Kenmare Resources (KMR) H1 2026 earnings summary

Executive summary

• Shipment volumes increased 13–14% year-over-year in H1 2026, but average prices fell 26% to $242/ton due to weak markets and product mix changes.

• Revenue declined 16% year-over-year to $134.5 million, and EBITDA dropped to $4.4 million from $47.2 million, resulting in a net loss after tax of $34.1 million.

• Production was impacted by a 34% drop in HMC and a 39% decrease in ilmenite output, mainly due to lower ore grades and slower WCP A ramp-up.

• Safety performance was strong, with zero Lost Time Injuries and a record low all-injury frequency rate.

• Implementation Agreement negotiations with the Mozambican government progressed positively, with constructive engagement and written assurances.

Financial highlights

• Mineral product revenue declined 16% year-over-year to $134.5 million, reflecting lower average prices and product mix.

• EBITDA for H1 2026 was $4.4 million, significantly down due to price declines; net loss after tax was $34.1 million.

• Total cash operating costs decreased 12% year-over-year to $109.6 million, but unit costs rose to $255/ton due to lower production volumes.

• Net debt increased to $175.8 million at period end, mainly due to timing of receipts and development CapEx.

• Cash flow before development CapEx was $6.1 million; development CapEx outflow was $23–30.1 million in H1 2026.

Outlook and guidance

• On track to achieve 2026 shipment guidance of at least 1.1 million tonnes, supported by a solid Q3 order book.

• Ilmenite production guidance revised to approximately 800,000 tonnes for the year.

• Total cash operating costs expected in the $215–225 million range for 2026.

• Development CapEx expected to be $7 million in H2 2026, focused on infrastructure for transition to Nataka.

• Dividend payments remain suspended until market and balance sheet conditions improve.