RESPONSIBLY MEETING
GLOBAL DEMAND FOR
QUALITY-OF-LIFE
MINERALS
Investor Presentation
January 2022
Disclaimer
This Presentation (the "Presentation") has been | This Presentation does not constitute or form part | statements in this Presentation relating to future | ||||||||
prepared and issued by Kenmare Resources plc | of, and should not be construed as, an offer, | financials, results, plans and expectations | ||||||||
(the "Company" or "Kenmare"). While this | invitation or inducement to purchase or subscribe | regarding the Company's business, growth and | ||||||||
Presentation has been prepared in good faith, the | for any securities of the Company nor shall it or | profitability, as well as the general economic | ||||||||
Company and its respective officers, employees, | any part of it form the basis of, or be relied upon in | conditions to which the Company is exposed, are | ||||||||
agents and representatives expressly disclaim any | connection with, any contract or investment | forward looking by nature and may be affected by | ||||||||
and all liability for the contents of, or omissions | decision relating to such securities, nor does it | a variety of factors. The Company is under no | ||||||||
from, this Presentation, and for any other written | constitute a recommendation regarding the | obligation to update or keep current the | ||||||||
or oral communication transmitted or made | securities of the Company. | information contained in this Presentation, to | ||||||||
available | to the recipient or | any of its | officers, | This Presentation is as of the date hereof. | This | correct any | inaccuracies which | may | become | |
employees, agents or representatives. | apparent, or | to publicly announce | the | result of | ||||||
Presentation | includes certain statements, | |||||||||
any revision to the statements made herein and | ||||||||||
No representations | or | warranties are or | will be | estimates and | projections | provided | by | the | ||
any opinions expressed in the Presentation or in | ||||||||||
expressed or are to be implied on the part of the | Company with respect to the anticipated future | |||||||||
any related | materials are subject to | change | ||||||||
Company, | or any | of | its | respective | officers, | performance of the Company or the industry in | ||||
without notice. | ||||||||||
employees, agents or representatives in or from | which it operates. Such statements, estimates and | |||||||||
this Presentation or any other written or oral | projections reflect various assumptions and | |||||||||
communication from the Company, or any of its | subjective judgments by the Company's | |||||||||
respective officers, employees, agents or | management | concerning | anticipated | results, | ||||||
representatives concerning the Company or any | certain of which assumptions and judgments may | |||||||||
other factors relevant to any transaction involving | be significant in the context of the statements, | |||||||||
the Company or as to the accuracy, completeness | estimates and projections made. These | |||||||||
or fairness of this Presentation, the information or | assumptions and judgments may or may not | |||||||||
opinions on which it is based, or any other written | prove to be correct and there can be no | |||||||||
or oral information made available in connection | assurance that any projected results are | |||||||||
with the Company. | attainable or will be realised. | In particular, certain |
Kenmare Resources - Investor Presentation January 2022 | 2 |
Overview: Kenmare Resources
The world's largest ilmenite producer
Moma Mine in Mozambique
- 15 years of production with >30 years in Mozambique
- >100 years life of mine
- Low environmental impact - 90% of power from renewable source (hydropower)
- Meaningful contribution to the local and national economy
Market-leading position
- Four product streams: ilmenite, zircon, rutile and mineral sands concentrate (monazite)
- Kenmare production represents 8% of global supply
- Key raw materials in the manufacture of paints, paper and plastic
Significant capital investment
- Capital expenditure of ~US$1.4bn to date
- Three development projects delivered between 2018 and 2020 to increase production to 1.2 million tonnes per annum (Mtpa) of ilmenite, plus associated co-products
Kenmare Resources - Investor Presentation January 2022
Wet Concentrator Plant B mining at Pilivili
2020 Revenue by product
Concentrates Rutile 3% 7%
Primary zircon 19%
Ilmenite 72%
3
Delivering increased production and profitability
Ramping up to 1.2 Mtpa ilmenite production
GROWTH
Guidance of 1.125 to 1.225 Mt of ilmenite (plus associated co-products) in 2022
MARGIN
EXPANSION
Kenmare is targeting a first quartile position on the industry revenue to cost curve
SHAREHOLDER
RETURNS
Targeting a 25% Profit After Tax (PAT) dividend payout ratio in 2021, up from 20% previously
1. EBITDA margin based on EBITDA over free on board (FOB) revenues
46%
production
increase
49%1
EBITDA margin
~US$100m
2021 total
shareholder returns
2021 was a record year for
safety, production and
shipments
H1 2021 EBITDA margin up significantly from 33% in H1 2020
USc7.29/sh 2021 interim dividend and US$81.6m returned to shareholders through share buy-back
Kenmare Resources - Investor Presentation January 2022
4
Committed to safety and sustainability
Over six million hours worked in 2021 without a Lost Time Injury
Safety | Sustainability | COVID-19 |
- Lowest ever Lost Time Injury Frequency Rate (LTIFR) in 2021
- 88% improvement in LTIFR vs 2020
- One year without a Lost Time Injury achieved on 6 January 2022
- Inaugural Sustainability Report published for year-end 2020
- Inaugural Climate Strategy Report to be published for year-end 2021
- 96% of employees at the Moma Mine had received two doses of the vaccine by year-end
- 12,000 vaccines donated for local communities
Kenmare Resources - Investor Presentation January 2022 | 5 |
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Kenmare Resources plc published this content on 27 January 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 27 January 2022 15:54:22 UTC.