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Kenmare Resources PLC on Wednesday said demand for its products ‘remains encouraging’, as it cut its half-year dividend by 33% amid lower interim earnings. The Mozambique-focused producer of titanium minerals and zircon swung to a pretax loss of $88.6 million for the six months that ended June 30, from profit of $27.7 million a year earlier. Revenue however edged 1.6% higher to $167.7 million from $165.1 million. Mineral product revenue improved 3.3% to $159.6 million from $154.5 million, driven by a mix of stronger shipments and an increase in the average price received. The average price received per tonne grew 0.9% to $326 from $323, with finished products shipped edging 2.3% higher to 488,900 tonnes from 477,600 tonnes. The weaker earnings despite the top line growth can be attributed primarily to an impairment loss incurred over the period, but with increased costs further hampering the bottom line. Kenmare Resources reported a one-off impairment loss of $100.3 million, ‘primarily due to lower projected future revenue assumptions associated with an uncertain pricing outlook.’ Cost of sales rose 8.4% to $144.8 million from $133.6 million, outpacing the up tick in revenue. Kenmare Resources cut its interim dividend by 33% to 10 US cents per share from 15 cents a year earlier. Shares in the company fell 4.9% to 313.00 pence on Wednesday morning in London. Looking ahead, the company said it is entering the second half of the year with a ‘strong order book’, coupled with ‘good visibility’ across its key markets. It expects pricing to be ‘modestly lower’ in the second half, with it expecting oversupply to persist. Kenmare also expects stronger sales volumes owing to seasonally better weather and the return of the Peg transshipment vessel, increasing shipping capacity, it said. ‘As we progress further into Q3, Kenmare remains on track to achieve its 2025 production and cost guidance. Shipments are expected to be stronger in H2 and we are progressing an opportunity to supplement shipping capacity further by renting a third transshipment vessel for the coming months,’ said Managing Director Tom Hickey. ‘Demand for Kenmare‘s products remains encouraging and ilmenite prices in H1 2025 were only marginally below those of H2 2024. As announced in our Q2 and H1 Production Report, we have taken the decision to lower our longer-term pricing assumptions, which has led us to recognise a non-cash impairment of just over $100 million on our assets. This is a non-cash charge, with no anticipated impact on our operations, projects or financing facilities, or the company’s ability to pay dividends,’ added Hickey. Copyright 2025 Alliance News Ltd. All Rights Reserved.
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