Kenmare Resources (KMR) investor relations material

Operational and Market Overview

• Operates a world-class titanium minerals mine in Mozambique, contributing 6% of the country's GDP and employing over 1,700 people, with 97% local workforce.

• Q3 2025 production and shipments declined, with a 16% YoY decrease in heavy mineral concentrate, 19% drop in ilmenite output, and 25% fall in shipments due to WCP A upgrades and vessel downtime.

• WCP A upgrade, a $341 million project, is over 80% complete, with commissioning expected by year-end, unlocking access to the Nataka ore body, which holds 71% of reserves.

• Operations use mostly renewable hydro power, with a low environmental footprint and progressive land rehabilitation.

• Safety performance improved, with a lost time injury frequency rate of 0.02 per 200,000 hours and the WCP A Projects team remaining LTI-free since project start.

Financial Performance and Capital Allocation

• H1 2025 EBITDA margin was 30%, with net debt rising to $85.1 million by June 30, 2025, reflecting capital investment in WCP A.

• Over $300 million has been returned to shareholders since 2019, including $190 million in dividends and $113 million in buybacks.

• 2025 interim dividend set at USC10.0 per share, with a policy to return 20–40% of profit after tax as dividends.

• Post-WCP A, annual sustaining and improvement CapEx is expected to be $30–50 million, with flexibility for opportunistic M&A or further shareholder returns.

• Costs increased due to mine inflation, higher royalty accruals from government negotiations, and advisory fees from a takeover bid.

Market Conditions and Customer Relations

• Global demand for titanium minerals and zircon weakened in Q3, with lower prices due to increased supply, especially from China, but high-grade zircon demand remained stable in China and Europe.

• One major customer defaulted on $9.3 million, unable to take 65,000 tonnes of contracted ilmenite, but title to goods is retained until payment and efforts to recover payment and redirect sales are ongoing.

• Chinese competition is creating price pressure, but less sophisticated operations are expected to exit over time, supporting future supply-demand balance.

• No significant new mines are being built, which may lead to a supply shortage and price recovery in the medium term.

• HMC and finished product inventories increased in Q3, with drawdown expected in Q4 as shipping capacity normalizes.