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 continued at the excellent levels of 2016 in H1 2017; however, it declined in H2 2017. Analysing and addressing this trend is a key focus for Kenmare in 2018.


Descriptor: All injuries.

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

Performance: Despite the rise in the LTIFR, total injuries fell year on year.

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 declined as ore grades declined and slimes increased. Efforts are being made to increase mine throughput and utilisations to offset this trend as well as adding mining capacity.

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: Despite lower HMC production, final product production increased 10% as HMC stockpiles were drawn down and recoveries improved.


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 improved, mainly as a result of continued positive market momentum and a persistent focus on performance.

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: Following a number of years of heavily constrained capital expenditure, investment in property, plant and equipment in 2017 increased to meet the Mine’s capital replenishment requirements. Kenmare reinvested in key mine infrastructure and mobile equipment and completed the scheduled dry-dock repairs to the main transhipment vessel, in addition to investing in feasibility work to assess medium and longer-term mining options.

Cash operating costs

Descriptor: Total costs less freight and other non-cash costs, including inventory movements, divided by final product production (tonnes).

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 cost per tonne of finished product continued the trend of recent years and decreased by 3% as a result of tight cost control and increased final product production.

Net debt

Descriptor: Bank loans before loan amendment fees and expenses net of cash and cash equivalents.

Relevance: Measures the amount the Group would have to raise through refinancing, asset sales or equity issues if its debts were to fall due immediately, and aids in developing an understanding of the leveraging of the Group.

Performance: There were no principal repayments in 2017 as principal repayments commence on 1 February 2018, though net debt reduced due to free cash flow generation.


Descriptor: Finished products shipped to customers during the period.

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

Performance: 2017 was a record year for shipments, increasing by 2% as both production and demand for our products grew.