and improvement capital, and dividend payments (approximately $9
million) in H2. Net debt is expected to increase through H2 2025 and remain
steady in H1 2026 as the rate of capital expenditure slows, before beginning
to fall in H2 2026 as free cashflow generation increases.
Interim dividend
The Board has approved an interim 2025 dividend of USc10 per share (H1 2024:
USc15). The financial statements do not reflect this interim dividend.
The Company will pay the interim dividend on 14 October 2025 to shareholders
of record at the close of business on 19 September 2025. Irish Dividend
Withholding Tax (“DWT”) of 25% must be deducted from dividends paid by the
Company, unless a shareholder is entitled to an exemption and has submitted a
properly completed exemption form to the Company’s Registrar. For assistance
claiming an exemption from DWT or a refund for DWT, please contact Kenmare’s
Investor Relations team.
The dividend timetable is as follows:
Announcement of interim dividend 20 August 2025
Ex-Dividend Date 18 September 2025
Record Date 19 September 2025
Currency election cut-off date 23 September 2025 at 12:00 noon (IST)
Payment Date 14 October 2025
Kenmare’s International Securities Identification Number (ISIN) is
IE00BDC5DG00 and its Tradable Instrument Display Mnemonic (TIDM) is KMR on the
London Stock Exchange and Euronext Dublin.
Principal risks and uncertainties
There are a number of potential risks and uncertainties that could have a
material impact on Kenmare’s performance over the remainder of the 2025
financial year and which could cause actual results to differ materially from
expected and historic results.
These principal risks and uncertainties are disclosed in Kenmare’s Annual
Report for the year ended 31 December 2024. A detailed explanation of these
principal risks and uncertainties and how Kenmare seeks to mitigate these
risks, can be found on pages 102 to 111 of the 2024 Annual Report under the
following headings: permitting; licensing and Government agreement risk;
country risk; geotechnical risk; weather conditions; uncertainty over physical
characteristics of orebody; loss of production due to power supply and
transmission interruption; asset damage or loss; health, safety and
environment; material misstatement in the Ore Reserves & Mineral Resource
Table; IT security risk; development project risk; industry cyclicality;
customer and/or market concentration; foreign currency risk; and unanticipated
cost inflation.
Emerging risks to global trade caused by increasing tariffs are not expected
to apply to Kenmare’s products and are therefore not expected to have a
direct impact on Kenmare. However, the impact of tariffs on global economic
activity, and on the relative competitiveness of Kenmare’s customer base,
may continue to impact demand for Kenmare’s products.
A failure to reach an agreement with Government on the IA and/or the
imposition of a unilateral change of terms by the Government on the Company
would be likely to lead Kenmare to resort to arbitration in order to enforce
its contractual rights. This could impact on Kenmare’s ability to undertake
its operations or meet its financial obligations in the normal course.
The Group’s climate risks disclosure is set out on pages 50 to 61 of the
2024 Annual Report. These have not changed in the first half of the year and
outline the Group’s objectives in relation to climate risk. Kenmare has
continued with these objectives in H1 2025 and will provide an update in the
2025 Annual Report.
Related party transactions
There have been no material changes in the related party transactions
affecting the financial position or the performance of the Group in the period
since publication of the 2024 Annual Report, other than those disclosed in
Note 21 to the condensed consolidated financial statements.
Going concern
As stated in Note 1 to the condensed consolidated financial statements, based
on the Group’s forecasts and projections, the Directors are satisfied that
the Group has sufficient resources to continue in operation for the
foreseeable future, a period of not less than 12 months from the date of this
report. Accordingly, they continue to adopt the going concern basis in
preparing the condensed consolidated financial statements.
Events after the Statement of Financial Position Date
Interim dividend
An interim dividend for the period ended 30 June 2024 of USc10 per share was
approved by the Board on 19 August 2025. The dividend payable has not been
included as a liability in these financial statements. The interim dividend is
payable to all shareholders on the Register of Members on 19 September 2025.
There have been no other significant events since 30 June 2025 that would have
a significant impact on the financial statements of the Group.
Forward-looking statements
This report contains certain forward-looking statements. These statements are
made by the Directors in good faith based on the information available to them
up to the time of their approval of this report, and such statements should be
treated with caution due to the inherent uncertainties, including both
economic and business risk factors, underlying any such forward-looking
information.
On behalf of the Board,
Managing Director
Chairman
Tom Hickey
Andrew Webb
19 August
2025 19
August 2025
Independent Review Report to Kenmare Resources Plc (“the Entity”)
Conclusion
We have been engaged by the Entity to review the Entity’s condensed set of
consolidated financial statements in the half-yearly financial report for the
six months ended 30 June 2025 which comprises the condensed consolidated
interim income statement, the condensed consolidated interim statement of
other comprehensive income, the condensed consolidated interim statement of
financial position, the condensed consolidated interim statement of cash
flows, the condensed consolidated interim statement of changes in equity and a
summary of significant accounting policies and other explanatory notes.
Based on our review, nothing has come to our attention that causes us to
believe that the condensed set of consolidated financial statements in the
half-yearly financial report for the six months ended 30 June 2025 is not
prepared, in all material respects in accordance with International Accounting
Standard 34 Interim Financial Reporting (“IAS 34”) as adopted by the EU
and the Transparency (Directive 2004/109/EC) Regulations 2007 (“Transparency
Directive”), and the Central Bank (Investment Market Conduct) Rules 2019
(“Transparency Rules of the Central Bank of Ireland).
Basis for conclusion
We conducted our review in accordance with International Standard on Review
Engagements (Ireland) 2410 Review of Interim Financial Information Performed
by the Independent Auditor of the Entity (“ISRE (Ireland) 2410”) issued
for use in Ireland. A review of interim financial information consists of
making enquiries, primarily of persons responsible for financial and
accounting matters, and applying analytical and other review procedures.
A review is substantially less in scope than an audit conducted in accordance
with International Standards on Auditing (Ireland) and consequently does not
enable us to obtain assurance that we would become aware of all significant
matters that might be identified in an audit. Accordingly, we do not express
an audit opinion.
