Strategic objectives

Kenmare operates the Moma Mine, located on the north east coast of Mozambique. The Moma Mine contains reserves of heavy minerals that include the economic titanium minerals, ilmenite and rutile, which are used as feedstocks to produce titanium dioxide pigment, as well as the relatively high-value zirconium silicate mineral, zircon.

Titanium dioxide pigment is used in paints, paper and plastic production. The primary applications for zircon are in the manufacture of opacifiers for ceramic tile production and for refractory products used in the steel and foundry industries.

Kenmare is a well-established major global supplier of titanium mineral sand products, with a customer base operating in over fifteen countries. The output from the Mine consists of several grades of the titanium dioxide (TiO 2) minerals, ilmenite and rutile, as well as the zirconium mineral, zircon. Kenmare’s products are key raw materials that are processed into intermediate products and ultimately consumed in everyday “quality-of-life” products such as paints, plastics and ceramic tiles.

View our strategy.

Strategic objectives, priorities and performance

Kenmare's vision is to be a leading ilmenite producer positioned in the first quartile of the industry revenue to cost curve. We will deliver this vision through the Group’s strategy, which is focused on the three pillars of growth, margin expansion and shareholder returns. Our strategy is supported by our ongoing commitment to be a responsible corporate citizen.


We have outlined a programme of three development projects to increase our ilmenite production to 1.2 million tonnes per annum. This increase is delivered through an increase in mining productivity, expanded mining capacity and access to higher grade ore.


45-60% increase in production of ilmenite for 2021. The increase in production has been supported by the completion of three significant development projects:

  1. 2018: 20% capacity increase of WCP B
  2. 2019: Development of WCP C; and
  3. 2020: Move of WCP B from Namalope to Pilivili


WCP C produced first HMC in February 2020. The project has been operating at expected throughput levels and remains on track to be completed within the original budget of US$45 million, although some defect remediation remains to be closed out with contractors.

Increased costs were incurred with the WCP B project, related to required COVID-19 mitigation measures. However, the original project scope was delivered broadly in line with expectations. WCP B was successfully relocated from Namalope to Pilivili in Q3 2020 and began producing in Q4, our strongest production quarter of the year.


Following the completion of the WCP B to Pilvili, Kenmare expects production in 2021 to be significantly higher and sustained in the long term. Guidance for 2021 has been set between 1.1 and 1.2 million tonnes of ilmenite, plus associated by-products, representing a 45-60% increase in production volumes from 2020.

Margin Expansion

Optimising the performance of all assets is crucial to maximising margin. In addition to higher revenues, increased production helps to reduce unit costs


Reducing unit costs. Kenmare achieved an EBITDA margin of 33% in 2020, which is expected to improve in 2021.

Kenmare's strategy to increase margins has three approaches:

  1. Increasing throughput - through dry mining and dredge automation
  2. Raising utilisation - by improving mine planning to increase operating time; and
  3. Increasing revenue capture - through higher recoveries and additional product streams.


As expected, production of ilmenite in 2020 was lower than in 2019. This was due to the lower grades available for mining ahead of the move to Pilivili and the downtime of WCP B associated with the move. Utilisations through the MSP (Mineral Separation Plant) were also negatively affected by low HMC stocks because of lower mined production.


Kenmare is targeting a first quartile position in the industry margin curve (or revenue to cost curve), providing more stable cashflows and insulation against future commodity price cycles. Kenmare’s cash operating costs per tonne are expected to decrease from US$188 per tonne in 2020 to between US$132 and 146 per tonne in 2021.

Shareholder Returns

Making capital returns to shareholders is an essential part of Kenmare’s strategy to deliver value to our shareholders, whilst balancing the needs of the business and maintaining a strong balance sheet. Kenmare has a dividend policy to pay a minimum of 20% of Profits After Tax.


Increased dividends. In recognition of 2020 as a year of transition, the Board is recommending a 22% increase in dividends for 2020.


Despite a planned increase in capital expenditure during 2020 and the unexpected challenges posed by COVID-19; dividend payments were maintained. A 2019 final dividend of USc5.52 per share was paid following the AGM May 2020 and a 2020 interim dividend of USc2.31 per share was also paid in October.


Maintaining a prudent level of cash remains a strategic priority for Kenmare to help insulate the business from unexpected shocks.

However, the board is sufficiently confident in the outlook of the company to recommend a 2020 final dividend that is substantially above the dividend policy minimum of 20% profit after tax. It has proposed a payment of USc7.69 per share, subject to shareholder approval, to be paid in May 2021.

The Board has also proposed a target dividend payout ratio of 25% of profit after tax in 2021.