Slide 1: 2023 Results Presentation
RESPONSIBLY MEETING GLOBAL DEMAND FOR QUALITY-OF-LIFE MINERALS 2023 Results Presentation 20 March 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: Agenda
Agenda Introduction Michael Carvill, Managing Director Financial review Tom Hickey, Finance Director Operational review & capital projects update Ben Baxter, Chief Operations Officer Market update Cillian Murphy, Group GM – Sales & Marketing Outlook Michael Carvill, Managing Director Progressive lan
Slide 4: Michael Carvill to step down as Managing Director
Michael Carvill to step down as Managing Director MD to leave Kenmare in August 2024 Michael to step down after 38 years as MD Subject to re-appointment at the AGM, it is expected that Michael will remain on the Board and in his executive role until the Interim Results in August 2024 Following t
Slide 5: Creating sustainable competitive advantage
Creating sustainable competitive advantage Strategic priorities and 2023 performance OPERATE • • Safe and engaged workforce Thriving communities 0.15 • Healthy natural environment LOST TIME INJURY RESPONSIBLY • Trusted business FREQUENCY RATE 986kt • 1st quartile industry position DELIVER LONG LIFE,
Slide 6: Robust cash flow generation
Robust cash flow generation Operational and financial highlights Other highlights Capital projects Average price ($/t) Revenue (FOB) 2023 dividend WCP A upgrade and transition to Nataka 463 418 498 USc56.0/sh 327 421 437 (2022: USc54.3/sh) Execution 272 248 256 232 advancing 2023 share buy-back 2019
Slide 7: Financial review
Financial review Tom Hickey, Finance Director Mineral Separation Plant
Slide 8: Strong 50% EBITDA margin
Strong 50% EBITDA margin 2023 Income Statement review Revenue by product (%) – 2023 vs 2022 Rutile, Concentrates, Rutile, Concentrates, 3% 6% 4% 2023 2022 7% $ million $ million Zircon, Zircon, Mineral product revenue 437.1 498.4 18% 20% Ilmenite, Ilmenite, Freight revenue 21.4 27.6 70% 72% Total re
Slide 9: Prices remained strong in 2023
Prices remained strong in 2023 2023 product prices and shipping review Commodity price movements ($/t) Strong product prices, although below record 2022 Prices were stable in H1 2023 but decreased in H2 due to $500/t $2,000/t Zircon price ($/t) Ilmenite and average weaker global economic activity
Slide 10: Cost control initiatives mitigated increases
Cost control initiatives mitigated increases 2023 cash operating cost calculations Unit 2023 2022 Active focus on cost control and operational Cost of sales (excluding freight) $m 273.5 255.1 efficiency initiatives to mitigate impact of Administration expenses $m 8.4 9.9 inflation and rising energ
Slide 11: Net cash position maintained
Net cash position maintained Movement in net cash/(debt) $250 196 $200 $150 • Dividends (67) • Share buy-back • Sustaining $100 • Development (44) • Interest • Studies • Receivables • Leases ($30m) • FX $50 • Inventory ($15m) 26 (4) 21 (86) $0 Opening Net Operating Capex W/C Change Shareholder Finan
Slide 12: Healthy balance sheet
Healthy balance sheet Balance sheet review Capital investment of $67m funded from operating 31-Dec-2023 31-Dec-2022 cashflow $ million $ million Includes $22m towards preparations for the Nataka Property, plant and equipment 937.2 932.4 transition, including orders placed for two higher- Invento
Slide 13: Enhanced financial flexibility
Enhanced financial flexibility Overview of new Revolving Credit Facility (RCF) Quantum Interest rate Term $200m SOFR + 4.85% 5 years New debt facilities include more favourable terms and extended maturity Features of new $200 million RCF include: Increased quantum compared to previous debt ($110
Slide 14: >$250m shareholder returns since 2019
>$250m shareholder returns since 2019 Cumulative dividends of $140m and share buy-backs of $113m Dividend profile (USc/share) Share buy-back completed in 2023 Interim Final $30m acquired at £4.22/sh, reducing share count by 5.9% 54.3 56.0 Dividend policy delivery Proposed 2023 dividend of 38% of
Slide 15: Balancing capital returns and investment plans
Balancing capital returns and investment plans Capital allocation priorities • Sustaining capital Capital requirements • Non-discretionary capital (i.e. WCP A transition) CORE • New $200m RCF available until 2029 Financial flexibility • Invoice discount facilities in place - currently unused • Targe
Slide 16: Operational review
Operational review Ben Baxter, Chief Operations Officer Wet Concentrator Plant B
Slide 17: Sustainability goals advanced in 2023
Sustainability goals advanced in 2023 Sustainability strategic pillars Safe and engaged workforce Thriving communities • 3m hours worked without a Lost • Contract signed for construction Time Injury to date of district hospital • 16% female representation at the • 3 water supply systems Moma Mine (2
Slide 18: Three million LTI-free hours worked to date
Three million LTI-free hours worked to date Lost Time Injury Frequency Rate (LTIFR) of 0.15 to 31 December 2023 Lost Time Injuries and rolling 12-month LTIFR in 2023 3 0.3 Lost Time Injuries 0.21 2 0.18 0.2 0.15 0.15 1 0.1 0 0.0 Q1 2023 Q2 2023 Q3 2023 Q4 2023 LTIs LTIFR Return to strong safety perf
Slide 19: Revised ilmenite production guidance achieved
Revised ilmenite production guidance achieved 2023 production review Mining HMC production Ilmenite 9% decrease in HMC production vs 2022 due to: 4% decrease in ore volumes due to severe lightning strike in 1,448,300t 986,300t Q1 and power supply interruptions, impacting operations -9% -9% 5%