Conclusions relating to going concern
Based on our review procedures, which are less extensive than those performed
in an audit as described in the Basis for conclusion section of this report,
nothing has come to our attention that causes us to believe that the directors
have inappropriately adopted the going concern basis of accounting, or that
the directors have identified material uncertainties relating to going concern
that have not been appropriately disclosed.
This conclusion is based on the review procedures performed in accordance with
ISRE (Ireland) 2410. However, future events or conditions may cause the Entity
to cease to continue as a going concern, and the above conclusions are not a
guarantee that the Entity will continue in operation.
Directors’ responsibilities
The half-yearly financial report is the responsibility of, and has been
approved by, the directors. The directors are responsible for preparing the
half-yearly financial report in accordance with the Transparency Directive and
the Transparency Rules of the Central Bank of Ireland.
The directors are responsible for preparing the condensed set of consolidated
financial statements included in the half-yearly financial report in
accordance with IAS 34 as adopted by the EU.
As disclosed in note 1, the annual financial statements of the Entity for the
year ended 31 December 2024 are prepared in accordance with International
Financial Reporting Standards as adopted by the EU.
In preparing the condensed set of consolidated financial statements, the
directors are responsible for assessing the Entity’s ability to continue as
a going concern, disclosing, as applicable, matters related to going concern
and using the going concern basis of accounting unless the directors either
intend to liquidate the Entity or to cease operations, or have no realistic
alternative but to do so.
Our responsibility
Our responsibility is to express to the Entity a conclusion on the condensed
set of consolidated financial statements in the half-yearly financial report
based on our review.
Our conclusion, including our conclusions relating to going concern, are based
on procedures that are less extensive than audit procedures, as described in
the Basis for conclusion section of this report.
The purpose of our review work and to whom we owe our responsibilities
This report is made solely to the Entity in accordance with the terms of our
engagement to assist the Entity in meeting the requirements of the
Transparency Directive and the Transparency Rules of the Central Bank of
Ireland. Our review has been undertaken so that we might state to the Entity
those matters we are required to state to it in this report and for no other
purpose. To the fullest extent permitted by law, we do not accept or assume
responsibility to anyone other than the Entity for our review work, for this
report, or for the conclusions we have reached.
KPMG 19
August 2025
Chartered Accountants
1 Stokes Place
St. Stephen’s Green
Dublin 2
Group condensed consolidated statement of comprehensive income
For the financial period ended 30 June 2025
Notes Unaudited 6 Months 30 June 2025 $’000 Unaudited 6 Months 30 June 2024 $’000
Revenue 2 167,657 165,081
Cost of sales 4 (144,755) (133,598)
Gross profit 22,902 31,483
Administration expenses 4 (5,734) 1,267
Impairment loss (100,341) -
Operating (loss)/profit (83,173) 32,750
Finance income 5 1,160 2,409
Finance costs 5 (6,629) (7,461)
(Loss)/profit before tax (88,642) 27,698
Income tax expense 6 (5,591) (6,823)
(Loss)/profit for the financial period and total comprehensive income for the financial period (94,233) 20,875
Attributable to equity holders (94,233) 20,875
$ per share $ per share
(Loss)/Profit per share: Basic 7 (1.06) 0.23
(Loss)/Profit per share: Diluted 7 (1.06) 0.23
The accompanying notes form part of these financial statements.
Group condensed consolidated statement of financial position
As at 30 June 2025
Notes Unaudited 30 June 2025 $’000 Audited 31 Dec 2024 $’000
Assets
Non-current assets
Property, plant and equipment 8 1,002,328 1,017,973
Right-of-use assets 9 957 1,095
1,003,285 1,019,068
Current assets
Inventories 10 124,009 112,796
Trade and other receivables 11 68,015 119,494
Current tax assets 17 - 1,278
Cash and cash equivalents 12 46,507 56,683
238,531 290,251
Total assets 1,241,816 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 230,130 229,274
Retained earnings 276,600 385,763
Total equity 1,052,777 1,161,084
Liabilities
Non-current liabilities
Bank loans 14 128,526 77,991
Lease liabilities 9 819 971
Provisions 16 20,990 20,007
150,335 98,969
Current liabilities
Bank loans 14 - –
Lease liabilities 9 295 285
Trade and other payables 15 36,026 47,755
Current tax liabilities 17 902 –
Provisions 16 1,481 1,226
38,704 49,266
Total liabilities 189,039 148,235
Total equity and liabilities 1,241,816 1,309,319
The accompanying notes form part of these financial statements.
On behalf of the Board:
T.HICKEY
Director
19 August 2025
A.WEBB
Director
19 August 2025
Group condensed consolidated statement of changes in equity
Called-up share capital $’000 Share premium $’000 Retained earnings $’000 Other reserves $’000 Total $’000
Unaudited Balance at 1 January 2025 97 545,950 385,763 229,274 1,161,084
Loss for the financial period (94,233) - (94,233)
Transactions with owners of the Company
Recognition of share-based payment expense - - - 1,542 1,542
Exercise of share-based payments - - 362 (1,396) (1,034)
Shares acquired by the Kenmare EBT - - - (540) (540)
Shares distributed by the Kenmare EBT 1,250 1,250
Dividends paid - - (15,292) - (15,292)
Balance at 30 June 2025 97 545,950 276,600 230,130 1,052,777
Unaudited Balance at 1 January 2024 97 545,950 367,504 229,740 1,143,291
Profit for the financial period - - 20,875 - 20,875
Transactions with owners of the Company
Recognition of share-based payment expense - - - 1,716 1,716
Exercise of share-based payments - - 451 (2,697) (2,246)
Shares acquired by the Kenmare EBT - - - (908) (908)
Shares distributed by the Kenmare EBT - - - 2,202 2,202
Dividends - - (34,691) - (34,691)
Balance at 30 June 2024 97 545,950 354,139 230,053 1,130,239
For the financial period ended 30 June 2025
Group condensed consolidated statement of cash flows
For the financial period ended 30 June 2025
Notes Unaudited 30 June 2025 $’000 Unaudited 30 June 2024 $’000
Cash flows from operating activities
(Loss)/profit for the period after tax (94,233) 20,875
Adjustment for:
Share-based payments 19 1,542 1,716
Finance income 5 (1,160) (2,409)
Movement in expected credit losses 18 (712) (1,154)
Finance costs 5 6,629 7,461
Income tax expense 6 5,591 6,823
Impairment loss 8 100,341 -
Depreciation 8/9 30,073 30,516
48,071 63,828
Change in:
Provisions 16 1,238 710
Inventories 10 (11,213) (14,354)
Trade and other receivables 11 52,194 87,251
Trade and other payables 15 (11,515) (1,813)
Cash generated from operating activities 78,775 135,622
Income tax paid (3,410) (9,115)
Interest received 5 1,160 2,409
Interest paid 5,14 (3,611) (2,210)
