Kenmare cuts annual production outlook despite stronger third quarter

Kenmare Resources PLC on Thursday lowered its annual production and shipments guidance despite reporting higher third-quarter output at its Moma Titanium Minerals Mine in Mozambique.

The Dublin-based producer of titanium minerals and zircon said it now expects ilmenite production of between 710,000 and 750,000 tonnes in 2026, down from previous guidance of approximately 800,000 tonnes, due to ongoing commissioning challenges at its Wet Concentrator Plant A.

Full-year shipments are expected to reach approximately 1.05 million tonnes, below previous guidance of more than 1.1 million tonnes, reflecting delays at other ports that restricted vessel loading time at Moma.

Kenmare also expects total cash operating costs to be towards the upper end of its USD215 million to USD225 million guidance range.

In the three months to September 30, ilmenite production rose 12% to 233,600 tonnes from 209,000 tonnes a year earlier, and increased 59% from the second quarter.

Heavy mineral concentrate production increased 12% year-on-year to 334,100 tonnes, supported by a 22% rise in excavated ore volumes, while primary zircon production climbed 6% to 13,000 tonnes.

Total shipments rose 7% to 242,900 tonnes from 227,400 tonnes a year earlier.

Managing Director Tom Hickey said: "Ilmenite production strengthened materially in Q3 2026, rising almost 60% compared to Q2, due to increased excavated ore volumes at all three Wet Concentrator Plants."

Kenmare expects WCP A to consistently achieve its nameplate capacity during the first half of 2027.

The company also said it completed a pre-feasibility study identifying the potential to produce up to 4,000 tonnes of monazite annually, a mineral containing rare earth elements, and is progressing to a definitive feasibility study.

Separately, Kenmare confirmed that discussions with International Resources Holdings RSC Ltd remain ongoing, following a non-binding proposal for a possible cash takeover announced on October 6.

The potential bidder has until November 17 to announce a firm offer or withdraw its interest.

Kenmare said titanium feedstock market conditions remained challenging during the quarter, although zircon prices continued to improve amid tightening supply.

Kenmare Resources rose 0.2% to 226.50 pence in London on Thursday afternoon.

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