Slide 1: Site Visit Presentation
2019 Site Visit Presentation 31 January-1 February 2019
Slide 2: Disclaimer
Disclaimer This Presentation (the “Presentation”) has been with the Company. to be correct and there can be no assurance that prepared and issued by Kenmare Resources plc any projected results are attainable or will be (the “Company” or “Kenmare”). While this This Presentation does not constitute or
Slide 3: Presentation overview
Presentation overview Overview Ben Baxter, Chief Operating Officer Sustainability Koos Grove, General Manager, Moma Mine Regina Macuacua, Corporate Affairs Manager Operations update Higino Jamisse, Operations Manager Ben Baxter, Chief Operating Officer Our path to 1.2mtpa Gary Short, Projects Direct
Slide 4: Overview
Overview Ben Baxter, Chief Operating Officer
Slide 5: Growing from a position of strength
Growing from a position of strength • >20% production growth by 2021 GROWTH • Staged development capital programme through 2019 & 2020 • New Mineral Sands Concentrate MARGIN product stream since Q4 2018 EXPANSION • Unit cost reductions driven by increased volumes SHAREHOLDER • Strong balance sheet •
Slide 6: Overview: Kenmare Resources
Overview: Kenmare Resources 4th largest producer of TiO2 feedstocks Representing 7% of supply World’s largest ilmenite supplier Located in Mozambique >10 years of operations, 30 years in Mozambique 100+ years life of mine ~5% of Mozambique’s exports in 2017 Meaningful contribution to the
Slide 7: Mineral sands: essential to modern life
Mineral sands: essential to modern life Two core product streams of minerals sands World GDP vs TiO2 pigment consumption Titanium feedstocks (ilmenite and rutile) 6 450 TiO2 pigment imparts whiteness and opacity in the manufacture Millions tonnes Global GDP Index of paints, plastics and paper 4 30
Slide 8: Sustainability
Sustainability Koos Grove, General Manager Regina Macuacua, Corporate Affairs Manager
Slide 9: Sustainable operating practices
Sustainable operating practices Safety Lost Time Injury Frequency Rate 67% decrease in Lost Time Injuries in 2018 compared to 0.6 2017 (from 9 to 3) LTIFR of 0.12 per 200k man hours worked in 2018 – 0.4 Kenmare’s lowest ever level 0.2 Strong improvement due to increased focus on risk assessmen
Slide 10: 95% Mozambican workforce
95% Mozambican workforce Kenmare directly employs 1,400 people Localisation at Kenmare 6% increase in number of employees compared to 2017 100% % Mozambican 95% Mozambican workforce in 2018 2% increase in localisation of workforce compared to 2017 90% 100% of operator personnel and 87% supervi
Slide 11: Kenmare Moma Development Association (KMAD)
Kenmare Moma Development Association (KMAD) Established in 2004, KMAD is a not-for-profit organisation with the objective of implementing development programmes in Kenmare’s host communities. KMAD has 3 key areas of focus: Economic Development and Livelihood Income generating activities, food secu
Slide 12: KMAD in 2018
KMAD in 2018 Examples of community initiatives supported by KMAD during 2018… Economic Development and Livelihood Funding provided for 7 new businesses A total of 43 small businesses supported by KMAD at the end of 2018 Healthcare Development Over 11,000 people tested for malaria 16,782 mosq
Slide 13: Operations update
Operations update Higino Jamisse, Operations Manager Ben Baxter, Chief Operating Officer
Slide 14: Simplified mining flowsheet
Simplified mining flowsheet Mining Pond A Mining Pond B Dredge 1 Dredge 2 Dredge 3 Ore Ore Wet Wet Supplemental Supplemental Concentrator Ore Ore Concentrator Ore Dry Mining Dry Mining Plant A Plant B HMC HMC Heavy Mineral Concentrate WCP A WCP B HMC Stockpile HMC Stockpile Kenmare Resources - Site
Slide 15: Simplified processing flowsheet
Simplified processing flowsheet HMC Stockpile Mineral Separation Plant Product Warehouse Wet Dry Wet circuit zircon zircon Non- Zircon circuit circuit WCP A magnetic HMC Stockpile concentrate Mineral Sands Concentrate Wet High Intensity HMC Magnetic Separation (WHIMS) Plant Rutile Dry cleaner circui
Slide 16: Mineral Separation Plant (MSP): aerial view
Mineral Separation Plant (MSP): aerial view Kenmare Resources - Site Visit 2019 16
Slide 17: Meeting guidance for the third consecutive year
Meeting guidance for the third consecutive year Ilmenite production (000’s tonnes) Primary zircon production (000’s tonnes) 1,200 60 1,000 50 800 40 600 30 400 20 200 10 0 0 2016 2017 2018 2016 2017 2018 2018 Guidance 2018 Guidance Mid-point of original FY 2018 production guidance exceeded for all
Slide 18: Optimising current operations
Optimising current operations Focused on increasing recoveries and expanding margins INCREASING THROUGHPUT RAISING UTILISATION INCREASING RECOVERY • Dry mining • Projecto Oitenta • Zircon projects • Dredge automation • Mine planning • Mineral Sands Concentrate Dry mining (Kt) Mine operating time Ove
Slide 19: Unit costs (US$/tonne)
Targeting further unit cost reductions by 2021 1,200 240 Finished product production 1,000 200 Unit costs (US$/tonne) 800 160 (000’s tonnes) 600 120 400 80 200 40 0 0 2012 2013 2014 2015 2016 2017 2018 Production All-product costs Ilmenite costs (net of co-product revenues) Unit cash operating cos
Slide 20: 2019 guidance
2019 guidance (provided 10 January 2019) Production 2019 Guidance 2018 Actual Ilmenite tonnes 900,000-960 ,000 958,500 Primary zircon tonnes 44,500-52,000 48,400 Rutile tonnes 8,100-9,500 8,200 Concentrates* tonnes 33,500-43,500 28,200 Costs Total cash operating costs US$ m 151-167 N/R1 Cash costs p
Slide 21: Our path to 1.2Mtpa
Our path to 1.2Mtpa Ben Baxter, Chief Operating Officer Gary Short, Project Director
Slide 22: Why 1.2Mtpa (million tonnes per annum)?
