Kenmare Resources plc
(“Kenmare” or the “Company” or the “Group”)
25 March 2026
2025 PRELIMINARY RESULTS
Kenmare Resources plc (LSE:KMR, ISE:KMR), one of the leading global producers of titanium minerals and zircon, which operates the
Statement from
“While global uncertainty has increased in early 2026, Kenmare remains focused on operating our business as efficiently as possible. With peak capital expenditure on the Wet Concentrator Plant A upgrade project behind us, we have moved to a materially lower spend profile for 2026 and beyond and are targeting an operating cost reduction of approximately 10% this year.
Kenmare generated adjusted EBITDA of
Kenmare continues to engage with the Government of Mozambique regarding the renewal of Moma’s Implementation Agreement. I was pleased to meet with the Ministers for Mineral Resources and Energy and Economy in mid-February, and I emphasised the importance of bringing this process to a conclusion. We are in constructive negotiations and both sides appreciate the importance of a near-term resolution.”
2025 overview
Financial
- Mineral product revenue of
$312.1 million , down 20% year-on-year (“YoY”) due to a 13% decrease in shipments and a 6% decrease in the average price received for Kenmare’s products to$338 per tonne (excluding the by-product ZrTi) - Impairment charge of
$301.3 million , inclusive of the$100.3 million impairment charge recognised in H1 2025, primarily due to lower future revenue projections associated with an uncertain pricing outlook and updated assumptions relating to the potential renewal terms relating to Moma’s Implementation Agreement (“IA”) - 2025 final dividend suspended in light of elevated net debt and weak market conditions – the Board is committed to resuming dividends as soon as it is prudent to do so and financing facilities permit
- Adjusted EBITDA (excluding the impairment loss) of
$58.0 million , a 63% decrease YoY primarily due to lower sales volumes, representing an adjusted EBITDA margin of 19% - Adjusted loss after tax of
$23.7 million , compared to profit after tax of$64.9 million in 2024 - Total cash operating costs of
$242.7 million , down 0.4% YoY, due primarily to a 10% decrease in production of finished products – various cost reduction initiatives were implemented in H2 2025 and are expected to benefit 2026 operating costs - Cash operating costs per tonne of
$242 , up 11% YoY, due to lower production volumes - Net debt of
$158.8 million at 31 December 2025 compared to$25.0 million at year-end 2024, with the increase due primarily to peak capital expenditure during the year of approximately$156 million on the Wet Concentrator Plant (“WCP”) A upgrade project - Kenmare is in discussions with its Lender group regarding adjustments to its Revolving Credit Facility (“RCF”), including amendments to covenant levels, in light of the prevailing weak market conditions
- Significantly reduced capital expenditure expected in 2026, with approximately
$30 million of development capital on the WCP A upgrade project and$30 million of sustaining capital – discretionary sustaining capital items being deferred where safe and practicable to do so
Operational and corporate
- Lost Time Injury Frequency Rate (“LTIFR”) of 0.07 per 200,000 hours worked to 31 December 2025 (31 December 2024: 0.06)
- Heavy Mineral Concentrate (“HMC”) production of 1,233,300 tonnes in 2025, down 15% YoY, due primarily to lower excavated ore volumes relating to the WCP A upgrade work
- Ilmenite production of 842,300 tonnes in 2025, down 17% YoY, due to lower volumes of HMC processed
- Shipments of finished products of 947,900 tonnes in 2025, down 13% YoY – two shipments were partially loaded at year-end, meaning they will be reflected in H1 2026 shipping volumes
- All major construction and installation work associated with the upgrade of WCP A completed
- Demand for Kenmare’s products was stable in 2025, although prices declined throughout the year due to market oversupply
- Total shipments are expected to be in excess of 1.1 million tonnes in 2026 – Kenmare plans a significant draw down of its finished product stockpiles by adjusting production
- In line with this approach, Kenmare expects ilmenite production in 2026 to be in excess of 800,000 tonnes, as previously announced
- Ongoing engagement with the Government of Mozambique regarding the extension of Moma’s IA, which governs the fiscal terms of Moma’s processing and export activities, including two Presidential meetings in June and November 2025 – Kenmare continues to work for a near-term resolution
Q1 2026
- With Q1 almost complete, Kenmare is on track to achieve its 2026 guidance on all metrics and has begun drawing down its finished product stockpiles, in line with its value over volume approach
- Shipments have been in-line with the run-rate required to achieve 2026 guidance – more of Kenmare’s new concentrates product, ZrTi, has been shipped in Q1 than in all of 2025
- WCP A is regularly operating at its nameplate capacity of 3,500 tonnes per hour and while production has been impacted by further challenges relating to commissioning, WCP A is progressing towards achieving its capacity on a consistent basis in the near-term
- The titanium feedstocks market continues to be soft in early 2026, with a decrease in the average ilmenite price received in the quarter-to-date versus H2 2025, in line with expectations
- The zircon (including concentrates) market is showing signs of recovery, driving higher received zircon prices in Q2
- Kenmare has to date recovered
$4.6 million of the$9.3 million owed by a customer in financial distress, arising from shipments made in Q3 2025
Analyst and investor webinar via Investor Meet Company
Kenmare will host a webinar for analysts, institutional investors and private investors via Investor Meet Company at 9:00am UK time today (25 March 2026).
Questions can be submitted via the Investor Meet Company dashboard at any time during the live presentation.
Investors can sign up to Investor Meet Company for free and register for the Kenmare webinar at:
https://www.investormeetcompany.com/kenmare-resources-plc/register-investor
Investors who already follow Kenmare on the Investor Meet Company platform will automatically be invited.
For further information, please contact:
Kenmare Resources plc
Investor Relations
ir@kenmareresources.com
Tel: +353 1 671 0411
Mob: +353 87 663 0875 / +353 87 708 2525
Murray Group (PR advisor)
Paul O’Kane
pokane@murraygroup.ie
Tel: +353 1 498 0300
Mob: +353 86 609 0221
About Kenmare Resources
Kenmare Resources plc is one of the world’s largest producers of titanium minerals. Listed on the London Stock Exchange and the Euronext Dublin, Kenmare operates the
All monetary amounts refer to
Forward-looking statements
This announcement contains some forward-looking statements that represent Kenmare’s expectations for its business, based on current expectations about future events, which by their nature involve risks and uncertainties. Kenmare believes that its expectations and assumptions with respect to these forward-looking statements are reasonable. However, because they involve risk and uncertainty, which are in some cases beyond Kenmare’s control, actual results or performance may differ materially from those expressed or implied by such forward-looking information.
CHAIRMAN’S STATEMENT 2025
The theme of transition continued for Kenmare in 2025 and was seen through all levels of the business from operations, to finance, to management, to strategy.
The upgrade of our largest mining plant, WCP A, is substantially complete and it is now well-equipped to mine in the large Nataka ore zone. WCP A is expected to begin its transition to Nataka in H2 2026, securing production from Moma for future generations and allowing Kenmare to continue to deliver value for all stakeholders.
Transition was also at the forefront of our decision to prioritise “value over volume”, ensuring we maintain a flexible balance sheet with sufficient liquidity. This will allow us to navigate fluctuations caused by weaker market conditions following high levels of capital investment. Although this required making difficult choices, particularly the retrenchment of approximately 15% of Moma’s workforce, these changes were essential to safeguard the Company’s future.
We continued to engage with the Government of Mozambique on Moma’s IA throughout the year. Although this included two meetings for Managing Director
We remain committed to being a trusted corporate citizen and this was recognised by Kenmare being named as the Most Transparent Extractive Company by Mozambique’s Centre of Public Integrity for the fifth consecutive year. We were also pleased to enter the FTSE4Good index in June.
WCP A upgrade and transition to Nataka
By the end of 2025, over 80% of the capital investment for the WCP A upgrade project had been incurred and successfully deployed, with the project now largely de-risked. The total capital cost for the project remains in line with previous estimates at
The upgrade of WCP A and the transition to Nataka have been engineered to ensure Moma’s long-term operational and economic viability and we are well-placed to benefit from an upswing in the commodity price cycle.
Shareholder returns
Unfortunately, due to continued weakness in our product markets and elevated net debt, the Board has made the difficult decision not to declare a final 2025 dividend. We appreciate that this will be disappointing to many shareholders; however financial stability must be our priority during these challenging times. We have returned more than
Rejected takeover proposal for company
In March 2025, following media speculation, Kenmare announced that it had received an unsolicited and non‑binding proposal from a consortium consisting of former Managing Director
The Board is committed to reviewing all opportunities to create significant, long-term value for Kenmare’s stakeholders, including shareholders. We were encouraged by shareholders’ strong support for the Board’s rejection of the Consortium’s revised proposal and appreciate their patience and endorsement of the Company’s long-term value proposition.
Sustainability
2025 began against a challenging backdrop, following a short period of social unrest in
Kenmare’s rolling 12-month Lost Time Injury Frequency Rate to 31 December 2025 was 0.07 per 200,000 hours worked, broadly consistent with 2024 (0.06). While we were disappointed to record three Lost Time Injuries in H2 2025, the Company achieved its lowest ever All Injury Frequency Rate of 0.75 (2024: 0.93) for the year, supported by our Trabalho Seguro (“Safe Work”) initiative.
Independent research by industry consultant TZMI reaffirmed Kenmare’s position as one of the lowest carbon intensity mineral sands miners for Scope 1 emissions. However, our climate transition plan and goal to reduce emissions by 30% by 2030 faced headwinds, as it has proved difficult to structure a major decarbonisation project on an economically viable basis. We remain committed to working towards this target, but we will only pursue projects that meet necessary financial hurdles. Therefore the Board determined that it could not approve a defined pathway to achieving Net Zero by 2040 at this time, although it remains committed to pursuing this ambition.
Board development and effectiveness
We continued to strengthen the Board in 2025 and were delighted to welcome
During the year, an external performance evaluation of the Board and all its committees was conducted by Sustainable Boards, in accordance with the
We also welcomed
Outlook
2025 was a challenging year for Kenmare, requiring difficult but necessary decisions to secure the long‑term future of the business. While the economic backdrop and geopolitical environment remain complex, I believe Kenmare is a strong and resilient business that is well positioned to navigate these challenges. With our major capital project largely complete, a strengthened leadership team with a right-sized workforce, and competitive positioning in our markets, we are well-placed to benefit when market conditions improve. The Board will review the opportunity to resume dividend payments on a continuous basis.
