Kenmare Resources
Primary ticker: LSE:KMR, OTC: KMRPF
Stage of development: Production
Primary minerals: Titanium minerals (ilmenite and rutile), zircon and monazite (rare-earth element)
Project to promote: Moma Titanium Minerals Mine
Project location: Mozambique
Website: www.kenmareresources.com
Corporate presentation: Click here
Kenmare Resources plc is one of the world’s largest producers of titanium minerals, which are ultimately consumed in everyday quality-of life items such as paints and plastics, as well as titanium metal. Listed on the London Stock Exchange and the Euronext Dublin, Kenmare operates the Moma Titanium Minerals Mine in Mozambique. Moma is one of the largest titanium minerals deposits in the world, with a life of mine of over 100 years and with Moma’s production accounting for approximately 7% of global titanium feedstocks. Kenmare has US$59m net cash and has returned US$280m to shareholders through dividends and share buy-backs since 2019.
Cash: GBP 60.3M
Debt: NIL
Major shareholders:
Oman Investment Authority – 17%
M&G Investment Management – 15%
JO Hambro Capital Management – 7%
FIL Investment Advisors – 6%
Aberforth Partners – 6%
Management Ownership – <1%
Financials
Management Profile
Tom Hickey – Managing Director
Tom joined Kenmare in September 2022 as Finance Director and he was appointed as Managing Director in August 2024. He has 24 years’ experience as a Director of various public companies. This includes eight years as Chief Financial Officer of the African and South American-focused oil and gas producer Tullow Oil plc from 2000 to 2008. Tom also held senior financial roles with the oil and gas exploration company Petroceltic International plc between 2010 and 2016, including latterly as Chief Financial Officer. Tom has a Bachelor of Commerce degree and a Diploma in Professional Accounting, both from University College Dublin, and he is a Fellow of the Irish Institute of Chartered Accountants.
What is your rationale for taking part in 121 Mining Investment?
Kenmare is looking to meet with new North American-based investors. Our shareholder register is primarily UK-focused, with some Irish funds (as the Company is Dublin-based), so we are looking to engage with new investors in different jurisdictions. We also appointed a new Managing Director (Tom Hickey, who will be attending the meetings) in August 2024 so 121 seems like a good opportunity to introduce him to the North American market.
What recent news would you like to highlight to investors attending?
H1 2024 Results, including record net cash and dividend of USc15/share – 14 August 2024
Appointment of Managing Director – 13 August 2024
What are your key goals in 3 months, 6 months, 12 months?
3 Months:
Achieve 2024 guidance on all metrics
6 Months:
Continue to advance the work on our capital project (the Wet Concentrator Plant A upgrade and transition to Nataka)
12 Months:
In late 2025 we expect to have completed the upgrade work on Wet Concentrator Plant A and to begin its transition to Nataka. Nataka hosts >70% of Moma’s 9bn tonnes of Mineral Resources and by transitioning our largest mining plant there, we will secure production from Moma for decades to come.
What do you see as the key risks and challenges facing your company at the moment and how are you overcoming these?
We are undertaking a large capital project over the next 2-3 years and although Kenmare has an experienced projects team and has delivered large projects in the past (including relocating another one of our mining plants in 2020), we are focused on ensuring the project is delivered on time and within budget.
What do you think makes your company such a compelling investment?
– >100 year life of mine – Moma is one of the largest titanium minerals deposits in the world
– Market leading position – Kenmare’s production accounts for 7% of global supply of titanium minerals and we are the largest supplier of ilmenite
– Strong financial position – at 30 June 2024, we had ~US$200m of net current assets, including record net cash of $59m
– Significant shareholder returns – since 2019, we have returned US$280m to shareholders through dividends and share buy-backs
– Trusted corporate citizen – operating responsibly is at the heart of what we do. Moma has a low environmental impact, with >90% of its electricity requirement coming from hydropower and no toxic chemicals used in its mining or processing operations
What are the top 3 key investor takeaways?
Huge Mineral Resources (>100 year life of mine); strong financial position, including US$280m shareholder returns made since 2019; 17 year production history and market-leading position