Q4 2022 Manufacturing Record and also 2023 Support

January 18, 2023

Kenmare Resources

Kenmare Resources

K enmare Resources plc
(” Kenmare” or the “Firm” or “the Team”)

18 January 2023

Q4 2022 Manufacturing Record and also 2023 Support

Kenmare Resources plc (LSE: KMR, ISE: KMR), among the leading international manufacturers of titanium minerals and also zircon, which runs the Moma Titanium Minerals Mine (the “Mine” or “Moma”) in north Mozambique, delights in to supply a trading upgrade for 2022 and also 4th quarter finishing 31 December 2022 (” Q4 2022″) and also manufacturing and also running expense support for 2023.

Declaration from Michael Carvill, Handling Supervisor:

” 2022 was a nother great year for Kenmare with ilmenite manufacturing of 1,088,3 00 tonnes, in spite of the obstacles of power disturbances in Q4 Deliveries in Q4 were close to document degrees, with both transshipment vessels accomplishing high schedule complying with the current completely dry dock of the Bronagh J

Regardless Of some macroeconomic headwinds, we remain to see a durable market for our items, with solid prices attained in Q4 2022 As China even more loosen up es COVID-19 constraints, we anticipate greater residential need to assistance our sales in the area

Kenmare ha s relocated to a web money placement of $27.5 million at the end of 2022, which stands for a $1 1 0.3 million enhancement from the previous year, whilst additionally having actually paid document returns We remain to target an overall returns paymen t of 25% of revenue after tax obligation in regard of 2022.

Introduction

Procedures upgrade

Functional outcomes for the Moma Mine in Q4 2022 and also 2022 were as complies with:

Q4 202 2

vs Q4 202 1

vs Q3 2022

202 2

vs 202 1

tonnes

% adjustment

% adjustment

tonnes

% adjustment

Dug deep into ore 1

10,145,000

9%

-3%

40,029,000

2%

Quality 1

4.75%

10%

-4%

4.61%

0%

Manufacturing

HMC created

404,000

17%

-9%

1,586,200

2%

HMC refined

397,900

13%

-10%

1,578,900

-1%

Ilmenite

283,900

15%

-7%

1,088,300

-3%

Main zircon

14,600

18%

-16%

58,400

4%

Rutile

2,200

5%

-15%

8,900

0%

Focuses 2

11,700

4%

-10%

45,200

3%

Deliveries

365,700

-1%

28%

1,075,600

-16%

  1. Dug deep into ore and also quality before any kind of flooring losses.

  2. Focuses consist of second zircon and also mineral sands focus.

Regrettably, 3 wasted time injuries were videotaped in the one year to 31 December 2022, complying with a duration of over 18 months of being LTI complimentary, leading to a moving 12-month LTIFR of 0.09 per 200,000 hrs functioned (31 December 2021: 0.03). The Firm is enhancing initiatives to make sure constant regard of great security methods is primary in our workers’ minds.

HMC manufacturing in 2022 was 1,586,200 tonnes, a 2% boost contrasted to 2021 (1,555,900 tonnes). Whilst an enhancement on 2021, dug deep into ore and also recuperations were influenced by power interruptions, mining problems and also sludges, in addition to the formerly reported poor climate in Q1.

HMC manufacturing in Q4 2022 was 404,000 tonnes, a 17% boost contrasted to Q4 2021 (343,900 tonnes), because of greater tonnes of dug deep into ore and also greater qualities. Nonetheless, as formerly kept in mind by the Firm in its Support Update on 25 November 2022, HMC manufacturing was additionally stopped by unintended power interruptions triggered by concerns with the Electricidade de Moçambique (” EdM”) transmission grid. Kenmare functioned carefully with EdM to fix these details concerns and also by mid-December 2022, power security enhanced, and also exercises boosted.

For 2022, ilmenite manufacturing of 1,088,300 tonnes was within changed support of 1,080,000 to 1,110,000 tonnes, with rutile manufacturing additionally within changed support. Manufacturing of key zircon and also focuses was within initial support, in spite of the influences of unintended power interruptions in the direction of completion of the year.

Ilmenite manufacturing was influenced by the lowered HMC feedstock readily available because of the obstacles highlighted over and also the effect of sludges on HMC top quality, partly countered by a 1% enhancement in ilmenite healing.