The continued extension of the renewal process relating to IA rights and concessions is a concern, and while we welcome the supportive words of the President of
Acknowledgements
Finally, I would like to extend my thanks to everyone who has contributed to Kenmare during the past year. I am deeply grateful to my colleagues on the Board for their strategic insight and counsel, to our employees and contractors for their professionalism and commitment, and to our host communities for their continued partnership.
To our shareholders, customers and other stakeholders: thank you for your ongoing trust and support. We are committed to managing this period of change with discipline and clarity, while always remaining true to our purpose of ‘Transforming resources into opportunity for all.’
Chairman
MANAGING DIRECTOR’S STATEMENT 2025
Introduction
I am pleased to present this year’s Managing Director’s statement, following the completion of my first full year in the role. It has been a dynamic period, with a major capital project underway, a bid approach, continuing negotiations on Moma’s Implementation Agreement, and weakening product markets. I have been encouraged by how our team members have supported each other through this period of significant change, guided by our purpose of ‘Transforming resources into opportunity for all.’
The upgrade of our largest mining plant, WCP A, has largely gone well. WCP A is progressing towards operating at its nameplate capacity on a consistent basis in the near-term and it is expected to begin its transition to Nataka in H2, where it is now well-equipped to mine for the rest of its economic life.
However, 2025 was a challenging year for operations at Moma and the wider titanium minerals market. Unfortunately, some delays in the commissioning of WCP A led to lower production and financial performance was also weaker year-on-year due to softer product pricing, which meant Kenmare recognised an impairment charge of
This approach means that production guidance for 2026 is lower than in recent years, while market conditions remain subdued. However, the impact on sales will be limited by our relatively high product stockpiles and we are targeting in excess of 1.1 million tonnes of shipments in 2026. The Board has also made the difficult but prudent decision to suspend the 2025 final dividend.
Securing the renewal of the rights and concessions under Moma’s IA, which governs the terms under which Kenmare conducts its mineral processing and export activities, was a key focus throughout 2025. I was pleased to meet with the President of
Safety
I was delighted with Kenmare’s excellent safety performance in H1 2025. Our team at Moma passed the remarkable milestone of seven million hours worked without a Lost Time Injury (“LTI”) and the WCP A Projects team remained LTI-free for the entirety of the project. We also delivered our lowest ever All Injury Frequency Rate of 0.75 in 2025, more than a 30% improvement versus our three-year rolling average, meaning that Kenmare is safer now than it ever has been before.
These achievements were recognised with the Safety Excellence Award at the Mining Magazine Awards 2025. Kenmare also achieved a five-star rating for occupational health, safety and environment by the National Occupational Safety Association (NOSA) for the tenth consecutive year.
However, three LTIs in H2 2025 meant that our Lost Time Injury Frequency Rate for the 12 months to 31 December 2025 was 0.07 (2024: 0.06). We will be increasing focus on our Trabalho Seguro (“Safe Work”) initiative to further strengthen our safety performance in 2026.
I was deeply saddened by a fatal incident involving a police officer at Moma in September. The incident was motivated by theft, with the electrical cable feeding a pump station stolen during the incident. Security provision was increased at Moma following this tragedy.
Operations
Due to some delays with the commissioning of WCP A, production guidance for our primary product, ilmenite, had to be revised downwards during the year. We produced 842,300 tonnes of ilmenite in 2025 and a record 164,800 tonnes of co-products (including ZrTi). Shipments were impacted by poor weather conditions in H1, a five yearly dry dock for one of our transshipment vessels and by weak market conditions, which led to a customer in financial distress cancelling two Q4 shipments.
More pleasingly, our new concentrates product, ZrTi, launched commercially in 2025. Previously a waste stream, it is increasing cashflows whilst reducing costs previously associated with returning it to mine tailings. We have been very encouraged by the market reaction to ZrTi, which enables us to target materially higher shipments in 2026 and more ZrTi was shipped in Q1 2026 than in all of 2025.
Ilmenite production in 2026 is expected to be in excess of 800,000 tonnes, in line with our plan to prioritise value over volume while markets are depressed. Shipments should not be impacted by lower production levels as we will draw down our relatively high levels of inventory.
Production is expected to increase to approximately 1.2 million tonnes per annum of ilmenite from 2028, when WCP A begins mining its higher-grade path in Nataka.
Sustainability
Kenmare is committed to being a trusted corporate citizen, with the Company’s entrance into the FTSE4Good index in June 2025 a testimony to our strong ESG performance.
We have always been focused on ensuring our host communities in
Kenmare reported in accordance with the Irish transposition of the Corporate Sustainability Reporting Directive (“CSRD”) for the first time in last year’s Annual Report; however, proposed changes to CSRD suggest that we may not be required to do so from year-end 2026. Kenmare will always be committed to delivering best-in-class sustainability performance regardless of how we are obliged to report on it.
Product markets
The titanium minerals sector experienced notable headwinds in 2025. Weaker global demand for titanium minerals reflected softer underlying end markets, such as housing and construction and at the same time, the market saw increased supply from Chinese concentrates producers. This impacted product pricing globally and Kenmare’s average price received decreased by 6% year-on-year.
Challenging market conditions impacted one of Kenmare’s customers and its corporate group entered a restructuring and sales process. Approximately
Kenmare is well-positioned to navigate these difficult times due to Moma’s long mine life and flexible suite of products. This allows us to target the strongest market segments (like beneficiation and the titanium metal market) and pleasingly, we added two new customers in 2025.
The zircon market weakened in 2025, with soft underlying demand. Encouragingly, prices now look to have stabilised, with demand exceeding Kenmare’s ability to supply over the past few quarters and recent supply interruptions driving stronger zircon prices for Q2 shipments.
Despite the current volatility, I firmly believe that the medium and long-term fundamentals of our products remain strong due to limited new, conventional supply coming onstream. Kenmare is well-placed to benefit from the upswing in commodity prices when it occurs.
Capital projects
The upgrade of WCP A was substantially completed in 2025 and the plant is progressing towards operating at nameplate capacity in the near-term. At the end of 2025, over 80% of project capital had been incurred and successfully deployed, with the remaining 20% (approximately
A new, low-capital, Selective Mining Operation (“SMO”) was commissioned at Moma in Q1 2025 to enable mining in peripheral areas of the orebody. The Company is planning a second SMO, subject to market conditions, as Kenmare believes that SMOs will have a valuable role to play in supporting production in a capital-efficient manner over the coming years.
Outlook and acknowledgements
I would like to thank all of our employees for their commitment and perseverance during an uncertain year, in addition to our shareholders, customers, and partners in
The theme of transition will continue for Kenmare in 2026. Central to that is WCP A beginning its journey to Nataka, unlocking the majority of Moma’s nine billion tonnes of Mineral Resources. Our focus remains on operating as efficiently as possible to ensure the business is well-positioned for when stronger market conditions return.
Despite near-term headwinds, I am excited about the years ahead as we continue to deliver on our purpose. We have a globally significant asset, an experienced team, and a market-leading position, and we have built the resilience into our business to emerge stronger once this storm has passed.
Managing Director
UNAUDITED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2025
UNAUDITED
| NOTES | 2025 $’000 | 2024 $’000 | |
| Revenue | 2 | 328,573 | 414,747 |
| Cost of sales | 4 | (310,209) | (319,371) |
| Gross profit | 18,364 | 95,376 | |
| Administration expenses | 4 | (17,413) | (6,160) |
| Impairment loss | 8 | (301,341) | – |
| Operating (loss)/profit | (300,390) | 89,216 | |
| Finance income | 5 | 1,976 | 3,638 |
| Finance costs | 5 | (17,182) | (10,784) |
| (Loss)/profit before tax | (315,596) | 82,070 | |
| Income tax expense | 6 | (9,452) | (17,179) |
| (Loss)/profit for the financial year and total comprehensive income for the financial year | (325,048) | 64,891 | |
| Attributable to equity holders | (325,048) | 64,891 | |
| $ per share | $ per share | ||
| Basic (loss)/earnings per share | 7 | (3.64) | 0.73 |
| Diluted (loss)/earnings per share | 7 | (3.64) | 0.71 |
The accompanying notes form part of these financial statements.
UNAUDITED CONSOLIDATED STATEMENT OF FINANCIAL POSITION
AS AT 31 DECEMBER 2025
| NOTES | UNAUDITED 2025 $’000 | 2024 $’000 | |
| Assets | |||
| Non-current assets | |||
| Property, plant and equipment | 8 | 875,868 | 1,017,973 |
| Right-of-use assets | 9 | 821 | 1,095 |
| 876,689 | 1,019,068 | ||
| Current assets | |||
| Inventories | 10 | 112,492 | 112,796 |
| Trade and other receivables | 11 | 70,553 | 119,494 |
| Current tax assets | 17 | – | 1,278 |
| Cash and cash equivalents | 12 | 48,624 | 56,683 |
| 231,669 | 290,251 | ||
| Total assets | 1,108,358 | 1,309,319 | |
| Equity | |||
| Capital and reserves attributable to the | |||
| Company’s equity holders | |||
| Called-up share capital | 13 | 97 | 97 |
| Share premium | 545,950 | 545,950 | |
| Other reserves | 231,375 | 229,274 | |
| Retained earnings | 37,351 | 385,763 | |
| Total equity | 814,773 | 1,161,084 | |
| Liabilities | |||
| Non-current liabilities | |||
| Bank loans | 14 | 198,866 | 77,991 |
| Lease liabilities | 9 | 664 | 971 |
| Provisions | 15 | 22,566 | 20,007 |
| 222,096 | 98,969 | ||
| Current liabilities | |||
| Bank loans | 14 | 5,792 | – |
| Lease liabilities | 9 | 307 | 285 |
| Trade and other payables | 16 | 62,992 | 47,755 |
| Current tax liabilities | 17 | 986 | – |
| Provisions | 15 | 1,412 | 1,226 |
| 71,489 | 49,266 | ||
| Total liabilities | 293,585 | 148,235 | |
| Total equity and liabilities | 1,108,358 | 1,309,319 |
The accompanying notes form part of these financial statements.
