**Summary**
Kenmare Resources plc, a leading global producer of titanium minerals and zircon, announced its preliminary results for 2025, highlighting a challenging year due to global uncertainty, market conditions, and operational setbacks. The company reported a significant decline in revenue and adjusted EBITDA, primarily attributed to lower shipments, decreased product prices, and an impairment charge of $301.3 million. Despite these challenges, Kenmare remains focused on cost reduction, with a target of 10% operating cost reduction in 2026. The company suspended its 2025 final dividend to maintain financial stability and balance sheet flexibility.
Operationally, Kenmare faced delays in the commissioning of its Wet Concentrator Plant A (WCP A) upgrade, leading to lower production volumes. However, the company is on track to achieve its 2026 guidance, with WCP A operating at nameplate capacity and a focus on drawing down finished product stockpiles. The titanium feedstocks market remains soft, but the zircon market shows signs of recovery.
Financially, Kenmare reported a net debt of $158.8 million, a significant increase from the previous year due to capital expenditure on the WCP A upgrade. The company is in discussions with lenders to adjust its Revolving Credit Facility (RCF) covenants. Capital expenditure is expected to decrease substantially in 2026, with a focus on sustaining capital and deferring discretionary spending.
In terms of sustainability, Kenmare maintained its strong safety performance, achieving its lowest ever All Injury Frequency Rate. The company is committed to its decarbonization targets but faces challenges in structuring economically viable projects. Board development and effectiveness were strengthened with new appointments, enhancing gender diversity.
Looking ahead, Kenmare is focused on transitioning WCP A to the Nataka ore zone, securing long-term production and value creation. Despite near-term headwinds, the company believes in the medium to long-term fundamentals of its products and is well-positioned to benefit from market upswings. The Board will continuously review the opportunity to resume dividend payments.
Kenmare Resources PLC
Publication of 2025 Annual Report