Financial highlights

Kenmare uses various financial and non-financial performance measures, linked to our strategic objectives, to help evaluate the ongoing performance of the business.

The following measures are considered by management to be some of the most important in evaluating the overall performance of the Group year on year.


Descriptor: Lost time injury frequency rate.

Relevance: Measures the number of injuries per 200,000 man-hours worked at the Mine.

Performance: Kenmare's safety performance improved in 2020 to 0.35 per 200,000 hours worked. There were nine lost time injuries recorded during the year compared to seven in 2019 but the number of hours worked increased with the additional development project contractors at the mine.

Outlook: Kenmare is committed to continual improvement and in 2021 we will reinforce our safety culture through improving safety leadership, as well as hazard identification and risk assessment practices.


Descriptor: All injuries.

Relevance: Measures the number of injuries at the Mine in the year.

Performance: Total injuries decreased by 8% in 2020 compared to 2019.

Outlook: Building on an excellent improvement in 2021. Continually improving our safety performance is a key area for Kenmare in 2021.

Mining – HMC

Descriptor: Heavy mineral concentrate extracted from mineral sands deposits and which include ilmenite, zircon, rutile, monazite and other heavy minerals and silica.

Relevance: Provides a measure of production from the mine, which is the feedback of our final products.

Performance: HMC production in 2020 was flat compared to the prior year. 2020 ore grades increased by 9% to 3.90%, compared to 2019 (3.58%). Higher grades were offset by reduced excavated ore volumes due to the two-month interruption to operations at WCP B during relocation. Although ore volumes were down 7% year-on-year, WCP C commenced production in late February 2020, and contributed to both grade mined and tonnes excavated.

Outlook: In 2021 production of HMC is expected to be significantly higher than in 2020, due primarily to WCP B mining higher grade ore in Pilivili. More than 50% of Moma's production is attributable to WCP B following its relocation, as Pilivili is the highest grade ore zone in Moma's portfolio.

Processing – finished products

Descriptor: Finished products produced by the mineral separation process.

Relevance: Provides a measure of finished products produced by the processing plants.

Performance: Production of all finished products decreased by 15% compared to 2019. This was due to HMC consumption being 5% lower during the year, lower MSP recoveries and reduced ilmenite content in the HMC during the first nine months of the year. MSP recoveries were negatively impacted by inconsistent HMC availability through the year. As expected, the ilmenite content in the HMC increased as mining commenced in Pilivili.

Outlook: Production of all finished products in 2021 is expected to be higher than in 2020, due primarily to WCP B mining higher grade ore in Pilivili. Ilmenite production in 2021 is expected to be 1.1 million to 1.2 million tonnes, building towards 1.2 million tonnes per annum on a consistent basis.


Descriptor: Earnings before interest, tax, depreciation and amortisation.

Relevance: Eliminates the effects of financing and certain accounting decisions to allow assessment of the earnings and performance of the Group.

Performance: EBITDA decreased in 2020, compared to 2019. Shipments of finished products decreased by 17% year-on-year and total cash operating costs increased by 1%, this was partially offset by a 10% increase in average recieved price per tonne (FOB).

Outlook: Kenmare expects to generate significantly stronger EBITDA from 2021 through achieving its expanded production rate of 1.2 million tonnes per annum of ilmenite, plus associated co-products.

Capital costs

Descriptor: Additions to property, plant and equipment in the period.

Relevance: Provides the amount spent by the Company on additions to property, plant and equipment in the period.

Performance: Investment in property, plant and equipment increased in line with the Group’s development strategy in 2020. Capital was incurred for sustaining existing operations, the construction of WCP C and the relocation of WCP B to the high grade Pilivili ore zone.

Outlook: Capital costs are expected to be significantly lower in 2021. Expenditure on development projects and studies is expected to be approximately US$58 million. These costs primarily relate to the remaining costs associated with the relocation of WCP B (US$22 million), mainly carried over from 2020, the RUPS power stability project (US$16 million) and improvement projects to enhance the resilience of existing operations (US$9 million). The balance is attributable to studies and community resettlement costs in preparation for the relocation of WCP A to Nataka in 2025. Sustaining capital costs from 2021 onwards are expected to be approximately US$20 million to US$25 million.

Cash operating costs

Descriptor: Total costs less freight and other non-cash costs, including inventory movements. For cash operating costs per tonne, this number is divided by the tonnes of final products produced.

Relevance: Eliminates the non-cash impact on costs to identify the actual cash outlay for production and, as production levels increase or decrease, highlights operational performance by providing a comparable cash cost per tonne of product produced over time.

Performance: Total cash operating costs increased by 1% in 2020 compared to 2019. The higher costs and lower production volumes results in a 19% increase in cash operating costs per tonne.

Outlook: Total cash operating costs are anticipated to increase in 2021 due to increased production and the need to transport WCP B's HMC production from Pilivili, which is a greater distance than the previous mining area of Namalope, to the MSP. However, cash operating costs per tonne are expected to decrease due to higher anticipated production volumes, and further decrease in 2022 as the Company targets a first quartile position on the industry revenue to cost curve.

Net cash/net debt

Descriptor: Total cash and cash equivalents minus bank loans.

Relevance: A measure of the Group's financial leverage.

Performance: During 2020 the balance of the Term Loan of US$42.7 million and the full amount of the Revolving Credit Facility of US$40 million were drawn to provide the Group with enhanced liquidity during the period of uncertainty posed by the COVID-19 pandemic.

Outlook: From 2021 Kenmare expects to deliver lower cash operating costs per tonne due to increased production volumes. Through this margin expansion, we expect to generate significant free cash flow, which is anticipated to deliver an increased net cash position.


Descriptor: Finished products shipped to customers during the period.

Relevance: Provides a measure of finished product volumes shipped to customers.

Performance: Shipment volumes in 2020 decreased by 17% compared to 2019 due to adverse weather conditions during a significant portion of the year, reduced availability of the transshipment vessels. which underwent works to increase capacity and reduced production.

Outlook: Shipment volumes are expected to increase significantly in 2021, in-line with increased production volumes and supported by upgrades to the transshipment vessels.