Factoring and other fees paid 5 (906) (497)
Debt commitments fees paid 5 (796) (849)
Net cash from operating activities 71,212 125,360
Investing activities
Additions to property, plant and equipment 8 (114,973) (49,101)
Net cash used in investing activities (114,973) (49,101)
Financing activities
Dividends paid 13 (15,293) (34,691)
Market purchase of equity under KRSP (540) (908)
Drawdown of debt 14 50,000 51,370
Repayment of debt 14 - (100,156)
Transaction costs of debt 14 (440) (2,581)
Payment of lease liabilities 9 (142) (51)
Net cash used in financing activities 33,585 (87,017)
Net increase/(decrease) in cash and cash equivalents (10,176) (10,758)
Cash and cash equivalents at the beginning of the financial year 56,683 71,048
Cash and cash equivalents at the end of the period 46,507 60,290
Notes to the group condensed consolidated financial statements
For the financial period ended 30 June 2025
1. Basis of preparation and going concern
Basis of preparation
The annual financial statements of Kenmare Resources plc (‘the Group’) are
prepared in accordance with IFRS as adopted by the European Union. The Group
Condensed Consolidated Financial Statements for the six months ended 30 June
2025 have been prepared in accordance with the Transparency (Directive
2004/109/EC) Regulations 2007, as amended, the Transparency Rules of the
Central Bank of Ireland, Disclosure and Transparency Rule 4.2 of the UK
Financial Conduct Authority’s Disclosure Guidance and Transparency Rules and
IAS 34 ‘Interim Financial Reporting’, as adopted by the European Union.
The financial information presented in this document does not constitute
statutory financial statements. The amounts presented in the half-yearly
financial statements for the six months ended 30 June 2025 and the
corresponding amounts for the six months ended 30 June 2024 have been reviewed
but not audited. The independent review report is set out above.
The financial information for the year ended 31 December 2024, presented
herein, is an abbreviated version of the annual financial statements for the
Group in respect of the year ended 31 December 2024. The Group’s annual
financial statements in respect of the year ended 31 December 2024 have been
filed in the Companies Registration Office and the independent auditor issued
an unqualified audit report thereon. The annual report is available on the
Company’s website at www.kenmareresources.com.
Use of judgements and estimates
The preparation of the half-yearly financial statements requires the Directors
to make judgements, estimates and assumptions that affect the application of
policies and reported amounts of certain assets, liabilities, revenues and
expenses together with disclosure of assets and liabilities. Estimates and
underlying assumptions relevant to these financial statements are the same as
those described in the last annual financial statements except as described
below in Note 8. At each reporting date, the Group reviews the carrying
amounts of property, plant and equipment to determine whether there is any
indication that those assets have suffered an impairment loss. A key element
to this review is assessing the value in use and the estimated future cash
flows. The assumptions used in the estimating future cashflows have been
updated since the year end and are included in Note 8.
Going concern
The Directors have, at the time of approving the financial statements, a
reasonable expectation that the Group has, or will have, adequate resources to
continue in operational existence for the foreseeable future. Based on the
Group’s cash flow forecast, liquidity, solvency position and available
finance facilities, the Directors have a reasonable expectation that the Group
has adequate resources for the foreseeable future and, therefore, they
continue to adopt the going concern basis of accounting in preparing the
financial statements.
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, 1.2 million tonnes of ilmenite
plus co-products, zircon, concentrates and rutile, over the next twelve
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 2025, 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 2025 operating costs
and forecast capital costs take into account the current inflationary
environment. The 2% inflation rate used from 2026 to escalate these costs over
the life of mine is an estimated long-term inflation rate.
The Implementation Agreement (IA) 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 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. However, the timetable for the extension
has extended beyond 21 December 2024.
In early 2025 the Ministry of Industry and Commerce confirmed that the
Company’s existing rights and benefits remain in full force and effect
pending finalisation of the extension. Since then, Kenmare has continued to
process minerals and export final products in the same manner as it did prior
to 21 December 2024.
Sensitivity analysis is applied to the assumptions above to test the
robustness of the cash flow forecasts for changes in market prices, shipments
and operating and capital cost assumptions. Changes in these assumptions
affect the level of sales and profitability of the Group and the amount of
capital required to deliver the projected production levels. As a result of
this assessment, the Board has a reasonable expectation that the Group will be
able to continue in operation and meet its liabilities as they fall due over
the 12-month period from the date of authorisation of these financial
statements.
Changes in accounting policies
The accounting policies applied in the half-yearly financial statements are
those set out in the annual financial statements for the year ended 31
December 2024.
At the date of authorisation of these financial statements, the following
standards and interpretations, which have not been applied in these financial
statements were in issue but not yet effective. The Group will apply the
relevant standards from their effective dates. The standards are mandatory for
future accounting periods but are not yet effective and have not been
early-adopted by the Group.
* Amendments to IFRS 9 Financial Instruments and IFRS 7 Financial Instruments:
Disclosures – effective 1 January 2026
* Annual Improvements to IFRS Accounting Standards – effective 1 January
2026
Amendments to:
* IFRS 1 First-time Adoption of International Financial Reporting Standards;
* IFRS 7 Financial Instruments: Disclosures and its accompanying Guidance on
implementing IFRS 7;
* IFRS 9 Financial Instruments;
* IFRS 10 Consolidated Financial Statements; and
* IAS 7 Statement of Cash flows.
* IFRS 18 Presentation and Disclosure in Financial Statements – effective 1
January 2027
* IFRS 19 Subsidiaries without Public Accountability: Disclosures –
effective 1 January 2027
* Sale or Contribution of Assets between an Investor and its Associate or
Joint Venture (Amendments to IFRS 10 Consolidated Financial Statements and
IAS 28 Investments in Associates and Joint Ventures) – effective date to be
confirmed.
