Kenmare Resources (KMR) investor relations material

Operational performance and production update

• H1 2026 shipments reached 556,000 tonnes, aligning with annual guidance, despite softer ilmenite production due to WCP A commissioning delays.

• Concentrates production guidance was materially exceeded, with a 770% YoY increase driven by strong demand and ZrTi output from historical stockpiles.

• Ilmenite production for 2026 is forecast at approximately 800,000 tonnes, with stronger output expected in H2 as WCP A performance improves.

• Production is expected to strengthen in H2, supported by improved WCP B performance, the restart of dry mining, and the addition of a second selective mining operation (SMO 2) in Q4 2026.

• Safety performance was strong, with over 3.5 million hours worked without a Lost Time Injury since December 2025 and an LTIFR of 0.08 per 200,000 hours.

Market conditions and sales

• Ilmenite demand remained stable but pricing was pressured by increased supply from African and Chinese sources, while zircon markets strengthened with higher prices across all products due to tight supply and robust demand.

• Regional market dynamics diverged, with China favoring chloride pigment due to high sulfuric acid prices, benefiting certain ilmenite types.

• Shipments increased 53% YoY in Q2, aided by stock drawdown and strong demand for new products.

Financial position and capital investment

• Net debt at June 30, 2026 was $175.7 million, with a $30 million increase in the revolving credit facility to $230 million, enhancing financial flexibility.

• Operating cash flow was positive before development CapEx, with CapEx obligations rapidly declining as WCP A nears completion; $23 million spent in H1 and $7 million remaining for H2.

• Operating cost guidance remains on track despite higher diesel and freight costs.