Kenmare Resources Plc · LSE:KMR
Kenmare Resources — Shareholder Meeting (May 2021)
20 slides from Kenmare Resources's shareholder meeting presentation, May 13, 2021
Slide 1: 2021 AGM Presentation
RESPONSIBLY MEETING GLOBAL DEMAND FOR QUALITY-OF-LIFE MINERALS 2021 AGM Presentation 13 May 2021
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: The world's largest supplier of ilmenite
The world’s largest supplier of ilmenite Primarily used for the production of titanium pigment; a bright white opacifier Located in Mozambique Moma Titanium Minerals Mine Key products +30 years experience in country Mining ~35-40 million tonnes per annum, mainly by Titanium feedstocks (ilmenit
Slide 4: 2020 operations
2020 operations WCP A morning briefing
Slide 5: COVID-19 Update
COVID-19 Update Safety and well-being of our employees and our host communities are Kenmare’s highest priorities Social distancing & abundant sanitation stations Prompt response to COVID-19 risks Improved sanitation & robust social distancing on site Initiation of travel mandatory isolation Te
Slide 6: A strengthened focus on safety and sustainability
A strengthened focus on safety and sustainability Kenmare’s commitment to sustainability recognised by external organisations in H2 2020 Improving sustainability reporting & CO2 reduction Lost Time Injury Frequency Rate1 (12 month rolling basis) Inaugural sustainability report released in April 20
Slide 7: 2020: A year of transition
2020: A year of transition Growth projects Operational & financial highlights Other financial highlights WCP B Move Shipments (Mt) Sales price (FOB) (US$/t) Net Debt (US$m) 272 1.1 248 1.0 1.0 1.0 229 In production 0.9 200 US$64m 133 First HMC production (2019: US$14m from Pilivili in Q4-20 net cash
Slide 8: Unit costs (US$/tonne)
Targeting further unit cost reductions from 2021 Production and cash operating cost per tonne profile 1,400 280 Finished product production 1,200 240 Unit costs (US$/tonne) (000’s tonnes) 1,000 200 800 160 600 120 400 80 200 40 0 0 2014 2015 2016 2017 2018 2019 2020 2021 Production Production Guidan
Slide 9: Dividend policy in action
Dividend policy in action Maiden interim dividend paid in October 2020 and balancing final dividend expected to be paid in May 2021 Dividend per share increase Total dividend distribution Dividend policy delivery Policy is to pay a minimum 20% of profit after tax, subject to +22% US$11.0m prevaili
Slide 10: Development projects
Development projects WCP B mining Pilivili
Slide 11: WCP C: producing since Feb 2020
WCP C: producing since Feb 2020 Delivering HMC volumes to expectation Dredge in operation Small scale, high grade production WCP C is mining a high grade area of the Namalope ore zone that is inaccessible to the larger WCPs Forecasted average grade of 4.69% THM during first 5 years Located clo
Slide 12: WCP B project: the world's largest & heaviest move
WCP B project: the world’s largest & heaviest move Pilivili is the highest grade ore zone in Moma’s portfolio, with Mineral Reserves of 180Mt at 4.4% THM Pilivili is Moma’s highest grade ore zone… 23 km of engineered road constructed Relocating mining operations from the depleted Namalope ore zone
Slide 13: WCP B successfully moved to Pilivili
WCP B successfully moved to Pilivili Successfully moved the plant, as wide as a football pitch and as tall as a seven story building, in one piece Video of the WCP B Move COVID-19 impacts ameliorated Global COVID-19 restrictions led to delayed fabrication and delivery of electrical infrastructure
Slide 14: RUPS: Power Stability & Carbon Reduction Project
RUPS: Power Stability & Carbon Reduction Project Driving maximum utilisations from our hydro-electric power source & reducing site CO2 emissions by 15% Background Culmination of extensive research efforts (including sustainable solar and battery options), balancing the low cost of our access to hy
Slide 15: Outlook
Outlook WCP B dredge passing the MSP
Slide 16: Targeting a 1st quartile industry position
Targeting a 1st quartile industry position Development projects now largely complete, positioning us for strong free cash flow generation 4 3 R/C Ratio 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 margin producer This
Slide 17: Favourable supply/demand dynamics
Favourable supply/demand dynamics Forecast supply/demand market balance 10,000 TiO2 units (000’s tonnes) 8,000 6,000 4,000 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 Existing Supply Potential New Supply Total Feedstock Demand Strong fundamentals for TiO2 feedstoc
Slide 18: Market poised to absorb expanded production
Market poised to absorb expanded production Positive outlook for all products Titanium Feedstocks Ilmenite Kenmare is experiencing strong market conditions in Q1 2021 and has a strong order book for Q2 Stronger demand is coming from all major ilmenite consuming regions Market is absorbing Kenm
Slide 19: Delivering on our strategic plans
Delivering on our strategic plans Ramping ilmenite production to 1.2 Mtpa (million tonnes per annum) Guidance of 1.1-1.2 Mtpa of GROWTH 45-60% ilmenite (plus associated co- products) in 2021 WCP B Move completed in 2020 and expected to deliver a 45-60% production increase year on year MARGIN Kenmare
Slide 20: Contact Us
Contact Us Jeremy Dibb +353 1 671 0411 ir@kenmareresources.com Follow Us