Slide 1: H1 2020 Results Presentation
} KENMARE Ht 2020 - Results Presentation 19 August 2020
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: Introduction
Kenmare Resources — H1 2020 Results Presentation 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 Direct
Slide 4: Three strategic pillars
Three strategic pillars me Our strategy is supported by an on-going commitment to be a responsible corporate citizen 35% Final development project, WCP B © move, is targeted for Q3 2020 1.2 Mtpa of ilmenite production (plus co-products) following the WCP B move, a 35% increase vs 2019 MARGIN EXPANSI
Slide 5: H1 2020 overview
H1 2020 overview me Kenmare is resilient and profitable Other financial highlights Growth projects advanced Revenue (CIF) (US$m) Sales price (FOB) (US$/t) EBD WeP Cdelivercd elivere 116.8 269 140 “8 - 269) 1229123 23 3 S8 ee _ = oe ee US$37.2 million 500 tph Robust EBITDA delivered, with Consistent
Slide 6: COVID-19 update
COVID-19 update » Kenmare’s highest priorities are the safety and wellbeing of our employees and host communities Stringent risk mitigation measures in place since March >» Heightened health protocols, social distancing procedures and testing procedures implemented on site > Access to site restricte
Slide 7: Financial review
} KENMARE pamadane Financial review Tony McCluskey, Finance Director
Slide 8: H1 2020 financial overview
H1 2020 financial overview me Dividend policy maintained Revenue (CIF) Sales price (FOB)'2 Total cash costs? Net ilmenite unit cost USS116.8m USS$269/t USS183/t USS119/t -5% +138% +20% +53% H1 2019: US$122.7m H1 2019: US$239/t H1 2019: US$152/t H1 2019: US$78/t EBITDA Profit after tax Net cash/(debt
Slide 9: 13% increase in average sales price
13% increase in average sales price H1 2020 product price and shipping (FOB) review >» IImenite and zircon price movement (FOB)! Strong ilmenite market conditions in H1 2020 —®Average sales price=®=IImenite price ($/t)—@=Zircon price ($/t) > 13% increase in average sales price (FOB) to US$269/t in H
Slide 10: Robust EBITDA delivered
Robust EBITDA delivered H1 2020 Income Statement review H1 2020 H1 2019 USS million — USS million Revenue by product (%) Revenue (CIF) 116.8 122.7 Freight costs -5.6 713 Revenue (FOB) 111.2 115.4 Cost of sales & other operating costs -96.9 -96.6 Operating profit 19.9 261 Net finance income/(cost) -4
Slide 11: Unit costs impacted by reduced production
Unit costs impacted by reduced production me H1 2020 cash operating costs reconciliation’ Unit H12020 H1 2019 » 2% decrease in adjusted cash operating costs, due primarily to: Cost of sales ussm 827 796 >A once-off consumable spares stock Other operating costs excluding freight Ussm 86 98 adjustment
Slide 12: Financially well-resourced
Financially well-resourced me Balance sheet review Vv PPE movement includes additions of US$59.2m (H1 2019: US$24.8m), primarily relating to WCP C 30-Jun-2020 31-Dec-2019 (US$6.5m), WCP B move (US$42.0m), sustaining and US$ million US$ million other capex (USS$10.7m), plus mine closure Property, pla
Slide 13: Net cash/debt flows
Net cash/debt flows >» Significant investment in scheduled capital expenditure in H1 2020 2019 cash bridge (US$m) ss L 50 13.5 -64.8 -11.0 7 a —— 3.0 12.0 -50 -100 Net Cash: Operating Property, Plant Working capital Dividends Interest & Dec-2018 cash flow & Equipment changes financing fees H1 2020 c
Slide 14: 2020 interim dividend
2020 interim dividend Third consecutive dividend, in line with policy Dividend policy > > > > Dividend policy announced in October 2018 Kenmare has committed to pay a minimum of 20% of profit after tax Maiden dividend paid in October 2019, which was an interim dividend and based on H1 2019 results F
Slide 15: Operational review
} KENMARE eo bast a Operational review Ben Baxter, Chief Operations Officer
Slide 16: A strengthened focus on safety and sustainability
A strengthened focus on safety and sustainability » Key sustainability initiatives advanced during H1 2020 Lost Time Injury Frequency Rate (LTIFR)' on a rolling 12 month basis 0.50 047 0.40 032 0.30 0.25 0.27 0.20 0.20 012 0.10 0.00 2015 2016 2017 2018 2019 H12020 Updated land and rehabilitation str
Slide 17: Record excavated ore volumes in Q2 2020
Record excavated ore volumes in Q2 2020 me Excavated ore volumes profile (Mt) Grade profile (% Total Heavy Mineral) MActual ™Q22020 Forecast Actual & Forecast 25 5% 20 4% 5 3% 10 2% 5 1% () 0% H1 H2)H1 H2 H1 H2 H1 H2)H1 H2 H1 H2 H1 H2 H1 H2/H1 H2 H1 H2 H1 H2 H1 H2 H1 H2 H1 H2 2017 2018 «=. 2019 2020
Slide 18: H1 2020 production review
H1 2020 production review >» Operations and shipments continuing safely at the Moma Mine HMC production impacted by anticipated lower grades > 12% decrease in HMC production driven by 28% lower ore grades >» Reduced production of all finished products due to lower HMC supply and a lower heavy minera
Slide 19: Pathway to 1.2 Mtpa ilmenite production
Pathway to 1.2 Mtpa ilmenite production » Final project scheduled to be completed in H2 2020 2018 WCP B upgrade Project approximately 70% complete 20% capacity upgrade of WCP B WCP C delivered throughput of 500 complete and delivering to tph in Q2 2020 ona consistent but timeline has been impacted b
