Kenmare Resources (KMR) H1 2025 earnings summary

Executive summary

• Operations in H1 2025 were stable and safe, achieving zero lost time injuries, with over 7 million hours injury-free and strong delivery despite market and political challenges.

• Maintained 2025 production and cost guidance, with significant progress on the WCP A upgrade project, 60% complete and commissioning on track for Q3.

• Interim dividend of $0.10 (USc10) per share declared, reflecting continued commitment to shareholder returns during major capital investment.

• A $100.3 million non-cash impairment was recognized due to lower long-term pricing and higher royalty assumptions.

• Termination of a possible offer process, with management focus returning to operations.

Financial highlights

• Mineral product revenue rose 3% year-over-year to $159.6 million, with total revenue at $167.7 million, supported by higher shipments and favorable product mix.

• Adjusted EBITDA was $47.2 million at a 30% margin, despite higher costs and one-off items.

• Cash operating cost per tonne of finished product rose 14% to $248, with total cash operating costs up 16% year-over-year.

• Net debt increased to $85.1 million at period-end, mainly due to peak CapEx and dividend payments.

• Adjusted profit after tax was $6.1 million, down 71% year-over-year.

Outlook and guidance

• 2025 production guidance maintained: 930,000–1,050,000 tonnes of ilmenite, with cost guidance of $228–252 million.

• H2 2025 expected to see higher shipment volumes due to improved weather and increased shipping capacity.

• CapEx for H2 will be $70 million, with spend to decrease rapidly from 2026 onward.

• Market pricing for ilmenite and zircon expected to remain soft in H2 due to oversupply, but order book remains strong.

• Net debt is expected to increase through H2 2025 before declining as capital expenditure slows and free cash flow rises.