Kenmare Resources plc is an established mining company, which operates the Moma Titanium Minerals Mine, located on the northeast coast of Mozambique. The Mine has been in commercial production since 2009 and is recognised as a major supplier of mineral sand products to a global customer base operating in over 15 countries. The company is listed on the London Stock Exchange and has a market capitalisation of £300 million.
We were delighted to have the new Managing Director, Tom Hickey, Ben Baxter, Chief Operations Officer and Jeremy Dibb, Director of Corporate Development and Investor Relations, report on performance in the first 6 months of 2024 and talk about prospects for the remainder of the year. A recording of the webinar is available here.
Tom Hickey, the new MD, was appointed to his role this week and has been at the company since September 2022 when he was appointed Finance Director. The company will look to find a new CFO and will update the market in due course.
Kenmare has been in Mozambique for 35 yrs and producing for 20 years. Throughout that time the strategy has had some consistent elements. They operate responsibly with a focus on providing a safe working environment, which is now 97% Mozambiquan. The mine has a 100 year life and the company delivers low cost production, in the first quartile of the industry cost curve. Being one of the most efficient producers enables the company to ride the peaks and troughs of the inevitable commodity cycles. The company is investing heavily to bring all the production facilities to Nakata; the largest ore body in their operational area. The company generates significant EBITDA margins and cash flow and since 2019 has returned $280m to shareholders, equivalent to over £2.40/share. The company ended the period with $58.9m of net cash.
The first half of the year was impacted by adverse weather and an issue with the product conveyor (now remedied? which affected the number of shipments from the mine. Already in Q3 there has been some catch up with a number of extra shipments already dispatched. This leaves them confident of the full year outcome but at the half year point revenues fell by 33%, which was 14% due to a decrease in shipments and 22% to a decrease in average price (impacted by a lower value product mix). If the delayed shipments had occurred…