Slide 20: Production outlook for 2024 and beyond
Production outlook for 2024 and beyond 2024 production expected to be H2-weighted 2024 2024 production guidance on track and expected to be in line with 2023 Ilmenite production guidance of 950,000 to 1,050,000 tonnes, reflecting higher excavated ore volumes offset by lower grades Production t
Slide 21: Capital projects update
Capital projects update Ben Baxter, Chief Operations Officer Wet Concentrator Plant A
Slide 22: Securing future production at Moma
Securing future production at Moma No significant relocation costs post WCP A transition to Nataka Nataka represents over 70% of Kenmare’s Mineral Resources Mineral Resource by ore zone (THM Mt) Moving WCP A to Nataka unlocks the majority of Kenmare’s 7.5bnt Mineral Resources, securing production
Slide 23: Transforming WCP A's capabilities for Nataka
Transforming WCP A’s capabilities for Nataka High volume, low-cost mining plan for Nataka Integrated hydromining trial Will significantly improve ability to manage slimes Slimes are ultra fine particles that negatively impact mining rates and recoveries Increasing to 16%-25% at Nataka vs 9-14% i
Slide 24: WCP A capital costs in line with expectations
WCP A capital costs in line with expectations Overview of capital costs for WCP A’s transition to Nataka Capital breakdown and implementation dates WCP A capex of up to $341m1 Tailings Storage Facility (H1 2025) $36m DFS for WCP A Infrastructure scheduled to be WCP A upgrades (H1 2025) completed i
Slide 25: Market update
Market update Cillian Murphy, Group General Manager – Sales & Marketing Zircon product warehouse
Slide 26: Average product price above $400/t
Average product price above $400/t Overview of Kenmare’s product markets in 2023 Average price received for Kenmare’s products ($/t) 800 600 Shipment volumes 500 $ per tonne (FOB) 600 (000' tonnes) 429 486 426 400 412 400 366 300 239 257 269 274 283 200 200 100 - - H1 2019 H2 2019 H1 2020 H2 2020 H1
Slide 27: Ilmenite demand supported by market trends
Ilmenite demand supported by market trends A robust year in Kenmare’s markets due to strong ilmenite exposure Growing Chinese demand for high-quality ilmenite Feedstock required for Chinese Ti metal and chloride pigment 1 Imported ilmenite is required for beneficiation for both titanium metal and
Slide 28: Long-term product fundamentals remain strong
Long-term product fundamentals remain strong Supply constraints support demand for titanium feedstocks Supply/demand balance (‘000 TiO2 units) 10,000 8,000 6,000 4,000 2018 2019 2020 2021 2022 2023f 2024f 2025f 2026f 2027f Existing Supply Feedstock demand Demand growth exceeding expected supply grow
Slide 29: Improved ilmenite demand expected in 2024
Improved ilmenite demand expected in 2024 Overview of markets for titanium feedstocks and zircon Titanium feedstocks Ilmenite Pigment producers are reporting stronger-than-expected sales in Q1 2024 Global ilmenite inventories are low, leading to stronger demand from pigment producers Kenmare i
Slide 30: Outlook
Outlook Michael Carvill, Managing Director Jetty with transshipment vessel
Slide 31: Capital projects support 1st quartile margin position
Capital projects support 1st quartile margin position First quartile position attained in 2021 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 quartile for
Slide 32: 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 with >100 • Nataka DFS completed with the goal of mai
Slide 33: Appendices
Appendices Transshipment vessel loading
Slide 34: 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 35: Mineral sands: essential to modern life
Mineral sands: essential to modern life Two core product streams: titanium feedstocks and zircon World GDP vs TiO2 pigment consumption1 Titanium feedstocks (ilmenite and rutile) TiO2 pigment imparts whiteness and opacity in the 450 Global GDP Index 6 Million tonnes manufacture of paints, plastics
Slide 36: 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 37: Ilmenite unit costs benefitting from co-products
Ilmenite unit costs benefitting from co-products Production and cash operating cost per tonne profile 1,500kt $300/t 1,250kt $250/t Cost per tonne ($/t) Production (kt) 1,000kt $200/t 750kt $150/t 500kt $100/t 250kt $50/t 0kt $0/t 2018 2019 2020 2021 2022 2023 2024 Guidance Total production Producti
Slide 38: Increased fuel costs driving higher operating costs
Increased fuel costs driving higher operating costs Total cash operating costs breakdown 250 2 4 -2 228 219 5 Logistics & 200 Other Travel 13% Labour 6% 24% 150 100 Production 2023: Overheads $228m 50 18% Repairs & Maintenance 19% 0 Fuel Power 2002 Power & Labour Production All other 2003 11% 9% Ope
Slide 39: WCP B upgrade increases capacity by >40%
WCP B upgrade increases capacity by >40% WCP B upgrade overview Robust project economics WCP B will be upgraded by 1,000tph Work ongoing on DFS to upgrade WCP B from 2,400tph to 3,400 tph, a >40% increase DFS expected to be completed in Q2 2024 PFS capital cost estimate for this upgrade work o
Slide 40: 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 sustainability initiatives, operational and development milestones, news flow and more Click the name of the social network to visit out prof
Slide 41: Contact us
Contact us Jeremy Dibb / Katharine Sutton / Michael Starke +353 1 671 0411 Plant ir@kenmareresources.com nursery Follow us