Kenmare suspends final dividend, books large impairment charge
Kenmare Resources PLC on Wednesday reported a 20% drop in annual mineral product revenue, but said it is on track to achieve its guidance for the current year.
Nonetheless, Kenmare shares fell 9.7% to 201.00 pence in London on Wednesday.
The Dublin-based producer of titanium minerals and zircon swung to a pretax loss of $315.6 million for 2025, against a $82.1 million profit in 2024.
However, the company noted that it booked a $301.3 milllion one-off impairment loss for the period, which included the $100.3 million charge recognised in the first half.
Revenue fell to $328.6 million from $414.7 million. Mineral product revenue fell 20% to $312.1 million, due to shipments of finished products decreasing 13% to 947,900 tonnes and the average price received declining 6% to $338 per tonne.
Kenmare said it has suspended its final dividend for 2025, ‘in light of elevated net debt and weak market conditions’. However, it remains ‘committed to resuming dividends as soon as it is prudent to do so and financing facilities permit’.
Kenmare previously declared a final dividend of 17.00 US cents per share for 2024.
‘While global uncertainty has increased in early 2026, Kenmare remains focused on operating our business as efficiently as possible,’ commented Managing Director Tom Hickey. ‘With peak capital expenditure on the Wet Concentrator Plant A upgrade project behind us, we have moved to a materially lower spend profile for 2026 and beyond and are targeting an operating cost reduction of approximately 10% this year.’
He added: ‘In light of the challenging market conditions, we have had to make some difficult but responsible decisions, including retrenching 15% of our Moma employees and suspending the 2025 final dividend...Kenmare continues to engage with the government of Mozambique regarding the renewal of Moma’s implementation agreement.’
As well as reducing operating expenses, Kenmare said it still expects ilmenite production in 2026 to exceed 800,000 tonnes, compared with its 17% fall to 842,300 tonnes in 2025. Heavy mineral concentrate production for 2025 fell 15% to 1.2 million tonnes.
The firm also expects total shipments for 2026 to exceed 1.1 million tonnes.
‘With Q1 almost complete, Kenmare is on track to achieve its 2026 guidance on all metrics and has begun drawing down its finished product stockpiles, in line with its value over volume approach,’ Kenmare added.
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