Slide 20: WCP B move: Expected to be completed in H2 2020
WCP B move: Expected to be completed in H2 2020 » Mining expected to begin at Pilivili in Q4 2020 Moma’s highest grade ore zone > Mineral Reserves of 180Mt at 4.4% THM, delivering 8 year LOM > Pilivili has further favourable characteristics such as free flowing sand, low slimes and relatively close
Slide 21: WCP B move: Project advancing on site
WCP B move: Project advancing on site Project execution approximately 70% complete a Water pipeline installation complete Road construction advancing on schedule Kenmare Resources — H1 2020 Results Presentation 21
Slide 22: Preparing for 1.2 Mtpa ilmenite production
Preparing for 1.2 Mtpa ilmenite production » Improvement works underway in 2020 to deliver 1.2 Mtpa on a consistent basis from 2021 Building robustness into the Mineral Separation Plant (MSP) > > > Objective is to enable MSP to operate at 1.2 Mtpa on a sustainable basis Additional separation capacit
Slide 23: Market update
y KENMARE Me Market update Michael Carvill, Managing Director
Slide 24: Strong momentum in the ilmenite market
Strong momentum in the ilmenite market Kenmare achieved a fifth consecutive quarter of ilmenite price increases in Q2 2020 Ilmenite price (FOB) (USS$/t) 225 —E —— 200 175 150 Q12019 Q2 2019 Q3 2019 Q4 2019 Q1 2020 Q2 2020 Tight market conditions prevailed in H1 2020 leading to further price increase
Slide 25: Growing demand for imported ilmenite in China
Growing demand for imported ilmenite in China me Chinese pigment production increased in H1 2020 despite COVID-19 Chinese pigment production increasing! (Kt) Chinese ilmenite production decreased in H1 2020? (Kt) 900 1,600 850 1,200 800 800 750 650 0 Q1 Q2 Q@3 G4 Qi G2 G8 A ai Q2 Qi a2 G3) O4 QI 2 3
Slide 26: Positive long-term fundamentals for all products
Positive long-term fundamentals for all products me H2 2020 market outlook IImenite > Solid demand has continued into H2 2020 and Kenmare has secured offtake agreements for the majority of its H2 2020 ilmenite production > Inventories of high-quality sulphate ilmenite remain at low levels entering H
Slide 27: Outlook
} KENMARE | = 1 / % os - ~ ; : ; 4 a Outlook » | Michael Carvill, M g Director i
Slide 28: Updated 2020 guidance
Updated 2020 guidance Provided on 19 August 2020 Updated 2020 Guidance | Suspended 2020 Guidance’ IImenite tonnes 700,000-800,000 800,000-900,000 Primary zircon tonnes 38,400-43,900 44,500-50,100 Rutile tonnes 5,600-6,400 7,700-8,700 Concentrates tonnes 31,400-35,900 34,700-39,000 ES Total cash oper
Slide 29: 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 KMR Qi Revenue to Cash Cost Ratio nN 0% 25% —_— —20138 ——2018 —=2023 KMR 2018 Q2 50% > Kenmareis on track to become a first quartile margin producer from 2021 »
Slide 30: Investment case in action
Investment case in action a Underpinning our strategy to deliver growth, margin expansion and shareholder returns Our assets Large scale asset with >100 year life of mine Long-standing commitment to sustainability Organic growth potential Market leading position Strong balance sheet Kenmare Resource
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Slide 32: Mineral sands: essential to modern life
Mineral sands: essential to modern life “a Two core product streams of minerals sands World GDP vs TiO, pigment consumption Titanium feedstocks (ilmenite and rutile) » TiO, pigment imparts whiteness and opacity in the manufacture of » © p 450 x paints, plastics and paper e 4 300 = » Non-recyclable a
Slide 33: Well-positioned to achieve updated guidance
Well-positioned to achieve updated guidance » Key guidance metrics 368,900t IImenite production a ian UGE half of mid-point guidance mid-point 21,200 Primary . zircon production ) 20,575t 41150t half of mid-point guidance mid-point US$183/t Cash cost per tonne of finished product! Uss180/t US$188/t
Slide 34: US$37.2m EBITDA in H1 2020
US$37.2m EBITDA in H1 2020 EBITDA bridge H1 2019 to H1 2020 12.0 428 —__ a 372 “06 15 -15.5 45 40 35 30 25 20 usssm Sales volume Stock movements EBITDA H1-20 EBITDA H1-19 Sales price Costs >» EBITDA in H1 2020 was impacted by a US$15.5m decrease in sales volumes compared to H1 2019 and slightly high
Slide 35: Total cash operating costs
Total cash operating costs » Adjusted cash operating costs breakdown Logistics & Travel Logistics & 6% % Travel Lab Distribution 7% : ral payro cats Distribution 25% H12020 costs [J 12010 . 3% Production US$75.2m USS76.9m Overheads 15% Production Repairs & Overeads Repairs & Power Maintenance ° Powe
Slide 36: KMAD: 2019 Highlights
KMAD: 2019 Highlights Kenmare Resources — H1 2020 Results Presentation New ambulance provided to community health centre Nurses sponsored to undertake a 2-year mother and child healthcare course 36
Slide 37: Follow Kenmare on social media
Follow Kenmare on social media » Facebook, Twitter and LinkedIn ACCOUN!> [ARDS Kenmare has gone social > 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 mor
Slide 38: Kenmare
p> KENMARE