REG-Q4 2025 Production Report and 2026 Guidance

Kenmare ResourcesAnnouncement

21/01/2026 07:00

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Kenmare Resources plc 
(“Kenmare” or the “Company” or “the Group”)

21 January 2026

Q4 2025 Production Report and 2026 Guidance

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, is pleased to provide a
trading update for the full year 2025 and the fourth quarter ending 31
December 2025 (“Q4 2025”) as well as production and operating cost
guidance for 2026.

Statement from Tom Hickey, Managing Director:

“We achieved our revised 2025 production guidance for ilmenite and rutile
and achieved and exceeded our original guidance for primary zircon and
concentrates respectively. Commissioning of Wet Concentrator Plant (“WCP”)
A has continued to advance during the past month, following the challenges
reported in Q4, and we continue to target nameplate capacity operations at WCP
A on a consistent basis in Q1 2026. Capital expenditure will be significantly
reduced in the year ahead, with approximately $30 million expected to be
incurred at WCP A and lower sustaining capex than in 2025.

In light of current industry outlook, our primary operating focus for 2026
will be on value over volume, representing a shift from the historical focus
on maximising production. Under this approach, we will be producing sufficient
volumes to achieve product shipments of at least 1.1 million tonnes, an
increase of over 15% year-on-year, which will unlock the value of the working
capital contained in our current product inventories. Annual production
guidance for 2026 is therefore lower than in recent years and we will also
seek to limit operating costs, where possible.

Demand for Kenmare’s products remained stable in 2025 and we have a strong
order book for Q1 2026. However, continued uncertainty regarding market
conditions in the medium term has led us to further reduce our pricing
assumptions. Consequently, we expect to recognise an impairment charge on our
assets in 2025 that is not anticipated to exceed $300 million for the year,
inclusive of the impairment loss recorded at half-year. This will be a
non-cash charge with no anticipated impact on our operations, projects or
financing facilities or the Company’s ability to pay dividends.”

Overview
* Lost Time Injury Frequency Rate (“LTIFR”) of 0.07 per 200,000 hours
worked to 31 December 2025 (31 December 2024: 0.06), with two Lost Time
Injuries (“LTIs”) in Q4 2025
* Heavy Mineral Concentrate (“HMC”) production of 1,233,300 tonnes in
2025, down 15% year-on-year (“YoY”), due primarily to lower excavated ore
volumes relating to the upgrade work to Kenmare’s largest mining plant, WCP
A
* Ilmenite production of 842,300 tonnes in 2025, down 17% YoY, due to lower
volumes of HMC processed
* Shipments of finished products of 947,900 tonnes in 2025, down 13% YoY –
two shipments were partially loaded at year-end, meaning they will be
reflected in H1 2026 shipping volumes
* Net debt of $158.8 million at 31 December 2025 (2024: $25.0 million), with
the increase due primarily to peak capital expenditure spent on the WCP A
upgrade project during the year of approximately $156 million
* The Company expects to recognise an impairment charge on its assets in 2025
that is not anticipated to exceed $300 million, inclusive of the impairment
charge declared in H1 2025
* Significantly reduced capital expenditure expected to be incurred in 2026,
with approximately $30 million planned to be incurred on the WCP A upgrade
project and $30 million of sustaining capital– discretionary capital items
are being deferred during this period of higher net debt and weaker product
markets
* Demand for Kenmare’s products was stable in 2025, although prices declined
throughout the year due to market oversupply – Kenmare has a strong order
book for Q1 2026 but this is likely to reflect weaker market pricing than
experienced in 2025
* Total shipments are expected to be in excess of 1.1 million tonnes in 2026
– Kenmare intends to undertake a significant draw down of its finished
product stockpiles by adjusting production
* In line with this approach, Kenmare expects ilmenite production in 2026 to
be in excess of 800,000 tonnes
* Lower total cash operating costs are expected in 2026, compared to 2025, in
the range of $215 million to $225 million (at the minimum production guidance
level) due to lower production volumes, the reduced use of dry mining and the
implementation of other cost saving opportunities
* Ongoing engagement with the Government of Mozambique regarding the extension
of Moma’s Implementation Agreement (“IA”), including a second
Presidential meeting in November 2025
Operations update

Operational results for the Moma Mine in Q4 and full year 2025 were as
follows:

                    Q4 2025          vs Q4 2024  vs Q3 2025  2025         vs 2024   
                    Tonnes/%THM (1)  % change    % change    Tonnes/%THM  % change  
 Excavated ore (2)  9,215,000        -11%        3%          36,958,000   -10%      
 Grade (2)          3.36%            -32%        -17%        4.04%        -3%       
 Production                                                                         
 HMC produced       264,300          -39%        -11%        1,233,300    -15%      
 HMC processed      267,700          -39%        -5%         1,215,300    -16%      
 Ilmenite           183,400          -40%        -12%        842,300      -17%      
 Primary zircon     10,600           -28%        -14%        50,000       -1%       
 Rutile             1,900            -34%        6%          8,600        -12%      
 Concentrates (3)   62,400           457%        193%        103,100      124%      
 Shipments          231,600          -25%        2%          947,900      -13%      
1. Total Heavy Mineral
2. Excavated ore and grade prior to any floor losses
3. Concentrates include secondary zircon, mineral sands concentrate and a new
concentrates by-product, ZrTi
Kenmare’s rolling 12-month LTIFR to 31 December 2025 was 0.07 per 200,000
hours worked (31 December 2024: 0.06). While two relatively minor LTIs were
incurred in Q4 2025, Kenmare achieved its lowest ever All Injury Frequency
Rate of 0.75 (2024: 0.93) to 31 December, supported by its Trabalho Seguro
(Safe Work) initiative.

HMC production in Q4 2025 was 264,300 tonnes, down 39% YoY. This was due to a
32% decrease in ore grades following the elimination of dry mining at WCP A,
which previously targeted high-grade areas, as a cost management initiative,
and a lower than expected contribution from dry mining at WCP B. Excavated ore
volumes were also down 11%, largely due to the slower than anticipated
production ramp up of WCP A following the upgrade work.

HMC production in 2025 was 1,233,300 tonnes, down 15% YoY, due primarily to
lower excavated ore volumes relating to the WCP A upgrade work. Ore grades
were down 3% YoY, with higher grades mined at WCP B in Pilivili partially
offset by WCP A approaching the end of its mine path in Namalope.
Encouragingly, the Selective Mining Operation (SMO) met its expected
production rate of 50,000 tonnes in 2025, benefitting from a strong Q4
performance.

Production of finished products was significantly lower in Q4 2025 than in Q4
2024, largely due to lower HMC processed as a result of reduced HMC
availability. Ilmenite production was 183,400 tonnes, down 40% YoY, broadly in
line with the reduction in HMC processed. Primary zircon production was 10,600
tonnes, down 28% YoY, and rutile production was 1,900 tonnes, down 34% YoY,
also largely due to the reduced HMC processed, but offset by significantly
improved recoveries and drawdown of some intermediate stocks for processing.
Concentrates production in Q4 2025 was 62,400 tonnes, up 457% YoY, due to the
reprocessing of historical stockpiles delivering Kenmare’s new concentrates
product, ZrTi. Kenmare expects to be able to continue to reprocess these
stockpiles for the next two years, significantly supplementing ongoing ZrTi
production during this time. Following successful trial shipments of ZrTi in
2025, Kenmare now sees it as a valuable by-product. Consequently, ZrTi will be
included in the Company’s routine production disclosure, instead of only
being recognised as production when it is shipped, as was the case during its
market trial period.

Kenmare achieved revised 2025 production guidance for ilmenite and rutile and
original production guidance for primary zircon. The Company materially
exceeded original production guidance for concentrates.

Total production of finished products was 1,004,000 tonnes, down 10% YoY
(2024: 1,115,300 tonnes), impacted by a 16% decrease in HMC processed.
Ilmenite production was 842,300 tonnes in 2025, down 17% YoY, broadly in line
with the reduction in HMC processed. Primary zircon production was 50,000
tonnes, down only 1% YoY, with the lower HMC processed largely offset by the
decision to reprocess intermediate stockpiles and attain higher recoveries.
Rutile production was 8,600 tonnes, down 12% YoY, with the lower HMC processed
also partially offset by reprocessing of intermediate stockpiles. Concentrates
production was 103,100 tonnes (including 59,960 tonnes of ZrTi in 2025), up
124% YoY, benefitting from the incorporation of ZrTi in production metrics.

