Kenmare Resources Plc · LSE:KMR
Kenmare Resources — Shareholder Meeting (May 2019)
20 slides from Kenmare Resources's shareholder meeting presentation, May 14, 2019
Slide 1: AGM Presentation 14 May 2019
} KENMARE AGM ~~ “Presentation 14 May 2019
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: Overview: Kenmare Resources
Overview: Kenmare Resources » 4th largest producer of TiO, feedstocks > Representing 7% of global supply > World’s largest ilmenite supplier MOZAMBIQUE Located in Mozambique Vv >10 years of operations, 30 years in Mozambique Wet Concentrator Plant (WCP) A Vv 100+ years life of mine Vv ~5% of Mozambi
Slide 4: Mineral sands: essential to modern life
Mineral sands: essential to modern life “a Two core product streams World GDP vs TiO, pigment consumption Titanium feedstocks (ilmenite and rutile) > TiO, pigment imparts whiteness and opacity in the manufacture of » © p 450 xs paints, plastics and paper g 4 300 z > Non-recyclable and difficult to s
Slide 5: 2018 review
} KENMARE 2018 review
Slide 6: Sustainable operating practices
Sustainable operating practices » Safety Lowest ever Lost Time Injury Frequency Rate > 67% decrease in Lost Time Injuries in 2018 compared to 2017 c (from 9 to 3) é os 06 co} > LTIFR of 012 per 200k man hours worked in 2018 - S¢ 04 decreased further to 0.08 in Q1 2019 8s : » Strong improvement due t
Slide 7: Guidance achieved for the third consecutive year
Guidance achieved for the third consecutive year me IImenite production (000’s tonnes) Primary zircon production (000’s tonnes) 1,200 60 1,000 ———— 50 800 40 600 30 400 20 200 10 ie) ie) 2016 2017 2018 2016 2017 2018 =2018 Guidance =2018 Guidance > Mid-point of original 2018 production guidance! exc
Slide 8: Strong financial performance
Strong financial performance 2018 financial overview Revenue +26% 2018 US$262.2m 2017 US$208.3m EBITDA +54% 2018 US$93.3m 2017 US$60.5m Sales price’? +1/% {o} 2018 2017 Profit After Tax +162% con = 1. Weighted average sales price per tonne of product sold 2.FreeonBoard 3. Total cash cost per tonne o
Slide 9: Targeting further unit cost reductions by 2021
Targeting further unit cost reductions by 2021 x Production and cash operating cost per tonne seven year profile 1,200 wo i} 1,000 S 5 800 o Bq 600 on Bf 8 § 400 mel g og 200 mol oO c= a - & a 2012 2013 2014 2015 2016 2017 2018 mm Production ——All-Product Costs ——Ilmenite Costs (net of co-product re
Slide 10: US$13.5m net cash at year-end
US$13.5m net cash at year-end » Net cash bridge 2017 to 2018 80 60 » 40 ¢ -2.6 . s 20 —_— ao € & 4 85 n 5 70 a -40 -60 Net debt Dec-17_ Operating cashflow Property, plant & Working capital Interest payment Net cash Dec-18 equipment changes > Net cash of US$13.5m at year-end 2018, compared to US$34.1
Slide 11: Shareholder returns
Shareholder returns Dividend policy Subject to: Commitment to pay a minimum Market conditions, debt and 20% of Profit After Tax capital requirements Working towards maiden interim Higher cash balances likely to be dividend in 2019 maintained until capital development projects completed Expected high
Slide 12: Development projects on track
Development projects on track me 2018 2019 2020 WCP B wcP Cc WCP B UPGRADE DEVELOPMENT MOVE Growing production to 1.2 Mtpa of ilmenite Kenmare Resources — AGM Presentation 2019 12
Slide 13: Kenmare Moma Development Association (KMAD)
Kenmare Moma Development Association (KMAD) » Established in 2004, KMAD is a_ not-for-profit organisation with the objective of implementing development programmes in Kenmare’s — host communities. Examples of initiatives KMAD supported in 2018: Economic Development and Livelihoods > Funding provided
Slide 14: Outlook for 2019 and beyond
} KENMARE Outlook for 2019 and beyond
Slide 15: Positive outlook for ilmenite and zircon
Positive outlook for ilmenite and zircon IImenite > Forecast supply deficits for sulphate and chloride ilmenite > Long-term customers increasing offtake > Additional Chinese upgrading plants set to be commissioned in 2019, requiring high quality ilmenite to be imported > Significant depletion from e
Slide 16: 2019 guidance (provided January 2019)
2019 guidance (provided 10 January 2019) i IImenite tonnes 900,000-960 ,000 958,500 Primary zircon tonnes 44,500-52,000 48,400 Rutile tonnes 8,100-9,500 8,200 Concentrates" tonnes 33,500-43,500 28,200 EE Total cash operating costs USS m 151-167 151.3 Cash costs per tonne of finished product USS/tonn
Slide 17: Sustained production at higher levels from 2021
Sustained production at higher levels from 2021 » 20 year production profile (000’s tonnes) 2,000 1,600 1,200 800 400 te) Nn Nn N Nn Nn N Nn Nn Nn N Nn Nn N Nn Nn Nn N Nn Nn N N Nn fo} je} io} oO oO fo} Oo Oo je} io} Oo fo} i=} fo} fo} fo} io} fo} fo} io} lo} lo} za Nn N N N nN Nn Nn N nN ao wa a oO
Slide 18: Long life, sustained grades
Long life, sustained grades me ¢ Nampula 8 billion tonnes of Mineral Resources Province ‘ Nampula Mogincual >» Moma is comprised of a number of different ore zones, which differ due to grades, size, mineral assemblage Optimised long term plan, focusing on: >» Namalope: near term production, high-gra
Slide 19: Growing from a position of strength
Growing from a position of strength me Ya ¢ WCP B upgrade delivered on time and >25% below budget in 2018 * >20% production growth by 2021 Jj MARGIN EXPANSION y GY SHAREHOLDER ¢ Net cash of US$13.5m at year-end 2018 S RETURNS * Dividend policy announced Kenmare Resources — AGM Presentation 2019 19
Slide 20: Contact Us
} KENMARE Contact Us Jeremy Dibb IR & Corporate Development +353 1671 0411