UNAUDITED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2025
| UNAUDITED CALLED-UP SHARE CAPITAL $’000 | UNAUDITED SHARE PREMIUM $’000 | UNAUDITED OTHER RESERVES $’000 | UNAUDITED RETAINED EARNINGS $’000 | UNAUDITED TOTAL $’000 | |
| Balance at 1 January 2024 | 97 | 545,950 | 229,740 | 367,504 | 1,143,291 |
| Total comprehensive income for the year | |||||
| Profit for the financial year | – | – | – | 64,891 | 64,891 |
| Total comprehensive income for the year | – | – | – | 64,891 | 64,891 |
| Transactions with owners of the Company – | |||||
| Contributions and distributions | |||||
| Recognition of share-based payment expense | – | – | 3,584 | – | 3,584 |
| Exercise of share-based payment awards | – | – | (3,244) | 1,486 | (1,758) |
| Shares acquired by The Kenmare Resources plc Employee Benefit Trust | – | – | (3,169) | – | (3,169) |
| Shares distributed by The Kenmare Resources plc Employee Benefit Trust | – | – | 2,363 | – | 2,363 |
| Dividends paid | – | – | – | (48,118) | (48,118) |
| Total contributions and distributions | – | – | (466) | (46,632) | (47,098) |
| Balance at 1 January 2025 | 97 | 545,950 | 229,274 | 385,763 | 1,161,084 |
| Total comprehensive income for the year | |||||
| Loss for the financial year | – | – | – | (325,048) | (325,048) |
| Total comprehensive income for the year | – | – | – | (325,048) | (325,048) |
| Transactions with owners of the Company – | |||||
| Contributions and distributions | |||||
| Recognition of share-based payment expense | – | – | 3,063 | – | 3,063 |
| Exercise of share-based payment awards | – | – | (1,673) | 807 | (866) |
| Shares acquired by The Kenmare Resources plc Employee Benefit Trust | – | – | (540) | – | (540) |
| Shares distributed by The Kenmare Resources plc Employee Benefit Trust | – | – | 1,251 | – | 1,251 |
| Dividends paid | – | – | – | (24,171) | (24,171) |
| Total contributions and distributions | – | – | 2,101 | (23,364) | (21,263) |
| Balance at 31 December 2025 | 97 | 545,950 | 231,375 | 37,351 | 814,773 |
UNAUDITED CONSOLIDATED STATEMENT OF CASH FLOWS
FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2025
| NOTES | UNAUDITED 2025 $’000 | 2024 $’000 | |
| Cash flows from operating activities | |||
| (Loss)/profit for the financial year after tax | (325,048) | 64,891 | |
| Adjustment for: | |||
| Expected credit losses | 18 | 3,839 | 177 |
| Share-based payments | 3,063 | 3,584 | |
| Finance income | 5 | (1,976) | (3,638) |
| Finance costs | 5 | 17,182 | 10,784 |
| Income tax expense | 6 | 9,452 | 17,179 |
| Impairment loss | 8 | 301,341 | – |
| Depreciation | 8, 9 | 57,142 | 67,969 |
| 64,995 | 160,946 | ||
| Change in: | |||
| Provisions | 3,239 | 1,496 | |
| Inventories | 304 | (13,539) | |
| Trade and other receivables | 45,105 | 33,978 | |
| Trade and other payables | 2,978 | 7,976 | |
| Exercise of share-based payment awards | 384 | 606 | |
| Cash generated from operating activities | 117,005 | 191,463 | |
| Income tax paid | (7,185) | (25,378) | |
| Interest received | 1,976 | 3,638 | |
| Interest paid | 9, 14 | (6,826) | (5,216) |
| Factoring and other trade facility fees | 5 | (1,996) | (2,592) |
| Debt commitment fees paid and other fees | 5 | (1,012) | (2,085) |
| Net cash from operating activities | 101,962 | 159,830 | |
| Investing activities | |||
| Additions to property, plant and equipment | 8 | (205,025) | (152,591) |
| Net cash used in investing activities | (205,025) | (152,591) | |
| Financing activities | |||
| Dividends paid | (24,171) | (48,118) | |
| Market purchase of equity under Kenmare Restricted Share Plan | (540) | (3,169) | |
| Drawdown of debt | 14 | 120,000 | 131,370 |
| Repayment of debt | 14 | – | (98,512) |
| Transaction costs of debt | 14 | – | (2,911) |
| Payment of lease liabilities | 9 | (285) | (264) |
| Net cash used in financing activities | 95,004 | (21,604) | |
| Net decrease in cash and cash equivalents | (8,059) | (14,365) | |
| Cash and cash equivalents at the beginning of the financial year | 56,683 | 71,048 | |
| Cash and cash equivalents at the end of the financial year | 12 | 48,624 | 56,683 |
UNAUDITED NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2025
1. Statement of accounting policies
Kenmare Resources plc (the Company) is domiciled in the
On 24 March 2026, the Directors approved the preliminary results for publication. While the consolidated financial statements for the year ended 31 December 2025, from which the preliminary results have been extracted, are prepared in accordance with International Financial Reporting Standards (“IFRS”) as adopted by the European Union, these preliminary results do not contain sufficient information to comply with IFRS. The Directors expect to publish on 10 April 2026 the full financial statements that comply with IFRS as adopted by the European Union.
The auditor, KPMG, has not yet issued their audit opinion on the financial statements in respect of the year ended 31 December 2025. This audit opinion will most likely include a Material Uncertainty Related to Going Concern which will draw the members attention to the Going Concern disclosures in the Directors Report and Statement of Accounting Policies where the Directors have set out their assessment of the Group’s ability to continue as a going concern and the material uncertainties which exist as detailed below. The financial information included within this unaudited preliminary results statement for the year ended 31 December 2025 does not constitute the statutory financial statements of the Group within the meaning of section 293 of the Companies Act 2014. The Group financial information in this preliminary statement for the year ended 31 December 2025 is unaudited. A copy of the statutory financial statements in respect of the year ended 31 December 2025 will be annexed to the next annual return and filed with the Registrar of Companies.
The Group financial information for the year ended 31 December 2024 included in this preliminary statement represents an abbreviated version of the Group’s financial statements for that year. The statutory financial statements for the Group for the year ended 31 December 2024, upon which the auditor, KPMG, has issued an unqualified opinion, were annexed to the annual return of the Company and filed with the Registrar of Companies.
None of the new and revised standards and interpretations which are effective for accounting periods beginning on or after 1 January 2025, have a material effect on the Group’s financial statements.
BASIS OF PREPARATION
The consolidated financial statements have been prepared in accordance with International Financial Reporting Standards (IFRSs) issued by the International Accounting Standards Board (IASB) and interpretations issued by the IFRS Interpretations Committee (IFRIC) as adopted by the EU and those parts of the Companies Act 2014 applicable to companies reporting under IFRS and Article 4 of the IAS Regulation.
GOING CONCERN
The Group forecast has been prepared by management with best estimates of production, pricing and cost assumptions over the period. Key assumptions upon which the Group forecast is based include a mine plan covering production using the Namalope, Nataka, Pilivili and Mualadi Ore Reserves and Mineral Resources. Specific Mineral Resource material is included only where there is a high degree of confidence in its economic extraction. Production levels for the purpose of the forecast are, approximately, 1.0 million tonnes of ilmenite plus co-products, zircon, concentrates and rutile, and by-product ZrTi over the next 12 months. Assumptions for product sales prices are based on contract prices as stipulated in marketing agreements with customers or, where contract prices are based on market prices or production is not presently contracted, prices are forecast taking into account independent expertise on mineral sands products and management expectations. Operating costs are based on approved budget costs for 2026, taking into account the current running costs of the Mine and escalated by 2% per annum thereafter. Capital costs are based on the capital plans and include escalation at 2% per annum. The 2026 operating costs and forecast capital costs take into account the current inflationary environment. The 2% inflation rate used from 2027 to escalate these costs over the life of mine is an estimated long-term inflation rate.
Implementation Agreement
The Implementation Agreement (“IA”) grants certain rights and concessions to Kenmare Moma Processing (Mauritius) Limited (“KMPL”) in connection with its processing and export activities. Certain of those rights and concessions expired in December 2024. Since the expiry date, KMPL has been able to continue operating substantially on the basis of those legacy rights and concessions while negotiating their renewal with the Government of Mozambique (the “Government”).
However, in July 2025, the Government unilaterally adopted an Internal Resolution granting KMPL a 20-year extension of its terms of authorisation but on different terms to those it is entitled to under the IA. The Mozambique Tax Authority began to implement some but not all of the Internal Resolution terms in early 2026. If applied in full, the Internal Resolution terms could be materially detrimental to Kenmare’s economic interests or liquidity through the imposition of additional royalties, indirect taxes (VAT, Customs Duties) and direct taxes (Corporation Tax, Withholding Tax), among others.
Kenmare is in active negotiations with the Government to conclude the IA renewal process on mutually agreed terms; the outcome and timing of renewal of the rights and concessions remain uncertain.
Revolving Credit Facility (“RCF”)
The Group has been in discussions with its Lender syndicate (Absa Bank, Nedbank, Rand Merchant Bank and Standard Bank) regarding amendments to its RCF, including adjustments to its financial covenant levels, in light of the prevailing weak market conditions and outlook. There is a risk that these amendments are not agreed on a timely basis, or at all. Failure to secure the terms may lead to a breach of financial covenants in the future; any such breach would constitute an Event of Default.
The Group’s financial forecasts and projections for the next twelve months indicate that the Group would be able to meet its obligations as they fall due on the assumption that suitable amendments or waivers are secured under the Senior Facility Agreement (“SFA”) and, in relation to the IA, that the relevant rights and concessions are renewed on agreed terms, or that KMPL is able to continue to operate substantially on the basis of the legacy terms. This assessment is sensitive to typical downside risks such as further deterioration in product prices, potential disruption to the Group’s production or shipping activity due to operational, geopolitical or other factors impacting Kenmare or its customers, and the crystallisation of other risks such as those described in the Principal Risks and Uncertainties in the Annual Report, particularly if such downside risks were to materialise in combination.
The Directors recognise that the combination of the circumstances described above represents a material uncertainty that may cast significant doubt as to the Group’s ability to continue as a going concern and that it may be unable to realise its assets and discharge its liabilities in the normal course of business. Accordingly, the auditors will most likely include a Material Uncertainty Related to Going Concern in their audit opinion. The Directors have a reasonable expectation that, subject to resolution of the uncertainties set out above, the Group will be able to continue in operation. Accordingly, the financial statements have been prepared on a going concern basis.