The Directors do not expect that the adoption of the Standards and
Interpretations listed above will have a material impact on the financial
statements of the Group in future periods with the exception of IFRS 18 which
will have a presentational impact.
2. Revenue
Unaudited 30 June 2025 $’000 Unaudited 30 June 2024 $’000
Revenue derived from the sale of mineral products 159,616 154,467
Revenue derived from freight services 8,041 10,614
Total revenue 167,657 165,081
Revenue by product
The principal categories for disaggregating mineral product revenue are
product type and by country of the customer’s location. The product types
are ilmenite, zircon, rutile and concentrates. Concentrates include secondary
zircon and mineral sands concentrate.
During the financial period, the Group sold 488,900 tonnes (H1 2024: 477,600
tonnes) of finished products at a sales value of $159.6 million (H1 2024:
$154.5 million). The Group earned revenue derived from freight services of
$8.0 million (H1 2024: $10.6 million).
Unaudited 30 June 2025 $’000 Unaudited 30 June 2024 $’000
Revenue derived from sales of mineral products by primary product
Ilmenite 130,190 136,452
Zircon 19,395 11,867
Concentrates 10,031 6,123
Rutile - 25
Total revenue from mineral products 159,616 154,467
Revenue derived from freight services 8,041 10,614
Total 167,657 165,081
Revenue by destination
In the following table, revenue is disaggregated by 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. Thereafter, where total disclosed
revenue disaggregated by country constitutes less than 75% of total Group
revenue, additional disclosures are made until at least 75% of the Group’s
disaggregated revenue is disclosed.
Unaudited 30 June 2025 $’000 Unaudited 30 June 2024 $’000
Revenue from external customers
China 49,569 70,855
Europe 17,140 24,905
Asia (excluding China) 59,462 46,520
Rest of the world 33,445 12,187
Total revenue from mineral products 159,616 154,467
Revenue derived from freight 8,041 10,614
Total revenue 167,657 165,081
All revenues are generated by the Moma Titanium Minerals Mine. Sales of the
Group’s mineral products are not seasonal in nature.
3. Segment reporting
Information on the operations of the Moma Titanium Minerals Mine in Mozambique
is reported to the Group’s Executive Committee for the purposes of resource
allocation and assessment of segmental performance. Information regarding the
Group’s operating segment is reported below.
Unaudited 30 June 2025 Unaudited 30 June 2024
Corporate Mozambique Total Corporate Mozambique Total
$’000 $’000 $’000 $’000 $’000 $’000
Revenue and results
Revenue* - 167,657 167,657 - 165,081 165,081
Cost of sales - (144,755) (144,755) - (133,598) (133,598)
Gross profit - 22,902 22,902 - 31,483 31,483
Administrative expenses (6,368) 634 (5,734) (2,653) 3,920 1,267
Impairment loss - (100,341) (100,341) - - -
Segment operating profit/(loss) (6,368) (76,805) (83,173) (2,653) 35,403 32,750
Finance income 187 973 1,160 1,118 1,291 2,409
Finance expenses (22) (6,607) (6,629) (22) (7,439) (7,461)
Profit/(loss) before tax (6,205) (82,439) (88,642) (1,557) 29,255 27,698
Income tax expense (229) (5,362) (5,591) (3,646) (3,177) (6,823)
Profit/(loss) for the financial period (6,532) (77,077) (94,233) (5,203) 26,078 20,875
30 June 2025 31 December 2024
Segment assets and liabilities
Segment assets 4,011 1,237,805 1,241,816 9,571 1,299,748 1,309,319
Segment liabilities (3,026) (186,013) (189,039) (4,514) (143,721) (148,235)
Additions to non-current assets
Segment additions to non-current assets - 114,973 114,973 - 153,805 153,805
* Revenue excludes inter-segment revenue of 10.7 million earned by the
corporate segment relating to marketing and management services fee income.
Inter-segment revenue is not regularly reviewed by the Executive Committee.
Corporate assets consist of the Company’s and other subsidiary
undertakings’ 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, lease and current tax
liabilities at the reporting date.
4. Cost and income analysis
Unaudited 30 June 2025 $’000 Unaudited 30 June 2024 $’000
Expenses by function
Cost of sales 144,755 133,598
Administrative expenses 5,734 (1,267)
Total 150,489 132,331
Expenses by nature can be analysed as follows:
Unaudited 30 June 2025 $’000 Unaudited 30 June 2024 $’000
Expenses by nature
Staff costs 35,157 30,400
Repairs and maintenance 21,561 21,184
Power and fuel 22,191 23,807
Freight 8,041 10,614
Other production and operating costs 46,225 34,650
Movement of mineral products inventory (12,759) (18,840)
Depreciation of property, plant and equipment and right-of-use assets 30,073 30,516
Total 150,489 132,331
Other production and operating costs in 2024 include a credit of $3.3 million
of insurance proceeds relating to business interruption as a result of the
lightning strike on the power transmission line at the Mine in February 2023.
Mineral products consist of finished products and HMC, as detailed in Note 10.
Mineral stock movement in the year was an increase of $12.8 million (H1 2024:
$18.8 million increase). Freight costs of $8.0 million (H1 2024: $10.6
million) arise from sales to customers on a Cost, Insurance, and Freight (CIF)
or Cost and Freights (CFR) basis.
During the period an impairment loss of $100.3 million (2024: $nil) was
recognised as detailed in Note 8.
5. Net finance costs
Unaudited 30 June 2025 $’000 Unaudited 30 June 2024 $’000
Finance costs
Interest on bank borrowings (4,095) (2,210)
Transaction costs on debt refinancing (440) (3,493)
Interest on lease liabilities (51) (56)
Factoring and other trade facility fees (906) (497)
Commitment and other fees (796) (849)
Unwinding of discount on mine closure provision (341) (356)
Total Finance Costs (6,629) (7,461)
Finance income
Interest earned on bank deposits 1,160 2,409
Total Finance Income 1,160 2,409
Net finance costs recognised in profit or loss (5,469) (5,052)
All interest has been expensed in the financial period. The Group has
classified factoring and other trade facility fees in net cashflows from
operating activities in the Consolidated Statement of Cashflows.
