Kenmare Resources (KMR) Status update summary

Strategic and Operational Overview

• Focus shifted from maximizing production to prioritizing shipments, sales, and cash generation to adapt to a lower pricing environment in 2026.

• Major capital investment in upgrading the WCP A plant to access the Nataka ore body, representing over 70% of reserves and securing long-term operations.

• Over 80% of the $341 million WCP A project capital cost incurred by end-2025, with the upgrade now in final commissioning and full capacity targeted in Q1 2026.

• Operating costs are targeted to be significantly lower in 2026, with a retrenchment program reducing personnel by up to 15%.

• Sustaining CapEx for 2026 is guided at $30 million, a substantial reduction from previous years.

Market Conditions and Financial Guidance

• Global market for ilmenite and zircon remains oversupplied, with pricing subdued due to increased supply, especially from China.

• Shipment volumes are expected to increase by over 15% in 2026, targeting above 1.1 million tonnes and drawing down inventories.

• Net debt at the end of 2025 was $158.8 million, expected to remain relatively flat in 2026, with cash and equivalents at $48.6 million.

• Asset impairment of up to $300 million is anticipated in 2025, driven by weaker medium-term pricing expectations.

• Total cash operating costs for 2026 are guided at $215–225 million, with per-tonne costs of $240–250, and materially lower capex expected.

ESG and Community Engagement

• Over $25 million invested in community initiatives since 2004, focusing on economic development, health, and infrastructure.

• Achieved lowest ever all-injury frequency rate and over 60% waste recycling in 2025.

• 97% of the workforce is Mozambican, with a strong emphasis on safety and local recruitment.

• Entered FTSE4Good index in June 2025 and named Mozambique's most transparent company for the fifth year.

• Ongoing negotiations with the Mozambican government to renew the implementation agreement, with proposed increased royalties.