Slide 1: 2021 Results Presentation
RESPONSIBLY MEETING GLOBAL DEMAND FOR QUALITY-OF-LIFE MINERALS 2021 Results Presentation 23 March 2022
Slide 2: Disclaimer
Disclaimer This Presentation (the “Presentation”) has available in connection with the Company. not prove to be correct and there can be no been prepared and issued by Kenmare assurance that any projected results are This Presentation does not constitute or form Resources plc (the “Company” or “Kenm
Slide 3: Agenda
Agenda Introduction Michael Carvill, Managing Director Financial review Tony McCluskey, Finance Director Operational review Ben Baxter, Chief Operations Officer Market update Michael Carvill, Managing Director Outlook Michael Carvill, Managing Director Questions? Kenmare Resources – 2021 Results Pre
Slide 4: Creating sustainable competitive advantage
Creating sustainable competitive advantage Strategic priorities OPERATE • • Safe and engaged workforce Thriving communities 0.03 LOST TIME INJURY • Healthy natural environment RESPONSIBLY • Trusted business FREQUENCY RATE - RECORD LOW DELIVER LONG LIFE, • >100 years of Mineral Resources provides sig
Slide 5: Enhanced sustainability strategy
Enhanced sustainability strategy Short and medium-term KPIs available in Sustainability Report (to be published in early April) Safe and engaged workforce Thriving communities Taking a proactive approach to safety and ensuring we Minimising risk and maximising social and economic attract, develop, a
Slide 6: Record revenues, profits, and shareholder returns
Record revenues, profits, and shareholder returns Operational and financial highlights Other highlights Projects Shipments (Mt) Sales price (FOB) ($/t) 2021 Dividends RUPS1 327 1.3 1.1 272 1.0 1.0 248 0.9 200 229 Up 227% Commissioning 2021: USc32.7/sh Currently in (2020: USc10.0/sh) progress 2017 20
Slide 7: Financial review
Financial review Tony McCluskey, Finance Director Mineral Separation Plant
Slide 8: $216m EBITDA in 2021
$216m EBITDA in 2021 2021 Income Statement review 2021 2020 Revenue by product (%) – 2021 vs 2020 $ million $ million Ilmenite Revenue 455.9 243.7 79% Ilmenite 72% Freight costs (35.4) (12.2) Revenue (FOB)1 420.5 231.5 2021 2020 Cost of sales and other operating Rutile Rutile costs (303.0) (209.4) 1
Slide 9: Stronger prices received for all products in 2021
Stronger prices received for all products in 2021 2021 product price and shipping (FOB)1 review Commodity price movements ($/t, FOB)1 Strong pricing in 2021 $400/t $1,600/t Average and Ilmenite price 21% increase in average sales price (FOB)1 to $327/t in 2021 (2020: $272/t) $300/t $1,200/t Zircon
Slide 10: Lower unit costs in 2021
Lower unit costs in 2021 2021 cash operating costs reconciliation Unit 2021 2020 Cost of sales $m 245.0 179.1 20% increase in cash operating costs, Other operating costs1 excluding freight $m 22.6 18.1 mainly due to costs relating to higher Total costs excluding freight 267.6 197.2 production, rep
Slide 11: Significant increase in cash flow from operations
Significant increase in cash flow from operations Operating cash flow per share 160 146p/sh 140 Operating cashflow per share (p/share) 120 100 80 65p/sh 65p/sh 60 50p/sh 43p/sh 40 20 0 2017 2018 2019 2020 2021 Cash flow per share +192% in 2021 Kenmare Resources – 2021 Results Presentation 11
Slide 12: Increased cash flow, lower capex and higher returns
Increased cash flow, lower capex and higher returns Movement in net debt • Dividends • Interest • Share buy- • Leases back • FX • RUPS • WCP B • Receivables • Studies • Payables • Sustaining • Other Strong operating cash flow in 2021 due to higher production/sales and improved pricing ~$100m ret
