Slide 1: 2022 Site Visit Presentation
RESPONSIBLY MEETING GLOBAL DEMAND FOR QUALITY-OF-LIFE MINERALS 2022 Site Visit Presentation 12-13 May 2022
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 Sustainability Regina Macuacua, Deputy Country Manager Operations update Higino Jamisse, Acting Chief Operations Officer Capital projects update Gary Short, Projects Director Outlook Tony McCluskey, Finance Director & Michael Carvill, Managing D
Slide 4: Overview: Kenmare Resources
Overview: Kenmare Resources The world’s largest ilmenite supplier Moma Mine in Mozambique 15 years of production with >30 years in Mozambique >100 years of Mineral Resources Low environmental impact – >90% of electricity from renewable source (hydropower) Meaningful contribution to the local
Slide 5: 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 6: Mineral sands: essential to modern life
Mineral sands: essential to modern life Two core product streams Titanium feedstocks (ilmenite and rutile) Global titanium feedstock usage Titanium dioxide (TiO2) pigment imparts whiteness and opacity in Ti metal Welding the manufacture of paints, plastics and paper 5% and Non-recyclable and dif
Slide 7: 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 8: 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 9: 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 10: Sustainability
Sustainability Regina Macuacua, Deputy Country Manager Rosalina Moma, owner of a KMAD-supported vegetable business
Slide 11: Sustainability goals advanced in 2021
Sustainability goals advanced in 2021 Sustainability pillars • 96% of employees double vaccinated against COVID- 19 by year-end Safe and engaged workforce • Moma employees received over 21,000 of training in 2021 • $2.3m invested in community initiatives through Thriving communities KMAD, including
Slide 12: 97% Mozambican workforce
97% Mozambican workforce Kenmare is proud to provide employment and development opportunities in our host country Providing employment Localisation of Kenmare’s workforce Kenmare directly employed 1,551 people at the Moma Mine at the end of 2021 100 80 % employees Of these, 97% are Mozambican an
Slide 13: Kenmare Moma Development Association (KMAD)
Kenmare Moma Development Association (KMAD) A not-for-profit organisation established in 2004 Established in 2004, KMAD’s objective is to implement development Local people at a borehole drilled by KMAD programmes in the Moma Mine’s host communities. Examples of KMAD’s initiatives to date: Economic
Slide 14: KMAD: 2021 highlights
KMAD: 2021 highlights KMAD invested $2.3m in community initiatives in 2021 23 new small businesses Construction of Pilivili Five primary schools built in supported by KMAD health centre completed Pilivili communities 57.9% 700 farmers in Conservation 12,000 COVID-19 vaccines >200 scholarships for yo
Slide 15: Operations update
Operations update Higino Jamisse, Acting Chief Operations Officer Mineral Separation Plant
Slide 16: Strong safety performance continuing in 2022
Strong safety performance continuing in 2022 Lowest ever Lost Time Injury Frequency Rate (LTIFR) to 31 March 2022 Kenmare’s LTIFR 8 0.50 LTIFR per 200k hours Hours worked (millions) 6 0.39 0.40 worked 0.27 0.30 4 0.25 0.20 2 0.10 0.12 0.03 0 0 0.00 2017 2018 2019 2020 2021 Q1 2022 Hours Worked LTIFR
Slide 17: A globally significant deposit
A globally significant deposit Moma Titanium Minerals Mine overview Tier one Mineral Resources Operational process outline >100 year Mineral Resources at targeted production rate of 1.2 Mtpa ilmenite Wet Heavy mineral Dredge + dry mining concentrator concentrate Moma is comprised of multiple ore
Slide 18: Record production and shipments in 2021
Record production and shipments in 2021 Production benefitting from high grade Pilivili operations Heavy Mineral Concentrate (HMC) Excavated ore (Mt) and grade (% THM) 30% increase in HMC production to 1.6 Mt vs 2020 due primarily to WCP B’s relocation to the high grade Pilivili ore zone 5.0% 45
Slide 19: Economies of scale reduced unit costs in 2021
Economies of scale reduced unit costs in 2021 Production and cash operating cost per tonne profile 1,600 200 1,400 175 1,200 150 Cost per tonne ($/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 20: A challenging start to 2022