2. Revenue
| 2025 $’000 | 2024 $’000 | |
| Revenue from contracts with customers | ||
| Revenue derived from the sale of mineral products | 312,085 | 392,052 |
| Revenue derived from freight services | 16,488 | 22,695 |
| Total Revenue | 328,573 | 414,747 |
REVENUE BY MINERAL PRODUCT
The principal categories for disaggregating mineral products revenue are by product type and by country of the customer’s location. The mineral product types are ilmenite, zircon, rutile and concentrates. Concentrates include secondary zircon and mineral sands concentrate. During the financial year, the Group sold 924,100 tonnes (2024: 1,088,600 tonnes) of finished products to customers at a sales value of
| 2025 $’000 | 2024 $’000 | |
| Revenue derived from sales of mineral products by primary product | ||
| Ilmenite | 226,679 | 291,622 |
| Primary zircon | 58,912 | 70,952 |
| Concentrates | 19,446 | 21,452 |
| Rutile | 7,048 | 8,026 |
| Total revenue from mineral products | 312,085 | 392,052 |
| Revenue derived from freight services | 16,488 | 22,695 |
| Total revenue | 328,573 | 414,747 |
REVENUE BY DESTINATION
In the following table, revenue is disaggregated by the primary geographical market. The Group allocates revenue from external customers to individual countries and discloses revenues in each country where revenues represent 10% or more of the Group’s total revenue. Where total disclosed revenue disaggregated by country constitutes less than 75% of total Group revenue, additional disclosures are made on a regional basis until at least 75% of the Group’s disaggregated revenue is disclosed. There were no individual countries within
| 2025 $’000 | 2024 $’000 | |
| Revenue derived from sales of mineral product by destination | 89,166 | 146,434 |
| 57,738 | 83,363 | |
| 55,526 | 67,641 | |
| Saudia Arabia | 42,436 | 35,433 |
| 35,125 | 59,181 | |
| Rest of the World | 32,094 | – |
| Total revenue from mineral products | 312,085 | 392,052 |
| Revenue derived from freight services | 16,488 | 22,695 |
| Total revenue | 328,573 | 414,747 |
REVENUE BY MAJOR CUSTOMERS
The Group evaluates the concentration of mineral product revenue by major customer. The following table disaggregates mineral product revenue from the Group’s three largest customers.
| 2025 $’000 | 2024 $’000 | |
| Revenue from external customers | ||
| Largest customer | 56,715 | 58,934 |
| Second largest customer | 42,436 | 44,350 |
| Third largest customer | 38,991 | 43,520 |
| Total | 138,142 | 146,804 |
All Group revenues from external customers are generated by the
3. Segment reporting
Information on the operations of the
| 2025 | 2024 | |||||
| CORPORATE $’000 | $’000 | TOTAL $’000 | CORPORATE $’000 | $’000 | TOTAL $’000 | |
| Revenue & results | ||||||
| Revenue* | – | 328,573 | 328,573 | – | 414,747 | 414,747 |
| Cost of sales | – | (310,209) | (310,209) | – | (319,371) | (319,371) |
| Gross profit | – | 18,364 | 18,364 | – | 95,376 | 95,376 |
| Administrative expenses | (8,978) | (8,435) | (17,413) | (9,137) | 2,977 | (6,160) |
| Impairment loss | – | (301,341) | (301,341) | – | – | – |
| Segment operating (loss)/profit | (8,978) | (291,412) | (300,390) | (9,137) | 98,353 | 89,216 |
| Finance income | 218 | 1,758 | 1,976 | 1,349 | 2,289 | 3,638 |
| Finance expenses | (44) | (17,138) | (17,182) | (59) | (10,725) | (10,784) |
| (Loss)/profit before tax | (8,804) | (306,792) | (315,596) | (7,847) | 89,917 | 82,070 |
| Income tax expense | (618) | (8,834) | (9,452) | (7,157) | (10,022) | (17,179) |
| (Loss)/profit for the financial year | (9,422) | (315,626) | (325,048) | (15,004) | 79,895 | 64,891 |
| Segment assets & liabilities | ||||||
| Segment assets | 2,737 | 1,105,621 | 1,108,358 | 9,571 | 1,299,748 | 1,309,319 |
| Segment liabilities | 3,666 | 289,919 | 293,585 | 4,514 | 143,721 | 148,235 |
| Additions to non-current assets | ||||||
| Segment additions to non-current assets | – | 214,826 | 214,826 | – | 153,805 | 153,805 |
| Depreciation of property, plant and equipment and right of use assets | 308 | 56,834 | 57,142 | 308 | 67,660 | 67,968 |
* Revenue excludes inter-segment revenue of
Corporate assets consist of the Company’s property, plant and equipment including right-of-use assets, cash and cash equivalents and prepayments at the reporting date. Corporate liabilities consist of trade and other payables at the reporting date.
4. Cost and income analysis
| 2025 $’000 | 2024 $’000 | |
| Expenses by function | ||
| Cost of sales | 310,209 | 319,371 |
| Administrative expenses | 17,413 | 6,160 |
| Impairment loss | 301,341 | – |
| Total | 628,963 | 325,531 |
Expenses by nature can be analysed as follows:
| 2025 $’000 | 2024 $’000 | |
| Expenses by nature | ||
| Staff costs | 82,449 | 77,843 |
| Repairs and maintenance | 42,444 | 40,734 |
| Power and fuel | 43,561 | 48,760 |
| Freight | 16,488 | 22,695 |
| Other production and operating costs | 85,628 | 79,921 |
| Impairment loss | 301,341 | – |
| Movement of mineral products inventory | (90) | (12,390) |
| Depreciation of property, plant and equipment and right-of-use assets | 57,142 | 67,968 |
| Total | 628,963 | 325,531 |
Mineral products consist of finished products and HMC as detailed in Note 10. Mineral stock movement in the year was an increase of
5. Net finance costs
| 2025 $’000 | 2024 $’000 | |
| Finance costs | ||
| Interest on bank borrowings | (12,677) | (3,863) |
| Transaction costs on debt financing | (708) | (1,398) |
| Interest on lease liabilities | (106) | (126) |
| Factoring and other trade facility fees | (1,996) | (2,592) |
| Commitment and other fees | (1,012) | (2,085) |
| Unwinding of discount on mine closure provision | (683) | (720) |
| Total finance costs | (17,182) | (10,784) |
| Interest earned on bank deposits | 1,976 | 3,638 |
| Total finance income | 1,976 | 3,638 |
| Net finance costs recognised in profit or loss | (15,206) | (7,146) |
All interest has been expensed in the financial year. The Group has classified factoring and other trade facility fees in net cash from operating activities in the Consolidated Statement of Cashflows.
6. Income tax expense
| 2025 $’000 | 2024 $’000 | |
| Corporation tax | 9,452 | 17,179 |
| Deferred tax | – | – |
| Total | 9,452 | 17,179 |
| Reconciliation of effective tax rate | ||
| (Loss)/profit before tax | (315,596) | 82,070 |
| (Loss)/profit before tax multiplied by the applicable tax rate (12.5%) | (39,450) | 10,259 |
| Impairment loss adjustment | 37,668 | – |
| Under provision in respect of prior years | 1,131 | 2,046 |
| Non-taxable income | – | (1,351) |
| Non-deductible expenses | 327 | 458 |
| Differences in effective tax rates on overseas earnings | 9,776 | 5,767 |
| Total | 9,452 | 17,179 |
During the year, Kenmare Moma Mining (Mauritius) Limited (“KMML”)
KMML Mozambique Branch has elected, and the fiscal regime applicable to mining allows for, the option to deduct, as an allowable deduction, depreciation of exploration and development expense and capital expenditure over the life of mine. Tax losses may be carried forward for three years. There are no tax losses carried forward at 31 December 2025.
KMPL Mozambique Branch is entitled to
During the year, Kenmare Resources plc had taxable profits of
7. Earnings per share
The calculation of the basic and diluted earnings per share attributable to the ordinary equity holders of the Company is based on the following data:
| 2025 $’000 | 2024 $’000 | |
| (Loss)/profit for the financial year attributable to equity holders of the Company | (325,048) | 64,891 |
| 2025 NUMBER OF SHARES | 2024 NUMBER OF SHARES | |
| Weighted average number of issued ordinary shares for the purpose of basic earnings per share | 89,228,161 | 89,228,161 |
| Effect of dilutive potential ordinary shares: | ||
| Share awards | 2,933,207 | 2,699,029 |
| Weighted average number of ordinary shares for the purposes of diluted earnings per share | 92,161,368 | 91,927,190 |
| $ PER SHARE | $ PER SHARE | |
| Basic (loss)/earnings per share | (3.64) | 0.73 |
| Diluted (loss)/earnings per share | (3.64) | 0.71 |
8. Property, plant and equipment
| PLANT AND EQUIPMENT $’000 | DEVELOPMENT EXPENDITURE $’000 | CONSTRUCTION IN PROGRESS $’000 | OTHER ASSETS $’000 | TOTAL $’000 | |
| Cost | |||||
| At 1 January 2024 | 1,055,574 | 273,146 | 80,085 | 75,140 | 1,483,945 |
| Additions during the financial year | 1,858 | 14 | 151,933 | – | 153,805 |
| Transfer from construction in progress | 3,454 | 3,363 | (14,094) | 7,277 | – |
| Disposals | – | – | – | (6,207) | (6,207) |
| Adjustment to mine closure cost | (3,985) | – | – | – | (3,985) |
| At 31 December 2024 | 1,056,901 | 276,523 | 217,924 | 76,210 | 1,627,558 |
| Additions during the financial year | 2,701 | 25 | 211,943 | 157 | 214,826 |
| Transfer from construction in progress | 14,880 | 1,353 | (29,711) | 13,478 | – |
| Disposals | (33,917) | – | – | (2,783) | (36,700) |
| Adjustment to mine closure cost | 1,279 | – | – | – | 1,279 |
| At 31 December 2025 | 1,041,844 | 277,901 | 400,156 | 87,062 | 1,806,963 |
| Accumulated depreciation | |||||
| At 1 January 2024 | 348,831 | 156,820 | – | 42,446 | 548,097 |
| Charge for the financial year | 47,976 | 9,438 | – | 10,281 | 67,695 |
| Disposals | – | – | – | (6,207) | (6,207) |
| At 31 December 2024 | 396,807 | 166,258 | – | 46,520 | 609,585 |
| Charge for the financial year | 42,669 | 5,541 | – | 8,659 | 56,869 |
| Disposals | (33,917) | – | – | (2,783) | (36,700) |
| Impairment | 248,435 | 41,712 | – | 11,194 | 301,341 |
| At 31 December 2025 | 653,994 | 213,511 | – | 63,590 | 931,095 |
| Carrying amount | |||||
| At 31 December 2025 | 387,850 | 64,390 | 400,156 | 23,472 | 875,868 |
| At 31 December 2024 | 660,094 | 110,265 | 217,924 | 29,690 | 1,017,973 |
An adjustment to the mine closure cost of
At each reporting date, the Group assesses whether there is any indication that property, plant and equipment may be impaired. The Group considers the relationship between its market capitalisation and its book value, among other factors, when reviewing for indicators for impairment. As at 31 December 2025, the market capitalisation of the Group was below the book value of net assets, which is considered an indicator of impairment. The Group carried out an impairment review of property, plant and equipment as at 31 December 2025. As a result of the review, and given the performance and outlook of the Group, an impairment loss of
The cash-generating unit for the purpose of impairment testing is the
Key assumptions include the following:
• The discount rate is based on the Group’s weighted average cost of capital. This rate is a best estimate of the current market assessment of the time value of money and the risks specific to the Mine, taking into consideration country risk, currency risk and price risk.