Document key zircon manufacturing of 58,400 tonnes was supplied in 2022, boosting by 4% contrasted to 2021 (56,300 tonnes). Manufacturing took advantage of enhanced recuperations, arising from the execution of a flocculation procedure to supply cleaner procedure water, in addition to the effective execution of the rotating uninterruptable power supply (” RUPS”), which offered steadier operating problems.

Rutile manufacturing in 2022 remained in line with 2021, although greater sludges influenced recuperations at the mine, partly countered by healing enhancements in the Mineral Splitting Up Plant.

Document focuses manufacturing of 45,200 tonnes was supplied in 2022, boosting by 3% contrasted to 2021 (43,900 tonnes). Second zircon tonnes dropped 4% because of reduce zircon consisted of in the feed, as even more was recuperated right into key items. This was greater than countered by document mineral sands focus manufacturing, boosting 19% contrasted to 2021, gaining from the handling of accumulations.

Manufacturing of all completed items boosted in Q4 2022 contrasted to Q4 2021, as a result of greater HMC refined.

Kenmare created 283,900 tonnes of ilmenite in Q4 2022, a 15% boost contrasted to Q4 2021, and also a 7% decline contrasted to Q3 2022. This was the outcome of weak HMC manufacturing because of unintended power interruptions in the duration restricting HMC feed schedule, partly countered by drawdown of magnetic feed supply. Likewise, Q4 2022 manufacturing of key zircon, rutile and also focuses reduced from Q3 2022 because of reduced HMC refined, although recuperations boosted about Q4 2021.

Delivery quantities in 2022 were 1,075,600 tonnes, a 16% decline contrasted to 2021 (1,285,300 tonnes). This was mostly because of a 4-month duration of intended upkeep, which happens every 5 years, on the Firm’s biggest transshipment vessel, the Bronagh J. Deliveries throughout the year were included 953,395 tonnes of ilmenite, 60,520 tonnes of key zircon, 12,933 tonnes of rutile and also 48,782 tonnes of focuses.

Q4 2022 was the toughest quarter of the year for deliveries and also near to a document, with 365,700 tonnes delivered. Quantities were down 1% contrasted to Q4 2021 (368,600 tonnes). Deliveries in Q4 2022 were included 324,200 tonnes of ilmenite, 21,700 tonnes of key zircon, 2,800 tonnes of rutile and also 17,000 tonnes of focuses.

Closing supply of HMC at the end of 2022 was 18,800 tonnes, compared to 11,600 tonnes at the beginning of the year. Closing supply of completed items at the end of 2022 was 213,500 tonnes, compared to 88,700 tonnes at the end of 2021.

Funding tasks upgrade

Job continues the Pre-Feasibility Research (” PFS”) for the Nataka ore area, where WCP A is arranged to start extracting around 2025. The Firm intends to supply a complete upgrade of the research studies at a Funding Markets Day on 26 April 2023. It is approximated that the funding expense of the WCP A moving to Nataka is not likely to be much less than $225 million. On top of that, the Environmental Effect Analysis for the job remains to make great progression.

Money upgrade

On 21 October 2022, Kenmare paid its acting 2022 returns of USc10.98 per share (H1 2021: USc7.29), for an overall circulation of $10.4 million. The Firm remains to target an overall returns settlement of 25% of revenue after tax obligation in regard of 2022.

At 31 December 2022, Kenmare had web money of $27.5 million (2021: $82.8 million web financial obligation). Money and also money matchings were $108.3 million (2021: $69.1 million) and also gross small business loan, consisting of built up rate of interest, were $80.8 million (2021: $151.9 million).

Market upgrade

2022 was a solid year for Kenmare’s item markets, leading to document standard rates obtained for all items. Costs obtained for ilmenite, the Firm’s key item, boosted 29% on an FOB basis compared to 2021 because of limited market problems, most significantly in the very first fifty percent when pigment manufacturers were constricted because of scarcities of titanium feedstocks.

Pigment need reduced with the year as the international financial overview compromised and also the Chinese absolutely no COVID-19 plan low-key commercial task. The problem in Ukraine added to power cost rising cost of living, specifically in Europe, pressing pigment manufacturer margins because of their energy-intensive procedures. From a supply point of view, there have actually been boosts in the supply of low-grade ilmenite items going into China, specifically from Mozambique.

In spite of these elements affecting the marketplace, Kenmare remained to see durable need for its top notch ilmenite items, accomplishing a 9th successive ilmenite cost boost in Q4 2022 as clients remain to worth supply safety and security.

