Slide 1: Investor Presentation May 2022
RESPONSIBLY MEETING GLOBAL DEMAND FOR QUALITY-OF-LIFE MINERALS Investor Presentation May 2022
Slide 2: Disclaimer
Disclaimer This Presentation (the “Presentation”) has been This Presentation does not constitute or form part statements in this Presentation relating to future prepared and issued by Kenmare Resources plc of, and should not be construed as, an offer, financials, results, plans and expectations (the
Slide 3: Overview: Kenmare Resources
Overview: Kenmare Resources The world’s largest ilmenite supplier Moma Mine in Mozambique Wet Concentrator Plant B mining at Pilivili 15 years of production with >30 years in Mozambique >100 years of Mineral Resources at current production rate Low environmental impact – >90% of power from ren
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: 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 6: ~$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 7: Operational review
Operational review Higino Jamisse, General Manager
Slide 8: 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 9: Sustainability goals advanced in 2021
Sustainability goals advanced in 2021 Enhanced sustainability strategy approved by Board • 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 t
Slide 10: 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 11: A challenging start to 2022
A challenging start to 2022 Q1 2022 production impacted by poor weather conditions HMC production Ilmenite HMC HMC production benefitted from a 5% increase in excavated ore 384,700t 256,800t This was partially offset by a 3% decrease in ore grades to 4.49% 6% -7% Ore grades are expected to nor
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: Market update
Market update Titanium feedstocks
Slide 15: 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 throughout 2021 as markets tightened and global inventories were drawn to low levels However rec
Slide 16: 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 3 response to
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: Outlook
Outlook Mining at WCP A
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: 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 21: 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 22: Appendices
Appendices Rosalina Moma, owner of a KMAD-supported vegetable business
Slide 23: 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 TiO2 pigment consumption1 TiO2 pigment imparts whiteness and opacity in the manufacture of paints, plastics and paper 6 450 Global GDP Index Milli
Slide 24: Overview: Moma Titanium Minerals Mine
Overview: Moma Titanium Minerals Mine Globally significant Mineral Reserves Tier 1 resource base Operational process outline >100 years of Mineral Resources at targeted production rate of 1.2 Mtpa Wet Heavy mineral Dredge + dry mining concentrator concentrate Moma is comprised of multiple ore zo
Slide 25: Enhanced sustainability strategy
Enhanced sustainability strategy Short and medium-term KPIs published in 2021 Sustainability Report Safe and engaged workforce Thriving communities Taking a proactive approach to safety and ensuring we Minimising risk and maximising social and economic attract, develop, and retain the best people op
Slide 26: $216m EBITDA in 2021
$216m EBITDA in 2021 2021 Income Statement review 2021 2020 Revenue by product (%) – 2021 vs 2020 $ million $ million Ilmenite Ilmenite Revenue 455.9 243.7 79% 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 27: 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 Other operating costs1 excluding freight $m 22.6 18.1 20% increase in cash operating costs, mainly Total costs excluding freight 267.6 197.2 due to costs relating to higher production, rep
Slide 28: Economies of scale reduced unit costs in 2021
Economies of scale reduced unit costs in 2021 Production and cash operating cost per tonne profile 1,600 200 1,400 175 1,200 150 Cost per tonne ($/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 29: 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 30: 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 stock Inventory 60.2 63.7 volumes)
Slide 31: 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 32: Contact Us
Contact Us Jeremy Dibb / Katharine Sutton +353 1 671 0411 ir@kenmareresources.com Jetty at sunset Follow Us