Kenmare Resources Plc · LSE:KMR

Kenmare Resources — H1 2025 Earnings Presentation

40 slides from Kenmare Resources's earnings presentation, Aug 20, 2025

  1. Slide 1: H1 2025 results presentation

    TRANSFORMING RESOURCES INTO OPPORTUNITY FOR ALL H1 2025 results presentation 20 August 2025

  2. Slide 2: Disclaimer

    Disclaimer This Presentation (the “Presentation”) has been This Presentation does not constitute or form part attainable or will be realised. In particular, certain prepared and issued by Kenmare Resources plc of, and should not be construed as, an offer, statements in this Presentation relating to

  3. Slide 3: Agenda

    Agenda Introduction Tom Hickey, Managing Director Financial review James McCullough, Chief Financial Officer Operations and capital projects update Ben Baxter, Chief Operations Officer Market update Tom Hickey, Managing Director Outlook Tom Hickey, Managing Director Questions? 3

  4. Slide 4: The world's largest ilmenite supplier

    The world’s largest ilmenite supplier Overview: Kenmare Resources plc The Moma Titanium Minerals Mine in Mozambique  Track record of 18 years of production, with ~40 years in Mozambique  >100 years of Mineral Resources at current production rate Trusted corporate citizen  Meaningful contribution

  5. Slide 5: Consistent performance through a dynamic period

    Consistent performance through a dynamic period Overview of H1 2025 Stable operations, weaker markets Capital project advancing on time and budget • Zero Lost Time Injuries in H1 • Significant progress made with WCP A upgrade project during H1 and commissioning on track to begin in Q3 • On track to

  6. Slide 6: IA renewal remains a major focus

    IA renewal remains a major focus Overview of Implementation Agreement (IA) and renewal process Background to IA  The IA governs the terms under which Kenmare conducts its processing and export activities, including royalties, an Industrial Free Zone and related fiscal matters  The IA was signed in

  7. Slide 7: Financial review

    Financial review James McCullough, Chief Financial Officer Pilivili operations infrastructure terrace

  8. Slide 8: Sustained cash flow generation

    Sustained cash flow generation H1 2025 financial highlights Average price received ($/t) Total revenue ($m) H1 2025 dividend Net debt at 30 June 486 331 429 412 425 389 250 323 326 197 243 216 USc10.0/sh $85.1m 165 168 (H1 2024: (31 Dec 2024: USc15.0/sh) $25.0m) H1 H2 H1 H2 H1 H2 H1 H1 H2 H1 H2 H1 H

  9. Slide 9: 30% underlying EBITDA margin

    30% underlying EBITDA margin H1 2025 income statement $ million H1 2025  Mineral product revenue up 3% YoY, H1 2025 H1 2024 Adjusted1 due to slightly higher shipments and a Mineral product revenue 159.6 159.6 154.5 higher value product mix, offset by slightly lower pricing Freight revenue 8.1 8.1 1

  10. Slide 10: Performing in challenging conditions

    Performing in challenging conditions Pricing and shipping review Mineral product revenue bridge1 ($m) Increased shipments scheduled in H2 200 3.7 8.6  H1 shipments of 488,900t, up 2% YoY 150 154.4 -7.1 159.6  Robust performance by marine operations in Q1 but 100 worse than expected weather conditi

  11. Slide 11: H1 costs impacted by non-recurring items

    H1 costs impacted by non-recurring items H1 2025 cash operating costs reconciliation1  Total cash operating costs up 16% YoY Unit H1 2025 H1 2024 (+$17.2m), mainly due to  6% increase in direct operating costs at Cost of sales (excluding freight) $m 136.7 123.0 Moma (+$6.7m) Administration expense

  12. Slide 12: Well capitalised to fund capex and dividends

    Well capitalised to fund capex and dividends Net cashflows H1 2025 net debt bridge ($m) $40m 44.0 Receivables $20m (+$52.2m) $0m WCP A: $95m Inventories -$20m & payables -25.0 -$40m Sust & (-$21.5m) improv: -$60m $20m 30.7 -$80m -15.3 -4.6 -85.1 -$100m -115.0 -$120m Net debt: Operating Capex Working

  13. Slide 13: WCP A project substantially de-risked

    WCP A project substantially de-risked Rate of spend on WCP A project will decline rapidly post year-end 2025  Updated capital cost schedule underlines that WCP A project capital expenditure ($m) majority of project spend is complete, with peak spend expected in 2025 100  80% of total spend expecte

