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 publishes its Half-Yearly Financial Report for the six month period ended 30 June 2023 (“H1 2023”) and announces its interim dividend for 2023.

Statement from Michael Carvill, Managing Director:

“Production in early H2 2023 has been strong, supported by higher grades, better HMC recoveries and increased tonnes mined. Production in H1 2023 was unfortunately lower than our expectations, primarily due to a severe lightning strike in Q1 and its lingering impact.

However, good product pricing and strong shipment volumes in H1 drove record revenues. EBITDA was up 6%, while profit after tax increased to $67.8 million. We are increasing our interim dividend by 59% to USc17.5 per share, in line with our policy to maintain dividend payments of approximately $50 million per annum.

Separately, this morning we have also announced a share buyback of $30 million via a tender offer, in line with our policy of returning additional capital to shareholders when appropriate.”

H1 2023 overview

Financials and markets

Launch of a Tender Offer, announced separately
Interim dividend of USc17.5 per share, a 59% increase (H1 2022: USc10.98 per share)
Revenue from mineral products of $229.7 million in H1 2023, a 26% increase compared to H1 2022 ($182.1 million), due to a 31% increase in shipment volumes supported by the drawdown of finished product stockpiles offsetting a 4% decrease in average realised prices
EBITDA of $110.4 million, a 6% increase (H1 2022: $104.5 million)
Profit after tax of $67.8 million, an 8% increase (H1 2022: $62.5 million)
Cash operating cost of $230 per tonne of finished product, a 24% increase compared to H1 2022 ($185 per tonne), due to lower production volumes and cost inflation
Cash operating cost of $137 per tonne of ilmenite (net of co-products), a 28% increase compared to H1 2022 ($107 per tonne)
At the end of H1 2023, net cash increased to $42.3 million (31 December 2022: $25.7 million), supported by a drawdown of finished products and strong revenues
Ilmenite prices were stable in H1 2023, although the titanium pigment market is slower in H2 2023
Global macroeconomic conditions are also affecting demand for zircon with spot prices moving below contracted prices
Operations

Lost Time Injury Frequency Rate (“LTIFR”) of 0.18 per 200,000 hours worked for the 12 months to 30 June 2023 (30 June 2022: 0.00)
Heavy Mineral Concentrate (“HMC”) production of 633,900 tonnes in H1 2023, a 14% decrease compared to H1 2022 (738,300 tonnes), due primarily to the impacts of a severe lightning strike and lower grades
Total finished product production of 472,600 tonnes, a 10% decrease (H1 2022: 550,700 tonnes), as a result of the lower HMC produced
Total shipments of 556,800 tonnes, a 31% increase (H1 2022: 424,300 tonnes) supported by the drawdown of finished product stockpiles
Additional information in relation to Alternative Performance Measures (“APMs”) is disclosed in the Glossary.

Analyst and investor conference call and webcast

Kenmare will host a conference call and webcast for analysts, institutional investors, and media today at 9:00am UK time. Participant dial-in numbers for the conference call are as follows:

UK: +44 20 3481 4247
Ireland: +353 1 582 2023
US +1 (646) 307 1963
Conference ID 995 94 36
The webcast will be available at www.kenmareresources.com and playback of the webcast will be available at: www.kenmareresources.com/investors/reports-and-presentations.

Private investor webinar

There will also be a separate webinar for private investors on Thursday, 17 August 2023, at 12:00pm UK time. To access the webinar, please register in advance by clicking here.

The Half-Yearly Financial Report for the period ended 30 June 2023 is also available at www.kenmareresources.com/investors/reports-and-presentations.

For further information, please contact:

Kenmare Resources plc
Jeremy Dibb / Michael Starke
Investor Relations