Kenmare Resources significant increases in production and sales volumes

Kenmare Resources plc (LON:KMR), one of the leading global producers of titanium minerals and zircon, which operates the Moma Titanium Minerals Mine in northern Mozambique, has published its Half-Yearly Financial Report for the six month period ended 30 June 2021 (“H1 2021”) and announces its interim dividend for 2021.

Statement from Michael Carvill, Managing Director:

“I am delighted to see the capital investment and the hard work of our teams over the last three years generating significant increases in production and sales volumes. This is also translating into higher profitability. H1 2021 EBITDA is up 121% on last year and profits after tax are up 278%. As a result, we have increased our interim dividend to USc7.29 per share, more than triple last year’s interim dividend.

We remain concerned by the rise in delta variant COVID-19 cases in Southern Africa. Therefore, I’m particularly pleased that we completed the first round of COVID-19 vaccinations for our Mine employees and contractors. Local community vaccinations have also commenced.

We remain confident in the outlook for annual production and re-iterate our guidance of 1.1-1.2 million tonnes of ilmenite in 2021. I am pleased our RUPS decarbonisation project, targeting a material reduction in CO2 emissions, is underway. Market conditions for titanium feedstocks remained strong in H1 2021, with pricing strengthening quarter on quarter. The outlook for zircon has also continued to improve, with price increases during the half and continuing into H2 2021 to date.”

H1 2021 overview


  • Lost time injury frequency rate (“LTIFR”) of 0.14 per 200,000 work-hours for the 12 months to 30 June 2021 (30 June 2020: 0.32) – a result of embedding improved risk management practices and strengthening safety leadership
  • First round of COVID-19 vaccinations of the Mine workforce completed, second round commenced and due for completion by mid-September. Local community vaccination programme to distribute 12,000 inoculations started in July 2021
  • Excavated ore volumes of 19.9 million tonnes, including quarter-on-quarter record of 10.9 million tonnes in Q2 2021
  • Heavy Mineral Concentrate (“HMC”) production of 798,500 tonnes, a 43% increase compared to H1 2020 (558,400 tonnes), due to higher ore grades and tonnes mined
  • Total finished product production of 612,100 tonnes, a 49% increase compared to H1 2020 (410,600 tonnes) due primarily to increased HMC availability
  • Total shipments of 594,100 tonnes, a 44% increase (H1 2020: 413,700 tonnes), due to higher production volumes
  • Kenmare expects production of all products to be within 2021 guidance

Financials and markets

  • Interim dividend of USc7.29 (H1 2020: USc2.31) per share, up 217%, in line with Kenmare’s dividend target to return 25% of profit after tax in 2021
  • Revenues (FOB) of US$167.8 million in H1 2021, up 51% compared to H1 2020 (US$111.2 million), benefitting from higher volumes shipped and higher prices
  • EBITDA of US$82.3 million, a 121% increase compared to H1 2020 (US$37.2 million), due to higher pricing and shipments combined with lower unit costs. Profit after tax of US$48.0 million, up 278% (H1 2020: US$12.7 million) setting a new half-yearly record
  • Average received free on board (“FOB”) price for all finished products of US$282 per tonne in H1 2021, a 5% increase compared to H1 2020 (US$269 per tonne), benefitting from strong market conditions but impacted by a lower proportion of zircon and rutile sales, which is expected to reverse in H2
  • Cash operating cost per tonne of finished product fell by 22% to US$143 per tonne (H1 2020: US$183 per tonne), as higher cash operating costs were more than offset by increased production volumes
  • At the end of H1 2021, cash and cash equivalents were US$56.5 million and gross debt was US$132.7 million, resulting in net debt of US$76.2 million (31 December 2020: US$64.0 million), which is mainly due to the timing of capital expenditure payments and a reduction in the use of invoice factoring
  • Strong ilmenite market conditions continued in H1 2021 and this is expected to continue in Q3 2021, with higher prices agreed and a strong order book in place
  • The outlook for zircon market has improved, with received prices rising in Q2 2021

Analyst & investor webcast

Kenmare Resources will host a conference call and webcast for analysts, institutional investors, and media today at 9:00am GMT.

Private investor webinar

There will also be a separate webinar for private investors tomorrow, Thursday, 19 August 2021, at 17:30 BST.

The Half-Yearly Financial Report for the period ended 30 June 2021 is also available at

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