  14. Slide 14: Balance sheet strength underpins project delivery

    Balance sheet strength underpins project delivery Balance sheet review 30-Jun-2025 31-Dec-2024  Additions to PPE of $115.0m in H1, relating primarily to the upgrade of WCP A, less depreciation ($30.0m), $ million $ million carrying value impairment ($100.3m), and mine closure Property, plant & equi

  15. Slide 15: Maintaining dividends through higher capex period

    Maintaining dividends through higher capex period Overview of Kenmare’s interim dividend and expectations for 2025 Dividends (USc/share) 80 Total 2025 interim dividend Interim Final $8.9m 60 40 2025 interim dividend/share 39 43 17 USc10.0 20 25 18 6 3 8 11 15 10 0 2 7 2019 2020 2021 2022 2023 2024 2

  16. Slide 16: Operations update

    Operations update Ben Baxter, Chief Operations Officer Mineral Separation Plant stockpiles

  17. Slide 17: Strong safety performance in H1

    Strong safety performance in H1 "Trabalho Seguro“ (“Safe Work”) initiative promoting increased safety awareness Lost Time Injuries and rolling 12-month LTIFR 2 0.2 LTIFR (per 200k hours) Lost Time Injuries 0.09 0.09 0.06 1 0.1 0.06 0.06 0.03 0 0.0 Q1 Q2 Q3 Q4 Q1 Q2 2024 2025 LTIs LTIFR  No LTIs in

  18. Slide 18: On track to achieve 2025 production guidance

    On track to achieve 2025 production guidance H1 2025 production review Mining  2% increase in HMC production YoY due to a 9% increase in ore HMC production Ilmenite grades partially offset by a 6% decrease in excavated ore volumes 670,600t 449,900t  Production expected to be stronger in H2, suppor

  19. Slide 19: SMO 1 producing in line with expectations

    SMO 1 producing in line with expectations Selective Mining Operations (SMOs) provide capital-light production SMO 1 commissioned in H1 2025 SMO 1’s concentrator modules  SMO 1 is supporting production in 2025, offsetting WCP A’s planned downtime  Low capital cost (<$6m) due to SMO’s simple, modula

  20. Slide 20: Opportunity to increase shipments

    Opportunity to increase shipments Work progressing to secure a third transshipment vessel Kenmare’s Bronagh J vessel Bronagh J exceeding expectations in early H2  Shipments are currently at ~50% capacity due to Peg vessel’s absence for dry dock maintenance work  Shipments have been higher than exp

  21. Slide 21: Capital projects update

    Capital projects update Ben Baxter, Chief Operations Officer Partially flooded staging pond

  22. Slide 22: Two new dredges landed safely at Moma

    Two new dredges landed safely at Moma Key project milestone achieved as two new dredges arrive in staging pond at Moma  Two new high-capacity dredges left contractor’s dockyard in the Netherlands in early June and travelled by sea to Mozambique  Safely landed on the beach at Moma during July – wat

  23. Slide 23: WCP A expected to be at full capacity by year-end

    WCP A expected to be at full capacity by year-end Timeline for WCP A upgrade project for the remainder of 2025 Safe beach landing of two new New Tailings Storage Facility Upgraded WCP A is fully commissioned  dredges at Moma begins commissioning and producing at capacity Q3 2025 Q4 2025 Flooding of

  24. Slide 24: Market update

    Market update Tom Hickey, Managing Director Product storage sheds

  25. Slide 25: Consistent demand for Kenmare's ilmenite

    Consistent demand for Kenmare’s ilmenite Kenmare targets the strongest market segments for its ilmenite xxx Chinese pigment production (‘000 tonnes)1 Titanium feedstock demand from metal industry2 4,000 400 1,000 3,000 300 800 ‘000 TiO2 units 2,000 200 600 1,000 100 400 0 0 200 H1 H2 H1 H2 H1 H2 H1

  26. Slide 26: Increased supply creating market pressure

    Increased supply creating market pressure Higher levels of supply from domestic Chinese producers and imported concentrates Chinese domestic ilmenite Chinese domestic ilmenite production (Mt)1 4.0  Ilmenite production in China is increasing at a steady rate 3.0  This strong supply has led to price