6. Income tax expense
Unaudited 30 June 2025 $’000 Unaudited 30 June 2024 $’000
Corporation tax 5,591 6,823
During the period, the KMML Mozambique Branch had taxable profits of $13.8
million (H1 2024: $10.1 million) resulting in an income tax expense of $4.8
million (H1 2024: $3.5 million). The income tax rate applicable to taxable
profits of KMML Mozambique Branch is 35% (H1 2024: 35%). $0.3 million was
recognised in the period relating to the final tax charge for 2024.
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 30 June 2025.
During the period, Kenmare Resources plc had taxable profits of $1.7 million
(H1 2024: $42.4 million) resulting in an income tax expense of $0.5 million
(H1 2024: $3.6 million).
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:
Unaudited 30 June 2025 $’000 Unaudited 30 June 2024 $’000
(Loss)/ Profit for the financial period attributable to equity holders of the Company (94,233) 20,875
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 2,874,853 2,870,528
Weighted average number of ordinary shares for the purposes of diluted earnings per share 92,103,014 92,098,689
$ per share $ per share
(Loss)/Earnings per share: basic (1.06) 0.23
(Loss)/Earnings per share: diluted (1.06) 0.23
8. Property, plant and equipment
Plant & 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 period 1,434 - 113,539 - 114,973
Transfer from construction in progress 6,488 910 (10,782) 3,384 -
Disposals - - - - -
Adjustment to mine closure cost (341) - - - (341)
At 30 June 2025 1,064,482 277,433 320,681 79,594 1,742,190
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 period 23,009 2,943 - 3,984 29,936
Disposals - - - - -
Impairment 82,721 13,888 - 3,732 100,341
At 30 June 2025 502,537 183,089 - 54,236 739,862
Carrying Amount
At 30 June 2025 561,945 94,344 320,681 25,358 1,002,328
At 31 December 2024 660,094 110,265 217,924 29,690 1,017,973
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 30 June 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 30 June 2025. As a
result of the review, an impairment loss of $100.3 million has been recognised
in the consolidated statement comprehensive income. The Directors consider
that the main cause of the impairment is due to lower projected future revenue
assumptions associated with an uncertain pricing outlook and additional costs
associated with the renewal of the IA. The impairment loss has not been
applied against construction in progress as the estimated recoverable value of
these assets is a reasonable approximation of 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 for this
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% (December 2024: 13.4%).
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 discount rate is
13% (December 2023: 13.4%).
The Group’s estimation of the country risk premium included in the discount
rate has remained unchanged from the year-end. 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 Moma 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 was lower than the
carrying amount by $100.3 million (2024: $83.0 million higher). The discount
rate is a significant factor in determining the recoverable amount. A 1%
change in the discount rate changes the recoverable amount by $84 million,
assuming all other inputs remain unchanged.
* The IA 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.
However, the timetable for the extension has extended beyond 21 December 2024.
The Ministry of Industry and Commerce has confirmed that the Company’s
existing rights and benefits remain in full force and effect pending
conclusion of the process and that Kenmare can continue 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. Under the terms of the Mineral Licensing Contact (“MLC”)
the Group can apply 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 is, approximately, 1.2 million
to 1.3 million tonnes over the next five years with 1.3 million tonnes from
2029 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 provided by
TiPMC Solutions and management expectations, including general inflation of 2%
per annum. Forecast prices provided by TiPMC Solutions have been reviewed and
found to be consistent with other external sources of information. Average
forecast product sales prices have decreased over the life of mine from the
year-end review, as a result of revised forecast pricing and market outlook. A
5% change in average sales prices over the life of mine changes the
recoverable amount by $174 million, assuming all other inputs remain
unchanged.
* Operating costs are based on approved budget costs for 2025, taking into
account the current running costs of the Mine and estimated forecast inflation
for 2025. From 2026 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 increased from the year-end
review mainly as a result of the additional costs associated with the IA. A
2.5% change in operating costs over the life of mine changes the recoverable
amount by $50 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 2026. Average forecast sustaining and SMO related capital
costs have increased, and their scheduling has changed from the year-end
review based on updated sustaining and development capital plans required to
maintain the existing plant over the life of mine. A 5% change in capital
costs over the life of mine changes the recoverable amount by $29 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 maintains its 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 $9.0 million over the period from 2025 to
2030. A change in these costs (for overruns or required additional projects to
meet targets) is 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. As noted above, a 5% change in capital costs over the
life of the Mine reduces the recoverable amount by $29 million, assuming all
other inputs remain unchanged. No savings associated with the Company’s
ambition to become Net Zero have been factored into the forecast.
9. Right-of-use assets
Land and Buildings $’000 Total $’000
Cost
At 1 January 2025 2,590 2,590
At 30 June 2025 2,590 2,590
Accumulated Depreciation
At 1 January 2025 1,496 1,496
Depreciation expense 137 137
At 30 June 2025 1,633 1,633
Carrying amount
At 30 June 2025 957 957
At 31 December 2024 1,095 1,095
The Group has recognised a lease liability of $1.7 million in respect of the
rental of its Irish head office. The lease runs to April 2027 and rental
payments are fixed to the end of the lease term. This lease obligation is
denominated in Euros.
The Group has also recognised a lease liability of $0.4 million in respect of
its Mozambican country office in Maputo. The lease has a term to 1 December
2033. 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 30 June 2025 or 31 December 2024.
The Group has recognised a rental expense of $3.9 million (2024: $4.3 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:
Unaudited 30 June 2025 $’000 Audited 31 Dec 2024 $’000
Current 295 285
Non-current 819 971
1,114 1,256
During the period, there were lease repayments of $0.1 million (2024: $0.05
million).
10. Inventories
Unaudited 30 June 2025 $’000 Audited 31 Dec 2024 $’000
Mineral products 83,554 70,795
Consumable spares 40,455 42,001
124,009 112,796
At 30 June 2025, total finished product stocks were 300,100 tonnes (31
December 2024: 273,000 tonnes). Closing stock of HMC was 16,900 tonnes (31
December 2024: 24,600 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 period, there was a write-down of $0.8 million (30 June
2024: $nil) to mineral products to value them at net realisable value.
