Kenmare Resources Plc · LSE:KMR
Kenmare Resources — Investor Presentation (January 2020)
23 slides from Kenmare Resources's investor presentation, January 2020
Slide 1: Investor Presentation January 2020
Investor Presentation January 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 a
Slide 3: Overview: Kenmare Resources
Overview: Kenmare Resources » World’s largest ilmenite producer 4th largest producer of TiO, feedstocks > Currently representing 7% of global supply MOZAMBIQUE > Growing to 10% of global supply from 2021 Moma Titanium Minerals Mine > >10 years of operations, 30 years in Wet Concentrator Plant (WCP)
Slide 4: Mineral sands: essential to modern life
Mineral sands: essential to modern life “a Emerging market demand growing rapidly World GDP vs TiO, pigment consumption Two core product streams of minerals sands Titanium feedstocks (ilmenite and rutile) g 6 “ 190 > TiO, pigment imparts whiteness and opacity in the manufacture E 4 300 = of paints,
Slide 5: Overview: Moma Titanium Minerals Mine
Overview: Moma Titanium Minerals Mine me Globally significant Mineral Reserves of heavy minerals Tier 1 resource base Dry Mining ie) ‘Wet i Concentater (3) C4] Dune itation Heavy Mineral Rehabilitation Concentrate > >100 year life of mine > Moma is multiple ore bodies - 8 billion tonnes of Mineral R
Slide 6: Sustainable operating practices
Sustainable operating practices » Kenmare is committed to being a responsible corporate citizen SAFETY Named Best Mine (open cast) at 2018 NOSCARS » LTIFR of 0.27 per 200k man hours worked to 31 Dec 2019 » Increased focus on employee empowerment and personal accountability for safety » Five star rat
Slide 7: Kenmare's core strategy
Kenmare’s core strategy » Focused on creating shareholder value DY ° Last of three development projects scheduled for completion in 2020 * 35% production growth targeted in 2021 GY MARGIN EXPANSION y DY SHAREHOLDER ° Minimum 20% Profit After Tax dividend policy established ‘ RETURNS * Maiden dividen
Slide 8: Three development projects
Three development projects » On track for all projects to be completed by Q4 2020 WCP B upgrade ZLOTY WCP C development 20% capacity upgrade of WCP B complete and delivering to scope Q3 2020 Cost: <US$10m Cost: US$106m Kenmare Resources — Investor Presentation January 2020
Slide 9: WCP C project update
WCP C project update >» First HMC expected in February 2020 Smaller scale, high grade production > > > WCP C has a nameplate mining capacity of 500 tph Targeting a high grade area of the Namalope ore zone that is inaccessible to either of the larger Wet Concentrator Plants Expected to add 150kt/annu
Slide 10: Execution underway of WCP B move
Execution underway of WCP B move » Relocation scheduled to take place in Q3 2020 and scheduled to take up to 12 weeks Pilivili ore zone Watch an animation of the WCP B move » Highest grade ore zone in Moma’s portfolio - Mineral Reserves of 4.4% Total Heavy Mineral (THM) > Other favourable characteri
Slide 11: FY 2019 production update
FY 2019 production update >» A record year for excavated ore tonnes HMC production IImenite 1,202,100t 892,900t -12% Th FY 2018: 1,370,800t Primary zircon FY 2018: 958,500t Rutile 46,900t -3% FY 2018: 48,400t 8,300t 1% FY 2018: 8,200t Concentrates Shipments 40,200t 1,029,300t 43% -4% FY 2018: 28,200
Slide 12: Delivering shareholder returns
Delivering shareholder returns Maiden dividend (interim) paid in October 2019 Dividend policy >» Commitment to deliver shareholder value » Policy to pay a minimum 20% of profit after tax Subject to: > Market conditions, debt and capital requirements > Higher cash balances likely to be maintained unt
Slide 13: Market
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Slide 14: Supply deficit for titanium feedstocks
Supply deficit for titanium feedstocks me Forecast supply/demand market balance 10,000 8,000 TiO, units (kt) 6,000 4,000 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 lms Existing Supply lm Increased Moma Supply mmm Potential New Supply —Total Feedstock Demand Source: Co
Slide 15: Positive outlook for all products
Positive outlook for all products me Q4 2019 markets update Zircon ong-term fundamentals for all Kenmare products remain strong Kenmare Resources — Investor Presentation January 2020 IImenite Higher average price achieved for ilmenite in 2019 than 2018, with H2 received prices up >10% on H1 2019 > D
Slide 16: Outlook for 2020
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Slide 17: 2020 guidance
2020 guidance » Provided on 9 January 2020 2020 Guidance] 2019 Actual Ilmenite tonnes 800,000-900,000 892,900 Primary zircon tonnes 44,500-50,100 46,900 Rutile tonnes 7,700-8,700 8,300 Concentrates! tonnes 34,700-39,000 40,200 Costs eee Total cash operating costs USS m 153-172 N/R? Cash costs per to
Slide 18: Conclusion: Building on our strategy
Conclusion: Building on our strategy >» Strategy > Low capital intensity growth to fully > utilise existing installed facilities Margin expansion > Focus on margin expansion through > cost reductions and/or increased revenue streams Shareholder returns > Returns >20% profit after tax to shareholders
Slide 19: Appendix
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Slide 20: Kenmare Moma Development Association (KMAD)
Kenmare Moma Development Association (KMAD) Established in 2004, KMAD’s objective is to implement development programmes in the Moma Mine’s host communities. Examples of KMAD’s initiatives to date: Economic Development and Livelihoods > Funding provided for >65 new local businesses >» Agriculture pr
Slide 21: H1 2019 Financial Results
H1 2019 Financial Results » Robust financial performance Revenue Sales price (FOB) !? Total cash costs? Net ilmenite unit cost_ US$122.7m USS239/t USS152/t USS78/t -12% +7% 0% -11% H1 2018: US$140.1m EBITDA H1 2018: US$223/t Profit after tax USS42.8m -11% H1 2018: US$48.2m Maiden dividend paid in Oc
Slide 22: Follow Kenmare on social media
Follow Kenmare on social media » Facebook, Twitter and LinkedIn KENMARE RESOURCES PLO vmenetnewin |" KENMARE DR renmare Kenmare has gone social > Kenmare has profiles on Facebook, Twitter and LinkedIn, which feature regular updates on our corporate social responsibility initiatives, operational and
Slide 23: Contact Us
> KENMARE Contact Us Jeremy Dibb / Katharine Sutton +353 16710411 Follow Us 6» ii
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