  27. Slide 27: Strong order book for H2 but pricing remains soft

    Strong order book for H2 but pricing remains soft H2 2025 outlook for titanium feedstocks and zircon markets Titanium feedstocks Ilmenite  Demand for Kenmare’s high-quality ilmenite remains robust  Moma’s mine life provides stable supply for long-term customers  Strong titanium metal market also

  28. Slide 28: Outlook

    Outlook Tom Hickey, Managing Director New houses built for Isoa village relocation

  29. Slide 29: 2025 production guidance maintained

    2025 production guidance maintained1 Kenmare expects to produce 930,000-1,050,000 tonnes of ilmenite in 2025 Production 2025 Guidance 2024 Actual Ilmenite tonnes 930,000-1,050,000 1,008,900 Primary zircon tonnes 47,500-54,000 50,500 Rutile tonnes 9,000-10,000 9,800 Concentrates2 tonnes 63,000-69,000

  30. Slide 30: Transforming resources into opportunity for all

    Transforming resources into opportunity for all Delivering Kenmare’s purpose Resilient long-term production profile Consistent low-cost industry position • One of the world’s largest titanium minerals deposits • H1 2025 EBITDA margin of ~30% • >100 years of Mineral Resources at current production ra

  31. Slide 31: Appendices

    Appendices New school classrooms built by KMAD in Naholoco village

  32. Slide 32: Mineral sands: essential to modern life

    Mineral sands: essential to modern life Demand for Kenmare’s products is driven by global GDP growth and urbanisation in emerging markets Titanium feedstocks (ilmenite and rutile) World GDP vs TiO2 pigment consumption1  TiO2 pigment imparts whiteness and opacity in the manufacture of paints, plasti

  33. Slide 33: A globally significant titanium minerals mine

    A globally significant titanium minerals mine Moma Mine operating schematic Low cost, bulk mining operation Low environmental impact  Mature operation – in production since 2007  Primarily hydro-generated electricity (>90% of electrical  Three Wet Concentrator Plants (WCPs) in operation requireme

  34. Slide 34: Market leadership built on a robust strategy

    Market leadership built on a robust strategy Strategic priorities and recent performance OPERATE RESPONSIBLY • >$23m invested into community initiatives since 2004 97% • Kenmare entered the FTSE4Good MOZAMBICAN index in June 2025 WORKFORCE DELIVER LONG LIFE, • Consistent low-cost industry position ~

  35. Slide 35: Sustainability goals advanced in H1 2025

    Sustainability goals advanced in H1 2025 Four strategic sustainability focus areas • Introduction of a 24/7, confidential mental health help-line for staff, giving access to Safe and engaged workforce qualified psychologists and therapists • Over 600 employees participating in regular fitness challe

  36. Slide 36: Securing future production at Moma

    Securing future production at Moma No significant relocation costs post WCP A transition to Nataka WCP A upgrade and transition to Nataka Mineral Resource by ore zone (THM1)  Moving WCP A to Nataka unlocks the majority of Kenmare’s ~9bnt Mineral Resources, securing production at Moma for decades to

  37. Slide 37: WCP A project progressing on budget

    WCP A project progressing on budget Overview of capital costs for WCP A’s transition to Nataka WCP A capital cost estimate remains at $341m  $95m of capital spent on WCP A project in H1 2025 and $208m spent in total to end of H1 2025 (~60%)  Unallocated contingency remains within this total ~80% c

  38. Slide 38: H1 costs reflect higher indirect and one-off costs

    H1 costs reflect higher indirect and one-off costs Total cash operating costs breakdown ($m) H1 2025 total cash operating costs up $17m (+16%) YoY, 8 $124m due primarily to: 4  6% increase in direct operating costs at Moma $107m Indirect costs (+$6.7m) 0.4 +$10m 13  Labour: increased headcount (+3

  39. Slide 39: Impairment sensitivities

    Impairment sensitivities Sensitivity of impairment to changes in assumptions Change in  The Group forecast is sensitive to changes in key impairment loss assumptions; the most impactful are: $m ($m)  Weighted Average Cost of Capital applied. At 30 June 2025 this was 13% vs. 13.4% on 31 Property, p

  40. Slide 40: Contact us

    Beach landing of first new dredge Contact us Katharine Sutton Investor Relations +353 1 671 0411 ir@kenmareresources.com Follow us

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