11. Trade and other receivables
Unaudited 30 June 2025 $’000 Audited 31 Dec 2024 $’000
Trade receivables 34,617 91,451
VAT receivable 6,336 6,410
Prepayments 27,062 21,633
68,015 119,494
12. Cash and cash equivalents
Unaudited 30 June 2025 $’000 Audited 31 Dec 2024 $’000
Cash and cash equivalents 46,507 56,683
Cash and cash equivalents comprise cash balances held for the purposes of
meeting short-term cash commitments and investments, which 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. Share capital and dividends
Share capital as at 30 June 2025 amounted to $0.1 million (31 December 2024:
$0.1 million).
In May 2025, the Company paid a final 2024 dividend of $15.3 million (2023:
final dividend: $34.7 million), representing USc17.00 per share (2023 final
dividend: USc38.54).
14. Bank loans
Unaudited 30 June 2025 $’000 Audited 31 Dec 2024 $’000
Borrowings 128,526 77,991
The borrowings are repayable as follows:
Less than one year - –
Between two and five years 130,512 80,417
130,512 80,417
Transaction costs (1,986) (2,426)
Total carrying amount 128,526 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 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 Kenmare Moma
Processing (Mauritius) Limited and Kenmare Moma Mining (Mauritius) Limited
(the “Project Companies”), (c) security over intercompany loans.
The carrying amount of the secured bank accounts of the Group was $39.1
million as at 30 June 2025 (31 December 2024: $60.3 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 cashflows arising from financing
activities
Unaudited 30 June 2025 $’000 Audited 31 Dec 2024 $’000
Bank loans
Balance at 1 January 77,991 47,873
Cash movements
RCF drawdown 50,000 131,370
Loan interest paid – Term Loan - (2,694)
Loan interest paid - RCF (3,560) (2,396)
Principal repaid – Term loan - (47,142)
Principal repaid – RCF - (51,370)
Transaction costs paid (440) (2,911)
Non-cash movements
Loan interest accrued – Term Loan - 1,050
Loan interest accrued – RCF 4,095 2,813
Transaction costs amortised 440 1,398
Balance at 30 June/31 December 128,526 77,991
Loan interest paid excludes lease liability interest as it is accounted for in
Note 9.
Financial Covenants
There were no covenants breached during the period.
15. Trade and other payables
Unaudited 30 June 2025 $’000 Audited 31 Dec 2024 $’000
Trade payables 14,607 13,480
Deferred income 188 2,415
Accruals 21,231 31,860
36,026 47,755
16. Provisions
Unaudited 30 June 2025 $’000 Audited 31 Dec 2024 $’000
Mine closure provision 14,275 14,275
Mine rehabilitation provision 8,196 6,958
22,471 21,233
Current 1,481 1,226
Non-current 20,990 20,007
22,471 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 period – (2,222) (2,222)
Unwinding of the discount 720 – 720
At 1 January 2025 14,275 6,958 21,233
Increase/(decrease) in provision during the financial year (341) 1,720 1,379
Provision utilised during the financial period - (482) (482)
Unwinding of the discount 341 - 341
At 30 June 2025 14,275 8,196 22,471
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 $0.3 million (H1 2024: $0.4 million) has been recognised in the
statement of comprehensive income for the financial period.
The main assumptions used in the calculation of the estimated future costs
include:
• A discount rate of 4.8% (31 December 2024: 4.8%);
• An inflation rate of 2% (31 December 2024: 2%);
• An estimated life of mine of 40 years (31 December 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 $36.8 million (31 December 2024: $36.8
million) and an estimated post-closure monitoring provision of $2.6 million
(31 December 2024: $2.6 million).
As of June 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, as set out in the Ore Reserve and Mineral
Resources table. Specific Mineral Resource material is included only where
there is a high degree of confidence in its economic extraction.
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 period, there was a release of $0.5 million
(H1 2024: $1.4 million) to reflect the actual mine rehabilitation costs
incurred and an addition to the provision of $1.7 million (H1 2024: $2.1
million) for areas newly disturbed.
17. Current tax liabilities/assets
Unaudited 30 June 2025 $’000 Audited 31 Dec 2024 $’000
Current tax liabilities/assets 902 (1,278)
Further details on the Group’s tax expense are detailed in Note 6.
18. Financial Instruments
Unaudited 30 June 2025 Audited 31 Dec 2024
Carrying amount $’000 Fair value $’000 Carrying amount $’000 Fair value $’000
Financial assets at fair value through OCI
Trade receivables (1) - - Level 2 28,148 28,148 Level 2
Financial assets not measured at fair value
Trade receivables (2) 35,329 35,329 Level 2 65,060 65,060 Level 2
Cash and cash equivalents 46,507 46,507 Level 2 56,683 56,683 Level 2
81,836 81,836 149,891 149,891
Financial liabilities not measured at fair value
Bank loans 128,526 128,526 Level 2 77,991 77,991 Level 2
(1) Relates to trade receivables which will be discounted
through the Barclay’s bank facility.
(2) Relates to trade receivables which will not be discounted
or factored.
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 as the carrying amount is a reasonable approximation of their 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 payments 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 flow, which considers the expected receipts or payments discounted using
adjusted market discount rates, or, where these rates are not available, using
estimated discount rates.
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, and no customers’ balances have been written off or are
credit impaired at the financial year-end. In monitoring 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 movement in expected credit losses in respect of trade receivables were
measured at amortised cost or fair value through other comprehensive income
during the period was as follows:
Expected Credit Loss Unaudited 30 June 2025 $’000 Audited 31 Dec 2024 $’000
Opening balance 1,757 1,580
Net remeasurement of loss allowance (1,045) 177
Closing 712 1,757
The decrease in the loss allowance is mainly attributable to the decrease in
trade receivables at the period end. The methodology for the calculation of
expected credit losses is the same as described in the last annual statements.
19. Share-based payments
Kenmare Resources plc Restricted Share Plan (“KRSP”)
During the financial period, 804,292 shares (H1 2024: 885,323) were granted to
employees under the 2025 KRSP award. The estimated fair value of the shares
awarded is $3.5 million (H1 2024: $3.5 million). These share awards vest,
subject to continued employment on the third anniversary or, in the case of
Executive Directors and certain other staff, subject to continued employment
and to the Remuneration Committee’s assessment against a discretionary
underpin, on the third anniversary of grant.