Slide 13: Strong and flexible balance sheet
Strong and flexible balance sheet Balance sheet review 31-Dec-2021 31-Dec-2020 $ million $ million PPE additions of $60.3m, down from $114m in 2020 Inventory down $3.5m Property, plant and equipment 956.7 961.7 Decreased mineral stocks of $9.3m (due to lower Inventory 60.2 63.7 stock volumes)
Slide 14: ~$100m cash returned to shareholders in 2021
~$100m cash returned to shareholders in 2021 Dividend payout increased to 25% for 2021 and share buy-back completed Dividends Share buy-back (December 2021) Dividends per Full year 2021 Total cash % of shares share dividend returned repurchased +227% USc32.7/sh $81.6m 13.5% Dividend policy delivery
Slide 15: Operational review
Operational review Ben Baxter, Chief Operations Officer Higino Jamisse, General Manager
Slide 16: Record safety performance in 2021
Record safety performance in 2021 Over eight million hours worked without a Lost Time Injury to early March 2022 Lowest ever LTIFR 8 0.60 6 0.39 0.27 0.40 4 0.25 0.12 0.20 2 0.03 0 0.00 2017 2018 2019 2020 2021 Hours worked (Million) LTIFR (RHS) Lowest ever Lost Time Injury Frequency Rate (LTIFR)
Slide 17: Sustainability goals advanced in 2021
Sustainability goals advanced in 2021 Sustainability pillars • 96% of employees double vaccinated against COVID-19 by year-end Safe and engaged workforce • 83% of Moma management roles (supervisor and above) held by Mozambicans • $2.3m invested in community initiatives through Thriving communities K
Slide 18: Record production in 2021
Record production in 2021 Operational performance improved as growth projects advanced HMC production Ilmenite HMC Increased in excavated ore volumes (+14%), with a full year of 1,555,900t 1,119,400t operations for WCP C and for WCP B Higher grade overall (+19%), primarily due to WCP B operating
Slide 19: Targeting 1.2 Mtpa ilmenite on a sustainable basis
Targeting 1.2 Mtpa ilmenite on a sustainable basis 2022 production guidance Production 2022 Guidance1 2021 Actual 2020 Actual Ilmenite tonnes 1,125,000 - 1,225,000 1,119,400 756,000 Primary zircon tonnes 54,400 - 63,200 56,300 43,300 Rutile tonnes 9,500 - 11,500 8,900 6,000 Concentrates2 tonnes 40,3
Slide 20: Commissioning of RUPS commenced
Commissioning of RUPS commenced Capital projects update PD Pumps RUPS building RUPS: improved power reliability and reduced carbon footprint Estimated cost of ~$18m, commissioning underway Improved operating time and recoveries in the MSP Reduced diesel consumption will benefit operating costs
Slide 21: Nataka PFS on track for delivery in 2022
Nataka PFS on track for delivery in 2022 WCP A is expected to begin mining Nataka in 2025 Pre-Feasibility Study (PFS) due in 2022 Hydromining trial in Nataka Nataka is the long-term ore zone for Moma and contains higher slimes than currently mined Relocation of WCP A expected in 2025 by dredging
Slide 22: Market update
Market update Michael Carvill, Managing Director Transshipment vessel loading
Slide 23: Record volumes shipped at higher average prices
Record volumes shipped at higher average prices 2021 was a strong year for all of Kenmare’s products 800 366 400 269 274 283 Shipment volumes 600 253 300 $ per tonne (FOB) 236 239 (000’s tonnes) 223 186 205 Pricing 400 200 200 100 0 0 H1 2017 H2 2017 H1 2018 H2 2018 H1 2019 H2 2019 H1 2020 H2 2020 H
Slide 24: Record TiO2 pigment production in 2021
Record TiO2 pigment production in 2021 Pigment producers driving demand for Kenmare ilmenite Record TiO2 pigment production in 2021 Pigment production in China (Mt)1 Record pigment production supported ilmenite demand 4 10% Pigment production grew in all major producing regions in response to st
