Kenmare Resources beats full-year ilmenite production guidance

(Alliance News) - Kenmare Resources PLC on Monday reported a "strong finish" to 2024 as key ...

Alliance News 20 January, 2025 | 6:13PM
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(Alliance News) - Kenmare Resources PLC on Monday reported a "strong finish" to 2024 as key production figures either met or surpassed guidance ranges given by the firm.

The Mozambique-focused producer of titanium minerals and zircon reported an 2.3% increase in on-year ilmenite production for 2024 to 1.0 million tonnes from 986,300 tonnes, in line with previous guidance of between 950,000 tonnes and 1.1 million tonnes.

For 2025, Kenmare is guiding in a similar range, between 930,000 tonnes and 1.1 million tonnes.

Kenmare credited this improvement to higher ilmenite content in the heavy mineral concentrate as well as stronger recoveries.

Primary zircon marginally exceeded production guidance given of between 45,000 tonnes and 50,000 tonnes for 2024 but fell on-year by 1.2% to 50,500 tonnes from 51,100 tonnes. For 2025, Kenmare is guiding production between 47,500 tonnes and 54,000 tonnes.

Rutile production rose 17% year-on-year to 9,800 tonnes from 8,400 tonnes, ahead of guidance of between 8,000-9000 tonnes. The firm expects to produce between 9,000 tonnes and 10,000 tonnes in 2025.

Concentrates production also rose, up 0.9% on-year to 46,100 tonnes from 45,700 tonnes. This compares with guidance given of between 37,000 and 41,000 tonnes.

Kenmare noted that demand for its products remained robust throughout 2024, adding that sales are expected to continue to exceed production in 2025.

Shares in Kenmare closed up 0.9% at 312.82 pence on Monday in London.

Managing Director Tom Hickey said: "Kenmare delivered a strong finish to 2024, exceeding the midpoint of our production guidance for ilmenite and the upper end of the guidance ranges for all other products.

"We also passed the milestone of two million hours worked without a lost time injury in late December. These achievements are testament to the hard work and commitment of our team at site during a challenging period.

"In 2024 we paid USD48 million in dividends and invested over USD140 million in capital programmes, primarily for the upgrade and transition of our largest mining plant to Nataka. Our balance sheet remains strong, and we expect our full year 2024 dividend to be towards the upper end of our payout policy of 20-40% of profit after tax."

In 2023, Kenmare paid a full-year dividend of 56.04 cents per share.

It plans to release its full-year results on March 26.

By Christopher Ward, Alliance News reporter

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Securities Mentioned in Article

Security Name Price Change (%) Morningstar
Rating
Kenmare Resources PLC 310.00 GBX 0.00 -

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