Kenmare Resources Plc · LSE:KMR
Kenmare Resources — Shareholder Meeting (May 2020)
20 slides from Kenmare Resources's shareholder meeting presentation, May 13, 2020
Slide 1: 2020 AGM Presentation
} KENMARE 2020 AGM: Presentation ' 13 May 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
Slide 3: Overview: Kenmare Resources
Overview: Kenmare Resources » World’s largest traded ilmenite supplier 4th largest producer of TiO, feedstocks > Currently representing 7% of global supply > Growing to 10% of global supply following MOZAMBIQUE WCP B move Moma Titanium Minerals Mine > >12 years of operations, 30 years in Wet Concent
Slide 4: Mineral sands are essential to modern life
Mineral sands are essential to modern life me The minerals produced by Kenmare are used in a wide range of ‘quality of life’ products Two core product streams of minerals sands Examples of end products Titanium feedstocks (ilmenite and rutile) oO » TiO, pigment imparts whiteness and opacity in the m
Slide 5: COVID-19: Employees and host communities
COVID-19: Employees and host communities » Kenmare’s highest priorities are the safety and wellbeing of our employees and host communities No known cases at the Mine or in the communities > Stringent risk mitigation measures have been implemented > Access to site restricted significantly - employees
Slide 6: COVID-19: Operations and markets
COVID-19: Operations and markets Production and shipments continue at the Moma Mine Higher production expected in Q2 but outlook remains unclear > > > Following a disappointing Q1 2020, utilisation rates and throughputs have improved, as anticipated Production is forecast to increase in Q2 2020, as
Slide 7: 2019 review
2019 review
Slide 8: A strengthened focus on sustainability
A strengthened focus on sustainability Board-level Sustainability Committee established in October 2019 Health & safety > LTIFR of 0.27 per 200k man-hours worked to 31 December 2019 and LTIFR of 0.25 to 31 March 2020 > Five star rating achieved from NOSA safety audit for fourth consecutive year > 30
Slide 9: KMAD: 2019 Highlights
KMAD: 2019 Highlights » New ambulance provided to community health centre Renovations and repair work funded at community health Kenmare Resources — 2020 AGM Presentation 8)
Slide 10: Robust operational and financial performance
Robust operational and financial performance me Performance maintained as growth projects advanced a | cc I I IImenite production | Revenue Sales price (FOB)'2 Total cash costs? I 892,900t US$270.9m USS248/t USS158/t Th I +3% +8% +9% FY 2018: 958,500t \ 2018: US$262.2m 2018: US$229/t 2018: USS145/t
Slide 11: Sustained robust cash flow from operations
Sustained robust cash flow from operations me Operating cash flow per share 0.80 65p/share 65p/share 0.60 43p/share Operating cash flow (£/share) -62p/share 2015 2016 2017 2018 2019 Increased operating cash flow generation expected following WCP B move Kenmare Resources — 2020 AGM Presentation "
Slide 12: Dividend policy in action
Dividend policy in action » Balancing final dividend expected to be paid in May 2020 Dividend policy delivery 2019 profit after tax Total dividend distribution > Dividend policy is to pay a minimum of 20% of profit after tax, giving a total full year 2019 dividend USS44.8m USS9.0m distribution of US
Slide 13: Strong financial position
Strong financial position » New debt facilities - enhanced fle Revolving credit facility Remaining debt facilities were drawn to provide enhanced flexibility during COVID-19 uncertainty. USS110m Significant liquidity Debt at 31 Ma Kenmare is well resourced financially to pay its dividend and complet
Slide 14: Development projects update
} KENMARE Development projects update
Slide 15: Targeting 1.2 Mtpa ilmenite production
Targeting 1.2 Mtpa ilmenite production First two of three development projects largely complete WCP C is mining a high grade area of the Namalope ore zone that is inaccessible to the larger WCPs Located close to the MSP - minimises operating costs by leveraging existing fixed cost base and infrastru
Slide 16: WCP B move: Timeline may be impacted
WCP B move: Timeline may be impacted me Relocation scheduled for Q3 2020 2020 WCP B move update WCP B move > Good progress continues with road construction at Moma > Timeline is being impacted by COVID-19 restrictions in Mozambique, South Africa and elsewhere, particularly relating to fabrication of
Slide 17: Outlook for 2020 and beyond
} KENMARE NAAM Outlook for= beyond
Slide 18: Q1 2020 market update
Q1 2020 market update me Offtake agreements secured for majority of Kenmare’s 2020 ilmenite production IImenite > Ilmenite market remained strong in Q1 2020, continuing momentum of 2019 > Q12020 was the fourth consecutive quarter of higher average prices received > Kenmare has secured offtake agreem
Slide 19: Kenmare: Investment case
Kenmare: Investment case >» Kenmare’s three strategic pillars 7 N Following completion of WCP B move, Kenmare is positioned to deliver a 35% production increase MARGIN EXPANSION Increased production and lower unit costs will increase EBITDA margins from 36% in 2019 Y, SHAREHOLDER a RETURNS Dividend
Slide 20: Contact Us
} KENMARE Contact Us Jeremy Dibb / Katharine Sutton +353 16710411 inmarer ie m Follow Us FEA in