During the financial period, the Group recognised a share-based payment
expense of $1.5 million (H1 2024: $1.7 million).
During the period, awards in respect of 178,814 shares were exercised at a
cost of $1.3 million.
20. Contingent liabilities
In 2023, a case was brought by a transport service provider against Kenmare
Moma Mining (Mauritius) Limited Mozambique Branch and Kenmare Moma Processing
(Mauritius) Limited Mozambique Branch for alleged breach of contract.
On 10 February 2025, the High Court of Appeal of Nampula ruled against Kenmare
in relation to the case for an amount of $4.6 million (Metical 288.7 million).
Kenmare has submitted an appeal to the Supreme Court of Maputo. No provision
has been made in these financial statements for the ruling, as the Company
does not consider that there is any future probable loss.
21. Related party transactions
Transactions between the Company and its subsidiaries, which are related
parties, have been eliminated on consolidation and are not disclosed in this
note.
Apart from the above and the existing remuneration arrangements, there were no
material transactions or balances between the Group and its key management
personnel or members of their close families during the period under review.
22. Events after the statement of financial position date
Interim dividend
An interim dividend for the period ended 30 June 2025 of USc10.0 per share (H1
2024: USc15.0) was approved by the Board on 19 August 2025. The dividend
payable has not been included as a liability in these financial statements.
The interim dividend is payable to all shareholders on the Register of Members
on 19 September 2025.
There have been no other significant events since 30 June 2025 which would
have a significant impact on the financial statements of the Group.
23. Information
The half-yearly financial report was approved by the Board on 19 August 2025.
Copies are available from the Company’s registered office at 4th Floor,
Styne House, Hatch Street Upper, Dublin 2, D02 DY27, Ireland.
The report is also available on the Company’s website at
www.kenmareresources.com.
STATEMENT OF DIRECTORS RESPONSIBILITIES
For the half year ended 30 June 2025
The Directors are responsible for preparing the half-yearly financial report
in accordance with the Transparency (Directive 2004/109/EC) Regulations 2007
(“Transparency Directive”), the Transparency Rules of the Central Bank of
Ireland and Transparency Rule 4.2 of the Disclosure Guidance and Transparency
Rules of the UK Financial Conduct Authority.
In preparing the condensed set of consolidated financial statements included
within the half-yearly financial report, the Directors are required to:
* Prepare and present the condensed set of consolidated financial statements
in accordance with IAS 34 Interim Financial Reporting as adopted by the EU,
the Transparency Directive and the Transparency Rules of the Central Bank of
Ireland;
* Ensure the condensed set of consolidated financial statements has adequate
disclosures;
* Select and apply appropriate accounting policies;
* Make accounting estimates that are reasonable in the circumstances; and
* Assess the Entity’s ability to continue as a going concern, disclosing, as
applicable, matters related to going concern and using the going concern basis
of accounting unless the Directors either intend to liquidate the Entity or to
cease operations, or have no realistic alternative but to do so.
The Directors are responsible for designing, implementing and maintaining such
internal controls as they determine is necessary to enable the preparation of
the condensed set of consolidated financial statements that is free from
material misstatement whether due to fraud or error.
We confirm that to the best of our knowledge:
(1) The condensed set of consolidated financial statements included
within the Half-Yearly Financial Report of Kenmare Resources plc for the six
months ended 30 June 2025 (“the interim financial information”) which
comprises the condensed consolidated interim income statement, the condensed
consolidated interim statement of other comprehensive income, the condensed
consolidated interim statement of financial position, the condensed
consolidated interim statement of cash flows, the condensed consolidated
interim statement of changes in equity and the related explanatory notes, have
been presented and prepared in accordance with IAS 34 Interim Financial
Reporting as adopted by the EU, the Transparency Directive and Transparency
Rules of the Central Bank of Ireland.
(1) The interim financial information presented, as required
by the Transparency Directive and Transparency Rule 4.2 of the Disclosure
Guidance and Transparency Rules of the UK Financial Conduct Authority,
includes:
(2)
1. An indication of important events that have occurred during the first six
months of the financial year, and their impact on the condensed set of
consolidated financial statements;
2. A description of the principal risks and uncertainties for the remaining
six months of the financial year;
3. Related parties’ transactions that have taken place in the first six
months of the current financial year and that have materially affected the
financial position or the performance of the enterprise during that period;
and
4. Any changes in the related parties’ transactions described in the last
Annual Report that could have a material effect on the financial position or
performance of the enterprise in the first six months of the current financial
year.
The Directors are responsible for the maintenance and integrity of the
corporate and financial information included on the Entity’s website.
Legislation in the Republic of Ireland governing the preparation and
dissemination of financial statements may differ from legislation in other
jurisdictions.
On behalf of the Board:
T.HICKEY
A.WEBB
Director Director
19 August
2025 19
August 2025
Glossary - Alternative Performance Measures
Certain financial measures set out in the half-yearly financial report to 30
June 2025 are not defined under International Financial Reporting Standards
(IFRSs), 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 IFRSs. Descriptions of the APMs included
in this report, as well as their relevance for the Group, are disclosed below.
