Kenmare Resources plc (LSE:KMR, ISE:KMR), one of the leading global producers of titanium minerals and zircon, which operates the Moma Titanium Minerals Mine (the "Mine" or "Moma") in northern Mozambique, today announces its preliminary results for the 12 months to 31 December 2024.

Statement from Tom Hickey, Managing Director:

"In 2024, Kenmare delivered EBITDA of $157 million, supporting our ability to fund our capital programme and continue to make shareholder distributions. As such, the Board is proposing a full year dividend of USc32 per share for 2024, bringing shareholder distributions to $295 million since 2019.

With 2025 well underway, we are on track to achieve our annual production guidance. Production in Q1 has been impacted by the southern hemisphere rainy season but it is expected to strengthen from Q2 onwards. Demand for our products remains healthy, with ilmenite prices beginning to stabilise after a weaker 2024.

Kenmare has always taken a long-term view on our operations and relationships in Mozambique. In negotiating the extension under our Implementation Agreement, we have proposed changes to the applicable investment regime, seeking to balance the Company's interests with the Government's desire to support economic development and secure an increased contribution to Mozambique.

As previously announced, Kenmare received a possible offer for the Company from a consortium consisting of Oryx Global Partners and former Managing Director Michael Carvill. While the Board rejected the offer on the basis it undervalued the business and its prospects, access to limited due diligence information has now been provided with the aim of improving the financial terms of the consortium's proposal. We will provide further updates to the market on the possible offer as appropriate.”

2024 overview

Financial

• Recommended 2024 dividend of $28.6 million or USc32.00 per share (2023: USc56.04), comprising an interim dividend of USc15.00 per share (paid in October 2024) and a final dividend of USc17.00 per share (payable in May 2025)
• Mineral product revenue of $392.1 million, down 10% year-on-year ("YoY”) due to a 14% decrease in the average price received for Kenmare's products, partially offset by a 4% increase in shipments
• Total cash operating costs of $243.6 million, up 7% YoY, due primarily to increased labour costs and a 2% increase in production of finished products
• Cash operating costs per tonne of $219, up 5% YoY, due to higher total cash operating costs, partially offset by stronger production volumes
• EBITDA of $157.1 million, representing a strong EBITDA margin of 40%, despite weaker product pricing driving a 29% decrease YoY
• Profit after tax of $64.9 million, down 50% YoY
• Net debt of $25.0 million (2023: $20.7 million net cash) due to on-going development capital expenditure
•  

Operational and corporate

• Strong safety performance achieved in Q4 2024 has continued in Q1 2025, with no Lost Time Injuries ("LTIs”) incurred year-to-date and the milestone of four million hours worked without an LTI passed in mid-March
• Kenmare exceeded the midpoint of production guidance for ilmenite and the upper end of the guidance range for primary zircon, rutile and concentrates in 2024
• Heavy Mineral Concentrate ("HMC”) production of 1,446,600 tonnes in 2024, broadly in line with 2023, due to record excavated ore tonnes offset by lower ore grades
• Ilmenite production of 1,008,900 tonnes in 2024, a 2% increase YoY due to higher ilmenite content in the HMC and stronger recoveries
• Shipments of finished products of 1,088,600 tonnes in 2024, up 4% YoY, benefitting from strong customer demand
• Ilmenite production guidance for 2025 is 930,000 to 1,050,000 tonnes
• Work on the Wet Concentrator Plant ("WCP”) A upgrade advanced in 2024, with commissioning to begin in Q3 2025
• Commissioning of Selective Mining Operation ("SMO”) underway at Moma
• Demand continues to be strong for all Kenmare products in early 2025 and although ilmenite prices are lower than in H2 2024, they look to be stabilising
• In connection with the Implementation Agreement ("IA”) extension, Kenmare has proposed certain modifications to the applicable investment regime to obtain the agreement of the Government, notwithstanding its clear right to such an extension - discussions are continuing and Kenmare's existing rights and benefits remain in full force and effect pending conclusion of the extension process
• As announced on 6 March, Kenmare received a non-binding proposal from Oryx Global Partners Limited ("Oryx”) and Michael Carvill (together, "the Consortium”)