Kenmare Resources: ‘further growth in revenues, earnings and cashflows’ likely in 2022 says Davy analyst (LON:KMR)

Kenmare Resources plc (LON:KMR) announced its preliminary results for the twelve months to 31st December 2021. DirectorsTalk caught up with Davy Research Analyst Colin Grant to discuss its latest results.

Q1: What are the highlights from the FY2021 results?

A1: Very strong production volumes following the relocation of WCP B to Pilivili. Prices have moved sharply higher, especially in H2, and this has helped drive record revenues, EBITDA, margins and free cashflow. Net debt of $83m remains low following the completion of the 13.5% share buyback in December and the ongoing payment of dividends. 

Q2: How do you see the outlook for the company?

A2: The outlook is far more positive than is implied by the share price. The supply response to high prices has been much more muted this cycle than previously and this supports the outlook for pricing. The company is likely going to see further growth in 2022 in revenues, earnings and cashflows moving the company into a net cash position. 

Q3: Have you forecasts changed in any way?

A3: We have not changed our forecasts as we put through a very large upgrade only two months ago. However, pricing trends remain favourable and we see upside risk to our forecasts. The company will be reporting Q1 production in a few weeks so that will be the next datapoint and we may reconsider our forecasts at that stage. 

Kenmare Resources plc (LON:KMR) is an established mining company, which operates the Moma Titanium Minerals Mine, located on the north east coast of Mozambique. 

Kenmare is a leading Titanium minerals producer who’s raw materials are strongly linked with global growth and urbanisation. Kenmare is a standout example of a mine that operates to the highest standards of governance, social and environmental policy and performance. This low-cost, bulk mining operation predominantly utilises hydro-generated power (c. 90%)  and progressive rehabilitation processes, and aims to be a catalyst for positive change in its host communities. Kenmare aligns with a number of voluntary programmes including the EITI, TCFD and IFC.

Click to view all articles for the EPIC:
Or click to view the full company profile:
Facebook
X
LinkedIn
Kenmare Resources plc

More articles like this

Kenmare Resources plc

6 major uses Of Titanium

Titanium is an important refractory metal. Titanium alloy has the characteristics of low density, high specific strength, good corrosion resistance, low thermal conductivity, non-toxic and non-magnetic, weldable, good biocompatibility, and strong surface decoration. Many countries in the world

Kenmare Resources plc

Uses of titanium metal

What is Titanium? Titanium is a silver metal that is strong, resistant to corrosion, and inert. It is the ninth most abundant element in Earth’s crust. Instead of occurring in large deposits, small amounts of titanium occur in

Kenmare Resources plc

What is Titanium Metal?

History Titanium metal, with the symbol Ti, is the ninth most abundant element in the earth‘s crust. It does not occur in large deposits, yet small amounts of titanium are found in almost every rock. Titanium

Kenmare Resources plc

Titanium – metal of the future

Titanium is being increasingly used in our modern society. It is light, strong and corrosion-resistant. These properties allow it to be used in the aerospace industry, building industry, sports goods industry and as implants in a

Kenmare Resources plc

The shares to rely on in a recession

Investors are steeling themselves for a recession as central bankers and politicians struggle to get soaring inflation under control. During troubled times, the conventional advice to investors is ‘don’t panic’ and look to the long term,

Kenmare Resources plc

Airbus calls for a metals stockpile policy in EU

European aerospace manufacturer Airbus called on the EU to act on several fronts to secure metals availability at the EIT Raw Materials Summit in Berlin this week. The aerospace and defence industries are heavily dependant on

Kenmare Resources plc

The attractions of small caps

Philip Rodrigs, the man at the helm of the Investec UK Smaller Companies fund, has good reason to be cheerful. The 30-year-old fund manager has delivered an impressive 66.2% return over the past five years. Even during

Kenmare Resources plc

Kenmare Resources: 2022 site visit presentation

Moma Mine in Mozambique 15 years of production with >30 years in Mozambique 100 years of Mineral Resources Low environmental impact – >90% of electricity from renewable source (hydropower) Meaningful contribution to the local and national

Kenmare Resources plc

Kenmare sees a brighter outlook

Poor weather through the March quarter has limited production and shipping volumes at Kenmare Resources’ Moma titanium minerals mine in Mozambique, but the world-leading mineral sands producer is confident better weather will keep it on track

Kenmare Resources plc

Kenmare Resources analyst and investor visit to Moma Mine

Kenmare Resources plc (LON:KMR, ISE:KMR), one of the leading global producers of titanium minerals and zircon, which operates the Moma Titanium Minerals Mine in northern Mozambique, announced that it is hosting a site visit for analysts and

Kenmare Resources plc

Kenmare on track to reduce emissions by 12% by 2024

Irish mining company Kenmare Resources reduced its energy intensity, hired more women and improved its health and safety record in 2021. The company operates one of the world’s largest ilmenite mines, Moma, in Mozambique. Ilmenite is