The Group’s estimation of the country risk premium included in the discount rate has remained unchanged from the prior year. The Group does not consider it appropriate to apply the full current country risk premium for
Using a discount rate of 13%, the recoverable amount is less than the carrying amount by
• The Implementation Agreement governs the terms under which Kenmare conducts its mineral processing and export activities. Mining operations are conducted under a separate regulatory framework, which is not impacted in any way by the IA process. The IA granted certain rights and benefits for a period of 20 years to 21 December 2024, subject to extension upon request. Kenmare has been engaging constructively with the Government of Mozambique regarding the extension and, in connection with the extension, has proposed certain modifications to the applicable investment regime, which have been included in the Group forecast. The Group forecast assumes that the Company’s existing rights and benefits remain in full force and effect pending conclusion of the renewal. Kenmare continues to process minerals and export final products in the same manner as it did, prior to 21 December 2024.
• The initial term of the Group’s
The mine plan is based on the Namalope, Nataka, Pilivili and Mualadi Proved and Probable Ore Reserves and Mineral Resources. Specific Mineral Resource material is included only where there is a high degree of confidence in its economic extraction. Average annual production of finished products is, approximately, 1.1 to 1.2 million tonnes over the next two years with 1.3 million tonnes from 2028 onwards. Certain minimum stocks of final and intermediate products are assumed to be maintained at period ends.
• Product sales prices are based on contract prices as stipulated in marketing agreements with customers, or where contracts are based on market prices or production is not currently contracted, prices are forecast by the Group taking into account independent titanium mineral sands expertise (TZMI and TiPMC) and management expectations, including general inflation of 2% per annum. Average forecast product sales prices have decreased over the life of mine from the prior year-end review as a result of revised forecast pricing and market outlook. A 5% reduction in average sales prices over the life of mine reduces the recoverable amount by
• Operating costs are based on approved budget costs for 2026, taking into account the current running costs of the Mine and estimated forecast inflation for 2026. From 2027 onwards, operating costs are escalated by 2% per annum as management expects inflation to normalise and average 2% over the life of mine period. Average forecast operating costs have decreased from the prior year-end review as result of cost reduction initiatives implemented and forecast. A 2.5% increase in operating costs over the life of mine reduces the recoverable amount by
• Capital costs are based on a life of mine capital plan including inflation at 2% per annum from 2027. Average forecast capital costs have decreased from the prior year-end review based on updated sustaining and development capital plans required to maintain the existing plant over the life of mine. A 5% increase in capital costs over the life of mine reduces the recoverable amount by
• The Board and management have set a medium-term decarbonisation target of 30% reduction by 2030 from a 2021 baseline. Kenmare has an ambition to achieve net zero for its operational (Scope 1 & 2) emissions by 2040, also from a 2021 baseline, and will continue to work to achieve a higher decarbonisation rate. Management has included the costs of implementing the Climate Transition Plan (“CTP”) (2025 to 2030) into the cashflow forecasts. CTP specific costs total
9. Right-of-use assets and lease liabilities
| LAND AND BUILDINGS $’000 | TOTAL $’000 | |
| Cost | ||
| At 1 January 2025 | 2,450 | 2,450 |
| Additions | – | – |
| Disposals | – | – |
| At 31 December 2025 | 2,450 | 2,450 |
| Accumulated depreciation | ||
| At 1 January 2025 | 1,355 | 1,355 |
| Depreciation expense | 273 | 273 |
| Disposals | – | – |
| At 31 December 2025 | 1,629 | 1,629 |
| Carrying amount | ||
| At 31 December 2025 | 821 | 821 |
| At 31 December 2024 | 1,095 | 1,095 |
The Group recognised a lease liability of
The Group recognised a lease liability of
At each reporting date, the Company assesses whether there is any indication that right-of-use assets may be impaired. No impairment indicators were identified as at 31 December 2025 or 31 December 2024.
The Group has recognised a rental expense of
Set out below are the carrying amounts of lease liabilities at each reporting date:
| 2025 $’000 | 2024 $’000 | |
| Current | 307 | 285 |
| Non-current | 664 | 971 |
| Total | 971 | 1,256 |
The consolidated income statement includes the following amounts relating to leases:
| 2025 $’000 | 2024 $’000 | |
| Depreciation expense | 273 | 273 |
| Interest expense on lease liabilities | 106 | 126 |
| Total | 379 | 399 |
| Reconciliation of movements of lease liabilities to cash flows arising from financing activities | 2025 $’000 | 2024 $’000 |
| Lease liabilities | ||
| Balance at 1 January | 1,256 | 1,520 |
| Cash movements | ||
| Lease interest paid | (106) | (126) |
| Principal paid | (285) | (264) |
| Non-cash movements | ||
| Lease interest accrued | 106 | 126 |
| Balance at 31 December | 971 | 1,256 |
10. Inventories
| 2025 $’000 | 2024 $’000 | |
| Mineral products | 70,885 | 70,795 |
| Consumable spares | 41,607 | 42,001 |
| 112,492 | 112,796 | |
At 31 December 2025, total final product stock was 344,000 tonnes (2024: 287,200 tonnes). Closing stock of HMC was 29,200 tonnes (2024: 14,100 tonnes).
Net realisable value is determined with reference to forecast prices of finished products expected to be achieved. There is no guarantee that these prices will be achieved in the future, particularly in weak product markets. During the financial year, there was a write-down of
11. Trade and other receivables
| 2025 $’000 | 2024 $’000 | |
| Trade receivables | 38,126 | 91,451 |
| VAT receivable | 6,336 | 6,410 |
| Prepayments | 26,091 | 21,633 |
| 70,553 | 119,494 | |
Trade receivables included sales of 108,800 tonnes of finished product (2024: 204,800 tonnes) at an average price of
Further details on trade receivables can be found in Note 18.
12. Cash and cash equivalents
| 2025 $’000 | 2024 $’000 | |
| Bank balances | 48,624 | 56,683 |
Cash and cash equivalents comprise cash balances held for the purposes of meeting short-term cash commitments and investments that are readily convertible to a known amount of cash and are subject to an insignificant risk of change in value. Where investments are categorised as cash equivalents, the related balances have a maturity of three months or less from the date of investment.
13. Called-up share capital
| 2025 €’000 | 2024 €’000 | |
| Authorised share capital | ||
| 181,000,000 ordinary shares of €0.001 each | 181 | 181 |
| 181 | 181 |
| 2025 $’000 | 2024 $’000 | |
| Allotted, called-up and fully paid | ||
| Opening balance | ||
| 89,228,161 (2024: 89,228,161) ordinary shares of €0.001 each | 97 | 97 |
| Acquired and cancelled | ||
| Nil (2024: Nil) ordinary shares of €0.001 each | – | – |
| Closing balance | ||
| 89,228,161 (2024: 89,228,161) ordinary shares of €0.001 each | 97 | 97 |
| Total called-up share capital | 97 | 97 |
No ordinary shares were issued during the year (2024: $nil).
14. Bank loans
| 2025 $’000 | 2024 $’000 | |
| Borrowings | 204,658 | 77,991 |
| The borrowings are repayable as follows: | ||
| Less than one year | 5,792 | – |
| Between two and five years | 198,866 | 77,991 |
| Total carrying amount | 204,658 | 77,991 |
BORROWINGS
On 4 March 2024, the Group entered into a secured senior debt facility agreement (“Senior Facility Agreement”) with Absa Bank Limited (acting through its Corporate and Investment Banking Division) (“Absa”), Nedbank Limited (acting through its Nedbank Corporate and Investment Banking division) (“Nedbank”), Rand Merchant Bank and Standard Bank Group (“Standard Bank”).
The Senior Facility Agreement provides the Group with a
The RCF has a maturity date of 4 March 2029. Interest is at SOFR plus a margin of 4.85% per annum. The RCF can be repaid or drawn down at any stage throughout the term of the loan.
The security package consists of: (a) security over the Group’s bank accounts (subject to certain exceptions); (b) pledges of the shares of KMPL and KMML (the “Project Companies”); and (c) security over intercompany loans.
The carrying amount of the secured bank accounts of the Group was
The Group entered into a mine closure guarantee facility with Standard Bank SA effective from 1 July 2025 for an amount of
| Reconciliation of movements of debt to cash flows arising from financing activities | 2025 $’000 | 2024 $’000 |
| Bank loans | ||
| Balance at 1 January | 77,991 | 47,873 |
| Cash movements | ||
| RCF drawdown | 120,000 | 131,370 |
| Loan interest paid – Term Loan | – | (2,694) |
| Loan interest paid – RCF | (6,720) | (2,396) |
| Principal paid – Term Loan | – | (47,142) |
| Principal paid – RCF | – | (51,370) |
| Transaction costs paid | – | (2,911) |
| Non-cash movements | ||
| Loan interest accrued – Term Loan | – | 1,050 |
| Loan interest accrued – RCF | 12,677 | 2,813 |
| Transaction costs amortised | 710 | 1,398 |
| Balance at 31 December | 204,658 | 77,991 |
Loan interest paid excludes lease liability interest as it is accounted for in Note 9.
