Kenmare Resources Plc · LSE:KMR
Kenmare Resources — TP ICAP MidCap conference 2024
37 slides from Kenmare Resources's conference presentation, May 22, 2024
Slide 1: TP ICAP MidCap conference
>» KENMARE _ RESPONSIBLY MEETING GLOBAL DEMAND FOR TP ICAP MidCap conference 22 May 2024
Slide 2: Disclaimer
Disclaimer » This Presentation (the “Presentation”) has been prepared and issued by Kenmare Resources plc (the “Company” or “Kenmare”). While this Presentation has been prepared in good faith, the Company and its respective officers, employees, agents and representatives expressly disclaim any and a
Slide 3: Moma Mine Mozambique
➢ ➢ ➢ ➢ Moma Mine ➢ ➢ Mozambique ➢ Moma ➢ Mine ➢ ➢
Slide 4: Mineral sands: essential to modern life
Mineral sands: essential to modern life > Two core product streams: titanium feedstocks and zircon Titanium feedstocks (ilmenite and rutile) World GDP vs TiO, pigment consumption’ » TiO, pigment imparts whiteness and opacity in the o 6 450 %X manufacture of paints, plastics and paper ge 300 z > Non-
Slide 5: Creating sustainable competitive advantage
Creating sustainable competitive advantage > Strategic priorities and recent performance ° Safe and engaged workforce ° Thriving communities 6mths ° Healthy natural environment WORKED WITHOUT A ° Trusted business LOST TIME INJURY * 18 quartile industry position 9 8 6 kt LOW COST * >100 years of Mine
Slide 6: Financial review
Financial review >» KENMARE Mineral Separation Plant
Slide 7: Robust cash flow generation in 2023
Robust cash flow generation in 2023 >» Average price ($/t) Revenue (FOB) 463 ' 418 od = 421 272 Hae 248 | all H H 2019 2020 2021 2022 2023 2019 2020 2021 2022 2023 : EBITDA ($m) Net profit ($m) soll +s (a a 2019 2020 2021 2022 2023 2019 2020 2021 2022 2023 Kenmare Resources — TP ICAP MidCap conferen
Slide 8: >$250m shareholder returns since 2019
>$250m shareholder returns since 2019 >» Cumulative dividends of $140m and share buy-backs of $113m ~ Dividend profile (USc/share) 7 ~ Dividend policy established in 2018 Interim | Final > Dividend policy to pay out 20-40% of underlying profit after tax 56.0 54.3 » Proposed 2023 dividend of 38% of p
Slide 9: New debt facilities provide enhanced flexibility
New debt facilities provide enhanced flexibility Overview of new Revolving Credit Facility (RCF) Quantum Interest rate Term $200m SOFR + 4.85% 5 years New debt facilities secured in Q1 2024 include more favourable terms and extended maturity >» Features of new $200 million RCF include: > > > > Incre
Slide 10: Balancing capital returns and investment plans
Balancing capital returns and investment plans Capital allocation priorities CORE Capital requirements Financial flexibility Dividend policy Sustaining capital Non-discretionary capital (i.e. WCP A transition) New $200m RCF available until 2029 Invoice discount facilities in place - currently unused
Slide 11: Wet Concentrator Plant B
>» KENMARE = = wee ray ts RE tee re ee Wet Concentrator Plant B
Slide 12: A globally significant titanium minerals mine
A globally significant titanium minerals mine >» Moma Mine operating schematic Mining Processing 7 Storage and export electrostatic separation 1. 22. 3. 4, 5. Evaluation Mining Wet Concantrator Dune Heavy Mineral Plant (WCP) Rehabilitation Concentrate Low cost, bulk mining operation Long life asset
Slide 13: ~1Mt ilmenite production in 2024
~IMt ilmenite production in 2024 > Production outlook for 2024 and beyond 2024 > 2024 production is expected to be in line with 2023 > Ilmenite production guidance of 950,000 to 1,050,000 tonnes, reflecting higher excavated ore volumes offset by lower grades > Production to be H2 weighted, driven by
Slide 14: Securing future production at Moma
Securing future production at Moma > No significant relocation costs post WCP A transition to Nataka ‘Mineral Resource by ore zone (THM Mt) WCP A upgrade and transition to Nataka >» Moving WCP A to Nataka unlocks the majority of Kenmare’s 9.0bnt Mineral Resources, securing production at Moma for dec
Slide 15: WCP A comfortably funded with existing facilities
WCP A comfortably funded with existing facilities >» Overview of capital costs for WCP A's transition to Nataka Capital breakdown and implementation dates 4 Tailings Storage Facility (H1 2025) WCP A capex of up to $341m $36m > DFS for WCP A Infrastructure scheduled to be WPA Peon CH12025) completed
Slide 16: First quartile margin position
First quartile margin position > Kenmare’s position in the titanium minerals industry relative to peers Mineral sands industry revenue to cash cost curves Nn oO FF ODN © —_—. < 0% 25% 50% 75% 100% —2013 —=—2018 ——2021 > TZMI industry cost analysis puts Kenmare in the first quartile for 2021 > Mainta
Slide 17: Zircon product warehouse
BD >» KENMARE RESOURCES PLC Zircon product warehouse -
Slide 18: Titanium feedstock market
Titanium feedstock market > Titanium feedstock uses and suppliers " Titanium feedstock uses! - Titanium feedstock market share? Welding and Other, 5% Titanium Metal, 5% Other, Rio Tinto, 21% 19% Other, 11% Paper, a 6% Paint & coatings, 50% Tronox, 8% g Kenmare, China 1% IImenite, lluka,4% TiO2 pigme