Slide 25: Titanium feedstocks remain in undersupply
Titanium feedstocks remain in undersupply Forecast TiO2 supply/demand market balance 10,000 8,000 TiO2 units (Mt) 6,000 4,000 2,000 0 2018 2019 2020 2021f 2022f 2023f 2024f 2025f 2026f 2027f Existing Supply Potential New Supply Base Case Demand Strong market fundamentals expected to continue TiO2
Slide 26: Strong market fundamentals continuing into 2022
Strong market fundamentals continuing into 2022 Demand for all of Kenmare’s products is robust Titanium feedstocks Momentum in the ilmenite and rutile market has continued into H1 2022 Demand is exceeding Kenmare’s ability to supply Shipments expected to be lower due to Bronagh J dry-dock Ti
Slide 27: Outlook
Outlook Michael Carvill, Managing Director WCP A control room
Slide 28: Becoming a first quartile margin producer
Becoming a first quartile margin producer Industry revenue to cash cost curves 4 3 R/C Ratio 2 KMR KMR 1 2023 KMR 2018 1st Q 2013 2nd Q 4th Q 0 0% 25% 50% 75% 100% 2013 2018 2023 Kenmare is targeting a first quartile margin position This will lead to increased cash flow stability Ability to re
Slide 29: Building on our strategy
Building on our strategy Strategic performance and targets 2021 performance 2022 targets OPERATE • Record low LTIs • RUPS commissioning RESPONSIBLY • Inaugural Climate Strategy • Broad range of ESG targets set Report • Higher forecast production in DELIVER LONG LIFE, • Ilmenite production up 48% 202
Slide 30: Questions?
Questions? 2022 Board site visit to Moma
Slide 31: Appendices
Appendices » KENMARE Ag 7 y
Slide 32: Mineral sands: essential to modern life
Mineral sands: essential to modern life Two core product streams: titanium feedstocks and zircon World GDP vs TiO2 pigment consumption1 Titanium feedstocks (ilmenite and rutile) TiO2 pigment imparts whiteness and opacity in the 6 450 Global GDP Index Million tonnes manufacture of paints, plastics
Slide 33: A globally significant titanium minerals deposit
A globally significant titanium minerals deposit Moma Titanium Minerals Mine overview Tier one Mineral Resources Operational process outline >100 year life of mine at targeted production rate of 1.2 Mtpa ilmenite Wet Heavy mineral Dredge + dry concentrator concentrate Moma is comprised of multip
Slide 34: Economies of scale reduced unit costs in 2021
Economies of scale reduced unit costs in 2021 Production and cash operating cost per tonne profile 1,600kt $200/t 1,400kt $175/t 1,200kt $150/t Cost per tonne ($/t) Production (kt) 1,000kt $125/t 800kt $100/t 600kt $75/t 400kt $50/t 200kt $25/t 0kt $0/t 2017 2018 2019 2020 2021 2022 Production (kt)
Slide 35: Higher cash costs reflect increased production
Higher cash costs reflect increased production Total cash operating costs breakdown Fuel Fuel Production Power 7% Production Power 7% Overheads Distribution Overheads 10% Distribution 9% 16% Costs 16% 3% Costs 3% 2021: Logistics & Travel Repairs & 2020: Logistics & Repairs & 7% Maintenance Travel Ma
Slide 36: Follow Kenmare on social media
Follow Kenmare on social media Facebook, Twitter, and LinkedIn Kenmare has profiles on Facebook, Twitter and LinkedIn, which feature regular updates on our corporate social responsibility initiatives, operational and development milestones, news flow and more Click the name of the social network
Slide 37: Contact Us
Progressive land rehabilitation Contact Us Jeremy Dibb / Katharine Sutton +353 1 671 0411 ir@kenmareresources.com Follow Us