COVENANTS
The finance documents contain a number of representations, covenants and events of default on customary terms, the breach of which could lead to the secured parties under the finance documentation accelerating the outstanding loans and taking other enforcement steps, such as the enforcement of some, or all, of the security interests, which could lead to, in extremis, the Group losing its interest in the Mine. The most salient of the relevant terms that could lead to acceleration of the loans and/or enforcement of security relate to the effectiveness of key governmental licences and agreement (including the Implementation Agreement) and the financial covenants.
All covenants have been complied with during the year. In December 2025, following a request by the Company, the lenders granted a reset of the net debt to EBITDA covenant for the 31 December 2025 to a level of 3.0x. The key financial covenants are detailed below:
| AS AT 31 DECEMBER 2025 | COVENANT | ||
| Interest Coverage Ratio | 6.86 | Not less than | 4.00:1 |
| Net Debt to EBITDA | 2.72 | Not greater than | 3.00:1 |
| Liquidity | Not less than | ||
The definition of the covenants under the debt facilities are set out below:
• Interest Coverage Ratio is defined as the ratio of EBITDA to Net Interest Cost
• Net Debt is defined as total financial indebtedness, excluding leases less consolidated cash and cash equivalents
• Liquidity is defined as consolidated cash and cash equivalents plus undrawn amounts of the RCF
15. Provisions
| 2025 $’000 | 2024 $’000 | |
| Mine closure provision | 16,237 | 14,275 |
| Mine rehabilitation provision | 7,741 | 6,958 |
| 23,978 | 21,233 | |
| Current | 1,412 | 1,226 |
| Non-current | 22,566 | 20,007 |
| 23,978 | 21,233 |
| MINE CLOSURE PROVISION $’000 | MINE REHABILITATION PROVISION $’000 | TOTAL $’000 | |
| At 1 January 2024 | 17,540 | 5,462 | 23,002 |
| Increase in provision during the financial year | (3,985) | 3,718 | (267) |
| Provision utilised during the financial year | – | (2,222) | (2,222) |
| Unwinding of the discount | 720 | – | 720 |
| At 1 January 2025 | 14,275 | 6,958 | 21,233 |
| Increase in provision during the financial year | 1,279 | 3,123 | 4,402 |
| Provision utilised during the financial year | – | (2,340) | (2,340) |
| Unwinding of the discount | 683 | – | 683 |
| At 31 December 2025 | 16,237 | 7,741 | 23,978 |
The Mine closure provision represents the Directors’ best estimate of the Project Companies’ liability for close-down, dismantling and restoration of the mining and processing site. A corresponding amount equal to the provision is recognised as part of property, plant and equipment. The costs are estimated on the basis of a formal closure plan, are subject to regular review and are estimated based on the net present value of estimated future costs. Mine closure costs are a normal consequence of mining, and the majority of close-down and restoration expenditure is incurred at the end of the life of the Mine. The unwinding of the discount is recognised as a finance cost and
The main assumptions used in the calculation of the estimated future costs include:
• A discount rate of 4.8% (2024: 4.8%);
• An inflation rate of 2% (2024: 2%);
• An estimated life of mine of 40 years (2024: 40 years). It is assumed that all licences and permits required to operate will be renewed or extended during the life of mine; and
• An estimated closure cost of
As of December 2025, the mine closure provision has been discounted using a rate of 4.8%. This discount rate is based on the US Treasury 30-year bond yield, which serves as a benchmark for long-term, risk-free rates, with adjustments to reflect the Company’s specific risk profile.
The inflation rate applied to estimate future closure costs is based on projected US inflation rates. This approach ensures that cost estimates remain aligned with expected economic conditions over the closure period, providing a realistic assessment of future obligations.
The life of mine plan is based on the Namalope, Nataka, Pilivili and Mualadi Ore Reserves and Mineral Resources. Specific Mineral Resource material is included only where there is a high degree of confidence in its economic extraction.
The discount rate is a significant factor in determining the Mine closure provision. A 1% increase in the estimated discount rate results in the Mine closure provision decreasing by
The Mine rehabilitation provision represents the Directors’ best estimate of the Company’s liability for rehabilitating areas disturbed by mining activities. Rehabilitation costs are recognised based on the area disturbed and estimated cost of rehabilitation per hectare, which is reviewed regularly against actual rehabilitation cost per hectare. Actual rehabilitation expenditure is incurred, approximately, 12 months after the area has been disturbed. During the financial year, there was a release of
16. Trade and other payables
| 2025 $’000 | 2024 $’000 | |
| Trade payables | 19,400 | 13,480 |
| Deferred income | 2,199 | 2,415 |
| Accruals | 41,393 | 31,860 |
| 62,992 | 47,755 | |
Included in accruals at the financial year-end is an amount of
17. Current tax (asset)/liabilities
| 2025 $’000 | 2024 $’000 | |
| Current tax liabilities/(asset) | 986 | (1,278) |
Refer to Note 6 for further information on the Group’s tax expense.
18. Financial instruments
| 2025 | 2024 | ||||
| CARRYING AMOUNT $’000 | FAIR VALUE $’000 | CARRYING AMOUNT $’000 | FAIR VALUE $’000 | ||
| Financial assets at fair value through Other Comprehensive Income | |||||
| Trade receivables1 | 8,325 | 8,325 | 28,148 | 28,148 | Level 2 |
| Financial assets not measured at fair value | |||||
| Trade receivables2 | 35,397 | 35,397 | 65,060 | 65,060 | Level 2 |
| Cash and cash equivalents | 48,624 | 48,624 | 56,683 | 56,683 | Level 2 |
| 92,346 | 92,346 | 149,891 | 149,891 | ||
| Financial liabilities not measured at fair value | |||||
| Bank loans | 204,659 | 205,957 | 77,991 | 80,417 | Level 2 |
1 Relates to trade receivables, which may be discounted through the Barclay’s bank facility.
2 Relates to trade receivables, which will not be discounted.
The carrying amounts and fair values of financial assets and financial liabilities, including their levels in fair value hierarchy, are detailed above. The table does not include fair value information for other receivables, prepayments, trade payables and accruals as these are not measured at fair value.
Trade receivables where it is not known at initial recognition if they will be factored are classified as fair value through other comprehensive income. Trade receivables which will not be factored and for which balances will be recovered under the sale contract credit terms are initially measured at fair value and, subsequently, measured at amortised cost.
In the case of factored receivables, the Group derecognises the discounted receivable to which the arrangement applies when payment is received from the bank as the terms of the arrangement are non-recourse. The payment to the bank by the Group’s customers are considered non-cash transactions for the purposes of the consolidated statement of cashflows.
The valuation technique used in measuring Level 2 fair values is discounted cash flows, which considers the expected receipts or payments discounted using adjusted market discount rates, or, where these rates are not available estimated discount rates.
The Group has exposure to credit risk, liquidity risk and market risk arising from financial instruments.
RISK MANAGEMENT FRAMEWORK
The Board is ultimately responsible for risk management within the Group. It has delegated responsibility for the monitoring of the effectiveness of the Group’s risk management and internal control systems to the Audit & Risk Committee. The Board and Audit & Risk Committee receive reports from Executive management on the key risks to the business and the steps being taken to mitigate such risks. The Audit & Risk Committee is assisted in its role by internal audit. Internal audit undertakes both regular and ad hoc reviews of risk management controls and procedures, the results of which are reported to the Audit & Risk Committee.
CREDIT RISK
Credit risk is the risk of financial loss to the Group if a customer or a counterparty to a financial instrument fails to meet its contractual obligations and arises, principally, from the Group’s trade receivables from customers. The carrying amount of financial assets represents the maximum credit exposure.
The Group’s exposure to credit risk is influenced by the individual circumstances of each customer. The Group also considers the factors that may influence the credit risk of its customer base, including the default risk associated with the industry and country in which customers operate.
Before entering into sales contracts with new customers, the Group uses an external credit scoring system to assess the potential customer’s credit quality. The credit quality of customers is reviewed regularly during the year and, where appropriate, credit limits or limits to the number of shipments, which can be outstanding at any point, are imposed.
The Group’s customers have been transacting with the Group for a significant number of years. Invoices totalling
The gross exposure to credit risk for trade receivables by geographic region was as follows:
| 2025 $’000 | 2024 $’000 | |
| 19,104 | 38,831 | |
| 9,846 | 23,551 | |
| 3,045 | 21,127 | |
| 5,969 | 7,808 | |
| 162 | 134 | |
| Total | 38,126 | 91,451 |
At 31 December 2025,
A summary of the Group’s exposure to credit risk for trade receivables is as follows:
| 2025 $’000 | 2024 $’000 | |
| External credit ratings at least Baa3 (Moody’s) | 8,325 | 28,148 |
| Other | 35,397 | 65,060 |
| Total gross carrying amount | 43,722 | 93,208 |
| Loss allowance | (5,596) | (1,757) |
| Total | 38,126 | 91,451 |
The following table provides ageing information relevant to the exposure to credit risk for trade receivables from individual customers.
| CURRENT $’000 | MORE THAN 30 DAYS PAST DUE $’000 | MORE THAN 60 DAYS PAST DUE $’000 | MORE THAN 90 DAYS PAST DUE $’000 | TOTAL $’000 | |
| 2025 | 34,398 | – | – | 9,324 | 43,722 |
| 2024 | 93,208 | – | – | – | 93,208 |
EXPECTED CREDIT LOSS ASSESSMENT OF TRADE RECEIVABLES
For trade receivables measured at fair value through other comprehensive income and trade receivables measured at amortised cost, the Group allocates to each customer a credit risk grade based on data that is determined to be predictive of the risk of loss (including but not limited to external ratings, financial statements and available market information about customers) and applying experienced credit judgement.