APM Description Relevance
EBITDA Operating profit/loss before depreciation and amortisation Eliminates the effects of financing, tax and depreciation to allow assessment of the earnings and performance of the Group
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
EBITDA margin Percentage of EBITDA to Mineral Products Revenue Provides a group margin for the earnings and performance of the Group
Adjusted EBITDA margin Percentage of Adjusted EBITDA to Mineral Products Revenue Provides a group margin for the earnings and performance of the Group
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 zircon, rutile and mineral sands concentrate revenue, 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 ROCE measures how efficiently the Group generates profits from investment in assets
PAT before impairment Profit after tax before impairment Eliminates the impairment loss from profit after tax
EBITDA
H1 2025 H1 2024 H1 2023 H1 2022 H1 2021
$m $m $m $m $m
Operating profit (83.2) 32.7 80.2 74.0 56.8
Depreciation and amortisation 30.1 30.5 30.2 30.5 23.5
EBITDA (53.1) 63.2 110.4 104.5 80.3
Adjusted EBITDA
H1 2025 H1 2024 H1 2023 H1 2022 H1 2021
$m $m $m $m $m
Operating profit (83.2) 32.7 80.2 74.0 56.8
Depreciation and amortisation 30.1 30.5 30.2 30.5 23.5
Impairment loss 100.3 - - - -
Adjusted EBITDA 47.2 63.2 110.4 104.5 80.3
EBITDA margin
H1 2025 H1 2024 H1 2023 H1 2022 H1 2021
$m $m $m $m $m
EBITDA (53.1) 63.2 110.4 104.5 80.3
Mineral Products Revenue 159.6 154.5 229.7 182.1 167.8
EBITDA margin (%) (33%) 41% 48% 57% 48%
Adjusted EBITDA margin
H1 2025 H1 2024 H1 2023 H1 2022 H1 2021
$m $m $m $m $m
Adjusted EBITDA 47.2 63.2 110.4 104.5 80.3
Mineral Products Revenue 159.6 154.5 229.7 182.1 167.8
Adjusted EBITDA margin (%) 30% 41% 48% 57% 48%
Cash operating cost per tonne of finished product
H1 2025 H1 2024 H1 2023 H1 2022 H1 2021
$m $m $m $m $m
Cost of sales 144.8 133.6 157.2 117.9 100.3
Administration costs 5.7 (1.3) 5.4 5.4 19.2
Total operating costs 150.5 132.3 162.6 123.3 119.5
Freight charges (8.0) (10.6) (13.2) (15.2) (10.4)
Total operating costs less freight 142.5 121.7 149.4 108.1 109.1
Adjustments
Depreciation and amortisation (30.1) (30.5) (30.2) (30.5) (23.5)
Expected credit loss 0.7 (1.2) 0.6 (0.2) -
Share-based payments (1.5) (1.6) (1.4) (3.2) (2.1)
Mineral product inventory movements 12.8 18.8 (9.6) 27.8 3.8
Total cash operating costs 124.4 107.2 108.8 102.0 87.3
Final product production tonnes 500,800 490,800 472,600 550,700 612,100
Cash operating cost per tonne of finished product $248 $218 $230 $185 $143
Cash operating cost per tonne of ilmenite
H1 2025 H1 2024 H1 2023 H1 2022 H1 2021
$m $m $m $m $m
Total cash operating costs 124.4 107.2 108.8 102.0 87.3
Less co-products zircon, rutile and mineral sands concentrate revenue (29.4) (18.0) (50.4) (48.6) (24.0)
Total cash costs less co-product revenue 95.0 89.2 58.4 53.4 63.3
Ilmenite product production tonnes 449,400 444,100 425,500 499,700 559,000
Cash operating cost per tonne of ilmenite $211 $201 $137 $107 $113
Net debt/cash
H1 2025 H1 2024 H1 2023 H1 2022 H1 2021
$m $m $m $m $m
Bank debt (128.5) - (63.4) (93.2) (128.0)
Transaction costs (2.0) - (1.5) (3.0) (4.7)
Gross debt (130.5) - (64.9) (96.2) (132.7)
Lease liabilities (1.1) (1.4) (1.6) (1.7) (2.8)
Cash and cash equivalents 46.5 60.3 108.8 30.7 56.5
Net (debt)/cash (85.1) 58.9 42.3 (67.2) (79.0)
ROCE
H1 2025 H1 2024 H1 2023 H1 2022 H1 2021
$m $m $m $m $m
Operating profit (83.2) 32.7 80.2 74.0 58.8
Total Equity and Non-Current Liabilities 1,203 1,153 1,180 1,058 1,087
ROCE % (7%) 3% 7% 7% 5%
PAT before impairment loss
H1 2025 H1 2024 H1 2023 H1 2022 H1 2021
$m $m $m $m $m
(Loss)/profit after tax (94.2) 20.9 67.8 62.5 48.0
Impairment loss 100.3 - - - -
Profit after tax before impairment loss 6.1 20.9 67.8 62.5 48.0
Glossary – Terms
Term Description
AIFR All Injuries Frequency Rate. Provides the number of injuries at the Mine in the year, per 200,000 hours worked.
AGM Annual General Meeting
CIF 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. 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. 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.
The Company or Parent Company Kenmare Resources plc
DFS Definitive Feasibility Studies are the most detailed and will determine definitively whether to proceed with the project. A Definitive Feasibility Study will be the basis for capital appropriation, and will provide the budget estimates for the project. Definitive Feasibility Studies require a significant amount of formal engineering work and are accurate to within approximately 10–15%.
EdM Electricidade de Moçambique
EGM Extraordinary General Meeting
FOB Free on Board 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.
GHG emissions Scope 1 & 2 Greenhouse Gas emissions. The Group acknowledges the human contribution to climate change and aims to reduce emissions its already low carbon intensity operations.
GISTM Global Industry Standard of Tailings Management
Group or Kenmare Kenmare Resources plc and its subsidiary undertakings.
HMC Heavy Mineral Concentrate extracted from mineral sands deposits and which includes ilmenite, zircon, rutile and other heavy minerals and silica.
Implementation Agreement or IA 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.
Kenmare EBT Kenmare Resources plc Employee Benefit Trust
KMAD Kenmare Moma Development Association
KMML Mozambique Branch Mozambique branch of Kenmare Moma Mining (Mauritius) Limited (KMML).
KMPL Mozambique Branch Mozambique branch of Kenmare Moma Processing (Mauritius) Limited (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. Measures the number of injuries at the mine that result in time lost from work.
LTIFR Lost Time Injury Frequency Rate. Measures the number of injuries causing lost time per 200,000 hours worked on site
Marketing – finished products shipped Finished products shipped to customers during the period. Provides a measure of finished products shipped to customers
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 on the north east 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 Moçambique 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 Definitive 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.
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 Kenmare Moma Mining (Mauritius) Limited and Kenmare Moma Processing (Mauritius) Limited, wholly owned subsidiary undertakings of Kenmare Resources plc, which are incorporated in Mauritius.
Revolving Credit Facility $200 million debt facility dated 4 March 2024 between the Lenders and KMML Mozambique Branch and KMPL Mozambique Branch.
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
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 2020Recent news on Kenmare Resources
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