Kenmare Resources plc (LSE:KMR, ISE:KMR), one of the leading global producers of titanium minerals and zircon, which operates the Moma Titanium Minerals Mine (the "Mine" or "Moma") in northern Mozambique, today announces its preliminary results for the twelve months to 31 December 2022.

Statement from Michael Carvill, Managing Director:

“2022 was a record year of financial performance for Kenmare. Our financial results were driven by steady production volumes and record product prices. Mineral product revenues increased 18% and EBITDA rose by 39% to $298 million.

We are tracking within guidance for 2023, despite suffering an extremely severe lightning strike which halted production for an extended period in February, albeit towards the bottom end of our range for ilmenite and rutile. In 2023, the market for our products remains buoyant, although at marginally lower levels than the highs of Q3 2022, with strong customer demand for volume.

Kenmare moved to a net cash position of $27.5 million at the end of 2022, which represents a $110.3 million improvement over the 12 months. The Board is recommending a 2022 dividend of USc54.31 per share, up 66% from USc32.71 per share for 2021.”

2022 overview

Financial

Recommended 2022 dividend of $51.5 million or USc54.31 per share (2021: USc32.71), up 66% on 2021, comprising an interim dividend of USc10.98 per share (paid in October 2022) and a final dividend of USc43.33 per share (payable May 2023)
18% increase in mineral product revenue to $498.4 million in 2022 (2021: $420.5 million), benefitting from a 42% increase in the average price received for Kenmare’s products
13% increase in total cash operating costs to $216.7 million (2021: $191.8 million) as a result of higher prices for fuel and labour costs as well as increased electricity consumption
16% increase in cash operating costs per tonne to $180 (2021: $156) as a consequence of higher total cash operating costs and a 2% decrease in finished product production
36% decrease in cash operating cost per tonne of ilmenite to $60 (2021: $95) due to higher co-product revenues
39% increase in EBITDA to $298.0 million (2021: $214.2 million), due to stronger product pricing, representing a 60% EBITDA margin (2021: 51%)
60% increase in profit after tax to $206.0 million (2021: $128.5 million) due to higher product prices
83% increase in diluted earnings per share to $2.12 (2021: $1.16)
Net cash of $27.5 million at year end 2022 (2021: $82.8 million net debt), with cash and cash equivalents of $108.3 million (2021: $69.1 million)

Operational

Heavy Mineral Concentrate (“HMC”) production increased 2% in 2022 to 1,586,200 tonnes (2021: 1,555,900 tonnes), benefitting from higher excavated ore volumes mined
Ilmenite production decreased 3% in 2022 to 1,088,300 tonnes (2021: 1,119,400 tonnes)
Shipments of finished products of 1,075,600 tonnes in 2022, a 16% decrease compared to record tonnes shipped in 2021, reflecting four months planned maintenance on a transshipment vessel, the Bronagh J
2023 ilmenite production guidance range of 1,050,000 to 1,150,000 tonnes
Dividend timetable

The Company confirms the dates for the proposed 2022 final dividend are as follows: see & read more on
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