Slide 19: Structural undersupply in TiO2 market
Structural undersupply in TiO, market >» Supply constraints support demand for titanium feedstocks Supply/d d balance (000 TiO, units) 4,000 2018 2019 2020 2021 2022 2023f 2024f 2025f 2026f 2027f MMM Existing Supply Feedstock demand Demand growth exceeding expected supply growth > 1.5Mt TiO, units (
Slide 20: Improved ilmenite demand expected in 2024
Improved ilmenite demand expected in 2024 > Overview of markets for titanium feedstocks and zircon Titanium feedstocks > Robust market for Kenmare’s products Q1 2024, with stronger than expected demand, particularly for the Company’s ilmenite products > Demand from the titanium pigment industry rebo
Slide 21: >» KENMARE
>» KENMARE
Slide 22: Sustainability is core to Kenmare's business
Sustainability is core to Kenmare’s business > Kenmare has four sustainability-focused strategic pillars Safe and engaged workforce WORKFORCE 4 The safety of its workforce is the primary concern that drives Kenmare’s day-to-day decision making and work. A healthy natural environment Kenmare takes an
Slide 23: Strong safety performance
Strong safety performance » Safe and engaged workforce: 2023 highlights Employee safety is Kenmare’s highest priority > After an increase in Lost Time Injuries (LTIs) in early 2023, action was taken to improve performance > This led to zero LTIs in Q4 2023 and Q1 2024 > Moma workforce now passed >4
Slide 24: KMAD has invested $20m in community initiatives
KMAD has invested $20m in community initiatives >» 3 Third community health 4 : Six' new classrooms 22 new small businesses centre constructed built, bringing total to ~100 supported, bringing total to Three water systems installed - - First graduates from KMAD- 135 scholarships provided, or repaire
Slide 25: Low environmental impact
Low environmental impact : >90% electricity provided by > No toxic chemicals used in renewable sources ' operations 14% reduction in emissions in 2023, mainly due to RUPS' 1. Rotary Uninterruptible Power Supply Kenmare Resources — TP ICAP MidCap conference presentation, May 2024 Ep rogressive land r
Slide 26: Centro de Integridade Pública
➢ ➢ ➢ ➢ Centro de Integridade Pública
Slide 27: Jetty with transshipment vessel
Jetty with transshipment vessel >» KENMARE
Slide 28: Moving forward with confidence
Moving forward with confidence >» Investing in future production to maintain first quartile industry position Resilient long-term production profile - Maintaining first quartile industry position * One of the world’s largest titanium minerals deposits * EBITDA margin of 50% in 2023 * >100 years of M
Slide 29: Appendices
Appendices >» KENMARE
Slide 30: 2024 production guidance
2024 production guidance’ » 2024 ilmenite production expected to be in line with 2023 2024 Guidance 2023 Actual IImenite tonnes 950,000-1,050,000 986,300 Primary zircon tonnes 45,000-50,000 51,100 Rutile tonnes 8,000-9,000 8,400 Concentrates” tonnes 37,000-41,000 45,700 Ee Total cash operating costs
Slide 31: Strong 50% EBITDA margin in 2023
Strong 50% EBITDA margin in 2023 > 2023 Income Statement review venue by product (%) - 2023 vs 2022 Rutile, Rutile, Concentrates, 3% Concentrates, \ —— 2023 2022 7% $ million $ million : Zircon, Mineral product revenue 4371 498.4 18% IImenite, Freight revenue 214 276 10% Total revenue 458.5 526.0 20
Slide 32: Average product price above $400/t in 2023
Average product price above $400/t in 2023 >» Overview of Kenmare's product markets in 2023 : Average price received for Kenmare’s products ($/t) 4 800 600 Shipment volumes (000' tonnes) :~ ro) ro) oO ro) ro) S per tonne (FOB) H12019 H22019 H12020 H22020 H12021 H22021 H12022 H22022 H12023 H2 2023 Ma
Slide 33: Q1 production consistent with 2024 guidance
Q1 production consistent with 2024 guidance >» Q1 2024 production review Heavy Mineral Concentrate (HMC) IImenite 316,400t 205,500t 0% 1% Q1 2023: 315,000t Q1 2023: 204,300t Primary zircon Rutile 8,300t 1,500t -27% -12% Q1 2023: 11,400t Q1 2023: 1,700t Concentrates Shipments 9,600t 242,500t -5% -1%
Slide 34: Transforming WCP A's capabilities for Nataka
Transforming WCP A's capabilities for Nataka >» High volume, low-cost mining plan for Nataka Majority of WCP A will be new equipment Integrated hydromining trial > Existing dredges replaced with higher capacity dredges - removing the need for dry mining > New desliming circuit, screens and surge bin
Slide 35: Kenmare's rare earth elements
Kenmare’s rare earth elements > Rare earths are considered critical minerals Kenmare’s monazite is high in valuable rare earth elements La203 = Nd203 a a > Most valuable elements include neodymium, 8 praseodymium and dysprosium BY203 = §m203 Rare earths are vital to the energy transition > Essential
Slide 36: Follow Kenmare on social media
Follow Kenmare on social media > Facebook, Twitter and LinkedIn ENMARE 9\ JRCES PLO \ KENMARE Oe > Kenmare has profiles on Facebook, Twitter and LinkedIn, which feature regular updates on our sustainability initiatives, operational and development milestones, news flow and more » Click the name of t
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