Kenmare Resources Plc · LSE:KMR
Kenmare Resources — Mining Ireland Conference 2019
17 slides from Kenmare Resources's conference presentation, Oct 8, 2019
Slide 1: Mining Ireland Conference
) KENMARE Ireland Conference 8 October 2019
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 a
Slide 3: Overview: Kenmare Resources
Overview: Kenmare Resources me World’s largest merchant ilmenite producer 4th largest producer of TiO, feedstocks > Currently representing 7% of global supply » Growing to 10% of global supply by 2021 MOZAMBIQUE Moma Titanium Minerals Mine > >10 years of operations, 30 years in Ilmenite Mozambique >
Slide 4: Mineral sands: essential to modern life
Mineral sands: essential to modern life » Two core product streams of mineral sands Titanium feedstocks (ilmenite and rutile) » Titanium dioxide (TiO,) pigment imparts whiteness and opacity in the manufacture of paints, plastics and paper > Non-recyclable and difficult to substitute Zircon > An impo
Slide 5: Emerging market demand growing rapidly
Emerging market demand growing rapidly Kenmare has customers in more than 15 countries Quality of life products >» Pigment is “quality of life” product, consumption grows as income levels increase > Significantly higher TiO, pigment consumption per capita in developed western economies > Large popul
Slide 6: 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 7: Long-term presence in Mozambique
30 year presence in Mozambique » Mining-friendly jurisdiction with a developed natural resources industry Moma is in north-eastern Mozambique Mozambique: Quick facts! Capital Maputo Government type Presidential Democratic Republic Nominal GDP US$34.9 billion Net FDIs / GDP 10.0% GDP growth 6.6% Popu
Slide 8: Overview: Moma Titanium Minerals Mine
Overview: Moma Titanium Minerals Mine me Globally significant Mineral Reserves of heavy minerals Tier 1 resource base > >100 year life of mine > Moma is multiple ore bodies - 8 billion tonnes of Mineral Resources > Current mine plan runs to 2040 Low cost, bulk mining operation > Mature operation - i
Slide 9: Sustainable operating practices
Sustainable operating practices » Committed to being a responsible corporate citizen Safety Lost Time Injury Frequency Rate > LTIFR of 012 per 200k man hours worked to 30 June 2019 - , 06 continued strong safety performance g & >» Strong improvement due to increased focus on_ risk 8 3 04 assessment
Slide 10: Growing production, reducing costs
Growing production, reducing costs » Production and cash operating cost per tonne’ profile 1,400 240 5 1,200 200 3 3 1,000 160 2 3 S , 800 8s Em 120 #9 8 600 53 5 2 3 400 80 = 200 40 Oo - 2013 2014 2015 2016 2017 2018 2019 2021 Wm Production Wim Production Guidance ——All-Product Unit Cost ——lImenite
Slide 11: Strong revenue and profit generation
Strong revenue and profit generation » Revenue and EBITDA profile 300 100 250 80 & 200 60 & =] s S 150 40 2 2 100 20 5 & & 50 0 0 -20 2013 2014 2015 2016 2017 2018 MMM Revenue =—-EBITDA 2018 financial highlights >» Revenues of US$262 million, EBITDA of US$93 million and profit after tax of US$51 mil
Slide 12: Growing ilmenite production to 1.2 Mtpa
Growing ilmenite production to 1.2 Mtpa >» Three development projects WCP B move (2020) 20% capacity upgrade of WCP B Construction of WCP C and dredge Project execution commenced complete and delivering to progressing in line with project following DFS completion and Board scope delivery timeline ap
Slide 13: Execution underway of WCP C development
Execution underway of WCP C development » On track for commissioning to commence in Q4 2019 Smaller scale, high grade production > > > WCP C has a target 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 Expe
Slide 14: Execution underway of WCP B move
Execution underway of WCP B move » Relocation scheduled to be completed in Q3 2020 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 characteristics including free flowing sand,
Slide 15: 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 p
Slide 16: Building on our strategy
Building on our strategy > 4p ° >20% production growth to 1.2 Mtpa ilmenite from 2021 GY MARGIN EXPANSION ¢ Maiden dividend payable in late October 2019 1. In 2018 real terms Kenmare Resources — Mining Ireland, October 2019 16
Slide 17: Kenmare
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