A challenging start to 2022 Q1 2022 production impacted by poor weather conditions HMC production HMC processed HMC HMC production benefitted from a 5% increase in excavated ore, 384,700t 373,300t partially offset by a 3% decrease in ore grades to 4.49% Ore grades are expected to normalise at ~4
Slide 21: Shipments lower than production in 2022
Shipments lower than production in 2022 Shipments update Bronagh J transshipment vessel Q1 2022 shipments Shipments of 231,500 tonnes, down 33% on Q1 2021 Impacted by poor weather conditions and customer-chartered vessel delays due to tight shipping markets Bronagh J transshipment vessel One o
Slide 22: Capital projects update
Capital projects update Gary Short, Projects Director Rotary Uninterruptible Power Supply
Slide 23: 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% The RUPS is anticipated to improve power stability for the Mineral Separation Plant (MSP) and further reduce Kenmare’s emis
Slide 24: Nataka PFS on track for delivery in 2022
Nataka PFS on track for delivery in 2022 Nataka is the largest ore zone in Moma’s portfolio Nataka Mineral WCP A due to begin Wet Concentrator Plant A Resources mining in Nataka 5.0 bnt 2025 Nataka ore zone Nataka contains 79% of Moma’s total 6.3 bnt Mineral Resources WCP A is expected to begin
Slide 25: Evaluating optimal mining plan for Nataka
Evaluating optimal mining plan for Nataka Hydromining trials underway Hydromining trial in Namalope Slimes management is key success factor at Nataka Nataka ore zone has higher slimes than the current mining areas Slimes can negatively impact feed rates and recoveries if not managed effectively
Slide 26: Outlook
Outlook Tony McCluskey, Finance Director & Michael Carvill, Managing Director Jetty
Slide 27: 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 28: Becoming a first quartile margin producer
Becoming a first quartile margin producer Industry revenue to cash cost curves 4 3 R/C Ratio 2 KMR KMR 1 2023 KMR 2018 1st Q 2013 2nd Q 4th Q 0 0% 25% 50% 75% 100% 2013 2018 2023 Kenmare is targeting a first quartile margin position This will lead to increased cash flow stability Ability to re
Slide 29: 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 30: Questions?
Questions? Members of Kenmare’s Women in Mining Forum
Slide 31: Appendices
Appendices A teacher at a KMAD- constructed school
Slide 32: Simplified mining flowsheet
Simplified mining flowsheet Kenmare has three mining ponds in production Mining Pond A Mining Pond B Mining Pond C Supplemental Supplemental Dredge 1 Dredge 2 Dredge 3 Dredge 4 Dry Dry Mining Mining Ore Ore Ore Ore Ore Wet Wet Wet Concentrator Concentrator Ore Concentrator Ore Plant A Plant B Plant
Slide 33: Simplified processing flowsheet
Simplified processing flowsheet Kenmare processes HMC into four products: ilmenite, rutile, zircon and mineral sands concentrate HMC stockpile Mineral Separation Plant Product warehouse Wet Dry Non- zircon zircon WCP A Wet circuit Zircon magnetic circuit circuit HMC stockpile concentrate Mineral Wet
Slide 34: >30 year presence in Mozambique
>30 year presence in Mozambique Mozambique is a mining-friendly jurisdiction with a developed natural resources industry The Moma Mine is in north east Mozambique Mozambique: Quick facts1 Capital Maputo Government type Presidential Democratic Republic Moma Nominal GDP $14.0 billion Mine Net FDIs / G
Slide 35: $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 36: 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 37: Higher cash costs reflect increased production
Higher cash costs reflect increased production 2021 total cash operating costs breakdown Fuel Fuel Production Power Production 7% Power 7% Overheads Distribution Overheads 10% Distribution 9% 16% Costs 16% 3% Costs 3% 2021: Logistics & Travel Repairs & 2020: Logistics & Repairs & 7% Maintenance Trav
Slide 38: 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 39: Contact Us
Progressive land rehabilitation programme Contact Us Jeremy Dibb / Katharine Sutton +353 1 671 0411 ir@kenmareresources.com Follow Us