Shipments in Q4 2025 were 231,600 tonnes, down 25% YoY, due primarily to
slower loading rates on initial ZrTi shipments. Shipment volumes in Q4 2025
comprised 158,600 tonnes of ilmenite, 28,500 tonnes of primary zircon, 6,900
tonnes of rutile and 37,600 tonnes of concentrates.

Total shipments in 2025 were 947,900 tonnes, down 13% YoY, due primarily to
poor weather conditions in H1 and the Peg transshipment vessel going into its
five-yearly dry dock for maintenance work between June and September. Although
shipment volumes in H1 were slightly stronger than in H2, the product mix was
higher value in the second half of the year, as expected, with 35,500 tonnes
of primary zircon shipped in H2 (H1: 14,700 tonnes) and 10,600 tonnes of
rutile (H1: Nil). Kenmare also shipped 23,900 tonnes of ZrTi in 2025, which is
included in concentrates production, and has identified significant ongoing
demand for this product. Shipments during the year comprised 820,600 tonnes of
ilmenite, 50,200 tonnes of primary zircon, 10,600 tonnes of rutile, and 66,600
tonnes of concentrates.

Closing stock of HMC at the end of 2025 was 29,200 tonnes, compared with
14,100 tonnes at the start of the year. Closing stock of finished products at
the end of 2025 was 344,000 tonnes, compared with 287,200 tonnes at the end of
2024. This includes approximately 30,000 tonnes of ilmenite partially loaded
at year-end. Kenmare had higher than usual levels of finished product stock at
year-end and shipments are expected to materially exceed production in 2026,
driving a significant reduction in finished product inventories.

Post period-end, several southern provinces of Mozambique have been impacted
by severe flooding. Kenmare’s operations are located in northern Mozambique
and have not been materially affected to date, with electricity provision from
the grid network remaining stable. The Moma area has experienced heavy rains,
which are not unusual at this time of year, and some local roads have been
impacted. Kenmare has adjusted its regular supply and logistics arrangements
where necessary to address this. Similarly, there has been minimal impact on
local communities to date, with no damage to homes or other infrastructure.

Capital projects update

Kenmare has completed all major construction and installation work associated
with the upgrade of its largest mining plant, WCP A, ahead of its transition
to the Nataka ore zone. The Company is now in the final stages of the
commissioning and ramp up process. WCP A’s transition to Nataka is essential
to securing Kenmare’s production for decades to come. WCP A will mine in
Nataka for the remainder of its economic life, which is expected to exceed 20
years.

The capital cost estimate for the WCP A upgrade, transition to Nataka and
associated infrastructure remains unchanged at $341 million, with unallocated
contingency remaining within that figure. Project capital spend in 2025 was
approximately $156 million, with an additional $12 million incurred that will
be paid in 2026. At year-end, approximately $280 million of the project
capital for the WCP A upgrade had been incurred, representing approximately
82% of the estimated total spend, in line with expectations. Capital
expenditure on the WCP A project is scheduled to reduce significantly from
2026 onwards, with approximately $30m expected to be spent in 2026 (including
the $12 million mentioned above). The remaining approximately $40 million of
project capital largely relates to infrastructure within the Nataka area and
is planned to be invested between 2027 and 2032.

While overall progress on the commissioning of WCP A in Q4 2025 was positive,
some elements of the commissioning process have taken longer than anticipated,
which impacted 2025 production. The ramp up of WCP A is continuing and
remedial measures implemented in Q4 are working well. As the commissioning
process has progressed, additional bottlenecks have been identified and the
Company is undertaking a range of low-cost rectification measures in Q1 to
achieve a sustainable nameplate capacity of 3,500 tonnes per hour. The
extended ramp up of WCP A is not expected to impact 2026 ilmenite sales due to
Kenmare’s relatively high product inventories.

Market update

Demand for all of Kenmare’s products remained stable in Q4 2025, although
pricing continued to decline. This is due to the global titanium feedstocks
and zircon markets remaining over-supplied, despite some reduction in supply
during the year.

Globally, demand for titanium feedstocks softened in 2025, as weak housing
markets and low consumer confidence led to a reduction in pigment production
in Europe and China, with sales of paint and coatings remaining subdued.

