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Kenmare Resources PLC on Wednesday said it is on track to meet its 2025 production and cost guidance after a steady second quarter, but flagged a non-cash impairment charge of up to $125 million due to weaker long-term price assumptions. The Mozambique-focused producer of titanium minerals and zircon said heavy mineral concentrate output rose 5% year-on-year to 358,300 tonnes in the second quarter, supported by higher ore grades despite lower excavated volumes. Ilmenite production rose 3% to 245,400 tonnes, while primary zircon output was up 1% at 13,100 tonnes. Total shipments of finished products, however, dropped 23% to 181,800 tonnes, hindered by poor weather and vessel maintenance. One of Kenmare’s transshipment vessels entered dry dock in June and is expected to return in late August. Despite citing a stable ilmenite market and strong demand across its portfolio, Kenmare reduced its medium-term pricing outlook due to global oversupply and subdued demand for zircon and rutile. As a result, it expects to book a non-cash impairment charge of up to $125 million in its first-half results, set to be published on August 20. ‘While this is disappointing, it will be a non-cash charge with no anticipated impact on our operations, projects or financing facilities or the company‘s ability to pay dividends,’ said Managing Director Tom Hickey. He added that production in the second half is expected to be stronger, helped by the commissioning of higher-capacity dredges at its Wet Concentrator Plant A. At the end of June, Kenmare had net debt of $83.1 million, up from $25.0 million at December 31, following capital spending and its final dividend payout. It expects debt levels to remain elevated until the capital upgrade is completed in 2026, reducing thereafter as free cash flow improves. Kenmare reaffirmed its commitment to shareholder returns and said it expects to declare an interim dividend of between 8 and 12 US cents per share, excluding the impact of the impairment charge from its dividend calculation. Shares in the company were down 3.1% at 314.80 pence in London on Wednesday afternoon. Copyright 2025 Alliance News Ltd. All Rights Reserved.
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