Why 1.2Mtpa (million tonnes per annum)? Expected quarterly grades Fully utilises our existing assets 5% The Mineral Separation Plant has a capacity of 4% 1.2mtpa ilmenite (plus associated co-products) 3% Production of Heavy Mineral Concentrate is 2% limited by mining and concentrating capacity 1
Slide 23: Long life, sustained grades
Long life, sustained grades 8 billion tonnes of Mineral Resources Moma is comprised of a number of different ore zones, which differ due to grades, size, mineral assemblage Optimised long term plan, focusing on: Namalope: near term production, high-grade WCP C resources Pilivili: Highest grade
Slide 24: Progressing development projects
Progressing development projects 2018 2019 2020 WCP B WCP C WCP B UPGRADE DEVELOPMENT MOVE STAGE STAGE STAGE • Largely complete • Execution underway • DFS underway CAPITAL CAPITAL CAPITAL • <US$16 million • <US$45 million • c. US$100m Growing production to 1.2million tonnes per annum of ilmenite Ken
Slide 25: Project timeline: low risk, phased approach
Project timeline: low risk, phased approach WCP B Upgrade Execution Phase Oct 17 to Dec 18 WCP C DFS Jan 18 to Aug 18 WCP C Execution Phase Aug 18 to Dec 19 WCP B to Pilivili DFS WCP B to Pilivili Execution Phase Mar 18 to Mar 19 Apr 19 to Mid 2020 WCP A to Nataka Scoping, PFS and DFS studies WCP
Slide 26: Minimising project risk
Minimising project risk Kenmare will deliver high quality projects by: Ensuring good value delivery with suitable contract models using a dedicated Owners Team and experienced EPCM contractor Following a phased project delivery model ensuring capital spend is focused and efficient Minimising p
Slide 27: WCP B upgrade
WCP B upgrade Delivers additional 130kt HMC per annum WCP B Upgrade additional HMC contribution Increasing capacity by 20% to 2,400tph 2,000kt Lowest capital intensity Utilises existing WCP space and related 1,600kt infrastructure Minimal additional operating costs 1,200kt Phased approach to
Slide 28: Construction of WCP C (2019)
Construction of WCP C (2019) Delivers additional 150kt HMC per annum WCP C additional HMC contribution Capital costs up to US$45m 2,000kt 20 year life of mine identified Mines ore previously not accessible 1,600kt Operating costs 1,200kt Located close to the MSP; low pumping costs Leverage
Slide 29: WCP B move to Pilivili: delivering 1.2Mtpa ilmenite
WCP B move to Pilivili: delivering 1.2Mtpa ilmenite Pilivili is the highest grade deposit in the portfolio WCP B move additional HMC contribution Good co-product contributions 2,000kt Low slimes grades and free-flowing sands provide good mining conditions 1,500kt Contributes an average additiona
Slide 30: Maintaining 1.2Mtpa ilmenite production
Maintaining 1.2Mtpa ilmenite production WCP A to Nataka (2025): High grade Nataka path Move necessary as Namalope mining completed Conceptual studies completed High grade 20 year path identified: 24% higher HM grades Higher slimes will require upfront desliming circuit: Increases excavat
Slide 31: 5 year capital cost guidance
5 year capital cost guidance Estimated Development Capital 2019 2020 2021 2022 2023 Sustaining capital Development Studies 3 2 1 1 1 2019: FY guidance of US$23m WCP C at Namalope 39 1 0 0 0 Expected US$20-25m from 2020-2025 MSP Improvements 3 3 0 0 0 Development capital WCP B to Pilivili 25 75 0
Slide 32: Sustained production at higher levels from 2021
Sustained production at higher levels from 2021 20 year production profile 2,000 HMC Production (000’s 1,600 1,200 tonnes) 800 400 0 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 2036 2037 2038 2039 2040 HMC Production HMC equivalent of 1.2mt ilmenite Moma op
Slide 33: Contact Us
Contact Us Jeremy Dibb IR & Corporate Development +353 1 671 0411 ir@kenmareresources.com