Kenmare’s revenues fell by 11 percent over last since months

Maputo, 25 Aug (AIM) – The Irish company Kenmare Resources, which has been mining the heavy mineral sands in Moma and Larde districts in the northern Mozambican province of Nampula, has announced that revenues, over the last since months, fell by 11 percent which corresponds to 149.1 million US dollars.

Heavy mineral sands are used for production of titanium ores, such as Ilmenite, that are the raw materials used in paints, paper, plastics, ceramic tiles, and other products.

In a statement, the company explains that it recorded 167.7 million US dollars in the same period of 2025. According to the document, there was an adjusted loss after tax of 34.1 million compared to an adjusted profit after tax of 6.1 million in the same period of last year. The total operating costs rose by 16 percent to 174.7 from 150.5 million dollars.

Tom Hickey, Kenmare’s Managing Director, cited in the document, said that although the average price received for its products declined in the first half of 2026, but “demand for Kenmare’s products remains stable, with a healthy order book for the third quarter of the year.”

“Weak market conditions for our products, combined with the slower than expected commissioning of Wet Concentrator Plant (WCP) A, continued to impact Kenmare’s financial performance in H1 2026. However, with a strengthening zircon market and the capital expenditure for the WCP A upgrade project now substantially complete, the outlook is slightly improved”, Hickey said.

Hickey also said that as the company progresses further into the third quarter, it remains on track to achieve its 2026 shipments guidance, which is its key metric for the year. “We expect to achieve our annual operating and capital cost guidance, although softer than expected ilmenite production in H1 led us to moderate our 2026 guidance to approximately 800,000 tonnes, instead of more than 800,000 tonnes previously”, he said.

“Pleasingly, production has improved in July and early August, due to a strong performance by WCP B and steady progress at WCP A,” he added.

According to the Managing Director, the company continues to engage constructively with the Mozambican government regarding Moma’s Implementation Agreement during the first half of the year, with significant progress made over recent weeks on key issues.

“Kenmare’s Heavy Mineral Concentrate (HMC) production in the first six months of the year fell by 34 percent to 442,200 tonnes, mainly due to a 26 percent decrease in ore grades, as forecast.”

“This largely reflected Wet Concentrator Plant (WCP) A approaching the end of its Namalope mine path. Total production of finished products fell by 14 percent to 430,100 tonnes on the back of lower HMC processed as a result of the decreased HMC production”, reads the note.

Meanwhile, total shipments rose by 14 percent to 555,600 tonnes due to the drawdown of finished product stockpiles and consistent transshipment performance.

Am/