Kenmare Resources Plc · LSE:KMR
Kenmare Resources — Investor Presentation (November 2024)
28 slides from Kenmare Resources's investor presentation, November 2024
Slide 1: Investor presentation November 2024
RESPONSIBLY MEETING GLOBAL DEMAND FOR QUALITY-OF-LIFE MINERALS Investor presentation November 2024
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 ilmenite supplier
The world’s largest ilmenite supplier Overview: Kenmare Resources plc The Moma Titanium Minerals Mine in Mozambique Track record of 17 years of production with >35 years in Mozambique >100 years of Mineral Resources at current production rate Capital expenditure of >$1.5bn to date Trusted corp
Slide 4: Mineral sands: essential to modern life
Mineral sands: essential to modern life Demand for Kenmare’s products is driven by global GDP growth and urbanisation in emerging markets Titanium feedstocks (ilmenite and rutile) World GDP vs TiO2 pigment consumption1 TiO2 pigment imparts whiteness and opacity in the 8 600 Global GDP Index manufa
Slide 5: Market leadership built on a robust strategy
Market leadership built on a robust strategy Strategic priorities and recent performance 97% • Strong safety performance - 5m OPERATE hours worked in H1 without a Lost Time Injury RESPONSIBLY • $20m invested into community MOZAMBICAN WORKFORCE initiatives since 2004 DELIVER LONG LIFE, LOW-COST • 1st
Slide 6: Sustainability is central to Kenmare’s business
Sustainability is central to Kenmare’s business Four sustainability strategic pillars Safe and engaged workforce Thriving communities • Safety and wellbeing of • Kenmare Moma Development employees is Kenmare’s Association established in 2004 highest priority • $20m invested by KMAD to date • >1,700
Slide 7: Financial review
Financial review Mineral Separation Plant
Slide 8: >40% EBITDA margin in H1 2024
>40% EBITDA margin in H1 2024 H1 2024 financial highlights Other highlights Average price (US$/t) Total revenue ($m) H1 2024 dividend 486 331 366 429 412 425 323 278 243 216 USc15.0/sh 282 178 197 (H1 2023: Usc17.5/sh) 165 1 2 1 2 1 2 1 1 2 1 2 1 2 1 2021 2022 2023 2024 2021 2022 2023 2024 EBITDA ($
Slide 9: $280m of shareholder returns since 2019
$280m of shareholder returns since 2019 Interim dividend of USc15/share Dividends (USc/share) Interim Final 54 56 H1 2024 profit after tax H1 2024 total dividend 33 $20.9m $13.4m 39 43 25 8 10 Decrease in DPS YoY H1 2024 dividend per share (DPS) 8 18 15 6 3 2 7 11 -14% USc15.0 2019 2020 2021 2022 20
Slide 10: Well capitalised to fund capex and dividends
Well capitalised to fund capex and dividends A strong financial position before operational free cash flow Historically high net assets ($m) Global Capitalslag costs production met by existing 1 resources ($m) 300 400 2028 2027 250 2026 300 2025 200 RCF 150 H2 2024 200 100 Net assets 50 100 0 0 Jun-
Slide 11: Operational and capital projects review
Operational and capital projects review Wet Concentrator Plant B
Slide 12: A globally significant titanium minerals mine
A globally significant titanium minerals mine Moma Mine operating schematic Low cost, bulk mining operation Low environmental impact Mature operation – in production since 2007 Primarily hydro-generated electricity (>90% of electrical Three Wet Concentrator Plants (WCPs) in operation requireme
Slide 13: On track to achieve 2024 guidance
On track to achieve 2024 guidance Production outlook for 2024 and beyond 2024 production Wet Concentrator Plant A Ilmenite production guidance of 950,000 to 1,050,000 tonnes 701,500 tonnes of ilmenite produced in first 9 months of the year Stronger ore grades expected in Q4 2024 Kenmare is o
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 (THM1) WCP A upgrade and transition to Nataka Nataka, 72% Moving WCP A to Nataka unlocks the majority of Kenmare’s 9.0bnt Mineral Resources, securing production at Moma f
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 cost breakdown WCP A capex of $341m Final part of the Definitive Feasibility Study for the Tailings Storage Facility upgrade and transition of WCP A completed in Q2 $36m WCP A upgra
Slide 16: Market update
Market update Zircon product warehouse
Slide 17: Multiple decades of consistent growth
Multiple decades of consistent growth Overview of Kenmare’s market segments for its titanium feedstocks xxx World GDP vs TiO2 pigment consumption1 Chinese titanium sponge production (‘000 tonnes) 8 600 140 120 6 100 400 Global GDP Index Million tonnes 80 4 60 200 40 2 20 0 0 - 1982 1986 2002 2006 19
Slide 18: High-quality products a key differentiator
High-quality products a key differentiator Ilmenite TiO2 content required by different markets IP2 IP1 IP3 Direct chloride pigment Beneficiation China Beneficiation ex - China Chloride Slag Synthetic Rutile Sulphate pigment ex China Sulphate pigment China 44 46 48 50 52 54 56 58 60 62 64 TiO2 conten
Slide 19: Strong order book into 2025
Strong order book into 2025 Market outlook for titanium feedstocks and zircon Titanium feedstocks Overview Encouraging demand for all Kenmare’s products continued in Q3 Increased average price received in Q3 vs Q2 due to higher value product mix Strong demand for Kenmare’s products has extende
Slide 20: Outlook
Outlook Dedicated port facilities with transshipment vessel
Slide 21: 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 8 7 6 5 4 3 2 1 2021 2018 2013 1st Q 2nd Q 4th Q 0 0% 25% 50% 75% 100% 2013 2018 2021 TZMI industry cost analysis puts Kenmare in the first quart
Slide 22: 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 >40% in H1 2024 • >100 years of Mi
Slide 23: Appendices
Appendices Plant nursery for progressive land rehabilitation
Slide 24: 2024 production guidance
2024 production guidance1 2024 ilmenite production expected to be in line with 2023 Production 2024 Guidance 2023 Actual Ilmenite 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 Concentrates2 tonnes 37,000-41,000 45,700 Costs Total cash ope
Slide 25: Structural undersupply in TiO2 market
Structural undersupply in TiO2 market Supply constraints support demand for titanium feedstocks Supply/demand balance (‘000 TiO2 units) 10,000 8,000 6,000 2018 2019 2020 2021 2022 2023f 2024f 2025f 2026f 2027f Existing Supply Feedstock demand Demand growth exceeding expected supply growth 1.5Mt Ti
Slide 26: Transforming WCP A’s capabilities for Nataka
Transforming WCP A’s capabilities for Nataka High volume, low-cost mining plan for Nataka The new surge bin being trial-assembled Majority of WCP A will be new equipment Existing dredges replaced with higher capacity dredges – removing the need for dry mining New desliming circuit, screens and s
Slide 27: Strongest balance sheet in Kenmare’s history
Strongest balance sheet in Kenmare’s history Balance sheet review 30-Jun-2024 31-Dec-2023 Strong balance sheet with record net cash of $58.9m1 $ million $ million PPE included additions of $49.1m, primarily relating to Property, plant & equipment 954.0 937.2 the upgrade of WCP A, less depreciati
Slide 28: Contact us
Contact us Jeremy Dibb / Katharine Sutton Investor Relations +353 1 671 0411 ir@kenmareresources.com Follow us Dredge Operator at WCP B
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