Titanium minerals and zircon producer Kenmare Resources, which owns and operates the Moma mine, in Mozambique, says it is confident of meeting guidance on all metrics for this financial year, despite rising global uncertainty and amid a soft titanium feedstocks market.

Reporting on its financial and operational performance for the financial year ended December 31, 2025, MD Tom Hickey says the company remains focused on operating its business as efficiently as possible.

"With peak capital expenditure (capex) on the Wet Concentrator Plant (WCP) 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.

"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. This is in line with our commitment to maintaining balance sheet flexibility and ensuring the group's long-term financial stability. The board recognises the importance of the dividend to many shareholders, and we are focused on resuming dividend payments as soon as it is prudent to do so," Hickey adds.

Kenmare produced 1.23-million tonnes of heavy minerals concentrate (HMC) for the 2025 financial year – a 15% year-on-year decrease, mainly owing to lower excavated ore volumes relating to the WCP A upgrade work. Ilmenite production decreased by 17% year-on-year to 842 300 t owing to the lower volumes of HMC processed.

Shipments of finished products of 947 900 t were 13% lower year-on-year.

Kenmare points out that demand for its products was stable in 2025, but prices declined throughout the year owing to market oversupply.

For this year, Kenmare expects to ship more than 1.1-million tonnes of finished products, while ilmenite production is expected to be above 800 000 t for the year.

FINANCIAL RESULTS
Kenmare's mineral product revenue for 2025 was $312.1-million – a 20% year-on-year decrease on the back of lower shipments and a 6% year-on-year decrease in the price received to $338/t.

The company's adjusted earnings before interest, taxes, depreciation and amortisation (Ebitda) decreased by 63% year-on-year to $58-million owing to lower sales volumes. Its adjusted Ebitda margin was 19%.

Kenmare swung to an adjusted net loss of $23.7-million, compared with the net profit of $64.9-million reported for the 2024 financial year.

Its total cash operating costs of $242.7-million were 0.4% lower year-on-year, mainly as a result of a 10% decrease in production of finished products. Cash operating costs were up 11% year-on-year to $242/t, owing to the lower production volumes.

The company's net debt stood at $158.8-million as at December 31, 2025, compared with net debt of $25-million at 2024 year-end, with the increase mainly the result of capital investment (capex) invested in the WCP A upgrade project.

Kenmare expects its capex for 2026 to be significantly lower, with about $30-million of development capital to be spent on the WCP A upgrade project and $30-million on sustaining capital.

Post the 2025 year-end, Kenmare says shipments have been in line with the run rate required to achieve its guidance for 2026.

The company states that WCP A is regularly operating at its nameplate capacity of 3 500 t/h and while production has been impacted by further challenges relating to commissioning, WCP A is progressing towards achieving its capacity on a consistent basis in the near term.