Image source: © 2025 Krish Capital Pty. Ltd.

Highlights

  • KMR's revenue rose 3% year-on-year to $159.6 million, supported by stronger shipments and higher average prices.

  • Adjusted EBITDA (excluding impairment) declined 25% YoY to $47.2 million, reflecting higher operating costs.

  • Interim dividend declared at USc10 per share, with impairment charge not expected to impact full-year dividend considerations.

Kenmare Resources plc (LSE:KMR, ISE:KMR), a leading global producer of titanium minerals and zircon, today published its Half-Yearly Financial Report for the six months ended 30 June 2025 and announced an interim dividend for the year.

Financial and Market Performance

Kenmare delivered mineral product revenue of $159.6 million in H1 2025, an increase of 3% compared with the same period in 2024. The growth was driven by stronger shipment volumes and higher average realised prices, supported by a higher-value product mix.

The company reported an impairment charge of $100.3 million, primarily reflecting lower projected future revenue assumptions in response to an uncertain pricing outlook. Excluding the impairment, adjusted EBITDA stood at $47.2 million, down 25% year-on-year, with a margin of 30%.

Adjusted profit after tax declined to $6.1 million, representing a 71% fall compared with the prior year.

Kenmare declared an interim dividend of USc10 per share. The impairment charge will not impact the board’s consideration of the full-year dividend.

Costs and Balance Sheet

Cash operating costs per tonne of finished product increased 14% year-on-year to $SD 248, driven by higher direct operating costs at the Moma mine, accruals relating to the Implementation Agreement, and certain non-recurring expenses.

Cash operating cost per tonne of ilmenite, net of co-products, was $211, up 5% year-on-year. Higher co-product revenues helped offset part of the increase in operating expenses.

At 30 June 2025, net debt stood at $85.1 million, compared with $25.0 million at 31 December 2024. The company reported cash and cash equivalents of $46.5 million and maintained significant financial flexibility, supported by an undrawn $70 million Revolving Credit Facility.

Corporate and Operations Update

Kenmare continues discussions with the Government of Mozambique regarding the extension of Moma’s Implementation Agreement following a June meeting between Managing Director Tom Hickey and the President of Mozambique.

In health and safety, the company recorded zero Lost Time Injuries (LTIs) in H1 2025, resulting in a Lost Time Injury Frequency Rate (LTIFR) of 0.03 per 200,000 hours worked over the 12 months to 30 June 2025. One LTI was recorded in July.

The company achieved Heavy Mineral Concentrate production of 670,600 tonnes, up 2% year-on-year, with higher ore grades offsetting lower excavated volumes. Finished product output rose 2% to 500,800 tonnes, while shipments also increased 2% to 488,900 tonnes.

Kenmare is considering renting a third transshipment vessel to supplement shipping capacity in the near term.

Development Projects

The Wet Concentrator Plant (WCP) A upgrade project remains on track, with commissioning scheduled to begin in Q3 2025. As of June, $208 million of the $341 million total project budget had been spent, representing 60% of the total. By year-end, spending is expected to reach 80% of the project total, with an additional $70 million of investment planned.

Development capital guidance for 2025 has been revised from $150 million to $165 million to reflect updated expenditure phasing. The overall WCP A project budget remains unchanged.