Kenmare Resources (KMR) investor relations material

Operational and Safety Performance

• Q1 2026 saw strong shipment volumes and zero lost time injuries, with a rolling LTIFR of 0.07 per 200,000 hours worked.

• HMC production dropped 30% YoY and ilmenite output fell 38% YoY due to WCP A debottlenecking and lower ore grades, but concentrate output surged 397% YoY, driven by ZrTi.

• Shipments were down 10% YoY, with 99,900 tonnes of finished product stockpiles drawn down, aligning with a value-over-volume strategy.

• Finished product output, including ilmenite, zircon, and rutile, was down due to lower HMC production and plant inefficiencies, but annual guidance remains on track.

• Excavated ore volumes fell 14% YoY to 8,005,000 tonnes, with ore grades down 23% YoY.

Capital Projects and Plant Upgrades

• All major construction and installation for WCP A are complete, with capital expenditure rates now substantially lower.

• Low-cost rectification measures in Q1 improved dredge utilisation and tailings management.

• Debottlenecking of plant flowrates is expected to be completed in early Q2, aiming for consistent nameplate capacity.

• WCP A upgrade positions the business for future growth and transition to Nataka ore zone in H2 2026.

Market Conditions and Sales

• Ilmenite markets remained weak due to oversupply and inventory overhang, but supply curtailments and disruptions are starting to tighten the market.

• Zircon prices stabilized in late 2025 and began to rise in Q2 2026, with demand exceeding supply and higher prices secured.

• ZrTi product saw robust demand and a 400% increase in concentrate production, supporting shipping targets.

• Record chloride pigment and titanium metal production in China indicate recovering demand, supporting a strong order book for Q2 and Q3.

• Higher sulfur and sulfuric acid prices are pressuring sulfate pigment producers, boosting demand for chloride pigment and related feedstocks.