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: Safety performance improved significantly in 2018 compared to 2017 through the continued strengthening of our safety culture. Our LTIFR of 0.12 per 200,000 man-hours worked is the Group's lowest ever level.


Descriptor: All injuries.

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

Performance: Despite the 67% reduction in Lost Time Injuries at the Mine in 2018 compared to 2017, the total number of injuries increased during the year. This increase was largely attributable to a higher number of minor injuries (first aid injuries) than in 2017; however, Kenmare remains focused on improving its safety performance further in 2019.

Mining – HMC

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

Relevance: Provides a measure of heavy mineral concentrate extracted from the Mine, the feedstock for the product suite.

Performance: HMC production increased by 4% during the year as excavated ore volumes benefited from improved dredge utilisation and a higher dry mining contribution. This was despite scheduled upgrade work to WCP B and more power interruptions than had been experienced in 2017.

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: Finished production production decreased by 4% in 2018 compared to 2017, despite stronger HMC production. This was mainly due to lower opening stockpiles of HMC.


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 increased by 54% in 2018 compared to 2017, primarily as a result of increased shipments of finished products and higher average received pricing for all 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 by 37% in 2018, compared to 2017. Key capital items included the WCP B upgrade work, the construction of WCP C (commissioning expected before the end of 2019) and studies for the WCP B move to the high grade Pilivili ore zone.

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: Cash operating costs increased by 7% in 2018 compared to 2017. This was due in part to higher utilisation of diesel-powered electric generators, as a result of reduced reliability of the power network. Kenmare has been working with Electricidade de Moçambique (EdM), the state electricity provider, on a plan of works, which is due to be completed in Q2 2019. The higher costs and lower production of finished products resulted in an 11% increase in cash operating costs per tonne.

Net cash/net debt

Descriptor: Total cash and cash equivalents minus bank loans.

Relevance: Provides a method to evaluate a company's cash flows. Net debt aids in understanding the leveraging of the company.

Performance: Kenmare delivered a strong financial performance in 2018. Increased profitability generated more cash, which turned net debt of US$34.1 million at year-end 2017 into a net cash position of US$13.5 million at year-end 2018.


Descriptor: Finished products shipped to customers during the period.

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

Performance: Kenmare achieved a record year for shipments in 2018 for the third consecutive year, with a 3% increase compared to 2017. This was due to a continued increase in demand for our products.