Kenmare Resources flags strong full-year operational performance
By Josh White
Date: Monday 20 Jan 2025
(Sharecast News) - Kenmare Resources reported a strong operational performance for 2024 on Monday, with ilmenite production exceeding the midpoint of guidance and output of primary zircon, rutile, and concentrates surpassing the upper end of expectations.
The London-listed company said it produced 1,446,600 tonnes of heavy mineral concentrate (HMC), in line with the prior year, supported by record excavated ore volumes, though offset by lower ore grades.
Ilmenite production rose 2% year-on-year to 1,008,900 tonnes, driven by higher ilmenite content in HMC and improved recoveries.
Shipments of finished products increased 4% to 1,088,600 tonnes, with the second half of the year contributing significantly, as anticipated.
Kenmare paid an interim dividend of 15 US cents per share in October, and said it expected the full-year dividend to be at the upper end of its 20% to 40% payout ratio target.
The company ended 2024 with net debt of $24.8m, compared with net cash of $20.7m in the prior year, reflecting ongoing development capital expenditure.
Demand for Kenmare's products reportedly remained robust, with sales expected to continue exceeding production in 2025.
Ilmenite production for 2025 was projected in the range of 930,000 to 1,050,000 tonnes.
Capital expenditure on development projects and studies was forecast at about $155m for 2025, with the wet concentrator plant A project remaining on budget at an estimated total cost of $341m.
The renewal process for Moma's implementation agreement was meanwhile progressing, with the government of Mozambique confirming Kenmare's rights under the existing agreement remained valid until the renewal was completed.
Kenmare recorded a lost time injury frequency rate of 0.06 per 200,000 hours worked in 2024, down from 0.15 in the prior year, with no lost time injuries reported in the fourth quarter.
The board also noted that James McCullough was set to assume the role of chief financial officer from 1 May.
"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," said managing director Tom Hickey.
"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."
Hickey noted that in 2024, the company paid $48m in dividends and invested over $140m in capital programmes, primarily for the upgrade and transition of its 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% to 40% of profit after tax."
At 1015 GMT, shares in Kenmare Resources were up 0.38% at 311.18p.
Reporting by Josh White for Sharecast.com.
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