The following table provides information about the exposure to credit risk and expected credit losses as at 31 December 2025.
| Equivalent to Moody’s credit rating | WEIGHT AVERAGE LOSS RATE | GROSS CARRYING AMOUNT $’000 | IMPAIRMENT LOSS ALLOWANCE $’000 | CREDIT IMPAIRED |
| Customer | 50.0% | 9,324 | 4,683 | Yes |
| Other | 3.5% | 26,073 | 913 | No |
The following table provides information about the exposure to credit risk and expected credit losses as at 31 December 2024.
| Equivalent to Moody’s credit rating | WEIGHT AVERAGE LOSS RATE | GROSS CARRYING AMOUNT $’000 | IMPAIRMENT LOSS ALLOWANCE $’000 | CREDIT IMPAIRED |
| Other | 2.7% | 65,060 | 1,757 | No |
The movement in expected credit losses, in respect of trade receivables measured at amortised cost or fair value through other comprehensive income during the year, was as follows:
| 2025 $’000 | 2024 $’000 | |
| Balance at 1 January | 1,757 | 1,580 |
| Net remeasurement of loss allowance | 3,839 | 177 |
| Balance at 31 December | 5,596 | 1,757 |
The credit risk on cash and cash equivalents is limited because funds are deposited with banks with high credit ratings assigned by international credit rating agencies. For deposits in excess of
At 31 December 2025 and 2024, cash was deposited with the following banks:
| 2025 | 2024 | |||||
| LONG-TERM CREDIT RATING | LONG-TERM CREDIT RATING | |||||
| $ MILLION | S&P | MOODY’S | $ MILLION | S&P | MOODY’S | |
| Barclays Bank plc | 43.7 | A+ / Stable | A1/ Stable | 23.4 | A+ / Stable | A1/ Stable |
| Absa Bank Mauritius Limited | 4.1 | – | Baa3 | 10.2 | – | Baa3 |
| Standard Bank Mauritius Limited | 0.1 | – | Ba2 | 10.0 | – | Ba2 |
LIQUIDITY RISK
Liquidity risk is the risk that the Group will encounter difficulty in meeting the obligations associated with its financial liabilities that are settled in cash payments. The Group’s objective when managing liquidity is to ensure that it will have sufficient liquidity to meet its liabilities when they are due.
The Group monitors mine payment forecasts, both operating and capital, which assist it in monitoring cash flow requirements and optimising its cash return on investments. The Group aims to maintain the level of its cash and cash equivalents at an amount in excess of expected cash outflows on financial liabilities. The Group monitors the level of expected cash inflows on trade receivables, together with expected cash outflows on trade and other payables.
The Group has a trade facility with Barclays Bank for customers, which it sells to under letter of credit terms. Under this facility, Barclays Bank confirms the letter of credit from the issuing bank and, therefore, assumes the credit risk. Barclays Bank may also discount these letters of credit, thereby providing early payment of receivables to the Group. There is no limit under the Barclays Bank facility. During the year, trade receivables of
| Financial liabilities | TOTAL $’000 | LESS THAN ONE YEAR $’000 | BETWEEN TWO AND FIVE YEARS $’000 | MORE THAN FIVE YEARS $’000 |
| Bank loans | 243,691 | 23,623 | 220,068 | – |
| Lease liabilities | 971 | 307 | 563 | 101 |
| Trade and other payables | 62,992 | 62,992 | – | – |
| 307,654 | 86,922 | 220,631 | 101 | |
The table below summarises the maturity profile of the Group’s financial liabilities at 31 December 2024 based on the gross contractual undiscounted payments:
| Financial liabilities | TOTAL $’000 | LESS THAN ONE YEAR $’000 | BETWEEN TWO AND FIVE YEARS $’000 | MORE THAN FIVE YEARS $’000 |
| Bank loans | 112,056 | 8,060 | 103,996 | – |
| Lease liabilities | 1,629 | 390 | 899 | 340 |
| Trade and other payables | 47,755 | 47,755 | – | – |
| 161,440 | 56,205 | 104,895 | 340 | |
As disclosed in Note 14, the Group has bank loans that contain loan covenants. A future breach of covenant may require the Group to repay the loan earlier than indicated in the above table. Under the loan agreement, the covenants are monitored on a regular basis by Group finance and regularly reported to management and the lenders to ensure compliance with the agreement. In December 2025, following a request by the Company, the lenders granted a reset of the net debt to EBITDA covenant for the 31 December 2025 to a level of 3.0x. All covenants have been complied with during the year.
Furthermore, the group has authorised and committed expenditure on operations-related capital projects amounting to
RISK CONCENTRATION
Concentrations arise when a number of counterparties are engaged in similar business activities, or activities in the same geographical region, or have economic features that would cause their ability to meet contractual obligations to be similarly affected by changes in economic, political or other conditions. Concentrations indicate the relative sensitivity of the Group’s performance to developments affecting a particular industry.
The Group evaluates the concentration of risk with respect to trade receivables as low, as its customers are located in several jurisdictions and industries and operate in largely independent markets. Details of concentration of revenue are included in Note 2.
MARKET RISK
Market risk is risk that changes in market prices, foreign exchange rates and interest rates will affect the Group’s income statement. The objective of market risk management is to manage and control market risk exposures while optimising returns.
CURRENCY RISK
The Group is exposed to transactional foreign currency risk to the extent that there is a mismatch between the currencies in which sales, purchases, receivables and borrowings are denominated and the respective functional currencies of Group companies. The functional currency of all Group entities is US Dollars. The presentational currency of the Group is US Dollars. Sales and bank loans are denominated in US Dollars, which significantly reduces the exposure of the Group to foreign currency risk. Payable transactions are denominated in Mozambican Metical, South African Rand, Euro, Sterling, Australian Dollar and Renminbi.
The Group has a forward contracts facility with Absa Bank Mauritius Ltd for the purchase and sale of US Dollars and South African Rand. The limit on the facility is
EXPOSURE TO CURRENCY RISK
The Group’s gross exposure to currency risk as at 31 December 2025 is as follows:
| MOZAMBICAN METICAL $’000 | SOUTH AFRICAN RAND $’000 | EURO $’000 | STERLING $’000 | AUSTRALIAN DOLLAR $’000 | RENMINBI $’000 | |
| Trade and other receivables | 17,640 | 1,688 | 310 | – | – | – |
| Cash and cash equivalents | 344 | 1,040 | 516 | 617 | 2 | – |
| Bank loans | – | – | – | – | – | – |
| Leases | (576) | – | (395) | – | – | – |
| Trade and other payables | (31,406) | (4,654) | (1,301) | (118) | 265 | – |
| Net exposure | (13,998) | (1,926) | (870) | 499 | 267 | – |
The Group’s exposure to currency risk as at 31 December 2024 is as follows:
| MOZAMBICAN METICAL $’000 | SOUTH AFRICAN RAND $’000 | EURO $’000 | STERLING $’000 | AUSTRALIAN DOLLAR $’000 | RENMINBI $’000 | |
| Trade and other receivables | 8,067 | 1,405 | 1,349 | 15 | 335 | – |
| Cash and cash equivalents | 5,152 | 1,010 | 945 | 95 | 2 | 28 |
| Bank loans | – | – | – | – | – | – |
| Leases | – | – | (971) | – | – | – |
| Trade and other payables | (25,429) | (5,059) | (77) | – | (74) | – |
| Net exposure | (12,210) | (2,644) | 1,246 | 110 | 263 | 28 |
SENSITIVITY ANALYSIS
A strengthening or weakening of the Mozambique Metical, South African Rand, Euro, Sterling, Australian Dollar and Renminbi by 10% against the US Dollar would have affected profit or loss by the amounts shown below. The analysis assumes that all other variables remain constant.
| Profit or loss | MOZAMBICAN METICAL $’000 | SOUTH AFRICAN RAND $’000 | EURO $’000 | STERLING $’000 | AUSTRALIAN DOLLAR $’000 | RENMINBI $’000 |
| 31 December 2025 | ||||||
| Strengthening | (1,400) | (193) | (87) | 50 | 27 | – |
| Weakening | 1,400 | 193 | 87 | (50) | (27) | – |
| 31 December 2024 | ||||||
| Strengthening | (1,221) | (264) | 125 | 11 | 26 | 3 |
| Weakening | 1,221 | 264 | (125) | (11) | (26) | (3) |
INTEREST RATE RISK
The loan facilities are arranged at variable rates and expose the Group to cash flow interest rate risk. Variable rates are based on one, three or six-month SOFR. The borrowing rate at the financial year-end was 8.86% (2024: 9.63%). The interest rate profile of the Group’s loan balances at the financial year-end was as follows:
| 2025 $’000 | 2024 $’000 | |
| Variable rate debt | 204,658 | 77,991 |
Under the assumption that all other variables remain constant, a reasonable possible change of 1% in the SOFR rate results in a
The above sensitivity analyses are estimates of the impact of market risks assuming the specified change occurs. Actual results in the future may differ materially from these results due to developments in the global financial markets, which may cause fluctuations in interest rates to vary from the assumptions made above and, therefore, should not be considered a projection of likely future events.
19. Events after the statement of financial position date
There have been no material events after the financial year-end that would require adjustment or disclosure in these financial statements.
GLOSSARY – ALTERNATIVE PERFORMANCE MEASURES
Certain financial measures set out in the 2025 Preliminary Results are not defined under International Financial Reporting Standards (IFRS), but represent additional measures used by the Board to assess performance and for reporting both internally and to shareholders and other external users. Presentation of these Alternative Performance Measures (APMs) provides useful supplemental information which, when viewed in conjunction with the Group’s IFRS financial information, allows for a more meaningful understanding of the underlying financial and operating performance of the Group.
