Kenmare Resources interim revenue falls and trims output guidance

Kenmare Resources PLC on Wednesday said the titanium feedstocks market remained soft in the first half of 2026, as it reported a decline in revenue, though its pretax loss narrowed.

The Dublin-based mining company operates the Moma titanium minerals mine in Mozambique.

Pretax loss narrowed to USD35.4 million in the first half of 2026 from USD88.6 million a year prior. Kenmare took no impairment charge in the first half of 2026, compared to USD100.3 million a year ago, which had been mainly due to lower projected future revenue assumptions associated with an uncertain pricing outlook.

However, adjusted earnings before interest, tax, depreciation and amortisation fell 91% to USD4.4 million from USD47.2 million.

Revenue fell 11% to USD149.1 million from USD167.7 million, as the average price received per tonne dropped by 26% to USD242 from USD326 with Kenmare citing "weak product markets".

The titanium feedstocks market remained soft in the first half as Chinese feedstock supply continued to rise, Kenmare said.

Total operating costs increased 16% to USD174.7 million from USD150.5 million.

Kenmare declared no interim dividend compared to 10 US cents per share a year ago. In March, Kenmare suspended dividend payments, citing challenging market conditions, and its aim to maintain financial stability.

Managing Director Tom Hickey said: "As we progress further into the third quarter, Kenmare remains on track to achieve its 2026 shipments guidance, which is our 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.

"Pleasingly, production has improved in July and early August, due to a strong performance by wet concentrator plant B and steady progress at wet concentrator plant A.

"Although the average price received for our products declined in H1, demand for Kenmare's products remains stable, with a healthy order book for Q3."

He added that the company continued to engage constructively with the government of Mozambique regarding Moma's implementation agreement during the first half, noting "significant" progress made over recent weeks on key issues.

Kenmare will publish a third-quarter production update on October 15.

Kenmare shares were up 7.0% to 207.66 pence each on Wednesday afternoon in London.

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