Chinese pigment production in 2025 remained broadly in line with 2024.
Elevated sulphuric acid prices in China supported the shift towards chloride
pigment production, which reached record output levels in Q4. This supports
demand for ilmenite suitable for beneficiation, which includes all of
Kenmare’s ilmenite products. Some western pigment producers reduced
production capacity during 2025, with closure and idling of several pigment
plants.

Increasing production of domestically-mined ilmenite in China, together with
higher production of ilmenite from concentrates from outside China, continued
to negatively impact feedstock prices. In response to this surplus supply,
some mining companies have suspended or reduced production.

The zircon market remained subdued in Q4 2025, although demand for all of
Kenmare’s zircon products continued to exceed the Company’s ability to
supply and Kenmare finished the year with near-zero inventories. Global zircon
prices declined during Q4, due to increased supply and acceptance from
customers of lower-quality zircon contained in concentrates. Encouragingly,
however, prices in China appeared to have stabilised towards the end of Q4 due
to reduced supply.

Kenmare has a strong order book for Q1 2026 and the Company continues to see
robust demand for its products, despite continued market softness. However,
elevated feedstock inventories held by both western and Chinese pigment
producers are expected continue to impact demand and pricing in 2026. These
factors have led Kenmare and external commentators to take a more conservative
view on the likely timing and scale of pricing recovery and market growth in
the medium term, however adjustments to long-term assumptions are more modest.

Finance and corporate update

Financial position

Kenmare had cash and cash equivalents of $48.6
million at year-end (2024: $56.7 million). Gross bank loans, including
accrued interest, were $206.4 million (2024: $80.4 million) and lease
liabilities were $1.0 million (2024: $1.3 million). As a result, the Company
had net debt of $158.8 million at year-end (2024: $25.0 million).

The increase in net debt is due primarily to peak capital expenditure on the
WCP A upgrade project during the year of approximately $156 million of cash
spent, and the Company also made dividend payments of $24.1 million. Net debt
is expected to remain elevated through 2026.

Unfortunately, invoices totalling $9.3 million for shipments made to a
customer in Q3 remain unpaid and Kenmare is pursuing all avenues for
recovery, primarily on the basis of its retention of title. The shipments in
question were delivered to two separate customer operations, which are subject
to individual restructuring and sales processes. Kenmare understands that
these sales processes are ongoing, with one at an advanced stage. 

Kenmare is meeting its funding obligations through operating cash flows,
available current assets and its $200 million Revolving Credit Facility
(“RCF”). In late 2025, following a request by the Company, Kenmare’s
lenders granted a reset of the net debt to EBITDA covenant under its RCF,
including adjusting the full year 2025 covenant to a level of 3.0x. These
adjustments are intended to maintain ongoing covenant compliance through this
period of elevated net debt.

Impairment charge and inventory valuation in 2025 Preliminary Results

Lower revenue assumptions associated with the continued uncertain pricing
outlook outlined above are expected to result in a lower estimated recoverable
value attributable to Kenmare’s mining and processing assets as at 31
December 2025. Accordingly, as this value is less than the carrying value of
property, plant and equipment, an impairment will be recognised in Kenmare’s
2025 Preliminary Results. This impairment, which also reflects the latest
amendments to the IA proposed by the Company (but not yet ratified by the
Government), and includes amounts recognised at the half year ($100.3
million), is not expected to exceed $300 million at the consolidated Group
level. This is non-cash charge and does not impact Kenmare’s continuing
operations, development programmes, ability to pay creditors or dividends, or
debt covenant compliance.

Should circumstances permit, there is scope for this impairment to be reversed
in future periods. Further details will be provided in the 2025 Preliminary
Results.

The expected realisable market value of Kenmare’s ilmenite stocks is also
impacted by the weaker pricing outlook, and in certain cases is now estimated
to be below its cost of production. Accordingly, the carrying value of the
stocks will be reduced to its net realisable value in the 2025 Preliminary
Results, leading to an adjustment of approximately $15 million.

Implementation Agreement

The IA governs the terms under which Kenmare conducts its mineral processing
and export activities. Although the IA’s original expiry date 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.

Moma’s IA continues to be a key focus and Kenmare’s Managing
Director, Tom Hickey, met with the President of Mozambique twice in 2025,
first in June and then in late November. On both occasions the President
emphasised Moma’s importance to Mozambique and stressed the Government’s
intention to renew the IA, however the ongoing delay and uncertainty remains a
significant concern.

