Kenmare Resources Plc · LSE:KMR
Kenmare Resources — Shareholder Meeting (May 2018)
14 slides from Kenmare Resources's shareholder meeting presentation, May 25, 2018
Slide 1: 2018 AGM Presentation
2018 AGM Presentation 25th May 2018
Slide 2: Disclaimer
Disclaimer This Presentation (the “Presentation”) has which it is based, or any other written or oral estimates and projections made. These been prepared and issued by Kenmare information made available in connection assumptions and judgments may or may not Resources plc (the “Company” or with the C
Slide 3: 2017 saw continued growth & operational development
2017 saw continued growth & operational development • Production of ilmenite ↑ 11% Record Annual • Revenue ↑ 47% Production & Sales • Cash costs per tonne ↓ 3% • Creating a series of low capital intensity Mine Optimisation development options Progress • 20% expansion of Wet Concentrator Plant B on s
Slide 4: Sustainable operating practices
Sustainable operating practices Safety Safety performance 1 • Retained NOSA 5 star status 0.6 • 2017: 9 x LTIs, LTIFR 0.39 • Focus on behaviours to improve performance 0.5 0.4 Environmental 0.3 • No significant environmental incidents Malaria 0.2 0.1 • Prevention improved 11% in 2017 0.0 • 28% reduc
Slide 5: 2017 operating overview
2017 operating overview Annual Production (000’s tonnes) 1,200 80 • 2017 production in line with guidance given January 1,000 2017 60 800 Ilmenite Zircon 600 40 • US$54.6m improvement in EBITDA – driven by large increase in revenue as a result of a significant uplift 400 20 in pricing 200 0 0 • 2017
Slide 6: Significantly improved 2017 financial performance
Significantly improved 2017 financial performance Revenue Sales price (US$/t)(1) Cash costs(2) 47% 47% 3% 2017: US$208m 2017: US$196/t (FOB) 2017:US$132/t 2016: US$142m 2016: US$133/t (FOB) 2016: US$136/t EBITDA Profit After Tax Net Debt US$54.4m US$34m US$11m 2017: US$59.6m 2017: US$19m 31/12/17: U
Slide 7: Cash operating costs
Cash operating costs $220 1,200 Cash operating cost per tonne (US$/t) $200 1,000 Volume (000’s tonnes) $180 800 $160 600 $140 400 $120 200 $100 0 2012 2013 2014 2015 2016 2017 Final Product Production (kt) Ongoing Cash Operating Cost per Tonne (US$/t) • 2017 costs in line with guidance for the year
Slide 8: 2017 achieved pricing
2017 achieved pricing Ilmenite Pricing Movement (FOB)1 2 • 2017 average FOB prices for all products shipped $175 increased 47% to US$196/t from US$133/t in 2016 $150 US$/tonne • Annual price increases for all products $125 $100 • Ilmenite prices up 52% $75 H1 2016 H2 2016 H1 2017 H2 2017 • Primary z
Slide 9: Principal debt repayment profile
Principal debt repayment profile 25 20 US$ millions 15 10 5 0 Aug-16 Feb-17 Aug-17 Feb-18 Aug-18 Feb-19 Aug-19 Feb-20 Aug-20 Feb-21 Aug-21 Feb-22 Net debt at the end of 2017 US$34 million First principal repayment made at the beginning of February 2018 No cash sweep has been paid to date All
Slide 10: 2018 Mine & Mineral Separation Plant outlook
2018 Mine & Mineral Separation Plant outlook Mine Mineral Separation Plant • Production will be impacted by: • Strategy: Maximise HMC feed and recoveries to maximise final product production • Higher slimes, low HMC stock and slightly lower grades in 2018 • Focus for product recoveries • Implementat
Slide 11: Guidance
Guidance 2017 2018 Production Guidance* Production Ilmenite kt 998,200 900,000-1,000,000 Zircon kt 74,000 65,000-72,000 of which primary kt 48,600 42,000-46,000 of which secondary kt 25,400 23,000-25,000 Rutile kt 9,100 7,000-8,000 Costs Total cash operating costs US$m 142 133-147 Cash costs per ton
Slide 12: Short term development opportunities
Short term development opportunities Additional mining capacity required to sustain production levels at around 1Mt ilmenite per annum, to offset declining grades as the Namalope zone progresses toward end of mine life • WCP B Upgrade (Estimated DFS cost: <US$16 million) • 20% capacity addition, inc
Slide 13: TiO2 feedstock review and outlook
TiO2 feedstock review and outlook Titanium Feedstocks • Higher pigment production drove increased demand for TiO2 feedstocks in 2017 • Ilmenite prices in China increased strongly in H1 2017, but softened in H2 due to increased imports and weaker demand • The chloride pigment sector in China is growi
Slide 14: Building on our strategy
Building on our strategy Strategy 2017 2018 Pilivili Pre-Feasibility Studies WCP B project commissioning Growth Continuing studies for further Low capital intensity growth to brownfield mining expansion fully utilise existing installed Namalope supplementary DFS facilities. Achieved unit