Kenmare Resources Plc · LSE:KMR
Kenmare Resources — Shareholder Meeting (May 2022)
20 slides from Kenmare Resources's shareholder meeting presentation, May 26, 2022
Slide 1: 2022 AGM Presentation
RESPONSIBLY MEETING GLOBAL DEMAND FOR QUALITY-OF-LIFE MINERALS 2022 AGM Presentation 26 May 2022
Slide 2: Disclaimer
Disclaimer This Presentation (the “Presentation”) has been This Presentation does not constitute or form part attainable or will be realised. In particular, certain prepared and issued by Kenmare Resources plc of, and should not be construed as, an offer, statements in this Presentation relating to
Slide 3: The world's largest supplier of ilmenite
The world’s largest supplier of ilmenite Overview: Kenmare Resources Moma Mine in Mozambique Products used in quality-of-life items 15 years of production with >30 years in Mozambique >100 years of Mineral Resources Low environmental impact – >90% of electricity from renewable source (hydropow
Slide 4: Creating sustainable competitive advantage
Creating sustainable competitive advantage Strategic priorities and 2021 performance 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 R
Slide 5: 2021 review
2021 review WCP A morning briefing
Slide 6: Strong safety performance continuing in 2022
Strong safety performance continuing in 2022 Lowest ever Lost Time Injury Frequency Rate (LTIFR) to 31 March 2022 Kenmare’s LTIFR 8 0.50 LTIFR per 200k hours Hours worked (millions) 6 0.39 0.40 worked 0.27 0.30 4 0.25 0.20 2 0.10 0.12 0.03 0 0 0.00 2017 2018 2019 2020 2021 Q1 2022 Hours Worked LTIFR
Slide 7: Sustainability goals advanced in 2021
Sustainability goals advanced in 2021 Enhanced sustainability strategy and 2021 performance • 96% of employees double vaccinated against COVID- 19 by year-end Safe and engaged workforce • Moma employees received over 21,000 of training in 2021 • $2.3m invested in community initiatives through Thrivi
Slide 8: Record production and shipments in 2021
Record production and shipments in 2021 Production benefitting from high grade Pilivili operations Heavy Mineral Concentrate (HMC) Excavated ore (Mt) and grade (% THM) 30% increase in HMC production to 1.6 Mt vs 2020 due primarily to WCP B’s relocation to the high grade Pilivili ore zone 5.0% 45
Slide 9: Economies of scale reduced unit costs in 2021
Economies of scale reduced unit costs in 2021 Production and cash operating cost per tonne profile 1,600 200 1,400 175 1,200 150 Cost per tonne ($/t) Production (kt) 1,000 125 800 100 600 75 400 50 200 25 0 0 2017 2018 2019 2020 2021 2022 Production (kt) Production Guidance Cost per tonne ($/t) Cost
Slide 10: Record revenues, profits, and shareholder returns
Record revenues, profits, and shareholder returns 2021 operational and financial highlights Other highlights Projects Shipments (Mt) Sales price (FOB) ($/t) 2021 Dividends RUPS1 327 1.3 1.1 272 1.0 248 1.0 0.9 200 229 Up 227% Commissioning 2021: USc32.7/sh Currently in (2020: USc10.0/sh) progress 20
Slide 11: ~$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 2021 dividends Share buy-back (December 2021) Dividends per share 2021 dividend distribution # of shares repurchased % of ISC repurchased +227% $32.1m 14.8m 13.5% 2021 final dividend 2
Slide 12: Commissioning of RUPS commenced
Commissioning of RUPS commenced Rotary Uninterruptible Power Supply project update PD Pumps RUPS building Estimated cost Emissions reduction of RUPS target by 2024 ~$18m -12% RUPS overview The RUPS is anticipated to improve power stability for the Mineral Separation Plant (MSP) and further reduce
Slide 13: 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 Nataka is the largest ore zone in Moma’s portfolio Wet Concentrator Plant A Nataka contains 79% of Moma’s total 6.3 bnt Mineral Resources WCP A is expected to begin mining Nataka in 2025 and WCP C in 2030
Slide 14: Outlook: 2022 and beyond
Outlook: 2022 and beyond Jetty
Slide 15: Steven McTiernan and Tony McCluskey retirement
Steven McTiernan and Tony McCluskey retirement Chairman and Financial Director to retire Steven and Tony on site in February 2022 Steven McTiernan is stepping down as Chairman Tony McCluskey has informed the Board that he wishes following the AGM, having completed his nine-year to retire after m
Slide 16: Strong market conditions continuing in 2022
Strong market conditions continuing in 2022 Sixth consecutive quarter of ilmenite price increases in Q1 2022 In 2021, Kenmare’s increased supply was required to meet market demands Prices increased by ~30% between H1 and H2 2021 as markets tightened and global inventories were drawn to low level
Slide 17: 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 18: Becoming a first quartile margin producer
Becoming a first quartile margin producer Kenmare is well-positioned to deliver strong free cash flow Industry revenue to cash cost curves 4 Revenue to Cash Cost Ratio 3 2 KMR KMR 1 2023 KMR 2018 Q1 2013 Q2 Q4 0 0% 25% 50% 75% 100% 2013 2018 2023 Kenmare is on track to become a first quartile marg
Slide 19: 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 published • Higher forecast production in DELIVER LONG LIFE, • Ilmenite production
Slide 20: Contact Us
Progressive land rehabilitation programme Contact Us Jeremy Dibb / Katharine Sutton +353 1 671 0411 ir@kenmareresources.com Follow Us