Kenmare continues to engage with the Government, while reserving the right to
safeguard its contractual entitlements, up to and including arbitration, if an
agreement cannot be reached.

Appointment of Katia Ray to Board of Directors

Kenmare appointed Ekaterina (Katia) Ray as an independent Non-Executive
Director in October 2025, as previously announced. Katia has over 25 years of
senior-level experience in the mining sector, including with FTSE 100
companies in Europe, Africa, North America and Asia. Her experience covers a
range of commodities, such as industrial minerals, diamonds and platinum group
metals.

2026 guidance

2026 guidance for production and operating costs is as follows:

                                           Unit    2026 Guidance           2025 Actual  
 Shipments                                 tonnes  In excess of 1,100,000  947,900      
 Production                                                                             
 Ilmenite                                  tonnes  In excess of 800,000    842,300      
 Primary zircon                            tonnes  In excess of 41,000     50,000       
 Rutile                                    tonnes  In excess of 7,500      8,600        
 Concentrates (1)                          tonnes  In excess of 81,000     106,200      
 Costs                                                                                  
 Total cash operating costs                $m      215-225 (2)             N/R (3)      
 Cash costs per tonne of finished product  $/t     240-250 (2)             N/R (3)      
1. Concentrates include secondary zircon, mineral sands concentrate and ZrTi
2. Based on minimum 2026 production guidance 
3. To be reported in full year financial statements
Kenmare’s focus in 2026 will be to deliver shipment volumes in excess of
1,100,000 tonnes, which represents more than a 15% uplift compared to 2025.
Shipments are planned to include a significant draw down of finished product
inventories.

The Company intends to produce lower volumes of finished products in 2026 than
it has in recent years to minimise operating costs and accelerate the drawdown
of finished product stocks. Consequently, ilmenite production is expected to
be a minimum of 800,000 tonnes, with corresponding reductions in the
production of primary zircon and rutile. Production will be flexed upwards
from this minimum guidance level to meet market demand once inventory levels
have normalised. The reprocessing of tailings to produce ZrTi is expected to
supplement concentrates production and as such, concentrates production is
expected to be in excess of 81,000 tonnes in 2026.

Constraining production in 2026 will allow the Company to target a reduction
in operating costs compared to 2025, in line with its value over volume
approach. Kenmare’s guidance for total cash operating costs in 2025 was $228
million to $252 million; operating costs for 2025 will be within this range
and full details will be provided in the 2025 Preliminary Results. Kenmare has
also conducted a thorough assessment of its cost structure and identified some
opportunities to further decrease operating costs in 2026, including
minimising the use of dry mining. A retrenchment process in respect of
approximately 15% of its workforce was also initiated in Q4 2025; while
regretted, this is a necessary and proportionate response to the challenges
currently being experienced by Kenmare and the wider industry. Total cash
operating costs in 2026 are therefore expected to be from $215 million to $225
million, with cash costs per tonne of finished product of $240 to $250, at the
minimum production guidance.

Expenditure on the WCP A upgrade project is expected to be $30 million in
2026; this includes approximately $12 million that was incurred in 2025 and
that will be paid in 2026. The WCP A project remains on budget, with a total
cost estimate of $341 million. Sustaining capital costs in 2026 are expected
to be approximately $30 million, which is lower than in 2025. Kenmare is
committed to maintaining a strong and flexible balance sheet and ensuring it
is well-positioned for a recovery in its product markets, therefore will seek
to defer discretionary capital cost items wherever practicable and safe to do
so.

Private investor webinar via Investor Meet Company

Kenmare will host a webinar for private investors via Investor Meet
Company at 2:00pm UK time today (21 January 2026).

Questions can be submitted via the Investor Meet Company dashboard at any
time during the live presentation.

Investors can sign up to Investor Meet Company for free and register for the
Kenmare webinar at:
https://www.investormeetcompany.com/kenmare-resources-plc/register-investor

Investors who already follow Kenmare on the Investor Meet Company platform
will automatically be invited.

Notice of 2025 Preliminary Results

Kenmare plans to release its 2025 Preliminary Results on 25 March 2026.

For further information, please contact:

Kenmare Resources plc
Katharine Sutton / David Weeks
Investor Relations
ir@kenmareresources.com
Tel: +353 1 671 0411
Mob: +353 87 663 0875

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.

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.

The financial information provided in this announcement is unaudited