These non-IFRS measures should not be considered as an alternative to financial measures as defined under IFRS. Descriptions of the APMs included in this report, as well as their relevance for the Group, are disclosed below.
| APM | DESCRIPTION | RELEVANCE |
| Adjusted EBITDA | Operating profit/loss before depreciation and amortisation and impairment losses | Eliminates the effects of financing, tax, depreciation and impairment losses to allow assessment of the earnings and performance of the Group |
| Adjusted EBITDA margin | Percentage of Adjusted EBITDA to Mineral Product Revenue | Provides a group margin for the earnings and performance of the Group |
| Capital costs | Additions to property, plant and equipment in the period | Provides the amount spent by the Group on additions to property, plant and equipment in the period |
| Cash operating cost per tonne of finished product produced | Total costs less freight and other non-cash costs, including depreciation and inventory movements divided by final product production (tonnes) | 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 |
| Cash operating cost per tonne of ilmenite net of co-products | Cash operating costs less revenue of zircon, rutile and concentrates, divided by ilmenite production (tonnes) | 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 ilmenite produced over time |
| Net cash/debt | Bank loans before transaction costs, loan amendment fees and expenses plus lease liabilities net of cash and cash equivalents | Measures the amount the Group would have to raise through refinancing, asset sale or equity issue if its debt were to fall due immediately, and aids in developing an understanding of the leveraging of the Group |
| ROCE | Return on capital employed | Measures how efficiently the Group generates profits from investment in its portfolio of assets |
| Shareholder returns | Dividends and share buy-backs | Shareholder returns comprise the interim dividend, the proposed final dividend to be approved by shareholders at the AGM and any share buy-backs |
ADJUSTED EBITDA
| 2021 $M | 2022 $M | 2023 $M | 2024 $M | 2025 $M | |
| Operating profit/(loss) | 151.1 | 233.4 | 155.1 | 89.2 | (300.4) |
| Depreciation | 63.1 | 64.6 | 65.2 | 67.9 | 57.1 |
| Impairment loss | – | – | – | – | 301.3 |
| Adjusted EBITDA | 214.2 | 298.0 | 220.3 | 157.1 | 58.0 |
ADJUSTED EBITDA MARGIN
| 2021 $M | 2022 $M | 2023 $’M | 2024 $’M | 2025 $’M | |
| Adjusted EBITDA | 214.2 | 298.0 | 220.3 | 157.1 | 58.0 |
| Mineral product revenue | 420.5 | 498.4 | 437.1 | 392.1 | 312.1 |
| Adjusted EBITDA margin (%) | 51% | 60% | 50% | 40% | 19% |
CASH OPERATING COST PER TONNE OF FINISHED PRODUCT
| 2021 $M | 2022 $M | 2023 $M | 2024 $M | 2025 $M | |
| Cost of Sales | 295 | 282.7 | 294.9 | 319.4 | 310.2 |
| Administrative expenses | 9.8 | 9.9 | 8.4 | 6.2 | 17.4 |
| Total operating costs | 304.8 | 292.6 | 303.3 | 325.6 | 327.6 |
| Freight | (35.4) | (27.6) | (21.4) | (22.7) | (16.5) |
| Total operating costs less freight | 267.5 | 265.0 | 281.9 | 302.9 | 311.1 |
| Non-cash costs | |||||
| Depreciation and amortisation | (63.1) | (64.6) | (65.2) | (67.9) | (57.1) |
| Other non-cash costs | (0.2) | (1.1) | – | (0.2) | (8.3) |
| Share-based payments | (1.1) | (2.2) | (3.3) | (3.6) | (3.1) |
| Mineral product inventory movements | (9.3) | 21.6 | 14.7 | 12.4 | 0.1 |
| Total cash operating costs | 195.7 | 218.7 | 228.1 | 243.6 | 242.7 |
| Final product production tonnes | 1,228,500 | 1,200,800 | 1,091,500 | 1,115,300 | 1,004,000 |
| Cash operating cost per tonne of finished product | |||||
CASH OPERATING COST PER TONNE OF ILMENITE
| 2021 $M | 2022 $M | 2023 $’M | 2024 $’M | 2025 $’M | |
| Total cash operating costs | 195.7 | 218.7 | 228.1 | 243.6 | 242.7 |
| Less revenue from co-products zircon, rutile and concentrates | (85.8) | (150.9) | (122.0) | (100.4) | (85.4) |
| Total cash costs less co-product revenue | 109.9 | 67.8 | 106.1 | 143.2 | 157.3 |
| Ilmenite product production tonnes | 1,119,400 | 1,088,300 | 986,300 | 1,008,900 | 842,300 |
| Cash operating cost per tonne of ilmenite | |||||
| 2021 $’M | 2022 $’M | 2023 $’M | 2024 $’M | 2025 $’M | |
| Bank debt | (148.1) | (78.6) | (47.9) | (78.0) | (204.7) |
| Transaction costs | (3.8) | (2.2) | (0.9) | (2.4) | (1.7) |
| Gross debt | (151.9) | (80.8) | (48.8) | (80.4) | (206.4) |
| Lease liabilities | (2.2) | (1.8) | (1.5) | (1.3) | (1.0) |
| Cash and cash equivalents | 69.1 | 108.3 | 71.0 | 56.7 | 48.6 |
| Net cash/(debt) | (85.0) | 25.7 | 20.7 | (25.0) | (158.8) |
RETURN ON CAPITAL EMPLOYED
| RESTATED $M | 2022 $’M | 2023 $’M | 2024 $’M | 2025 $’M | |
| Operating profit (excluding impairment loss) | 151.1 | 233.4 | 155.1 | 89.2 | – |
| Total Equity and Non-Current Liabilities | 1,045.4 | 1,170.4 | 1,180.9 | 1,260.1 | 1,036.9 |
| ROCE | 15% | 20% | 13% | 7% | 0% |
GLOSSARY – TERMS
| TERM | DESCRIPTION |
| CIF | This term means the seller delivers when the goods pass the ship’s rail in the port of shipment. Seller must pay the cost and freight necessary to bring goods to named port of destination. Risk of loss and damage are the same as CFR. The seller also has to procure marine insurance against buyer’s risk of loss/damage during the carriage. Seller must clear the goods for export. This term can only be used for sea transport |
| CFR | This term means the seller delivers when the goods pass the ship’s rail in port of shipment. The seller must pay the costs and freight necessary to bring the goods to the named port of destination, but the risks of loss or damage, as well as any additional costs due to events occurring after the time of delivery, are transferred from seller to buyer; seller must clear goods for export. This term can only be used for sea transport |
| Chloride slag | Chloride slag is a high-grade titanium dioxide feedstock, typically containing 85–90% TiO2, specifically produced for use in chloride pigment and titanium manufacturing processes |
| CSRD | Corporate Sustainability Reporting Directive |
| CTP | Climate Transition Plan |
| The Company or Parent Company | Kenmare Resources plc |
| Decarbonisation | The process of reducing carbon dioxide emissions, often through energy efficiency, electrification, or carbon capture |
| DFS | Definitive Feasibility Studies. These are the most detailed studies and are used to determine definitively whether to proceed with a project. A Definitive Feasibility Study will be the basis for capital appropriation and will provide the budget figures for the project. Detailed Feasibility Studies require a significant amount of formal engineering work and are accurate to within approximately 10–15% |
| EdM | Electricidade de Moçambique |
| EMP | Environmental Management Plan |
| ESIA | Environmental and Social Impact Assessment |
| FOB | This term means that the seller delivers when the goods pass the ship’s rail at the named port of shipment. This means the buyer has to bear all costs and risks to the goods from that point. The seller must clear the goods for export. This term can only be used for sea transport |
| Free Cash Flow | Free Cash Flow is the cash generated by the Group in a reporting period before distributions to shareholders |
| GISTM | Global Industry Standard of Tailings Management |
| Group or Kenmare | Kenmare Resources plc and its subsidiary undertakings |
| GTMI | Global Tailings Management Institute |
| Ha | Hectares |
| HCB | Hidroelectrica de Cahora Bassa |
| HMC | Heavy Mineral Concentrate extracted from mineral sands deposits and which include ilmenite, zircon, rutile and other heavy minerals and silica |
| Implementation Agreement | The agreement for the Moma Heavy Mineral Sands Industrial Free Zone Project between Kenmare Moma Processing Limited (a company incorporated in Jersey whose rights and interests were transferred to KMPL in November 2002), a wholly owned subsidiary of Kenmare, and |
| Incoterms | International Commercial Terms are eleven internationally recognized, three-letter rules published by the International Chamber of Commerce (ICC) that define seller and buyer responsibilities in global trade. |
| KMAD | Kenmare Moma Development Association |
| KMML | Kenmare Moma Mining (Mauritius) Limited |
| KMML Mozambique Branch | |
| KMPL | Kenmare Moma Processing (Mauritius) Limited |
| KMPL Mozambique Branch | |
| KRSP | Kenmare Resources plc Restricted Share Plan |
| Lenders | Absa Bank Limited (acting through its Corporate and Investment Banking Division) (Absa), Nedbank Limited (acting through its Nedbank Corporate and Investment Banking division) (Nedbank), Rand Merchant Bank and Standard Bank Group (Standard Bank) |
| LTI | Lost Time Injury. This measures the number of injuries at the Mine that result in an employee not being able to attend his next shift |
| LTIFR | Lost Time Injury Frequency Rate; measures the number of LTIs per 200,000 man hours worked on site |
| Marketing – finished products shipped | Finished products shipped to customers during the period |
| Mining – HMC produced | Heavy Mineral Concentrate extracted from mineral sands deposits and which includes ilmenite, zircon, rutile, concentrates and other heavy minerals and silica. Provides a measure of Heavy Mineral Concentrate extracted from the Mine |
| Moma, | |
| Mine Closure Guarantee Facility | |
| MSP | Mineral Separation Plant |
| Mtpa | Million tonnes per annum |
| Ordinary shares | Ordinary shares of €0.001 each in the capital of the Company |
| PFS | A Feasibility Study is an evaluation of a proposed mining project to determine whether the mineral resource can be mined economically. Pre-Feasibility Study is used to determine whether to proceed with a detailed feasibility study and to determine areas within the project that require more attention. Pre-Feasibility Studies are done by factoring known unit costs and by estimating gross dimensions or quantities once conceptual or preliminary engineering and mine design has been completed |
| Possible offer | The non-binding proposal from Oryx Global Partners Limited and |
| Processing – finished products produced | Finished products produced by the mineral separation process; provides a measure of finished products produced from the processing plants |
| Project Companies | KMML and KMPL, both wholly owned subsidiary undertakings of Kenmare Resources plc, which are incorporated in |
| RAP | Resettlement Action Plan |
| Revolving Credit Facility | |
| REE | Rare Earth Elements |
| RUPS | Rotary Uninterruptible Power Supply |
| SASB | Sustainability Accounting Standards Board |
| SMO | Selective Mining Operation |
| SOFR | Secured Overnight Financing Rate |
| Tailings management | The handling and storage of leftover material after ore extraction, which can contain toxic elements |
| THM | Total Heavy Minerals in the ore of which ilmenite (typically 82%), rutile (typically 2.0%) and zircon (typically 5.5%) total approximately 90% |
| TSF | Tailings Storage Facility |
| WCP | Wet Concentrator Plant |
| WCP A | The original WCP, which started production in 2007 |
| WCP B | The second WCP, which started production in 2013 |
| WCP C | The third WCP, which started production in 2020 |
| WHIMS | Wet High Intensity Magnetic Separation Plant |