Area rates for ilmenite reduced in the direction of completion of the year, as the pigment market compromised, and also this has actually proceeded right into very early 2023. Nonetheless, it is extensively anticipated that the pigment market destocking even more downstream will certainly normalise in very early 2023.

Kenmare attained record standard rates for zircon items in 2022, up 38% on an FOB basis compared to 2021. International zircon supply reduced in 2022, because of the exhaustion of sector accumulations in the very first fifty percent of the year. Significant vendors preserved secure prices throughout the 2nd fifty percent, which has actually proceeded right into very early 2023. In spite of this, place rates in China reduced in H2 2022, because of reduced residential need, yet have actually secured in current weeks as need has actually enhanced.

202 3 support

2023 support for manufacturing and also operating expense is as complies with:

System

202 3 Support

202 2 Real

Manufacturing

Ilmenite

tonnes

1,050,000– 1,150,000

1,088,300

Main zircon

tonnes

51,000– 57,000

58,400

Rutile

tonnes

8,000– 9,000

8,900

Focuses 1

tonnes

37,000– 41,000

45,200

Prices

Complete money operating expense

$ m

208 – 228

N/R 2

Money expenses per tonne of completed item

$/ t

170 – 188

N/R 2

  1. Focuses consist of second zircon and also mineral sands focus

  2. To be reported completely year economic declarations

Ilmenite manufacturing in 2023 is anticipated to be in between 1.05 million to 1.15 million tonnes.

Closing item stocks at the end of 2022 were over regular degrees, which offers adaptability concerning delivery quantities in 2023. 2023 deliveries will certainly depend upon market problems and also the tempo of manufacturing with the year.

Complete money operating expense are prepared for to raise in 2023 because of boost in work, power and also gas as an outcome of projection rising cost of living, in addition to one-off functional expenses related to going across the Namalope West location at WCP An and also boosted insurance policy expenses. As formerly kept in mind by the Firm in its Support Update on 25 November 2022, overall money operating expense for 2022 are prepared for to be extremely a little over the leading end of support ($ 190-210 million), due mostly to greater gas rates. Complete information of 2022 expenses will certainly be offered when the 2022 Initial Outcomes are reported.

Expense on advancement tasks and also research studies is anticipated to be roughly $14 million in 2023. These expenses mostly associate with continuous usefulness benefits the Nataka ore area where WCP A is arranged to start extracting around 2025, and also for optimizing mining capability.

Enhancement tasks are anticipated to set you back $8.5 million and also associate with various smaller sized tasks in water, power and also safety and security administration. There are additionally tasks connecting to enhancements at WCP A, WCP B and also the Mineral Splitting Up Plant.

Maintaining funding expenses in 2023 are anticipated to be roughly $33.5 million.

Kenmare strategies to launch its 2022 Initial Outcomes on Wednesday, 22 March 2023. On top of that, the Firm additionally intends to organize a Funding Markets Day for experts and also financiers on Wednesday, 26 April 2023.

For additional details, please get in touch with:

Kenmare Resources plc
Jeremy Dibb/ Michael Starke
Financier Relations
[email protected]
Tel: +353 1 671 0411
Crowd: +353 87 943 0367

Murray( public relations expert)
Paul O’Kane
[email protected]
Tel: +353 1 498 0300
Crowd: +353 86 609 0221

Regarding Kenmare Resources

Kenmare Resources plc is among the globe’s biggest manufacturers of mineral sands items. Noted on the London Stock Market and also the Euronext Dublin, Kenmare runs the Moma Titanium Minerals Mine in Mozambique. Moma’s manufacturing represent roughly 8% of international titanium feedstocks and also the Firm provides to clients running in greater than 15 nations. Kenmare creates resources that are inevitably eaten in day-to-day quality-of life products such as paints, plastics and also ceramic floor tiles.

All financial quantities describe USA bucks unless or else shown.

Onward Looking Declarations(* )This news includes some progressive declarations that stand for Kenmare’s assumptions for its company, based upon existing assumptions regarding future occasions, which by their nature include threats and also unpredictabilities. Kenmare thinks that its assumptions and also presumptions relative to these progressive declarations are affordable. Nonetheless, due to the fact that they include danger and also unpredictability, which remain in some situations past Kenmare’s control, real outcomes or efficiency might vary materially from those revealed or suggested by such progressive details.

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